Adani Ports will go green, focus on logistics business
MUMBAI: Adani Ports and Special Economic Zone chief Karan Adani is charting the next growth phase for his company which entails usage of greener energy sources as well as a sharper focus on the logistics business, even as he keeps looking at fresh port projects, both in and out of India.
In an interview to ET, the Adani Group scion said a focus on cleaner forms of energy will shave operating costs by as much as 10%-15% for APSEZ.
Adani said the company is trying "to neutralise the environmental impact it has in the area"
"Five years back these technologies were unviable. Today all of them are very commercially viable. So even from the point of view of operating costs, it makes sense.."
APSEZ claims to be the first port operating company in India that calculates its carbon footprint, aiming to reduce it through new operating processes, technology and fuel shift. “Whatever energy or electricity the port consumes would be through renewable sources — either solar or wind,” said Adani.
“Apart from that, on all the equipment that we use, we are moving to electricity from diesel,” he said, adding the company is also working on a pilot study on whether all the trucks, dumpers and heavy equipment that run inside the port can be converted to LNG.
To that end, the company has already started work at its ports in Hazira, Dahej and Tuna, said Adani.
Later this year, it will start work at Kattupalli, Ennore, Dhamra and Mumbai. It has a portfolio of ten ports. “We are looking to finish off all the projects in the next one and half years,” he said.
Other initiatives include effluent water treatment plants, installation of wind screens to control self-ignition of coal, recycling of waste and afforestation.
The initiatives also come at a time when India’s carbon emissions are growing at the fastest clip globally, even as the as the rest of the world tries to curb theirs. While global carbon emission saw “almost no growth” in 2015, India’s emission grew by 5.2%, according to latest available figures.
Adani said the company continues to look at new port projects, especially in Maharashtra, Karnataka and Andhra Pradesh.
The company last year emerged as the sole bidder for the greenfield Bhavanapadu port project in the coastal district of Srikakulam, Andhra Pradesh. He said the company is still waiting for government approval on whether to take it forward or not. On Monday, the company said it will begin a feasibility study on building a greenfield container port mainly at Carey Island, Malaysia. The port, to be located about 50 km southwest of capital Kuala Lumpur, would be an extension of the existing Port Klang.
Adani said a key chunk of the next phase of growth for APSEZ will come from the logistics business.
“In terms of logistics, I think what we are doing now is very similar to what we did in ports,” he said. “So, we are not going to be known as just a port company but more as a logistics company led by our ports business.”
The idea is to leverage captive logistics work across companies and to bring it all under the umbrella of Adani Logistics.
APSEZ now has three inland container depots, a storehouse of goods before they are custom cleared at ports. All three are located in north India. Adani said the company will increase that footprint across India, but didn’t elaborate.
The other focus is to increase its freight train network. “So we have right now 22 container trains. We are looking to increase that capacity,” he said.
“We have eight locations in Adani Agri Logistics which does the train business. So, we are looking at how we can leverage that,” he said, adding that the company will look at converting them into private freight terminals.
In an interview to ET, the Adani Group scion said a focus on cleaner forms of energy will shave operating costs by as much as 10%-15% for APSEZ.
Adani said the company is trying "to neutralise the environmental impact it has in the area"
"Five years back these technologies were unviable. Today all of them are very commercially viable. So even from the point of view of operating costs, it makes sense.."
APSEZ claims to be the first port operating company in India that calculates its carbon footprint, aiming to reduce it through new operating processes, technology and fuel shift. “Whatever energy or electricity the port consumes would be through renewable sources — either solar or wind,” said Adani.
“Apart from that, on all the equipment that we use, we are moving to electricity from diesel,” he said, adding the company is also working on a pilot study on whether all the trucks, dumpers and heavy equipment that run inside the port can be converted to LNG.
To that end, the company has already started work at its ports in Hazira, Dahej and Tuna, said Adani.
Later this year, it will start work at Kattupalli, Ennore, Dhamra and Mumbai. It has a portfolio of ten ports. “We are looking to finish off all the projects in the next one and half years,” he said.
Other initiatives include effluent water treatment plants, installation of wind screens to control self-ignition of coal, recycling of waste and afforestation.
The initiatives also come at a time when India’s carbon emissions are growing at the fastest clip globally, even as the as the rest of the world tries to curb theirs. While global carbon emission saw “almost no growth” in 2015, India’s emission grew by 5.2%, according to latest available figures.
Adani said the company continues to look at new port projects, especially in Maharashtra, Karnataka and Andhra Pradesh.
The company last year emerged as the sole bidder for the greenfield Bhavanapadu port project in the coastal district of Srikakulam, Andhra Pradesh. He said the company is still waiting for government approval on whether to take it forward or not. On Monday, the company said it will begin a feasibility study on building a greenfield container port mainly at Carey Island, Malaysia. The port, to be located about 50 km southwest of capital Kuala Lumpur, would be an extension of the existing Port Klang.
Adani said a key chunk of the next phase of growth for APSEZ will come from the logistics business.
“In terms of logistics, I think what we are doing now is very similar to what we did in ports,” he said. “So, we are not going to be known as just a port company but more as a logistics company led by our ports business.”
The idea is to leverage captive logistics work across companies and to bring it all under the umbrella of Adani Logistics.
APSEZ now has three inland container depots, a storehouse of goods before they are custom cleared at ports. All three are located in north India. Adani said the company will increase that footprint across India, but didn’t elaborate.
The other focus is to increase its freight train network. “So we have right now 22 container trains. We are looking to increase that capacity,” he said.
“We have eight locations in Adani Agri Logistics which does the train business. So, we are looking at how we can leverage that,” he said, adding that the company will look at converting them into private freight terminals.
