Policy & Economy News
India has become the world's third-largest aviation market: President Ms. Droupadi Murmu
Business News - The India Boom Factor
EEPC India – Elevating the Indian engineering sector globally
Vietnam's trade with India hits record in 2022
Shipping News
Box lines divert long-haul vessels to Persian Gulf and Indian lanes Intl. Shipping
India Seeks Public-Private Partnership (PPP) In Coastal Shipping
Logistics News
Indian Port News
Hindustan Infralog offers highest ever PPP project bid for mega container terminal at Tuna-Tekra
DP World to develop mega container terminal at Deendayal Port
India to build $5bn Bay of Bengal container transhipment terminal
Policy & Economy News |
| Union Budget 2023-24 presents a positive outlook for growth & economy Exim News Service: New Delhi, February 1 Top |
| Infrastructure a key focus area In the 75th year of Independence, the world has recognised the Indian economy as a 'bright star' as the economic growth is estimated at 7 per cent, which is the highest among all major economies in spite of the massive global slowdown caused by Covid-19 and the Russia-Ukraine War. This was stated by Union Minister for Finance & Corporate Affairs, Ms Nirmala Sitharaman, while presenting the Union Budget 2023-24 in Parliament on Wednesday. She emphasised that the Indian economy is on the right track, and despite a time of challenges, heading towards a bright future. Ms Sitharaman said that this Budget hopes to build on the foundation laid in the previous Budget, and the blueprint drawn for India@100, which envisions a prosperous and inclusive India where the fruits of development reach all regions and citizens. The Budget has generally been welcomed as pro-growth. Infrastructure/coastal shipping among priorities The Finance Minister listed seven priorities of the Union Budget and said that they complement each other. They are as follows: 1) Inclusive Development 2) Reaching the Last Mile 3) Infrastructure and Investment 4) Unleashing the Potential 5) Green Growth 6) Youth Power 7) Financial Sector. Ms Sitharaman said investments in infrastructure and productive capacity have a large multiplier impact on growth and therefore capital investment outlay is being increased steeply for the third year in a row by 33 per cent to Rs 10 lakh crore (Rs.10 trillion), which would be 3.3 per cent of GDP. She said that this will be almost three times the outlay in 2019-20. The 'Effective Capital Expenditure' of the Centre is budgeted at Rs 13.7 lakh crore (Rs.13.7 trillion), which will be 4.5 per cent of GDP. The Finance Minister informed that the government has decided to continue the 50-year interest-free loan to state governments for one more year to spur investment in infrastructure and to incentivise them for complementary policy actions, with a significantly enhanced outlay of Rs 1.3 lakh crore (Rs.1.3 trillion) Railways/transport infra/port connectivity The Finance Minister announced that a capital outlay of Rs 2.40 lakh crore (Rs.2.4 trillion) has been provided for the Railways, the highest ever and about 9 times the outlay made in 2013-14. She also informed that one hundred critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertiliser and foodgrains sectors have been identified and they will be taken up on priority with investment of Rs 75,000 crore (Rs.750 billion), including Rs 15,000 crore (Rs.150 billion) from private sources. The path-breaking policies such as the PM Gati Shakti, National Logistics Policy and the PLI schemes will strengthen the infrastructural and manufacturing base while bringing down costs in the value chain and lay a strong foundation for sustained economic growth and improved resilience. She added that fifty additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity. Promoting coastal shipping The Finance Minister stressed that India is moving forward firmly towards ushering in a green industrial and economic transition. This Budget builds on India's focus on green growth. In line with green growth, she proposed that coastal shipping will be promoted as the energy efficient and lower cost mode of transport, both for passengers and freight, through PPP mode with viability gap funding. Simplified tax structure With an aim to promote exports, boost domestic manufacturing, enhance domestic value addition and encourage green energy and mobility, the Minister stressed on a simplified tax structure with fewer tax rates to help in reducing compliance burden and improving tax administration. She proposed to reduce the number of Basic Custom Duty (BCD) rates on goods, other than