Krishnapatnam Port

From Global Energy Monitor

Krishnapatnam Port is a deep water port near Nellore in the state of Andhra Pradesh, India. It is the largest private port on India's east coast, and one of only three ports in India equipped to receive capesize vessels (the other two are Mundra Port and Gangavaram Port).[1][2]

The port has an installed cargo handling capacity of 70 million tonnes, with coal accounting for the vast majority of imports.[3] Port operator Krishnapatnam Port Company (KPCL) has plans to expand the port's annual capacity to as much as 200 million tonnes per annum, including increased coal handling capacity.[4][5][6]

Adani Ports and Special Economic Zone Ltd. (APSEZ) purchased a 75% stake in the port in October 2020, and purchased the remaining 25% stake in 2021.[7]

Loading map...

Background

A 2012 Coal Age report on Indian coal terminals states that "With a vessel draft of 18.5 m, Krishnapatnam is one of the deepest ports of India. Coal is by far the greatest import cargo, while iron ore is the greatest export cargo. However, the ban on iron ore mining at the Obulapuram mine has cut exports significantly, resulting in a 40% loss in revenue."[8]

In 2013, coal imports into the port reached 19.75 million tonnes.[9]

According to the Economic Times of India (2014), "Dozens of power companies, both public and private, are currently building coal-fired electricity generating units in and around Krishnapatnam, involving at least 14,000MW of capacities, which propose importing at least 30% of their coal requirement."[9] Several new coal-fired power projects in the port's vicinity are listed on KPCL's website, including those operated by Simhapuri Energy, APGENCO, Meenakshi Energy, Thermal Powertech Corporation, NCC, Kineta Power and Krishnapatnam Power.[10]

On its website (2015), Krishnapatnam Port Company projects that new power projects scheduled for completion by 2017 will require over 40 million tonnes of coal annually, in addition to the 38 million required by existing coal, cement and steel plants that source coal from Australia, Indonesia and Mozambique through the port.[10]

In September 2015 Krishnapatnam Port invested ₹780 crore for installing a direct coal conveyor system to speed up movement of the fuel. On completion, it would have the capacity to discharge 20 million tonnes of coal.[11]

Coal continues to be the main commodity handled at Krishnapatnam Port, representing 70% to 75% of the port's business. Out of 35 million tonnes that KPCL expected to handle in 2014-15, around three-fourths was coal[12], and Krishnapatnam Port Managing Director Chinta Sasidhar told the Financial Express in July 2017 that coal constituted 70% of the port's cargo volume.[3]

As described on Krishnapatnam Port's website, the port's ₹4000 crore Phase II expansion includes 10 dedicated coal berths with 2 ship unloaders per berth, each with a capacity of 2,000 TPH; a conveyor system with a capacity up to 4,000 / 5,000 TPH; and 2 wagon loading stations, each having a capacity to store 2,500 MT and each having a loading capacity of 3,500 MT in 2 hours.[13]

A January 2018 report in the Business Standard indicates that the Phase II expansion is now complete, and that the port's future Phase III expansion is expected to raise overall cargo volumes to 200 mtpa, increasing the total number of berths from 11 to 44, and deepening the port's draft from 18.5 meters to 22 meters.[6]

Krishnapatnam Port handled nearly 41 million tonnes of coal in 2018-19, up from 33 mt in the previous year.[14]

After completing its acquisition of the Krishnapatnam Port in 2021, Adani stated that the port's master plan included an increase of capacity to 300 mtpa. It listed operational capacity in 2021 at 64 mtpa.[15] Adani also stated that it intended to increase Krishnapatnam Port's annual capacity to 100 mtpa by 2025, with an expected investment of ₹750 crore (approximately US$100 million).[16]

Ownership

Adani Ports and Special Economic Zone Ltd. (APSEZ) first announced its intention to purchase the Krishnapatnam Port from CVR Group in January 2020.[17] APSEZ purchased a 75% stake in the port in October 2020, and purchased the remaining 25% stake in 2021. In total, Adani spent ₹13,675 crore (approximately US$1.8 billion) to acquire full ownership of the port.[7]

Power stations in port vicinity

Project Details

  • Operator: Krishnapatnam Port Company Ltd. (KPCL), CVR Group
  • Location: near Nellore, Andhra Pradesh, India
  • Annual Capacity (Tonnes): 64 million (all cargo)
  • Additional Proposed Capacity (Tonnes): up to 236 million (all cargo); 36 million by 2025
  • Status: Proposed expansion
  • Type: Imports
  • Projected in service:
  • Cost of expansion: ₹750 crore (approximately US$100 million) for 36 mtpa by 2025
  • Financing for expansion:
  • Coal Source: Australia, Indonesia, Mozambique

Articles and Resources

Sources

  1. "Chinamax ships seen carrying India coal in few years" Reuters, March 9, 2011.
  2. "How low-draft Kandla port manages to handle biggest of dry bulk ships" LiveMint, November 28, 2013.
  3. 3.0 3.1 "Krishnapatnam port upgrades infrastructure, eyes share of Colombo traffic," Financial Express, July 3, 2017
  4. "We are ready to handle the coal rush - Krishnapatnam Port," Coal Insights, November 2012
  5. "Coal handling to go up at Krishnapatnam Port," The Hindu, Oct 4, 2014
  6. 6.0 6.1 "Krishnapatnam Port to expand bouquet; build liquid bulk cargo, LNG terminal," Business Standard, Jan 16, 2018
  7. 7.0 7.1 Adani group takes full control of Krishnapatnam port in Andhra Pradesh, The New Indian Express, Apr. 6, 2021
  8. "The Coal Terminals of India ", Coal Age, April 30, 2012.
  9. 9.0 9.1 "Krishnapatnam Port pins hopes on coal imports for growth" Economic Times, October 4, 2014.
  10. 10.0 10.1 "Projects around the Port" Krishnapatnam Port Company, accessed February 2015.
  11. "Krishnapatnam Port to install coal conveyor system," The Hindu, Sep 17, 2015
  12. "Krishnapatnam Port eyes stake sale to fuel bigger ambitions," live mint, Feb 9, 2015
  13. "About KCPL Upcoming Developments," Krishnapatnam Port Company Ltd website, accessed Feb 2018
  14. TE Raja Simhan, Adani Group bets big with Krishnapatnam Port Co acquisition, Business Line, Jan. 16, 2020
  15. Integrated Annual Report 2020-21, Adani Ports and Special Economic Zone Ltd., 2021
  16. Spotlight on Krishnapatnam Port, Adani Ports and Special Economic Zone Ltd., Dec. 2020, p. 39
  17. Abir Dasgupta, Lockdown Gains for Adani Ports and SEZ, News Click, Aug. 22, 2020

Related GEM.wiki articles

External Articles

Wikipedia also has an article on Krishnapatnam Port. This article may use content from the Wikipedia article under the terms of the GFDL.