APMT chief urges India to expand ports

   India remains significantly underrepresented as a player in global trade, according to APM Terminals Chief Executive Officer Kim Fejfer.
   “The opportunities for development throughout India, one of the world’s largest and fastest-growing economies, are exciting and energizing and APM Terminals is committed to being a part of that growth,” Fejfer said during a keynote speech at the India Ports Conference in Mumbai this week.
   Although India’s economy is now the world’s third largest in terms of purchasing power parity, growing by an estimated 7.8 percent in 2011, the country ranked 13th globally in imports and 21st in exports in 2011. The region as a whole had less container volume than the Port of Shenzhen alone, Fejfer noted.
   Throughput at Indian ports was 9.7 million TEUs in 2011, or one-twelfth of what global container traffic averages based on economic output would suggest is necessary to meet the economy’s needs. Fejfer said India requires $20 billion in infrastructure investment necessary to enable projected growth.
   He noted that congestion and capacity at India’s largest container gateway – the Jawaharlal Nehru/Nhava Sheva port complex – are starting to hinder growth, with “existing container terminals at 84 percent capacity and above, and access to inland points inadequate.”
   The Indian government has signalled its intent to promote infrastructure growth, with plans to increase capacity at Nhava Sheva to 11 million TEUs by 2016 and 23 million TEUs by 2020 (up from about 4.5 million currently). Fejfer said private sector involvement will be crucial, but added that the government must provide incentives to private companies to drive trade.
   “Port tariff regulations which penalize increased throughput and productivity will not assist in developing the needed infrastructure,” he said. “We are pleased with the progress that we have made since entering this market in 2006, and we will continue to look for the right opportunities to expand our presence here to serve our customers, and India’s great economic potential.” — Eric Johnson