Adani Ports & Special Economic Zone Ltd (APSEZ) has received approvals to expand Mundra port's capacity to 514 million tonnes with a Rs 45,000 crore investment
Adani Ports & Special Economic Zone Ltd (APSEZ) has received all the environmental and coastal regulation zone clearances from the central government. This approval will allow the company to expand the capacity of its main port in Mundra to 514 million tonnes, involving an investment of Rs 45,000 crore.
This development could strengthen APSEZ's position as it negotiates with the Gujarat government for an extension of the concession period beyond 2031, according to a report by the Economics Times.
The port, which is situated in Gujarat's Kutch district, currently holds approval to handle 225 million tonnes of cargo annually, including 9.5 million twenty-foot equivalent units (TEUs) of containers, as per its design capacity and environmental and coastal regulation zone clearance.
Mundra, India's largest commercial port, handled around 179.6 million tonnes of cargo and 7.4 million TEUs in FY24. These figures represent more than 25 per cent of India's total cargo volumes and over 30 per cent of its container cargo.
The company expects to handle more than 200 million tonnes of cargo in fiscal year 2025.
According to a port industry official quoted in the report, ports and terminals are most efficient when operating at 70 per cent capacity utilization. Efficiency decreases and delays become more frequent when capacity exceeds this threshold.
"At 70 per cent capacity utilisation, the terminal works at full efficiency. Above that, the efficiency drops, and delays start occurring," the official stated.
With the port growing rapidly in recent years, it's nearing its maximum capacity. APSEZ has applied for approval from the Expert Appraisal Committee of the Ministry of Environment, Forest and Climate Change to expand the port's capacity from 289 million tonnes to 514 million tonnes. This expansion is part of a plan to develop a 3,335-hectare waterfront area at Mundra port and will accommodate various types of cargo including multi-purpose, liquid, gas, and cryogenic materials.