APSEZ Expands Global Presence with Acquisition of NQXT Australia

APSEZ’s Strategic Acquisition of NQXT Australia

Adani Ports and Special Economic Zone Ltd. (APSEZ), India's largest integrated transport utility company, has made a significant move to strengthen its global footprint by acquiring NQXT Australia. This acquisition, which involves a terminal that currently boasts a capacity of 50 million tonnes per annum (MTPA), sets APSEZ on a trajectory towards achieving an ambitious target of handling 1 billion tonnes annually by 2030.

Overview of the Acquisition

The acquisition was approved by APSEZ's Board of Directors and aims to enhance the company's operational efficiency along the vital East-West trade corridor. NQXT is described as a highly profitable asset that is already generating significant cash flow, making it an ideal fit for APSEZ’s ambitions in expanding its global market reach.

APSEZ's strategic initiative incorporates a non-cash transaction where 14.38 million shares will be issued to the seller, reflecting a net increase of 2.13% in the promoter group's shareholding. This move is backed by NQXT's impressive financial performance, achieving a record cargo volume of 35 million tonnes in the fiscal year 2025.

Moreover, the terminal's potential for growth is notable, with plans to expand its production capacity up to 120 MTPA to satisfy global demand for high-quality resources, including green hydrogen exports. With projections indicating an EBITDA of AUD 400 million within four years, this acquisition is anticipated to yield substantial long-term benefits for APSEZ.

NQXT: A Crucial Player

NQXT is situated at the Abbot Point Port in North Queensland and serves as an essential gateway for producers in the region, which is rich in natural resources. With a robust operational history spanning over four decades and a diverse client portfolio, NQXT has managed to contribute significantly to the local economy. The terminal not only adds to APSEZ’s asset base, but also supports the mining and export of coal across 15 countries, with a primary focus on the Asian market.

The terminal has a long lease term remaining with the Queensland Government, extending until 2110, ensuring long-term stability for both NQXT and APSEZ. Moreover, its operational excellence is complemented by an impressive environmental, social, and governance (ESG) track record, boasting zero reportable environmental incidents and a commitment to local community development.

Future Growth and Advancements

Looking ahead, NQXT presents a significant opportunity for APSEZ to leverage its expanding operations. The company’s strategy includes increasing the contracted capacity, utilizing existing contracts, and integrating new synergies within its global transportation and logistics network. As Australia positions itself as a leading exporter of green hydrogen, NQXT’s strategic location within this burgeoning market is an asset that APSEZ will undoubtedly benefit from.

Ashwani Gupta, APSEZ's Full-Time Director and CEO, has expressed confidence in this acquisition, highlighting it as critical to the company’s international strategy. The integration of NQXT into APSEZ's operations means not only securing long-term contracts with valuable users but also increasing the company's ability to penetrate new export markets.

Conclusion

In summary, the acquisition of NQXT is a forward-thinking move for APSEZ, aligning perfectly with its vision of becoming a dominant player in the transportation and logistics sector globally. By enhancing its capabilities and expanding its reach, APSEZ is poised to lead in the new era of resource exportation and management on a global scale.