APMT CEO sees potential for the private sector
With a population of 1.2 billion and the world’s third-largest economy, India remains significantly under-represented as a player in global trade – something APM Terminals CEO Kim Fejfer says he is eager to help change.
“The opportunities for development throughout one of the world’s largest and fastest-growing economies are exciting and energising, and APM Terminals is committed to being a part of that growth,” Fejfer told local business leaders and customers during his keynote address at the India Ports Conference in Mumbai.
Although the Indian economy expanded by an estimated 7.8% in 2011 to US$1.8 trillion, India ranked 13th in imports and 21st in exports, globally, last year.
South Asia, which includes Pakistan and Bangladesh, represented only 3% of global container throughout in 2011, according to estimates by Alphaliner, with combined container volumes of 18 million teu, four million less than China’s port of Shenzhen on its own.
Throughput at India’s ports accounted for 9.7 million teu in 2011 – one-twelfth of what global container traffic averages based on economic output would suggest as necessary to meet the economy’s needs.
Fejfer estimated that $20 billion would need to be spent on the infrastructure necessary to make the country’s projected growth a reality.
Jawaharlal Nehru Port (JNP), serving Mumbai, is India’s busiest container port, accounting for nearly 45% of all Indian containerised cargo – the 25th-busiest in the world, with throughput of 4.3 million teu in 2011.
Congestion and capacity issues at India’s ports have begun to affect trade growth, as existing container terminals are at 84% capacity and above, and access to inland points remains inadequate.
The Indian government is determined to promote infrastructure growth and JNP container throughput is projected to increase to 11 million teu by 2016, and 23 million teu by 2020 in the latest 10-year plan by the Indian Ministry of Shipping.
Fejfer pointed out that private sector involvement would be a crucial component of this growth, if the investment and regulatory environment in India did not act as constraints.
“Port tariff regulations which penalise increased throughput and productivity will not assist in developing the needed infrastructure,” he said.
In addition to Mumbai, where it handled almost two million teu last year, APM Terminals also operates at Pipavav, also on the Indian west coast in the state of Gujarat.
Pipavav is acknowledged as India’s fastest-growing port, with a throughput of an estimated 620,000teu in 2011, and is the country’s first private sector port operation.
APMT also operates inland operations at seven locations, including Chennai, and global service centres at Mumbai, Chennai and Pune.
“We are pleased with the progress we have made since entering this market in 2006, and we will continue to look for the right opportunities to expand our presence here to serve our customers, and India’s great economic potential” said Fejfer.
Source: IFW Net
