Regional Coal: Adani buys Abbot Point Coal Terminal for $1.8b
Wednesday, May 4 2011 - 03:34 AM WIB
?The State of Queensland in Australia has declared MPSEZ as the successful bidder for long term lease of Abbot Point X50 Coal Terminal (APCT) following international competitive bidding. The international bid attracted local and foreign companies and international consortia and the bid passed through three distinct stages of selection lasting over six months. Mundra beat other international players to bag this prestigious acquisition with a bid price of about AUD 1.8 billion (Australian dollar) which had full financial closure,? the company said.
APCT is most northerly coal export port in Queensland and is owned by North Queensland Bulk Ports Corporation Limited (NQBP). The State has structured the sale of APCI? through a 99 year lease of existing coal terminal facilities and associated infrastructure.
The coal terminal has two berths capable of handling cape size vessel over 200,000 tonnes deadweight with annual capacity to load 50 million tonnes. It is highly mechanised coal terminal together with rail loop, conveyor and modern loading system and serves the demand of coal mines in northern Queensland which have committed to export 50 million tonnes in the near term. There is also a scope of further addition taking the port capacity to 80 million tonnes.
With the acquisition of APCT, Adani Group controlled Mundra Port has established international credentials as an efficient world class port developer and operator. ?We have harboured aspirations to expand globally and were in search of right business opportunity with strategic fit. Abbot Point is our contribution to India?s increasing global ambition and will boost synergy with other businesses of the Group?, informed Gautam Adani, chairman of Adani Group.
Mundra Port gets into a different league with this acquisition. It more than doubles its present balance sheet size and adds a 50 million tonnes capacity. Abbot Point is an existing profit making, operating port, soon, with take or pay arrangements for its entire 50 million capacity.
Mundra Port and Special Economic Zone operates ports at Mundra and Dahej. It is developing ports at Hazira and Coal Terminals Mormugao. It just secured the LOA for developing an import coal terminal at Vishakhapatnarn.
Mundra handles over 50 million tonnes of cargo and is poised to become the largest port in India in near future. The long term goal at Mundra Port and SEZ is to handle 200 million tonnes per annum cargo by 2020. (denny)