The Adani Group has decided to continue the container operations at the Krishnapatnam port. The global conglomerate had previously received the approval to handle the container operations of one of the most crucial ports in India. However, it had to come across many protests from the opposition, which led to the birth of various controversies regarding whether the business group should continue to handle the container operations.
Ultimately, the responsibility of operating the container operation was decided to go to the Adani Group itself. This is a big win for the Adani Group, especially after the Adani SEBI crisis. It is another step towards acquiring control over some of the major ports in India. The acquisition of the Krishnapatnam port has also opened the gateway for more such acquisitions in the port sector in the upcoming months.
The Krishnapatnam Port: An Overview
The Krishnapatnam port is one of the most crucial ports under the control of the Adani Group. It is a private port operator located on the east coast of India. The Krishnapatnam port is also a world-class all-weather deep water port of international standards. It can handle cape-sized vessels throughout the year. The port also caters to the landlocked hinterlands of South India. It has multimodal connectivity, which allows for seamless transportation of cargo to various regions across the world.
The Krishnapatnam Port has easy connectivity by road and railway. It is known for its proximity to the National Rail Network and the National Highway 16. The port comes with state-of-the-art facilities and mechanised handling systems. It also has dedicated storage yards for clean and contamination-free bulk and break bulk cargo handling. The Krishnapatnam port is also AEO certified. It has Customs EDI Connectivity with the customs office, which the joint commissioner heads. This allows for faster customs clearance and quick assessment of containers and cargo.
Controversies Relating to The Container Operations of the Krishnapatnam Port:
Over the past few months, many protests have been made regarding the Adani Group’s cargo container operations at the Krishnapatnam Port. These protests started right after the Adani SEBI probe. The Telugu Desam Party organised many protests led by the former minister Somireddy Chandramohan Reddy for the proposed suspension of the container operations at the Krishnapatnam Port. This brought about a lot of inconvenience in the trade activities. It also brought about hindrances in the transportation of cargo. Somireddy Chandramohan Reddy has said that an all-party delegation will soon be visiting the Krishnapatnam port to ascertain the port’s realities about continuing cargo container operations at the port in question. However, no such fixed date has been heard of.
The Future of the Port Operations:
Recently, Adani Krishnapatnam Port Limited made a statement clarifying that the container operations will continue at the Krishnapatnam Port without any hindrance. The AKPL has further clarified that the Krishnapatnam port is one of the most important ports for India and the Adani Group, and the company has been continuously focusing on expanding the port and streamlining its operation. The infrastructures, which included yards, berths, and other equipment, will remain as they are. The terminal will also be able to handle any container vessel that calls upon the port.
As a part of the PPP model, the Adani Group is already sharing its revenue with the government regularly, and the revenue is also increasing with each passing year, given the growth in cargo volume that the port is capable of handling. This is a really profitable affair for the government as well. The Adani Krishnapatnam port also has a crucial role to play in the growth and development of Andhra Pradesh. It has led to overall economic growth in the country. So, it would be needless to bring about any hindrance to the operations of the port simply because of the vague allegations brought forth by the opposition.
Conclusion:
With Adani Group’s enhanced control over India’s port sector, it will continue its operations at the Krishnapatnam port. This will allow the Adani Group to expand its boundaries over the port sector. The company will quickly recover from the losses it suffered during the Adani SEBI probe. In the upcoming years, it will acquire various other ports, both in India and abroad. This will make the Adani Group the most significant port operator in the entire world. It will also open the gateway for improved trade operations in India.