DP World has reportedly reached a deal to sell its minority stake in the Visakha Container Terminal (VCT), in the eastern Indian port of Visakhapatnam, to the local joint venture partner.
Mumbai-based J M Baxi is now set to gain full control of VCT by acquiring DP World’s 26% ownership for an undisclosed amount.
Visakhapatnam was one of six terminal concessions under DP World’s Indian network. The other active locations are Nhava Sheva/JNPT (two terminals), Mundra, Chennai and Cochin.
Equipped with two berths, a draught of 16.5 meters and an annual capacity of 700,000 TEU, VCT began operations in 2003. The recent completion of an expansion programme – covering a 395-meter berth extension and more quay crane deployments – has raised VCT’s capacity to about 1.3 million TEU annually.
As a result, VCT logged significant productivity highs on Maersk Line’s recent ship calls from its intra-Asia CHX Service. The vessel Celsius Nairobi that docked on 5 April at VCT saw an average gross crane rate of 36 moves per hour and berth productivity of 103 moves per hour.
These were followed by 33 gross moves per hour and berth-side productivity of 95 moves per hour reported on a 12 April call from the MV GH Pampero, another Maersk sailing.
“With the newly extended quay of 395 meters adding up to the earlier 450 meters, there is now flexibility for berthing of vessels on arrival at VCT, even when arriving out of the scheduled window,” said a VCT statement. “With enhanced operational efficiency due to the commission of the new terminal (T2), VCT will facilitate faster movement of shipments, thereby reducing the cost of logistics and improving effectiveness of the supply chain for the export-import (exim) trade.”
The surplus capacity released by a new breed of private minor terminals, mainly Adani Ports’ Krishnapatnam and Kattupalli, has made the going tougher for all terminal operators in the region.
Despite a stronger-than-expected spike in container trade volumes, VCT saw only a slight throughput increase last fiscal year (2021-22)— at 500,000 TEU, up from 480,000 TEU a year earlier.
That growth pressure is spurring deep tariff discounts at major east coast ports. For example, Tuticorin Port (V.O. Chidambaranar) has now announced rebates up to 85% rebates on existing vessel-related charges, subject to some minimum volume criteria. Cochin Port, which already has a similar discount scheme in place to induce more vessel calls, is said to be considering even more attractive incentives.
Jenny Daniel
India correspondent
Contact email: j.daniel@container-news.com
