Adani Ports has recently bought the Australian terminal, also known as the North Queensland Export Terminal, in a 2.4 billion USD non-cash deal. This has helped boost Adani Group’s presence in the Asia-Pacific region. With this move, the Adani Group aims to further support its strategy of global expansion and green hydrogen export plans. This Adani Australia project will also further help take the Adani Group’s port business to new heights.
The Adani Group Takes Up New Acquisition In The Global Port Sector
Adani Ports and Special Economic Zone, one of the largest global port operators, has recently acquired the coal export terminal in Australia. The purchase was made from a group company in a 2.4 billion USD non-cash deal. Now, this is yet another Adani Australia project taken up by the global conglomerate in recent times. With this step, the Adani Group will be able to build itself an extremely strong presence in the port sector. The company has bought Abbot Point Port Holding (APPH), Singapore, from Carmichael Rail and Port Singapore Holdings (CRPSHPL), Singapore.
An Overview Of The North Queensland Export Terminal
APPH owns the entities which actually own and operate the North Queensland Export Terminal. This is a dedicated export terminal having a current capacity of 50 million tons per annum. This terminal is located at the Port of Abbot Point. This port is located around 25 km north of Bowen in North Queensland on the east coast of Australia. In 2011, APSEZ acquired control over the North Queensland Export Terminal (NQXT) at Abbot Point for 2 billion USD. Two years later, in 2013, the Adani Group family purchased the asset from
APSEZ for the same amount, along with the capital invested. This allowed APSEZ to put its complete focus on its India operation.
However, over the last few years, APSEZ has been looking forward to dominating the global maritime sector, where it is planning to further expand its presence on those maritime routes where Indian trade is expected to increase. The acquisition of NQXT is going to play a pivotal role in the company’s international strategy. It will open new markets and also allow the company to secure long-term contracts.
Why Acquire The North Queensland Export Terminal?
As per recent statistics, NQXT is expected to achieve robust growth as a high-performance asset driven by increased capacity, increased potential for green hydrogen exports in the long term, and upcoming contract renewals in the medium term. The port is also expected to grow its EBITDA to A$ 400 million in the next four years. This acquisition will help meet the Adani Port’s target of doubling its volume to 1 billion tons per annum by FY30. The company will also achieve the potential to nearly quadruple from 35 million tons in FY25 to 120 million tons. This includes potential exports of green hydrogen from Australia.
The Various Proceedings Of The New Acquisition
As per the news, APSEZ will issue 143 million equity shares to CRPSHPL to acquire 100% interest in APPH. This will be based on the enterprise value of NQXT. APSEZ will also assume the other non-core assets and liabilities on APPH’s balance sheet. These assets will be realised within the next few months of the acquisitions. Adani Port’s leverage will remain at similar levels after the transaction.
Now this is the fourth acquisition made by Adani Ports in the international port sector. The global business group currently has four International ports under its control. This includes the Colombo Port in Sri Lanka, the Haifa Port in Israel, and the Dar es Salaam Port in Tanzania. With this recent acquisition, the Adani Group now has a portfolio of 19 ports and terminals. This includes 15 domestic and 4 overseas ports.
Conclusion
By gaining control over the North Queensland Export Terminal, the Adani Group will be able to get one step closer towards further extending its presence in the international port sector. The group also has an elaborate presence in Australia. It already operates the Adani Australia Carmichael coal mines. By acquiring the Abbot Point terminal, it will be able to further enhance its presence in the country and earn global recognition.