textiles and agriculture from 21 to 13. This has necessitated minor changes in the basic Customs duties, cesses and surcharges on some items including toys, bicycles, automobiles and naphtha. Stable economy "Despite external exogenous shocks, India's economy is relatively insulated from global spill overs compared to other EMEs, partly because of its large domestic market and relatively looser integration in global value chains and trade flows," said the 'Statements of Fiscal Policy' presented by the Union Minister of Finance. According to the fiscal policy statements, the nominal GGP is projected to grow at 15.4 % year-on-year (Y-o-Y) in FY2022-23 as against 19.5% in 2021-22. The real GDP is projected to grow by 7% (Y-o-Y) relative to 8.7% in 2021-22. Exports are estimated to grow at 12.5 per cent in FY 2022-23 despite sustained supply chain disruptions and an uncertain geopolitical environment. The share of exports in GDP (at 2011-12 prices) also increased to 22.7 per cent in FY 2022-23 compared to 21.5 per cent in FY 2021-22. Ease of doing business The Finance Minister said that for enhancing ease of doing business, more than 39,000 compliances have been reduced and more than 3,400 legal provisions have been decriminalised. She added that for furthering trust-based governance, the government has introduced the Jan Vishwas Bill to amend 42 Central Acts. Green growth This Budget builds on the focus on green growth, the Minister said. The recently launched National Green Hydrogen Mission, with an outlay of Rs 19,700 crore (Rs.197 billion), will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector. The target is to reach an annual production of 5 MMT by 2030. She added that to steer the economy on the sustainable development path, Battery Energy Storage Systems with capacity of 4,000 MWH will be supported with Viability Gap Funding. Credit guarantee for MSMEs The Finance Minister announced that the revamped credit guarantee scheme for MSMEs will take effect from April 1, 2023 through infusion of Rs 9,000 crore (Rs.90 billion) in the corpus. This will enable additional collateral-free guaranteed credit of Rs 2 lakh crore (Rs.2 trillion). Further, the cost of the credit will be reduced by about 1 per cent. |
| India has become the world's third-largest aviation market: President Ms. Droupadi Murmu IBEF - February 1 Top |
| India has become the third largest aviation market in the world, after the number of airports in the country increased from 74 in 2014 to 147 in 2022, as per the President of India, Ms. Droupadi Murmu. She added that the Indian Railways is also emerging as a modern institution with many inaccessible areas being added to the rail map of the country. UDAN (Ude Desh ka Aam Naagrik) is the government's regional air connectivity scheme and UDAN flights have carried around 1.15 crores (11.5 million) of people over the last six years. Ms. Droupadi Murmu said that UDAN Yojana has played an important role in the aviation industry. The inaccessible areas of Jammu and Kashmir and Northeast are also being connected with the railways where the major railway stations of the country are also being modernized. An addition of a modern as well as semi-high-speed train in the Indian railways has also been done, known as Vande Bharat Express. Indian railways is working on building the world's largest electric railway network and also expanding the indigenous technology-KAVACH- to make Indian railways better. |
Business News – The India Boom Factor |
| The Netherlands emerges as India's 3rd largest export hub Fortune India – January 30 Top |
| The Netherlands has emerged as India's third-largest export destination after the U.S. and U.A.E. during the April-December period of FY2022-23. The surge in trade between India and the Netherlands has been attributed to the increase in shipments of petroleum products, electronic items, chemicals and aluminum goods. The country's trade surplus with the Netherlands increased from $1.5 billion in 2017 to $12.3 billion in 2022-23 so far, the commerce ministry data shows. India's top 10 trade partners during the April-December 2022-23 period were the U.S., UAE, Netherlands, China, Bangladesh, Singapore, Brazil, the UK, Saudi Arabia and Indonesia, the commerce ministry data shows. The Netherlands was the fifth-largest export destination for India in 2020-21. The European country replaced the U.K., Hong Kong, Bangladesh and Germany to emerge as the third major export hub of India this year. India's exports to the U.S. saw 8.54% growth during the April-December period at $53.1 billion as compared to $48.9 billion during the same period last year. To the U.A.E., India's exports surged 19.32% to $20.8 billion as compared to 17.4 billion during the same period last year. India's overall exports (merchandise and services combined) in April-December 2022 exhibited a positive growth of 16.11% over the same period last year (April-December 2021). In value terms, India's overall exports were at $568.57 billion in April-December 2022, while imports were at $686.70 billion. As India's domestic demand remained steady amid the global slump, the overall imports in April-December 2022 exhibited 25.55% over the same period last year. However, in December 2022, the exports comprising merchandise and services stood at $61.82 billion in December 2022, declining 5.26% over the same period last year. The overall imports in December 2022 were at $73.80 billion, a negative growth of 1.95% over the same period last year. The country's trade deficit, in the first three-quarters of FY23, has already touched a historic high of 6% of the GDP For the full fiscal of FY23, the trade deficit is likely to reach far higher – putting tremendous pressure on forex reserves. As per Federation of Indian Export Organization's (FIEO) president A Sakthivel, the coming months would be quite challenging unless both global economic growth and the geopolitical situation improve drastically. However, the decrease in imports is a good sign, he said, which will put less burden on the trade deficit front. "We hope that the energy prices will come down further to provide more relief," he added. |
| EEPC India – Elevating the Indian engineering sector globally Exim News Service: New Delhi, February 1 Top |
| EEPC India has been the Face of Indian Engineering exports over a span of 67 years when India grew from a meagre $10 million engineering export nation in 1955 to $112.1 billion (Apr. 2021-Mar. 2022) and is regarded as the MODEL EPC in India by the Union Ministry of Commerce and Industry. EEPC India is the premier trade and investment promotion organisation in India. It is sponsored by the Ministry of Commerce & Industry, Government of India and caters to the Indian engineering sector. It has many firsts to its credit. The First Indian EPC to have a website, to be ISO certified, to have in-house Technology Centres and also to e-catalogue the product profiles. As an advisory body, it actively contributes in the policies of Government of India and acts as the prime conduit between the Indian Engineering fraternity and the government. Set up in 1955, EEPC India now has a membership base of around 11,000 predominantly drawing 60% from MSME segment. EEPC India has been participating and organising promotional activities including buyer-seller meets (BSM) and managing India Pavilion in various overseas exhibitions to demonstrate the capabilities of Indian engineering industry. INDEE (Indian Engineering Exhibition) and its domestic counterpart – IESS (International Engineering Sourcing Show) are two flagship events of EEPC India. EEPC India, in its endeavour to facilitate the members to continue the business momentum during the Covid-19 pandemic, started organising e-sessions or webinars and virtual exhibitions, since April 2020. We have organised over 400 webinars. Over 100 e-BSMs have been arranged associating with 40 Indian Overseas Missions viz. USA, UAE, Germany, Vietnam, France, Oman, South Korea, Russia, Peru, Senegal, Mozambique, Botswana, Thailand, Guatemala, Honduras, El Salvador, Kuwait, South Africa, Uzbekistan, Brazil, Canada, Mexico, Qatar, Kenya, Uganda, Nigeria, Tanzania, Switzerland, Sri Lanka, Ethiopia, Vietnam, Cameroon, Cambodia, Brunei, Myanmar, Laos, Malaysia, Indonesia, Singapore, Philippines. Virtual exhibitions on Subcontracting, Farm Machinery, Medical Devices, Pumps and Valves, Electrical Equipment, Builder Hardware, Metal Cutting, Forming and Welding & Heating, Ventilation, Air Conditioning and Refrigeration Equipment have been organised to bolster engineering exports in these sectors and more are in the offing. EEPC India has switched to physical participation in International Exhibitions and in FY 23 it has already so far joined a total of 27 physical exhibitions. Extending its regular agenda, EEPC India also published several reports/studies to make the members aware about the international trends and opportunities in order to enhance their global footprint. |
| Vietnam's trade with India hits record in 2022 India Seatrade News - February 2, 2023 Top |
