DP World challenges Colombo

The new terminal in Kochi, south India, which is due to open in August, 2010 will be able to handle the 13,000 teu capacity vessels commonly used on Asia/Europe routes. Presently, these long-haul vessels are unable to stop in India, which forces importers and exporters to spend an extra US$150m a year ferrying goods to and from Colombo, Singapore or Dubai, Singh said.

DP World has already invested around Rupees 13bn (US$288m) on phase one of the new Kochi facility, which will have an initial capacity of one million teu a year. The remainder of the investment will cover phase two, which will add another 3m teu capacity within five years. Container Corp. of India Ltd. is among three other partners in the terminal venture.

According to the company, DP World will pay for its share of the investment using its own funds and its financial difficulties have had no impact on expansion plans. DP World, which is currently preparing to sell shares in London, has risen 12% this year in Dubai trading.