Maersk's $5 Billion Bet on India's Logistics Boom

Global shipping giant AP Moller Maersk has announced plans to invest USD 5 billion in India's ports, terminals, and landside infrastructure. The investment will prioritize the expansion of Pipavav Terminal, the development of Vadhavan Port, and the growth of logistics services.

Approximately half of the investment will be allocated to Pipavav Terminal and associated logistics. Keith Svendsen, CEO of APM Terminals, emphasized the company's strategy: "We believe that by providing a comprehensive suite of supply chain services—ranging from multiple transportation modes to port handling, warehousing, and distribution—we can significantly reduce logistics costs for our customers."

In a major move last year, Maersk signed a Memorandum of Understanding (MoU) with the Jawaharlal Nehru Port Authority (JNPA) to establish a container terminal at the planned Vadhavan mega port in Maharashtra. While the project is still in the bidding stage, Maersk has earmarked funds for the development. "We are eager to invest and compete for the Vadhavan terminal's development. Additionally, we plan to upgrade our Pipavav terminal, including dredging to accommodate larger vessels, ensuring its readiness for future trade growth in India," Svendsen noted.

Maersk is also expanding its warehousing and supply chain services, catering to both Indian and international clients.

News by Rahul Yelligetti.