Adani Eyes UK's Biggest Ports in Global Expansion

Adani Ports and Special Economic Zone (APSEZ), India's largest private port operator, is reportedly evaluating a bid for Associated British Ports (ABP), the United Kingdom's foremost port operator. This potential move is part of Adani's broader strategy to expand its global port empire with the aim of becoming the world's largest transport utility by 2031.

ABP, which owns and operates 21 strategically located ports across England, Scotland, and Wales, is looking to sell a controlling stake of approximately 63.9%. This stake is currently held by two Canadian pension funds: Canada Pension Plan Investment Board (CPPIB) and Ontario Municipal Employees Retirement System (OMERS). These ports handle about a quarter of the UK's seaborne trade.

The ports under ABP's management include Immingham, the UK's largest port by tonnage, and Southampton, the nation's principal export port, which facilitates exports valued at £40 billion annually. ABP also plays a crucial role in the offshore wind industry, supporting over 50% of the sector's operational and maintenance activities.

In FY25, ABP's 21 ports managed 42.5 million tonnes of bulk cargo and 3.1 million units of containerized and roll-on/roll-off cargo. This generated £819.8 million in revenue and an operating profit of £586.5 million. A significant portion of ABP's revenue comes from customer contracts that guarantee a fixed income, irrespective of traffic volumes. Additionally, ABP earns substantial revenue from pilotage and conservancy services, areas of particular interest for APSEZ.

Adani runs a network of 15 multi-commodity ports in India with a 653 million tonnes cargo handling capacity. It also operates four international ports in Israel, Tanzania, Sri Lanka, and Australia. The company aims to increase its cargo handling capacity to 1 billion tonnes by 2030, up from 501 million tonnes handled in FY26. Expansion plans include increasing its fleet of marine service vessels to over 200 from the current 136.