DUBAI/MUMBAI: DP World is seeking an extension of its concession to operate a container terminal at Jawaharlal Nehru Port Authority (JNPA), as its current agreement approaches expiry in June, 2027, a senior company official said on Monday.
“We have asked for an extension,” Hemant Kumar Ruia, Country Manager, DP World India Subcontinent, said in a media interaction, adding that discussions are underway. He did not disclose the terms or duration of the extension being sought.
The terminal, Nhava Sheva International Container Terminal (NSICT), is one of two container terminals operated by DP World at JNPA. The company also operates the adjoining Nhava Sheva (India) Gateway Terminal (NSIGT).
The extension comes as DP World expands its presence in India’s ports and logistics sector. Its new container terminal at Tuna-Tekra near Deendayal Port in Gujarat is expected to start operations by the end of 2027, Ruia said.
The company is investing about $510 million in the Tuna-Tekra terminal, which will be able to handle about 2.19 million containers a year. DP World currently operates five container terminals in India. Companies rethink supply chains Ruia said repeated disruptions to global trade are prompting companies to move away from the traditional “just-in-time” model, where goods arrive when they are needed, towards a “just-in-case” approach that gives companies a backup in case supplies are disrupted.
“Just in time is maybe not a good idea. So let’s have a strategy for just in case,” Ruia told Moneycontrol.
The shift has followed disruptions caused by the Covid-19 pandemic, the Russia-Ukraine war and the continuing West Asia crisis, he said. Companies are increasingly looking at ways to ensure that raw materials reach factories and finished goods reach customers even when normal trade routes are disrupted.
Asked whether this meant companies were keeping larger inventories, Ruia said he did not have data to quantify any increase, but said it was a logical outcome of the shift towards a “just-in-case” model.
On the impact of the West Asia crisis on DP World’s India business, Ruia said it was not significant as the company had been able to find alternative routes and markets for Indian trade.
“For India, it’s nothing substantial,” he said. He said freight rates remained high and that a resolution to the West Asia crisis would help bring them down and allow trade to return to more normal conditions.
DP World has also reaffirmed its plan to invest an additional $5 billion in India over the next five years. Ruia said the investment would come through a series of projects and opportunities rather than one large investment.
Source : Moneycontrol
