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JNPT looks to expand operations overseas
2009/4/7
At a time when domestic Indian ports are grappling with shrinking cargo volumes, Jawaharlal Nehru Port Trust (JNPT), the country''s largest container port operator, is evaluating a plan to operate ports overseas, coupled with container terminals in other countries, the Economic Times reported.
JNPT chairman SS Hussain said: "We are planning to expand our operation abroad as a port as well as terminal operator, subject to government approval."
He said the port was evaluating opportunities in southern Africa and Latin America. For this, the port has recently held talks with Italian and Canadian port authorities to evaluate the feasibility of jointly setting up greenfield ports.
It is understood that JNPT will largely provide the necessary technical skills to establish and run an overseas port facility, in the initial stages of the plan, for which it would earn royalty and other fees.
At a later stage, it may invest in these ventures. The plan for evaluating foreign opportunities is subject to necessary approvals from the shipping ministry. The JNPT board is also planning to give a presentation to the ministry shortly, and it is understood to be asking for more autonomy in its functioning.
An industry analyst said that JNPT''s proposed fourth container terminal, which is expected to come up over the next two to three years, would become increasingly necessary for it to evaluate opportunities at other locations.
The opportunity to expand in an overseas location may help it grab a global footprint, as is the case with global majors like Dubai-based DP World and Denmark''s AP Moller.
Along with overseas ports, the port has similar plans of working jointly with other partners to set up new terminals in the country. During February 2009, the cargo traffic of the port declined by 19.4 percent year-on-year to four million tonnes.
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2009/4/7