Adani Ports group is acquiring India’s top provider of marine services, Ocean Sparkle, to become a major force in worldwide port operations and logistics, says an article published in Riviera.
Double business in next five years
This acquisition is being undertaken by Adani Harbour Services to bring together both companies’ towage, pilotage, and dredging operations.
Ocean Sparkle was established in 1995 by a group of marine technocrats, with P Jairaj Kumar as chairman and managing director. He will continue as chairman of the Ocean Sparkle management board when the acquisition is completed.
Ocean Sparkle is a market leader in providing towage and pilotage through its fleet of 94 owned vessels and 13 third-party-owned vessels which includes 76 tugboats, nine dredgers, eight pilot boats, four mooring vessels, four barges and two platform supply vessels.
Adani Ports and Special Economic Zone Ltd (APSEZ) chief executive and director Karan Adani said this acquisition was part of the group’s aspirations to become the largest port operator globally by 2030.
“Given the synergies of Ocean Sparkle and Adani Harbour Services, the consolidated business is likely to double in five years with improved margins, thereby creating significant value for APSEZ’s shareholders,” said Mr Adani.
Largest port operator by 2030
“This acquisition not only provides APSEZ a significant share of India’s marine services market but also provides us a platform for building a presence in other countries,” he continued, “thereby facilitating APSEZ’s journey towards becoming the largest port operator globally by 2030 and largest integrated transport utility in India.”
Further analysis
Ocean Sparkle provides marine services, with a team of 1,800 people across India, in all the major ports, 15 minor ports and all the three LNG terminals in India. It has long-standing relationships with its existing clients, with contracts ranging from five to 20 years. The average length of contracts is seven years.
Contracts are on a take-or-pay basis, thereby providing robustness to Ocean Sparkle’s business model.
Ocean Sparkle also provides operations in Oman, Saudi Arabia, Sri Lanka, Qatar, Yemen and around African ports.
Newbuilt tugs
Adani Harbour Services has a series of newbuild tugs being built in Japan by Kanagawa Zosen. The latest of these, Dolphin 35, was delivered to the Indian company in February 2022. According to International Tug & Salvage data, Adani Harbour Services took delivery of five similar tugboats from Kanagawa Zosen in 2021 and four tugs in this series in 2020.
Also in 2020, Ocean Sparkle took delivery of a new azimuth stern drive tug from Cheoy Lee Shipyards, part of a four-tug order of a Ramparts 3200-CL design from Ocean Sparkle, with the first three delivered in 2019.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: Riviera
