Adani Group steps into shipping

Nov 15, 2010, 12:18PM EST
Adani Group plans to bring in coal for their power projects by their own ships

Adani Group has become the latest entrant to get into shipping. The flagship company, Adani Enterprises Ltd. (formerly known as Adani Exports Ltd.), set up by Gautam S Adani in 1988, was first to get established as the biggest private port operator in the country. Initially Adani Shipping (India) Pvt. Ltd. was set up in Mumbai to handle exclusively technical management of the ships. Now the group has formed a subsidiary Adani Shipping Singapore Ltd, which will soon be taking delivery of two new buildings as part of its major initiative to cash in on its captive cargo potential.

 

“We have placed orders for four capesize ships requiring investment of $ 250 million,” said Gautam Adani. “The plan is to have a fleet size of 20 ships within the next five years and this will require an investment of around $ 1.52 billion.”

 

The company had placed order for four vessels all being built at Hanjin Heavy Industries in their Subic Shipyard. Two ships will be delivered in January 2011 and the other two in 2012. According to Bala K. Subramaniam, Director of Adani Shipping (India) Pvt. Ltd., and the Senior Advisor to Adani Shipping Singapore Ltd., the Adani Group and also the Mundra Port and Special Economic Zone Ltd., (MPSEZ) all these ships will go to the Singapore subsidiary, as Singapore flag offers more favorable conditions than the Indian registry.     

 

The bulkers will also be used for bringing in mostly coal for the groups’ power plants under construction. Since power generation is crucial for the overall operations of the group, Adani Power Ltd., was established to make available economical, uninterrupted and stable power to the industrial, commercial and residential units located within the SEZ.

 

We have electricity production capacity of 990 MW at Mundra which will be ramped up in the next two years to 4620 MW by 2012,” informed Mr Subramaniam. “Immediately next to our power station, TATAs are setting up their own power station of 4,000 MW (capacity). We will be handling the coal both for our requirement and that of TATAs. Hence three berths to handle capesize vessels are being developed. The handling capacity in the first phase will be 32 million tons. Also for quick handling two conveyor belts are coming in place one will be dedicated for TATA’s use and the other for us. We will also have Stackers and Reclaimer for moving the coal from the port to the evacuation site.”

 

“We have started a vision,” asserts Adani. “By 2020, we should have port-handling capacity of more than 200 million tons of cargo annually, 20,000 MW of commissioned power generation capacity and 200 million tons per annum of coal mining capacity in India and oversea,”.

 

Adani’s have mines in Kalimantan, East Indonesia from where coal in shipped and delivered to their own power stations as well as to that of other electricity board. So far this cargo is being shipped through chartered ships. “Since we charter 60 to 70 vessels at any particular time for transporting coal and other break bulk cargo we have had arrangement to handle it from Dubai. Now ship owning is found to be the best alternative,” stated Mr Balasubramaniam.

 

Adani’s have acquired large coal field in Queensland Australia and have a new coal terminal at Dudgeon Point.  Dalrymple Bay Coal Terminal (DBCT) jointly with Adani have been selected to prepare a master plan for development of new coal export infrastructure at Dudgeon Point. They have been given them the right to develop coal berths facilities at Dudgeon port along with a railway line connecting the port and the main line.

 

 

 
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