APM Terminals Pipavav has announced its Rs. 700 crore ($954.8 million) mega-ship expansion and upgrade has been approved.
In a statement, APMT said the investment will be utilised for upgrading the port’s existing facility to handle bigger ships and eventually expand the container capacity to 1.6 million TEU.
The company said the project will “significantly improve” the locala nd international supply chain, as transit times will be cut and reliability of getting goods to market increased with the Western Dedicated Freight Corridor (DFC).
This it said will improve overall cargo volume for imports and exports. About 40% of the total investments in entire 1,535 km of DFC is likely to be in Gujarat, which has around 37% of area covered of complete stretch.
Jakob Friis Sorenson, Managing Director, APM Terminals Pipavav said: “With this investment, we aim to strengthen our network and continue to provide best in-class services to all our stakeholders.
“However, we are awaiting the confirmation of concession extension from Gujarat Maritime Board (GMB) to execute the expansion plan.
“The container yard capacity will be expanded once the cargo growth is visible post commissioning of DFC.
“We expect the world economy and business to follow an expanded ‘U’ curve and normalcy in business to be restored by the second quarter of 2021.”