Media Release Details
Adani Ports & SEZ to partner with the CMA CGM Group of France, the world’s 3rd largest container shipping line, to set up the fourth Container Terminal at Mundra
Ahmedabad, July 04, 2014: Adani Ports & SEZ Ltd, India’s largest port developer and part of Adani Group, today announced that it has signed an agreement with the CMA CGM Group of France to develop a new common user Container Terminal at Mundra Port. This will be the 4th Container Terminal in Mundra capable of handling 1.3 million TEUs annually.
Following this announcement, the construction phase will be initiated immediately and completion will be in a record 24 months. The project comprises of design and construction of a 650 meters terminal along with 27 hectares of back area with a water depth of 16.5 meters.
This world class terminal will initially have four units of 65 tonne capacity of Rail Mounted Quay Cranes capable of handling 18,000 TEU vessels and Super Post and Ultra Large Container Vessels. These cranes would be by far the largest and first of its kind in India. The yard equipment will include twelve 41 tonne lift rubber tyred gantry (RTG) cranes which will accommodate seven rows of containers and one operational lane.
“We are very pleased with this JV partnership that 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” said Gautam Adani, Chairman of the Adani Group. “This new container terminal will be an absolutely world class facility that will stimulate the growth of cargo benefiting our customers as well as help accelerate the industrial development over the vast hinterlands that Mundra provides access to. This will make Mundra the largest container port in the country.”
This 50:50 JV partnership is yet another major step by APSEZ to continue to rapidly expand its container terminals footprint across India’s coastline and further augments APSEZ’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 fulfill its stated vision of handling 200 million metric tonnes of cargo well before the year 2020.
For CMA CGM, Mundra Container Terminal is the Group’s first port investment in India, and demonstrates its ambition to further increase its presence in this strategic and fast-developing country. CMA CGM is present in India since 1984. With around 500 staff members and 24 offices, CMA CGM is calling 9 ports in India, and offers to its Indian customers more than 8 direct shipping services connecting India to the rest of the world. This new investment adds to the 27 container terminals that CMA CGM Group has today in its portfolio, and is a key step in its strategy to further expand its position in port operations.
This partnership is expected to significantly benefit both companies in accelerating the ramp up of export, import and transshipment container volumes in India.
Farid T. Salem, Executive Officer of CMA CGM and Director of the Board said: “We believe in the development of India and of 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. We have already a strong presence in India, through our 24 offices and our 8 direct shipping services. We are convinced our partnership with Adani Ports will significantly reinforce this strategy.”
As per the agreement, the transaction is subject to approvals from the regulators as maybe required including the competition commission of India, MoCI and the GMB.