A.P. Moller Maersk aims to inject $5 billion into India's ports, terminals, and landside infrastructure. Keith Svendsen, CEO of APM Terminals, highlighted the focus on expanding the Pipavav terminal and developing a container terminal at Vadhavan Port. The logistics segment will also see a share of this investment.
"We met with Prime Minister Narendra Modi again today," Svendsen stated. "We see an investment opportunity pipeline of about $5 billion in ports and terminals and landside infrastructure development." Approximately half of the investment targets Pipavav Terminal and logistics. A memorandum with the Jawaharlal Nehru Port Authority (JNPA) addresses the Vadhavan terminal development. Investment in Vadhavan hinges on the bidding process, with funds already earmarked.
"We are keen to invest and compete for its (Vadhavan terminal's) development," Svendsen noted. Upgrading the Pipavav terminal involves dredging for larger ships. These projects are central to Maersk's strategy beyond regular operations. Vadhavan Port, 150 km north of Mumbai, is a government project with a natural draft of 20 meters, linked to the National Highway and Dedicated Freight Corridor rail network. Investment here will follow government bidding, while Pipavav's dredging begins immediately.
In logistics, Maersk is expanding warehousing and supply chain services. "Through our Indian terminal operations in Pipavav and Mumbai, we handle over 3 million containers annually," Svendsen said. Christopher Cook, Maersk's managing director for South Asia, noted logistics as a growing segment, with an expanded warehouse presence and 7,000 weekly railway moves. "We are now looking to expand in tier 2 and tier 3 cities," Cook added. Exploration of air freighters and green fuel partnerships is also on the horizon.
Source: ET Infra