APM Terminals CEO sees great opportunity at Indian ports

16 Feb 2012 - Ports

• APM Terminals state intentions of making India a major player in global trade

With a population of 1.2 billion and the world’s third-largest economy, India remains significantly underrepresented as a player in global trade, and that is something APM Terminals CEO Kim Fejfer is eager to change.

“The opportunities for development throughout India, one of the world’s largest and fastest-growing economies, are exciting and energizing and APM Terminals is committed to being a part of that growth,” said Fejfer as part of his keynote address at the India Ports Conference in Mumbai.

Although the Indian economy expanded by an estimated 7.8 percent in 2011 to US$1.8 trillion ($4.4 trillion when adjusted for purchasing power parity, behind only the USA and China), India ranked 13th in imports and 21st in exports globally last year.

South Asia, which includes Pakistan and Bangladesh, represented only 3 percent of global container throughout in 2011, according to estimates by Alphaliner, with combined container volume of 18 million TEU, four million less than the Port of Shenzhen, China.

Throughput at India’s ports accounted for 9.7 million TEU in 2011, or one twelfth of what global container traffic averages based on economic output would suggest as necessary to meet the economy’s needs. In his presentation, Mr. Fejfer estimated the infrastructure investment necessary to enable projected growth at $20 billion.

Jawaharlal Nehru Port (JNP), serving Mumbai, is India’s busiest containerport, accounting for nearly 45 percent of all Indian containerized cargo traffic. It is the 25th busiest containerport in the world, with throughput of 4.3 million TEUs in 2011.

APM Terminals Mumbai handled an estimated 1.9 million TEUs in 2011. Congestion and capacity issues at Indian 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 had projected JNP container throughput to increase to 11 million TEUs by 2016 and 23 million TEUs by 2020, as called for in the latest 10-Year Plan released by the Indian Ministry of Shipping.

Mr. Fejfer pointed out that private sector involvement will be a crucial component of this growth if the investment and regulatory environment in India do not act as constraints.