Adani Ports Step Closer to India’s Kattupalli Port

Adani Ports and Special Economic Zone Limited has, through it subsidiary Adani Kattupalli Ports Private Limited (AKPPL), entered into an agreement to acquire Kattupalli Port in Tamil Nadu, according to an announcement filed to National Stock Exchange of India (NSE).

The move is the result of a Memorandum of Understanding (MoU) signed with the operator of the port, Larsen & Toubro Shipbuilding Limited (LTSB), at the beginning of October this year.

This is subject to receiving the necessary approvals from the Government of Tamil Nadu and Central Government, and the port being demerged from LTSB. Currently L&T operates both the port and shipyard under a single entity, L&T Ship Building Limited.

While awaiting the necessary approvals, Adani’s subsidiary has entered into an arrangement to take over the operations of the port. LTSB will continue managing and operating the shipyard located at the port.

“The Kattupalli agreement is yet another step by us to continue to enable the development of the port infrastructure that is critical for our country. The Kattupalli port is a strategic complement to our Ennore Container terminal which is getting commissioned next year. Both these ports will substantially help reduce congestion in the region and will thereby help contribute to the rapid growth of the State of Tamil Nadu and the surrounding regions,” speaking on the development, Gautam Adani, Chairman, Adani Group said.

Kattupalli is a deep-water all-weather port with an international container terminal located 35 km from Chennai, Tamil Nadu. The port launched commercial operations in January 2013. It has two berths with a total quay length of about 710 metres and is equipped to handle containers with an installed capacity of 1.2 million TEUs per year.