Adani Ports and Special Economic Zone Ltd (APSEZ) announced on Wednesday that it has received the Letter of Award (LoA) for the development and operation of two crucial dry bulk berths at Paradip Port in Odisha. This strategic win will add 18 million metric tonnes (MMT) of mechanised cargo-handling capacity to APSEZ's portfolio, reinforcing its position on India's eastern seaboard.
The project, which involves the CQ-I and CQ-II berths, will be executed under a Public-Private Partnership (PPP) model, granting APSEZ a 30-year concession. This expansion will elevate APSEZ’s total port capacity to 671 MMT, a significant step towards its ambitious goal of achieving 1 billion tonnes of cargo throughput by 2030.
Strategic Expansion on East Coast
The Paradip Port concession marks APSEZ's entry into India’s second-largest major port, a vital hub for bulk commodities. Paradip's proximity to a mineral-rich hinterland and major steel-producing facilities makes it an essential gateway for various bulk goods. APSEZ already operates approximately 140 MMT of capacity across other East Coast ports, including Haldia, Dhamra, Gopalpur, and Gangavaram, making the new berths a natural extension of its existing network.
Under the terms of the concession, APSEZ will develop the CQ-I and CQ-II berths with state-of-the-art mechanised cargo-handling systems, deep-draft capabilities, and extensive storage infrastructure. This will significantly strengthen the company's access to the industrial and manufacturing clusters located in eastern and central India.
“The Paradip concession will strengthen APSEZ’s presence on the East Coast and expand our access to one of India's most important industrial and mineral-rich hinterlands,” stated Ashwani Gupta, Whole-time Director and CEO, APSEZ. “With Paradip, APSEZ's network grows to 16 ports and terminals across India's 11,000-km coastline, strengthening our ability to deliver integrated port, logistics and marine solutions through the country's most comprehensive transport infrastructure platform.”
Boosting India's Bulk Cargo Capacity
The addition of 18 MMT capacity comes at a critical juncture, as ports along India’s East Coast are experiencing high utilisation rates due to increasing cargo demand. APSEZ anticipates that the new terminal will effectively support the rising volumes of essential dry bulk cargo such as coal, limestone, and other minerals.
This project is also expected to bolster growing industrial activity, particularly the expansion of the steel sector in the hinterland. Furthermore, government initiatives to promote domestic coal production are driving increased demand for robust bulk-handling infrastructure. For APSEZ, the Paradip concession represents another strategic node in its integrated ports and logistics network, enhancing its exposure to crucial cargo flows from India's mineral-rich regions and solidifying its position as a leading integrated transport operator.