| Two-way trade between Vietnam and India saw a yearly increase of 13.6% to US$15.05 billion in 2022, the Vietnam News Agency (VNA) quoted statistics from the General Department of Customs as saying. During the year, Vietnam's exports to India topped $7.96 billion, up 26.8% year-on-year. Among its export items, mobile phones and accessories posted the highest turnover with $1.52 billion, up 18.4%, making up nearly 20% of the total export value. Computers, electronics and parts came next with $1.03 billion, up 25%, while machinery and equipment ranked third with $804 million or over 10%. Other staples with the highest value increase were coffee with 165%, iron and steel (97%) and footwear (96%). Some items, however, posted large decreases in export value, such as animal feed and raw materials with $23.04 million, down 76.5%, and coal with $7.68 million, down 46%. As per the data, Vietnam imported $7.09 billion worth of goods from India last year, a yearly hike of 2%. Its major import commodities from the market were iron and steel, with nearly $775 million, machinery and equipment ($549.3 million) and ordinary metals ($515 million). Besides trade, bilateral cooperation in tourism and investment also grew with the resumption and launch of direct air routes. |
Shipping News |
| MSC boosts India to West Med service with Leghorn call Exim News Service: Geneva, February 2 Top |
| In order to satisfy market demand and reflect MSC's commitment to keep developing the Mediterranean shipping area, it will be introducing a new weekly direct call at the port of Leghorn (Italy) on its India to West Med service. This new call is intended to replace the current acceptance of cargo for India, East Africa, Red Sea, Middle East and Far East on its La Spezia Shuttle service, informed a release. The first applicable vessel sailing from Leghorn will be MSC AGAMEMNON, voyage IM305A, on February 28, 2023. The full revised rotation is: Abu Dhabi – Jebel Ali – Nhava Sheva – Mundra – Djibouti – King Abdullah Port – Gioia Tauro – Leghorn – Genoa – Barcelona – Valencia – Salerno – Gioia Tauro – Marsaxlokk – King Abdullah Port – Jeddah – Abu Dhabi 
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| Box lines divert long-haul vessels to Persian Gulf and Indian lanes Intl. Shipping India Seatrade News - February 2 Top |
| Liner operators have been moving tonnage from the Transpacific and Asia-Europe lanes to Far East-Persian Gulf and Far East-India routes where rates are steadier. Alphaliner's latest report, released today (1 February), said that the unrelenting slide in freight rates and cargo volumes, particularly in China after the Chinese New Year holidays, have led to significant changes in global container fleet deployment. Alphaliner estimates that more than 565,000 TEUs of capacity were withdrawn from the Asia – North America and Asia – Europe trades in 2022. This process is still continuing, with Hapag-Lloyd closing down its China – Germany Express service and Ellerman City Liners diverting its ships from Asia-Europe to the more lucrative Transatlantic trade. Capacity on the Transatlantic increased by 162,300 TEUs, or 16.2% in 2022. The biggest tonnage shift, however, has been to the Persian Gulf and India-related services, where 320,600 TEUs of fleet capacity, equivalent to 11% of the previous capacity, were added last year. The growing interest in Indian traffic was reflected by COSCO Shipping Lines and its subsidiary, OOCL, launching a South East Asia – India – US East Coast service in December 2022 after closing a China – Vietnam – US East Coast loop. The capacity shift seen in 2021 to Asia – North America and Asia – Europe trades was mostly at the expense of the intraAsia fleet, which lost 11% that year, and Africa-related services, which lost 6%. Alphaliner said, "This has not been fully restored, however, with capacity rising only 5% and 3% respectively in 2022. Intra-European capacity is down 5.2% year-on-year due to the Ukraine conflict, after a 5% decline in 2021." |
| India Seeks Public-Private Partnership (PPP) In Coastal Shipping India Seatrade News - February 3 Top |
