Financial Daily from THE HINDU group of publications
Tuesday, Jun 01, 2004
Financial Daily from THE HINDU group of publications Tuesday, Jun 01, 2004 |
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Corporate
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New Projects Logistics - Shipping Adani group to develop Belekeri jetty for iron ore exports Vinod Mathew
Ahmedabad , May 31 THE Rs 10,600-crore Adani group has dropped anchor at the little known jetty of Belekeri in north Karnataka, giving a miss to the obvious destination of Mormugoa. The Ahmedabad-based group has chosen Belekeri as its answer to Mormugoa in a bid to carve out a niche for itself in iron ore exports, mainly to China. Admittedly, it was congestion at the Mormugoa port that forced the Adanis to look at Belekeri as an alternative. The Adani group, whose flagship company Adani Exports Ltd, had posted a turnover of Rs 8,900 crore in 2003-04, procured on lease 72,000 sq.m. of land at Belekeri late last year. The company has set itself a target of 1.5 million tonnes of iron ore exports for 2004-05. "We have begun stockpiling iron ore at our storage yard at Belekeri. Currently we are loading iron ore into vessels anchored in the deep waters by ferrying the commodity in self-propelled barges from the Karnataka Government's jetty there. As AEL is committed to a long haul in the iron ore business, Belekeri can only get bigger in the coming days," a senior Adani official told Business Line. With the current FOB prices of iron ore ruling in the $22-25 per tonne range, the company is set to close out 2004-05 with a turnover of around $35 million from this product. Given that iron ore prices were ruling at $40 per tonne not too long ago, it is sure to be looking at increased volumes, a prime driver in the group's growth mantra for all products in its commodity basket. The reason behind the Adanis zeroing in on Belekeri is that at 300 km, it is equidistant from the Hospet-Bellari iron ore fields as the Mormugoa port. The Adani group, having clinched a five-year lease on Belekeri, has already shipped out three vessels having parcel size of 50,000 tonnes each.
More Stories on : New Projects | Shipping | Minerals
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