Growth for PSA India will come from the JNPT terminal for the next few years, says Tan Chong Meng, Group CEO, PSA International Pte Ltd, which opened its first facility at the port on Sunday. Excerpts:

How important is the new terminal for PSA?

JNPT is a gateway port, it has got a deep hinterland and we are excited by the DFC. We are committed to completing this terminal in 2022.

The growth, aside from being prepared for what comes to India at the waterfront, is also about serving the hinterland. That’s where maritime competitiveness will create a multiplier effect... it’s not just about the transaction on the shore line. For the next 3-4 years, BMCT (PSA arm Bharat Mumbai Container Terminals) will be our focus; we will not neglect Chennai or Kolkata, those are very important points of entry as well.

There is competition... we will have to make sure that we are able to compete. Growth for PSA India will certainly come from JNPT for the next few years.

We are expecting to tip over 500,000 TEUs in the first year of operations.

How will the new facility benefit the port, trade and users?

JNPT will double its capacity. And then the multiplier effect, with bigger ships, more economic handling costs and all that, will benefit India.

Being the new kid on the block in JNPT, are you being tested?

There are some issues... whether the terminal can be part of a total port community.

We are still seen as a new kid on the block. But I think that is short-sighted. Because BMCT is not built for its own sake. It is built for the sake of the entire JNPT port.

If BMCT has a good reputation, the whole JNPT has a good reputation and cargo may move from other ports to BMCT to be better serve the hinterland with greater efficiency.

Ultimately, shippers will get the benefit.

If the situation in JNPT is not sorted out, then it’s not helpful.

At BMCT, we would like to see normalisation. If that can happen, then I think financial rewards should come but, again, depending on the economic conditions.

Does the rate regime favour the new terminal compared to your other facilities?

In JNPT, we can’t charge whatever we want. Why? Because there is competition. So, nobody really gets the opportunity to charge what is on paper; it is all subject to negotiations and at the end of the day, the customer wins.

Will other stakeholders measure up to your expectations at JNPT?

Alongside the port and cargo operations, other facilities should also see an improvem,ent, such the Customs, the port trust and inter-modal operators.

So it’s an opportunity to not just increase capacity but to do things differently, that’s why we are working with Concor.

If you look at our facility, when the DFC gets completed, you can move 300-plus TEUs rather than under 100 in a single movement. Think about that. What is the implication for India? For a long time, you max out at 100 TEUs per movement and now you max out at 300 plus TEUs; it is quite a big jump.

Are you looking at hinterland opportunities?

With today’s technology, presence in the hinterland, in the key hubs called ICDs, may also be meaningful so that we can serve customers at more points.

It will be interesting to look at the hinterland. I would love to have a good project, I haven’t found one where I can sign a cheque.

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