| On February 1, the Indian government announced its plan to invest in coastal shipping. As per the latest budget allocations, India will follow the public-private partnership or PPP model to enhance passenger and freight movements across the eastern and western coasts. The stress is developing low-cost, energy-efficient systems using VGF and viability gap funding. Since coastal waterways are low on logistics costs and high on their eco-friendly nature, it's the best solution for domestic freight movements, said the Finance Minister while tabling the budget. Despite having a 7500 km coastline and extensive inland waterways, India's water-based modal transport is lower than Thailand and Bangladesh, standing at 12% and 16%, respectively. Compared to that, India is at a meagre 6%. This is highlighted in the 10-year roadmap for the Indian maritime sector called the Maritime India Vision 2030, which said that India hadn't utilized its coast well for efficient supply chain ventures. Apart from this, the 2030 maritime vision calls for PPP in RoRo and ferry services through management-based contracts or operation and maintenance (O&M) contracts. This will reduce the cost for end users and reduce pollution levels (noise and air pollution). The proposed plan will lower accidents as well. However, to support this, we need better last-mile and first-mile connectivity as costs and lead times become vital competition issues. In the past, the shipping ministry had reduced tariffs for coastal cargo, given priority berthing to coastal vessels, made green channels for faster cargo clearance and vessel availability relaxed cabotage rules. All of this will collectively aid in bettering coastal shipping facilities. |
Logistics News |
| ITC sets up integrated food manufacturing & logistics park in Telangana at Rs.450 crores (Rs. 4.5 billion) India Seatrade News - January 31 Top |
| FMCG giant ITC Ltd has set up an integrated food manufacturing and logistics facility at an investment of Rs 450 crore (Rs.4.5 billion) at Medak district in the state. Spread over nearly 59 acres of land, the food processing facility, which is equipped with end-to-end digital infrastructure, has a built-up area of 6.5 lakh sq ft where ITC will produce foods brands such as Aashirvaad atta, Sunfeast biscuits, Bingo chips and Yippee noodles, among others, in phases. ITC said that in line with its efforts to scale up women's participation in the workforce, the Medak facility will employ 50% women at the overall factory level. ITC Ltd chairman Sanjiv Puri, who was present at the inauguration of the facility by Telangana IT and industries minister KT Rama Rao, said ITC has been strengthening its footprint in Telangana across all three sectors of agriculture, manufacturing and services. He said ITC's investment in the food processing sector in Medak is poised to add value to the state's manufacturing sector and support inclusive agri value chains. "Encouraged by the immense potential that the state offers, we have invested in a world-class Integrated foods manufacturing and logistics facility here in Medak. This unit will also be a flag-bearer of sustainability given the multidimensional initiatives that will support sustainable and inclusive growth as well as promote extensive use of renewable energy," Puri said. The Medak unit, which has been certified as a platinum-level green building by the Indian Green Building Council (IGBC), will be powered by clean energy generated by rooftop solar energy modules. It also has scientifically designed rainwater Harvesting system to ensure reduced reliance on groundwater and considerably reduced impact on the environment. ITC said its significant presence in Telangana includes two of the company's largest paper manufacturing plants at Bhadrachalam and Bollaram. On the agri-business front, the company has been working closely with farmers in Telangana on crop development with special focus on staples like rice, maize, millet and spices like chilli and turmeric and exports a substantial amount of food safe spices procured from the state. |
Indian Port News |
| APM Terminals Mumbai efficiently facilitates export of first consignment of aviation fuel AVGAS 100 LL from India Exim News Service: Mumbai, January 30 Top |
| APM Terminals Mumbai (GTI) has intimated in a release that it is proud to partner Indian Oil Corporation Ltd (IOCL) to export the first consignment of aviation fuel AVGAS 100 LL from India. AVGAS 100 LL is an aviation fuel used in trainer aircraft. IOCL has been indigenously producing the fuel in India since September 2022. This was the first time that AVGAS 100 LL was being exported from India. The container carrying 80 barrels was loaded safely on MV Sofia, a Maersk service vessel. The export event was flagged off by Mr Shrikant Vaidya, CMD of IOCL, Mr Unmesh Sharad Wagh, IRS, Deputy Chairman of JNPA, and Mr Sunay Mukerjee, COO of GTI, in the presence of the senior officials of IOCL, JNPA and GTI. IOCL appreciated the stringent safety and operational guidelines followed by GTI to smoothly evacuate the container. Mr Sunil Kumar Nagdawne, DGM Aviation, IOC WR, said: "The team IOCL is extremely thankful