APMT assumes control of Pipavav
APM Terminals, which currently holds a 12.5% stake in Indias first private port company, Gujarat Pipavav Port Ltd (GPPL), is to assume management control of operations as part of a restructuring plan which will also see it buy the 37% stake held by Sea King Infrastructure Ltd. However, with current and potential investors then to be asked to inject fresh capital into the company via a rights issue, its own stake will become 26%, which will nevertheless leave it as the largest shareholder.
This process has been given the blessing of the Indian authorities, who have given permission for foreign direct investment to be increased from 49% to 100%. The money raised via the share issue is needed to fund construction of a new dedicated container terminal which will have an annual capacity of 1.3m TEUs.
The new facility is to be built around three dry bulk berths at the port, which will be expanded to enable them to accommodate post-Panamax box vessels. This will include deepening the draught from the present 10.5 metres.
The initial building phase, which will be concluded next year, will result in a 440 metre long quay being created for container vessels. Four super-post-Panamax quayside gantry cranes and 10 RTGs are being acquired with the entire stacking yard occupying 30ha. A CFS and dock rail terminal are also to be built.