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Mundra Port

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Mundra Port in Gujarat is India’s largest port and privately owned by Adani Enterprises of Adani Power.

Mundra Port Coal Terminal is Asia's biggest coal importing terminal, with handling capacity of 60 million tonnes of coal annually.[1] The terminal plays a leading role in bringing in coal from Adani's overseas mines in Indonesia and Australia.[2]

Location

The port is located in the state of Gujarat, on the north shores of the Gulf of Kutch, about 50 kilometers south of Anjar.

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Background

Adani is India's largest private multi-port operator, with interests in six Indian ports. The company's website refers to Mundra Port as its "crown jewel."[1]

Mundra Port's capacity has increased from 50 million metric tons a year in 2011[3] to 200 million tons in 2014, and the port has achieved new records for cargo handling and pace of growth in recent years, becoming the first Indian port to accommodate capesize vessels[4], the first to handle 100 million tons of cargo in a single year (FY 2013-14)[5] and the first to handle over 150,000 tons of coal in a single day.[6] In 2013, Mundra Port surpassed publicly owned Kandla Port, 60km to the northeast, to become India's largest port by tonnage handled.[7]

History

The Port of Mundra is also a special economic zone. Incorporated in 1998 as Gujarat Adani Port Limited (GAPL), the company began operating in 2001. The Mundra Special Economic Zone was incorporated in 2003 and was merged with GAPL in 2006. The combined company was renamed "Mundra Port and Special Economic Zone Limited" and is India’s first multi-product port-based special economic zone (SEZ). Mundra port plans to develop a coal-import terminal at Vishakhapatnam in southern India.[8]

According to the New York Times, billionaire Gautam Adani of Adani Enterprises spent a decade assembling tracts of land into a special economic zone and transformed Mundra into India’s biggest private port. Adani then used the port for a coal "global expansion." He acquired mining rights in Indonesia, bought two cargo ships (with two more on order as of July 2011), and bought a coal mine and Abbot Point port in Australia.[2][9]

Coal plant

The Mundra Thermal Power Project was conceived for the captive consumption of the Mundra Port. Adani Power wants the plant at Mundra to be 4620 MW, consisting of 4 units of 330 MW and 5 units of 660 MW.[10]

Mundra buys Australia coal mines and Abbot Point Terminal

In May 2011, Mundra Port & Special Economic Zone Ltd. (owned by Adani Enterprises) secured a $2 billion deal to lease Australia's Abbot Point Coal Terminal for 99 years, more than doubling Mundra Port's overall cargo-handling capacity. The deal will enable Adani Enterprises to transport coal from Australia to India. The Abbot Point Coal Terminal, a coal-export facility which is expanding its capacity to 50 million tons a year in 2011, is located in northern Queensland, close to Adani's coal mines in the Galilee basin.[11]

The expansion may cost as much as A$600 million ($653 million) and take about three years. In 2009-10, about 17 million tons of coal was transported through Abbot Point. The Mundra deal could eventually make Abbot Point the largest coal port in the world, handling as much as 300 million tons to 400 million tons a year.[11]

The Adani Group also bought Linc Energy Ltd.'s coal mines for $2.7 billion in 2010 and plans to invest A$6.9 billion ($7.5 billion) to develop the Galilee basin coal mines and related infrastructure in Queensland state. More than half of India's power-generation capacity of 173.6 gigawatts is based on thermal coal, and the country aims to add 163 GW capacity through March 2017. But the country's demand for coal is outstripping its domestic reserves, so companies are seeking to import coal or acquire coal mines overseas.[11]

Project Details

  • Operator: Adani Enterprises
  • Location: Gujarat, India
  • Annual Capacity (Tonnes): 60 million (coal), 200 million (all cargo combined)
  • Status: Operating
  • Type: Imports
  • Coal Source: Indonesia and Australia

Articles and resources

References

  1. 1.0 1.1 "About Us" Adani website, accessed February 2015.
  2. 2.0 2.1 Jim Yardley and Vikas Bajaj, "Billionaires’ Rise Aids India, and the Favor Is Returned" NY Times, July 26, 2011.
  3. Eric Yep, "Mundra Port Wins Bid for Australia Coal Terminal" Wall Street Journal, May 3, 2011.
  4. "Chinamax ships seen carrying India coal in few years" Reuters, March 9, 2011.
  5. "Adani's Mundra Port crosses 100 MT mark cargo handling in FY14" Business Standard, March 31, 2014.
  6. "Mundra Port handles record coal cargo of over 1.5 LT in a day" The Economic Times, September 12, 2013.
  7. "How Mundra overtook Kandla to become largest port by tonnage" The Economic Times, August 1, 2013.
  8. "Mundra Port and Special Economic Zone Limited" Mundra Port and Special Economic Zone Limited Website, accessed May 2011.
  9. Adani has made some very 'power'ful moves. dnaindia.com (2008-09-09). Retrieved on 2010-03-17.
  10. Adani power synchronizes country's 1st super critical unit. economictimes.com (2010-12-23).
  11. 11.0 11.1 11.2 Eric Yep, "Mundra Port Wins Bid for Australia Coal Terminal" Wall Street Journal, May 3, 2011.

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