to GTI for all the support and cooperation provided during this momentous event. The close coordination amongst all the teams to ensure safe and smooth export of the hazardous commodity from the terminal is remarkable. Truly world class experience and we as customer are delighted with your service." Mr Sunay Mukerjee added: "We at GTI are extremely humbled and honoured to be a part of Government of India's vision of 'Atmanirbhar Bharat' and Make in India by facilitating the first consignment of AVGAS 100 LL export from our terminal. We are thankful to IOCL to choose our terminal for this historic milestone. We are committed to serve our customers by turning around their cargo safely and swiftly at our terminal." |
| Hindustan Infralog offers highest ever PPP project bid for mega container terminal at Tuna-Tekra Exim News Service: Gandhidham, January 30 Top |
| Hindustan Infralog Pvt. Ltd (a DP World joint venture) has emerged as the highest bidder for becoming the 'Concessionaire' of the proposed Deendayal Port Authority (DPA) project to develop a state-of-art Mega Container Terminal at Tuna-Tekra, Kandla, under PPP mode, for a concession period of 30 years, through global competitive bidding process. The terminal is to be developed at the adjacent east side of the existing Dry Bulk Terminal, currently being operated by AKBTPL. Hindustan Infralog offered a 'royalty' of Rs 6,500 per TEU, the highest bid ever received in a PPP project, highlighted a DPA release. The project, conceived in 2013, is now going to see the light of day, the release emphasised. The project entails an investment of about Rs 4,500 crore (Rs.45 billion), which is again the highest capital investment ever in a PPP project at any of the Major Ports of India, as per the release. Key project details This Mega Container Terminal project is envisaged for a handling capacity of 2.19 million TEUs per annum, with estimated project cost of Rs 4,243.64 crore (Rs.42.4 billion) for the Concessionaire and Rs 296.20 crore (Rs.2.9 billion) for the Authority. DPA will invest in the common basic infrastructure like access channel for navigation of vessels, and road. The terminal will cater to container vessels of size up to 21,000 TEUs, with a draught of 18 metres, without any pre-berthing detention for want of tide. Operations are expected to commence in early 2026. Project benefits * Due to its strategic location (closest among all ports - Major or minor - to the densely populated and fast developing northern hinterland), the terminal will help in decreasing the cost of container logistics in the country. * With deep draught and latest handling technology, the container terminal is expected to set a new benchmark in productivity and ease of doing business. * The terminal is expected to transform the economic landscape of Kutch with the creation of several ancillary services (warehousing, etc.), and numerous direct and indirect employment opportunities. * The facility, apart from earning royalties for DPA, will also be a buoyant source of taxation income (direct and indirect) to the GoI. * The container terminal is also likely to give a major fillip to infrastructure development in Gujarat, with major investments needed from NHAI and Railways. These are likely to help the development of other parts of the state as well. The importance of this project can be realised from the fact that it is a part of the Prime Minister's vision of 'Sagarmala' and 'PM Gati Shakti National Master Plan', and therefore its implementation is being monitored by the PMO. Hence, the project was structured and globally publicised under the guidance of the Ministry of Ports, Shipping and Waterways, wherein a mega road show was organised in Mumbai in order to successfully conclude the bidding process. The project has already been apprised by the PPPAC and approved by the Union Cabinet, GoI. Also, MoEF&CC has granted it environment clearance. The successful implementation of the project shall not only be the dawn of a new bring in mega container handling at Deendayal Port, it will also have a huge positive impact on the economic & social scenario of the Kutch district and Gujarat region at large, the release added. |
| DP World to develop mega container terminal at Deendayal Port Exim News Service: Dubai/Gandhidham, February 2 Top |
