The Board of APM Terminals Pipavav (Gujarat Pipavav Port) has approved a Rs7bn (US$96m) expansion plan, which will upgrade the port’s existing facilities to handle bigger ships.
The investment will help to increase annual container capacity from 1.35m teu to 1.6m teu, catering to a potential rise in imports and exports.
With the implementation of a Western Dedicated Freight Corridor (DFC), the supply chain and inland logistics are expected to see significant improvements in reliability and reductions in transit time.
About 40% of the total investment in the 1,535 km DFC is likely to be in the state of Gujarat, which accounts for around 37% of the area covered by the corridor.
Jakob Friis Sorenson, managing director, APM Terminals Pipavav, said: “With this investment, we aim to strengthen our network and continue to provide best in-class services to all our stakeholders.
“The container yard capacity will be expanded once the cargo growth is visible post commissioning of the DFC. We expect the world economy and business to follow an expanded ‘U’ curve and normalcy in business to be restored by the second quarter of 2021.”
The operator is now awaiting the confirmation of a concession extension from the Gujarat Maritime Board (GMB) before executing the expansion plan.