MUMBAI: A P Moller Maersk, the world’s second-largest shipping company, plans to invest $5 billion in India’s maritime infrastructure. The investment would cover ports, terminals, and land-based facilities, according to its senior leadership.
The company has allocated $2 billion towards the expansion of its Pipavav terminal operations in Gujarat, while the remaining funds will support the development of a container terminal at the proposed Vadhavan Port in Maharashtra.
However, the proposed $5-billion investment is contingent upon Maersk obtaining an extension of its 30-year concession agreement for the Pipavav port that expires on Sept 19, 2028, and winning a tender to develop a container terminal at Vadhavan.
Maersk has been in discussions with the Gujarat Maritime Board to extend the 30-year concession agre ement but no resolution has been reached. The renewal process will be open to competitive bidding from other parties. However, it is not clear if Maersk has the right to match the preferred offer.
Besides Pipavav, concession agreements for other Gujarat ports — Mundra, Hazira and Dahej — are due to expire within the next decade. Once Jawaharlal Nehru Port Authority develops Vadhavan, tenders will be invited for developing nine container terminals. APM Terminals hopes to secure at least one tender.