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Published: 29 June 2011
Indian ports to go global
The Indian government has announced plans to establish a dedicated company, modelled on DP World and PSA International, which will invest in overseas ports and container terminals.
According to a report by Bloomberg, the new company, to be known as Indian Ports Global (IPG), will be established within a month using an initial US$555M of funding from federal government-run ports. This amount will then be leveraged to raise another US$1.1B through the issuance of tax-free bonds.
IPG will look to invest in ports and terminals with large traffic flows to and from India, initially in South East Asia and possibly Australasia. Shipping Ministry sources said an international presence is required in view of India’s growing influence in international trade, which was estimated at US$600B in the last financial year, with exports projected to double by 2014.
The move may also help Indian shipping lines to win a greater share of international trade by giving them easier access to overseas facilities. State-owned Shipping Corp of India (SCI), the country’s biggest shipping line, plans to buy as many as 110 vessels during the current decade to benefit from rising global trade.
A Shipping Ministry spokesman said that a joint effort from India’s ports is required in order to compete with global terminal operators like DP World, PSA International and APM Terminals. With the exception of Kochi and Kolkata, India’s 11 other Trust ports are expected to contribute to the new venture, which will act as an investment arm of the Shipping Ministry.