Major Indian Port Valued at $1 Billion in Stake Sale


Port operator DP World is in talks with Warburg Pincus after the US-based private equity firm decided to sell its 31.5% stake in the deepest all-weather port in India, according to Mint.

Warburg has hired investment bank UBS to find a potential buyer for its part of Gangavaram Port in Andhra Pradesh, which has been valed at US$1-1.4 billion with Warburg's share worth $300-400 million, according to the Indian business newspaper’s anonymous contacts.

In 2007, Warburg had invested around $40 million in the port at Gangavaram in Andhra Pradesh.

Gangavaram can handle fully laden Super Cape size vessels of up to 200,000 dead weight tonnage in depths of up to 21 metres.

Commissioned in 2008, its handles cargo groups including coal, iron ore, fertilizer, limestone, bauxite, raw sugar, project cargo, alumina, and steel products.

The Dubai government-owned DP World has a portfolio of 77 terminals in 40 countries with a capacity of 85 million TEU.

Read Drewry's technical paper, 'Bleak Outlook for Bulk: A Long Term Perspective', to find out why the consultancy retains its cautious view over bulk shipping

Last year, DP World had announced its plan to invest $1 billion in India over the next few years.

The group has already invested $1.2 billion in India and runs six terminals that make up approximately 30% of India’s container trade market share.

According to Mint, a DP World spokesperson said: “We are always looking out for the right opportunities.

“We don’t comment specifically on any unless there is something to announce.

“We plan to increase our market share by increasing capacity at key locations and developing our beyond-the-gate strategy.”

Note: Port Technology has not verified this story and does not vouch for its accuracy

Read more: Jawaharlal Nehru Port Trust (JNPT), India’s largest container port operator, has improved its performance in the first six months of the 2017 financial year after terminal operators DP World and APM Terminals both contributed towards a 6.26% growth in TEU

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