The Hindu Business Line : Decks being cleared for Maersk to develop Pipavav port

MAERSK Sealand, part of the largest shipping line and third largest port operator in the world AP Moller, Denmark, is going ahead with plans to develop the Pipavav port as a regional hub port. This is a direct fallout of Maersk picking up an additional 33 per cent equity in Gujarat Pipavav Port Ltd (GPPL), taking up its stake in the Indian port to 45 per cent.

The deal, which had been held up for a few weeks due to certain clearances that were not forthcoming, is now understood to be ready to be inked.

The original promoter, SKIL Infrastructure Ltd, has sorted out all outstanding issues with the Gujarat Government. The erstwhile single largest equity holder, Mr Nikhil Gandhi-led SKIL, is close to offloading its 32 per cent stake in favour of Maersk in the coming few days, it is learnt.

Consequent to this, Maersk is targeting an investment of Rs 1,100 crore in Pipapvav to help it vie with other regional hubs such as Colombo, Jebel Ali and Singapore where the mother vessels presently drop anchor.

The transhipment delay for cargo movement to the Indian ports may cost India nearly $2 billion per annum. Against this, Maersk to bring down the pre-berthing and turnaround time per vessel to 12 hours from 36 hours.

In the revised equity holding, following SKIL offloading its complete stake in GPPL, the Infrastructure Development Finance Corporation (IDFC) will have 15 per cent, New York Life Insurance, AMP Australia and IDBI 10 per cent each while IFU, Denmark and UTI will hold 5 per cent each. It is learnt that the IDFC has underwritten a debt funding to the tune of Rs 600 crore for the development of the Pipavav port.

As per the Pipavav development plan, the existing quay length of 1,030 metres containing four terminals will have 650 metres added to it over the next 18 months. While the existing terminals handle bulk, liquid and container cargo, both the new terminals will be dedicated to container traffic where the port can receive up to 8,000 TEU vessels.

With Maersk already taking control of Pipavav port under the guidance of Mr Henrik Christensen, the Managing Director of Maersk's Rotterdam operations, the results have already started showing. The MNC has already roped in the services of M/s Scott Wilson, UK for the design engineering of Pipavav port.

With Maersk and IDFC controlling 60 per cent stake between them in the first private sector port in the country, one may soon get to see at Pipavav facilities that are found in Singapore, Hong Kong and Rotterdam.

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