The Hindu Business Line : No plans to make JN port a dedicated terminal: Maersk chief

DENMARK'S Maersk A/S has no intentions to convert the new container terminal at Jawaharlal Nehru Port into a dedicated terminal devoted exclusively for its container shipping fleet, a top Maersk official has said.

"Of course not. I can't do that. If I convert this into a dedicated terminal for the exclusive use of Maersk vessels, I would be losing business," Mr Hans Ole Madsen, Managing Director, Maersk India Pvt Ltd told Business Line on Friday, allaying fears expressed by several quarters that it would make the new terminal a dedicated facility for use of the Group's container ships.

"An investment of Rs 1,000 crore plus is not a small investment by any means. It is a huge investment and we have to do whatever we can to get the best possible returns. I can't be choosy," Mr Madsen said a day after the Maersk-Concor combine had emerged the highest bidder quoting a revenue share of 35.503 per cent for developing and operating a new container terminal at JN Port.

Maersk A/S is part of the A P Moller-Maersk A/S Group based in Denmark, which owns Maersk-Sealand, the largest container shipping line in the world. Mr Madsen pointed out that P&O Ports did not convert its container terminal at Nhava Sheva in JN Port into a captive terminal when it was awarded the contract. "After all, P&O Ports also had a container shipping division — P&O Nedlloyd - within its Group. But, they didn't do it. Similarly, we have no such plans or intentions," Mr Madsen emphasised.

Though euphoric at having emerged the highest bidder, the Maersk India chief said that "there were still a few more steps to go" before the Government actually awarded the contract.

"Officially, we have not got it as yet, though we are the highest bidder," he noted. First, the board of trustees have to meet and clear the proposal, which will then have to be ratified by the Shipping Ministry.

Mr Madsen also stated that regardless of the result of the tendering process for developing a third container terminal at JN Port and the second through private investments, Maersk would pursue plans to increase its stake in Pipavav Port from the existing 12.5 per cent to 26 per cent.

"These are two different and separate projects. We already have business out there in Pipavav Port," he remarked.

Maersk was close to wrapping up year-long negotiations with Sea King Infrastructure Ltd, the promoters of Gujarat Pipavav Port Ltd, the company set up to operate and manage the private port, to hike its stake to 26 per cent, he added.