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Kattupalli Port, near Chennai, was launched by L&T in 2012 and acquired by Adani Ports (APSEZ) in 2018. Initially designed for shipbuilding and limited cargo handling, APSEZ aimed to transform it into a major maritime hub. Expansion plans to boost capacity from 18 MTPA to 320 MTPA faced environmental opposition, prompting scaled-down proposals, including a revised INR 2,100 crore expansion. Despite challenges, the port earned INR 1,592 crore revenue in FY23. Strategically located with 24x7 access and efficient cargo handling facilities, Kattupalli remains a vital multi-cargo port. Its future hinges on balancing infrastructure growth with environmental and community concerns.
Kattupalli Port, situated near Chennai in Tamil Nadu, has emerged as a significant node in India's maritime infrastructure. Initially developed by Larsen & Toubro (L&T) as a shipyard and minor port, it commenced operations in January 2012. The facility was designed to cater to shipbuilding, ship repairs, and limited cargo handling, positioning itself as a modern, multi-cargo port with capabilities to manage containers, bulk, and break-bulk cargoes. Advertisement
In June 2018, Adani Ports and Special Economic Zone Limited (APSEZ) acquired Kattupalli Port from L&T, marking a strategic expansion of its port portfolio along India's eastern coastline. The acquisition, valued at approximately INR 1,950 crore (around USD 259 million), aimed to transform Kattupalli into a major maritime hub. At the time of acquisition, the port had a capacity of 18 million tonnes per annum (MTPA).
Following the acquisition, APSEZ unveiled ambitious plans to expand Kattupalli Port's capacity. In July 2018, the company submitted a revised master plan to the Ministry of Environment, Forests and Climate Change, proposing an increase in capacity to 259 MTPA. This plan included extending the quay length by 9,567 meters and adding 1,250 meters for barge berths, along with 12 port craft facilities. The total quay length was projected to reach 11,467 meters, supplemented by barge berths and two single-point moorings.
By January 2021, APSEZ revised its expansion proposal, aiming to elevate the port's capacity to 320 MTPA, with 71 MTPA dedicated to coal handling. This expansion would surpass the combined capacity of all other ports in Tamil Nadu, which stood at 275 MTPA. The total investment for this endeavor was estimated at INR 53,400 crore (approximately USD 7 billion).
Despite these ambitious plans, the expansion faced significant opposition from local communities and environmental groups. Concerns centered around potential environmental degradation and the impact on livelihoods, particularly for fishing and farming communities. In January 2021, a public hearing for the expansion was canceled amid widespread protests.
In response to these challenges, APSEZ sought approval for a more modest expansion, proposing the construction of two additional berths at an estimated cost of INR 2,100 crore. This initiative aimed to enhance the port's capacity while addressing environmental and community concerns.
Financially, Kattupalli Port has been a valuable asset for APSEZ. In the fiscal year 2022-23, the port reported a revenue of INR 1,592 crore and an EBITDA of INR 996 crore, reflecting a stable performance despite operational challenges.
Currently, Kattupalli Port operates as a modern, multi-cargo facility offering 24x7 congestion-free access, well-connected to national highways and container freight stations. It provides services such as dedicated yards for Direct Port Delivery clearance and Direct Port Entry for export-laden containers.
Kattupalli Port's evolution from a minor shipyard to a significant maritime hub underscores its strategic importance in India's port infrastructure. While expansion plans have encountered challenges, ongoing efforts to balance development with environmental and community considerations will be crucial in shaping the port's future trajectory.
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