APSEZ to buy L&T’s Kattupalli Port

Country’s largest port developer and operator APSEZ has entered into a pact with Larsen & Toubro for acquiring its Kattupalli Port in Tamil Nadu, a deal that may cost the company Rs 2,500 crore. The buy is yet another step by Adani to build a network of ports across the Indian coastline and expand its footprint across the South East Coast.

The move comes on the heels of Adani Ports and Special Economic Zone (APSEZ) signing an MoU with Kerala to develop and operate Rs 4,089 crore Vizhinjam International Deepwater Multipurpose Seaport Project on PPP mode. “Adani Ports and Special Economic Zone (APSEZ)...through its subsidiary Adani Kattupalli Port Private Ltd (AKPPL), entered into an in principle agreement for strategic acquisition of the Kattupalli Port in Tamil Nadu from L&T Shipbuilding Limited (LTSB) a subsidiary of Larsen & Toubro Limited,” the company said in a statement.

However, it did not mention the financial considerations for acquiring the port, but sources said this could be around Rs 2,500 crore. L&T said it has entered into an in-principle agreement with Adani Kattupalli Ports Pvt Ltd (AKPPL), a subsidiary of APSEZ, for strategic sale of Kattupalli Port in Tamil Nadu. The Kattupalli Port is located adjacent to Ennore Port, where APSEZ, part of the $10 billion Adani Group, is developing the Ennore container terminal. The port is being demerged from LTSB. Currently L&T operates both the port and shipyard under this entity. The acquisition is subject to approvals from the state as well as the central government.

“While awaiting the necessary approvals, APSEZ through its subsidiary AKPPL has entered into an arrangement to take over the operations of the Port,” the statement said. Kattupalli is a deep water all weather port with an international container terminal located 35 kms from Chennai, Tamil Nadu and well connected to the hinterland.

The Port commenced commercial operations in January 2013 and has two berths with a total quay length of about 710 meters. The berths are equipped with six quay cranes and designed to handle container.