Maersk Commits $5 Billion to Enhance India’s Port and Logistics Infrastructure
Global shipping giant A.P. Moller Maersk has unveiled plans to invest $5 billion in India’s ports, terminals, and landside infrastructure over the coming years. This strategic move aims to bolster the nation’s logistics capabilities and streamline supply chains, aligning with India’s vision to become a pivotal player in global trade.
A significant portion of this investment will focus on the expansion of the Pipavav terminal, enhancing its capacity to handle increased cargo volumes. Additionally, Maersk is set to develop a state-of-the-art container terminal at the upcoming Vadhavan Port in Maharashtra. These projects are poised to not only augment India’s port infrastructure but also create numerous employment opportunities and stimulate economic growth in the surrounding regions.
Keith Svendsen, CEO of APM Terminals, emphasized the company’s commitment to reducing logistics costs for customers by integrating various services. He stated, “We see an investment opportunity pipeline of about $5 billion in ports and terminals and landside infrastructure development.” This holistic approach encompasses transportation, port handling, warehousing, and distribution, ensuring that customers can access their entire supply chain needs in one place.
This announcement coincides with Maersk’s recent christening of its eleventh dual-fuel methanol container vessel, the ‘Albert Maersk,’ in Mumbai. The vessel, capable of operating on methanol, underscores Maersk’s dedication to sustainable shipping practices and its support for India’s maritime infrastructure.
India’s strategic location, with a coastline spanning approximately 7,500 kilometers and 20,275 kilometers of national waterways, positions it as a crucial hub in the global maritime sector. The nation’s ports sector is poised for significant growth, with projections indicating an annual capacity expansion of 500-550 million tonnes per annum by the fiscal year 2028. Maersk’s substantial investment is set to play a pivotal role in realizing this potential, enhancing India’s connectivity and competitiveness in international trade.
In tandem with Maersk’s initiatives, the Indian government is actively promoting the maritime sector. Union Minister Sarbananda Sonowal recently launched a consortium comprising India Ports Global, Sagar Mala Development Company, and India Port Rail and Ropeway Corporation. This consortium aims to expand India’s maritime footprint and strengthen supply chains, further complementing private sector investments like that of Maersk.
Maersk’s $5 billion investment not only signifies confidence in India’s economic trajectory but also aligns with the nation’s ‘Make in India’ initiative, fostering self-reliance and positioning India as a global manufacturing and logistics hub. As these projects come to fruition, they are expected to transform India’s maritime landscape, driving efficiency, sustainability, and growth in the logistics sector.
