Adani Ports plans to invest ₹10,000 crore in Vizhinjam Port; stock edges higher

Following the report, Adani Ports’ shares were trading higher by 0.33% at ₹1,488.70 per share.

The Vizhinjam Port in Kerala was inaugurated in October last year. The funds from the investment will be used to increase the length of the existing berth and extend the breakwater at the port to reduce the impact of waves. Additionally, the port would have bunkering facilities to fuel ships and the addition of new cranes will help in expanding the capacity at the port. The port will also be able to accommodate large cruise liners.

India is aiming to tap deeper into the international maritime trade and allow big containers to dock at its ports. Since India’s harbors are not deep enough, most big container ships prefer docking at other ports like Colombo, Singapore, or Dubai.

The port recently welcomed Maersk’s San Fernando vessel which was carrying nearly 2,000 containers. Gautam Adani, chairman of the Adani conglomerate stated that the entry of the San Fernando vessel marks India’s entry into a new era of maritime logistics.

In June 2024, Adani Ports’ cargo volume grew 12% year-on-year (YoY) to 37 million metric tons (MMT) with containers growing by 33% YoY while Liquids & Gas saw an 8% YoY rise. The company reported that the Kattupalli Port handled its highest-ever monthly cargo at 1.36 MMT.

For the quarter ended June 30, 2024, the company’s total cargo volume was up 7.5% YoY to 109 MMT. Containers saw a rise of 18% YoY while Liquids & Gas rose 11% YoY.

Adani Port’s logistics segment saw quarterly rail volumes rise 19% YoY to 1,56,590 Twenty-foot Equivalent Units (TEUs). Meanwhile, the General Purpose Wagon Investment Scheme (GPWIS) jumped 28% YoY to 5.56 MMT.

Shares of the company have risen by nearly 42% since the beginning of the year. The stock has gained over 105% in the past year.