DP World's $1b investment in India to challenge Colombo

DP World said as much as US$1 billion may be invested in the first Indian port able to handle the largest container ships as the company tries to challenge Colombo s grip on India’s maritime trade with Europe and China, Euclid Infotech reported.

What we are trying to do is compete in the regional and international market, Anil Singh, the company’s Indian head, said. It will change the logistic pattern of the country.

The new terminal in Kochi, south India, which is due to open in August, will be able to handle the 13,000-container capacity ships commonly used on Asia-to-Europe routes. Presently, these long-haul vessels are unable to stop in India, which forces the nation’s importers and exporters to spend an extra $150 million a year ferrying goods to and from Colombo, Singapore or Dubai, Singh said.

DP World, controlled by Dubai World, spent about 13 billion rupees ($288 million) on the first phase of the new Kochi facility, which will have an initial capacity of 1 million twenty-foot equivalent containers a year, Singh said.

The remainder of the investment will cover a second phase, which will add another 3 million boxes of capacity within five years, he said. Container Corp. of India Ltd. is among three other partners in the terminal venture.

(Source: Cargo News Asia)