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In December , Mediterranean Shipping Co . ( MSC ) consolidated its marine terminal profile in India by acquiring a 49 % stake in the Adani Ennore Container Terminal near Chennai for Rs . 247 crore ($ 30 million ). This added to MSC ’ s 50 / 50 terminal joint venture with Adani Ports ( APSEZ ) at Mundra Port , with the largest market share there , and its 49 % ownership of a container terminal at Tuticorin Port ( South India ) that came through its acquisition of Bollore Africa in 2022 .
“ It will help us move faster . It will help us keep costs down and ... spread out our supply to other countries .”
CMA CGM and Hapag-Lloyd are also targeting Indian port opportunities . CMA Terminals , which has had a partnership with APSEZ at Mundra since 2017 , recently secured concession rights for the oldest container terminal at Nhava Sheva Port in a partnership with Mumbai-based JM Baxi Group .
Last year , Hapag-Lloyd snagged 40 % of JM Baxi Ports & Logistics — having a growing business line for logistics verticals — to pursue investments beyond port-to-port shipping in India . AP Moller-Maersk also has a significant footprint inland in India , with marine terminal operations at Nhava Sheva and Pipavav , as well as a growing network of container freight stations and multi-product warehouses as it aggressively pursues its global integrator strategy .
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The Europe-based carriers join the likes of OOCL and APL , which have invested in rail services and container freight stations for nearly two decades .
Moreover , niche regional carriers are enhancing intra- Asia networks to support rising manufacturing in India as local importers mostly lean on the Chinese market for inputs and also spot an opportunity to turn out finished products in the longer term .
The latest capacity push comes from a three-member consortium led by Wan Hai Lines , which will begin a Southeast Asia – West India connection , branded as the SI8 , from the end of April .
That market potential has also prompted mainliners to invest in standalone services connecting Indian ports to major Asian destinations . CMA CGM in late 2023 commenced a direct West India – China string , known as the Asia Subcontinent Express 2 , while ONE also recently added a link to Singapore out of Cochin in southern India for transshipment trade , to cite a few examples .
Still catching up
India ’ s ability to deliver reliability and consistency to containerized supply chains remains a “ work-in-progress ” as it catches up to the speed and efficiency offered by its Southeast Asian counterparts , much less China .
Port performance at major Indian ports , for example , shows some modest improvements over the last year but also the gulf between other Asian ports . Port moves per hour ( PMH ), one indicator of efficiency , has steadily improved at Nhava Sheva , bringing it in line with Mundra , according to the S & P Port Performance Program . The duo ,
April 22 , 2024 | Journal of Commerce 13