Adani Ports and Special Economic Zone (APSEZ) plans to acquire stake in Vizag Seaport, which is the largest multi-commodity terminal at Visakhapatnam port.
The terminal can handle all types of cargo except petroleum, oil and lubricants. It started operations on a 30-year contract from 28 November 2001 and loaded 5.55 million tonne (mn t) of cargo in the year to March 2012 from two berths.
The terminal shares 17.11 percent of the annual revenue collected from customers on berth hire and wharf-age with Visakhapatnam port, which translates to about 7 percent on a gross revenue basis.
Presently, the terminal is 74 percent owned by Mumbai-listed Gammon Infrastructure projects (GIPL). Lastin Holdings and Precision Shipping hold the balance stake. Lastin Holdings is the investment arm of SS Global—promoted by Trinamool Congress law-maker SS Bose.
APSEZ is the operator of IndiaÂ’s biggest private port at Mundra in Gujarat and the company is reportedly planning to strengthen its presence in the countryÂ’s eastern coast and expand its port business.
The Adani Group is also the countryÂ’s largest coal importer and trader besides being IndiaÂ’s biggest private port operator.
Port contracts at Union government-controlled ports are decided on the basis of revenue share or royalty. The entity willing to share the most from its annual revenue wins the cargo-handling deal, typically stretching 30 years.
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