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Mundra Port and Special Economic Zone Ltd. (MPSEZ), the private and logistics business arm of Adani Group and India’s largest private port and special economic zone, has commenced operations at its 60 million tonne fully mechanized coal handling terminal at Mundra.

MPSEZ's total handling capacity at Mundra now stands at over 115 million tonnes, making it one of the largest ports in terms of handling capacity in India.

Commenting on the launch, Gautam Adani, Chairman, Adani Power Ltd. said, "I am proud to announce the operations at the world's largest coal receiving terminal at Mundra. With this historic step, we have achieved an important milestone for our port and logistics business.

"This complex green field project was also implemented in a record time of less than 30 months which is yet another testimony of Adani Group's commitment to develop infrastructure projects in the shortest span. Further, the same terminal is under further expansion to achieve 100 million tonnes capacity," added Gautam Adani.

The coal facility was set up in a record time of 30 months. The fully mechanized terminal will supply coal to the 4620 MW power plants of Adani Power and TATA Power's Ultra Mega Power Plant of 4000 MW as well as other power plants in the Northern and Western hinterland.

According to recent estimates, total demand for marine fuels in India this year has been around 1.4-1.5 million tonnes, up approximately 30 percent against 2009.

The launch of the world's largest coal terminal at Mundra is set to have a positive effect on bunker sales at the West Coast port, which already has a sizeable share of the country's bunker market. The Gulf of Kutch, which includes Mundra, accounts for over 22 percent of maritime cargo traffic in India - a figure which is expected to exceed 30 percent by 2011-2012.

Chemoil joined forces with Adani Enterprises to form the joint venture, ChemoilAdani, which began supplying in Mundra in March 2009. The company quickly achieved monthly sales volumes of 50,000 metric tonnes within a few months.

Earlier this year ChemoilAdani announced that it would be increaing its onshore storage capacity at Mundra port to 120,000 metric tonnes and the addition of a 3000 dwt double-hull bunker tanker.

The new terminal facility - part of an upgrade program to develop infrastructure and expand storage capacity by the Adani Group at Mundra port - will be leased to ChemoilAdani. It is expected to be completed and operational within the first quarter of 2011.

The new modern and fully automated terminal will operate as an exclusive bunkering facility. The total volume storage capacity of 120,000 metric tonnes will made up of 12 storage tanks – 4 x 15,000; 4 x 10,000; and 4 x 5000.

There will be a pumping capacity of up to 1000 mt/hr for bunkering, for loading cargo into vessels up to 2000 mt/h, and with a receiving capacity of 2000 mt/h. These will be faster pumping rates than what is currently available at the existing 90,000 metric tonne terminal at Mundra port.

“This new facility will enable ChemoilAdani to be even more competitive in the bunkering marketplace with fuel pricing, as we’ll be able to take advantage of faster terminal turnaround rates, improved reliability of fuel delivery and better manage our overall operational costs,” Basheer Ahmed Sayeed, CEO of ChemoilAdani, said in February.