ACMTPL is a special purpose vehicle, created to operate and maintain container terminal (CT-4) at the Mundra port. The company is a 50:50 joint venture between Adani Ports and Special Economic Zone Ltd (APSEZL, ‘IND AA+’/Stable) and CMA Terminals Societe Par Actions Simplifiee, France (CMAT). CMAT is a dedicated subsidiary of the world’s third-largest container shipping group CMA CGM which is headquartered in Marseilles, France. APSEZL is the concessionaire for developing the Mundra port with a concession period of 30 years from February 2001. ACMTPL will have the right under the sub-concession agreement to operate and maintain CT-4, with the concession period ending February 2031. The project has already been constructed; hence, there is no completion risk. Trial runs for the project are underway and the assets would be transferred to ACMTPL by December 2016.
ACMTPL expects to commence commercial operations by December 2016. The project has two berths to handle 1.5 million TEUs of the container volumes of CMA CGM and its affiliates. Excess capacity shall be used to handle third-party container volumes.
KEY RATING DRIVERS
is driven by the unconditional and irrevocable guarantee extended by APSEZL for
the rated bank facility.
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