India’s Adani group is exploring the possibility of buying an export terminal at the port of Dhamra in Orissa state, which opened last September, although has yet to handle significant cargo. The terminal has been offered for sale by the Dhamra Port Company Limited, which has been unable to attract significant consignments of export iron ore due to increased export duty and Railfreight rates. In eight months of operation, it has handled just 200,000 tonnes of iron ore, despite having a potential capacity of 13.5 million tonnes per year.
The Adani group operates India’s biggest private port at Mundra in Gujarat state, but wants to strengthen its presence on the Indian East Coast, which would also reinforce its own commodity trading business.
However, selling the terminal at this point in time, although potentially advantageous to the Adani group, will not generate the best possible price, given the current weakened state of the global iron ore market.
BC