Adani Ports NQXT Acquisition Expands Global Reach with 50 MTPA Terminal in Australia

Adani Ports and Special Economic Zone Ltd. (APSEZ) has strategically acquired the North Queensland Export Terminal (NQXT) in Australia. This Adani Ports NQXT acquisition represents a crucial step in the company’s plan to enhance its global presence, supporting its ambitious goal to achieve 1 billion tonnes of annual cargo capacity by 2030. As a result, the 50 million tonnes per annum (MTPA) terminal, located at the Port of Abbot Point, plays a vital role in Australia’s export industry, further positioning APSEZ as a dominant player in global logistics.

About the NQXT Terminal and Its Significance

NQXT, located approximately 25 kilometers north of Bowen in Queensland, Australia, is a deep-water terminal with a nameplate capacity of 50 million tonnes per annum (MTPA). Importantly, the terminal has supported Australia’s export infrastructure, particularly in the coal sector, making it a key asset for APSEZ’s expansion into global markets.

Transaction Structure and Financial Overview

APSEZ’s Board of Directors has approved the acquisition, which involves the purchase of APPH from Carmichael Rail and Port Singapore Holdings Pte Ltd (CRPSHPL), a related entity. Notably, the deal is non-cash in nature. APSEZ will issue approximately 14.38 crore equity shares to CRPSHPL in exchange for full ownership of APPH. The enterprise value of NQXT stands at AUD 3,975 million.

In addition to acquiring the terminal, APSEZ will take responsibility for certain non-core assets and liabilities on APPH’s balance sheet. However, these assets are expected to have no financial impact on the overall transaction. Consequently, post-acquisition, APSEZ’s leverage will remain stable, ensuring that its financial health remains unaffected.

The deal is pending approval from regulatory bodies, including the Reserve Bank of India (RBI), APSEZ shareholders, and the Foreign Investment Review Board of Australia. APSEZ expects the transaction to finalize in the next two quarters.

NQXT: A Strategic Gateway for Global Trade

The North Queensland Export Terminal offers significant value, not only due to its operational history but also because of its strategic location and loyal customer base. Over the past four decades, the terminal has operated successfully, serving eight major customers under long-term “take or pay” contracts. This ensures a steady revenue stream for APSEZ. For the fiscal year 2025, NQXT is expected to handle a record 35 million tonnes of cargo, with a contract capacity of 40 million tonnes. Exports from the terminal reach over 15 countries, with the majority of cargo heading to Asia.

Moreover, one of NQXT’s key advantages is its long-term mine life. Current users have an average remaining mine life of around 60 years, which ensures the terminal will remain a vital player in global resource markets for decades to come.

In terms of financial performance, NQXT is projected to generate AUD 349 million in revenue and an EBITDA of AUD 228 million for FY25E. Furthermore, APSEZ expects to see significant EBITDA growth, targeting AUD 400 million within the next four years. This growth will stem from increased contract renewals, rising capacity, and synergies from integration into APSEZ’s global logistics network.

Commitment to Sustainability and Community Development

This acquisition aligns with APSEZ’s broader commitment to high environmental, social, and governance (ESG) standards. Specifically, NQXT has demonstrated excellent sustainability practices, with zero environmental incidents reported during FY25 and no fatalities. The terminal’s safety performance is further evidenced by a low lost time injury frequency rate of just 1.7.

Additionally, NQXT has focused on community engagement. Since 2017, the terminal has invested over AUD 2.4 million in community development programs in Bowen and Collinsville. Local suppliers account for half of the terminal’s operational expenditure, reflecting NQXT’s positive impact on the local economy. Moreover, more than 5% of the terminal’s workforce identifies as Aboriginal or Torres Strait Islander, surpassing the national proportion of First Nations people in Australia.

APSEZ’s Strategic Global Expansion

The NQXT acquisition significantly enhances APSEZ’s global position, advancing its strategy to expand its network beyond India. As India’s largest port operator, APSEZ already operates a diverse portfolio of terminals along the country’s coasts. In addition, the company has a growing presence in Sri Lanka, Israel, and Tanzania, with its expanding global footprint enabling further growth.

By integrating NQXT into its global logistics network, APSEZ expects to create synergies that drive future expansion. Moreover, with the increasing importance of green energy, NQXT could contribute to APSEZ’s future plans for exporting green hydrogen, in line with the Queensland Government’s vision for a sustainable energy future.

Advisors and Legal Counsel

Several prominent advisors supported APSEZ in this acquisition. Cyril Amarchand Mangaldas served as legal counsel for APSEZ, while Ashurst provided international legal counsel. GT Valuation Advisors acted as the registered valuer, and Grant Thornton Bharat LLP conducted a financial review. Additionally, SBI Capital Markets served as an independent valuer, ensuring compliance with both RBI and FEMA regulations.

Looking Toward the Future

This acquisition represents a significant step in APSEZ’s broader strategy to dominate the global ports and logistics industry. With NQXT now in its portfolio, APSEZ is closer to realizing its vision of becoming the world’s largest integrated ports and logistics platform by the next decade. The company’s commitment to sustainable growth, operational excellence, and international expansion positions it to capitalize on shifting global trade dynamics.

As global supply chains continue to evolve, APSEZ is poised to meet the challenges of tomorrow while maintaining high standards in environmental and social governance. The NQXT acquisition exemplifies this forward-thinking approach, as APSEZ builds a future-ready infrastructure network that will play a central role in global trade and energy transitions.