| DP World has won a major concession to develop, operate and maintain a mega container terminal at Deendayal Port in Gujarat, on the western coast of India. The project involves the construction of a mega box terminal at Tuna-Tekra through Public Private Partnership (PPP). Once complete, the terminal will include a 1,100 m berth and will be capable of handling vessels carrying more than 18,000 TEUs. Total capacity will be 2.19 million TEUs. The contract was awarded by Deendayal Port Authority under Build-Operate-Transfer (BOT) basis. Once complete, the terminal will help unlock future container traffic growth in India, catering to exports and imports from Northern, Western and Central India, reducing logistics cost and enhancing efficiencies across supply chains. The project will complement initiatives of the Government of India, such as the PM Gati Shakti Master Plan and National Logistics Policy, which has been introduced to provide greater focus on developing multimodal logistics infrastructure promoting economic growth. DP World's strategic investments in ports and terminals in the country is aligned with the Indian government's Vision 2047, which aims to quadruple the country's port handling capacity. Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: "India represents a significant landscape for opportunity. As the value chain becomes more integrated, significant growth opportunities exist across the entire Indian ports and logistics space. With the development of Tuna Tekra mega container terminal in Gujarat, DP World will be well placed to capture these opportunities, further connecting Northern, Western and Central India with global trade and driving value for all our stakeholders. This is yet another step in our collective efforts with the National Investment and Infrastructure Fund to leverage our expertise in logistics infrastructure and local knowledge to further strengthen India's supply chain". Rizwan Soomar, CEO and MD, India Subcontinent and sub-Saharan Africa, DP World, added: "We are honoured to partner with Deendayal Port Authority in developing this new mega container terminal at Tuna-Tekra. We are confident that our deep expertise in developing critical infrastructure under Public-Private Partnerships will drive value for all stakeholders involved in this project. We remain enthusiastic to continue playing an important role in developing world leading assets to enable trade flow in key markets of India." The new terminal will be constructed and equipped with most modern facilities and equipment over an area of approximately 63 hectares. The terminal will be well connected to the hinterland through the network of roads, highways, railways and the Dedicated Freight Corridors. DP World already operates five marine terminals – two in Mumbai, one each in Mundra, Cochin and Chennai – with a combined capacity of approximately 6 million TEUs. With the addition of Tuna Tekra Container Terminal, DP World will have a capacity of 8.19 million TEUs. This is along with seven multimodal inland terminals connected to DP World's rail network, cold storage facilities and container freight stations. It is also developing three state-of-the-art economic zones across the country in Mumbai, Cochin and Chennai, highlighted a release. |
| India to build $5bn Bay of Bengal container transhipment terminal India Seatrade News - February 2 Top |
| India's Ministry of Ports, Shipping and Waterways has announced that the country will build a new container transhipment terminal, the Galathea Bay Transhipment Port. In a statement, the ministry said a transhipment hub in India would "attract Indian and regional transhipment traffic from the current hubs, save significant revenue loss, reduce logistics inefficiencies for Indian trade, reduce risks to the country's export competitiveness and create an opportunity for India to become a large hub for Asia-Africa, Asia-US/Europe container traffic trade." The ministry said that "nearly 75% of India's transhipped cargo is handled at ports outside India. Colombo, Singapore and Port Klang handle more than 85% of this cargo." The terminal is expected to save Indian ports $200m to $220m a year on transhipment cargo. The ministry also anticipates that the terminal "will accrue significant benefits such as forex savings, foreign direct investment, increased economic activity at other Indian ports, enhanced logistics infrastructure and thus, efficiencies, employment generation, and increased revenue share." The project will cost an estimated $5bn and the first phase of construction is expected to be completed in 2028. Capacity of 4m teu when phase one is completed will increase to 16m teu when the terminal reaches full capacity. A concession of 30 to 50 years will be awarded to the winning bidder in a competitive process. |
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