CMA CGM through its subsidiary CMA terminals, has signed a joint-venture agreement with Adani Ports and Special Economic Zone (APSEZ), India’s largest port developer to develop a new common-user container terminal at Mundra Port that will become the fourth in Mundra with a handling capacity of 1.3m teu.
The transaction is subject to approvals from the regulators.
Construction will be initiated immediately, with the facility being completed in a record 24 months to make Mundra India’s largest container port, with a total handling capacity reaching 5.5m teu.
The project comprises the design and construction of 650 m quay with a water depth of 16.5 m alongside. Initial equipment will include four 65-tonne ship-to-shore quay cranes, the largest and first of their kind in India, which will be capable of handling Ultra Large Container Vessels (ULCV) up to 18,000 teu capacity.
Yard equipment will include twelve 41-tonne lift rubber tyred gantry (RTG) cranes, accommodating seven rows of containers and one operational lane.
CMA CGM has had a presence in India since 1984, with around 500 staff in 24 offices; its ships call at nine Indian ports but Mundra Container Terminal will be its first port investment in the country, adding to the 27 container terminals the group has today in its global portfolio.
The joint-venture will see APSEZ continue to expand its container terminals footprint across India and augments the group’s existing two container handling locations at Mundra and Hazira, along with its already announced two container terminals to be constructed at Ennore in Chennai and Dhamra in Odisha. It will allow Adani Ports to fulfil its vision of handling 200m tonnes of cargo well before the year 2020.
Farid Salem, executive officer of CMA CGM Group, said: “We believe in the development of India and its economy. With this investment, CMA CGM and Adani Ports will develop a state-of-the-art infrastructure that will play a key role for the development of the country’s industry. CMA CGM has strong ambitions in India”.
The chairman of the Adani Group, Gautam Adani, added: We are pleased this JV partnership will help put our continued expansion at the Mundra port on an even steeper trajectory. The strategic value of such a partnership with a major global player like CMA CGM is hugely significant and opens up a whole set of additional opportunities and synergies for both the companies”.