A P M Terminals, one of the world’s top port
operators and a unit of Denmark’s A P Moller-Maersk Group, will look at
opportunities on the inland side to grow its business in India and is
keen to get the concession for Pipapav port extended beyond 2028, chief
executive officer (CEO) Morten Engelstoft, said in an interview.
Excerpts.
How will the
Government’s move to convert major port trusts into port authorities
benefit private firms investing in these ports?
It does seem
like the Government intends to do away with the Tariff Authority for
Major Ports (TAMP) and that is definitely something we welcome. It is an
important step towards a more market-driven pricing for the (major)
ports. The legislation is yet to be passed by Parliament. So, I think we
should wait for that to happen first.
APMT-run
Gateway Terminals at JNPT has been one of the worst hit by the rate
setting guidelines of 2005 which was recently updated by the Government.
Do the new norms give you the confidence to withdraw from the court
cases?
It's a course, an ongoing case, and therefore, I
think it is somewhat improper for me to comment until the current legal
process has run its course.
So, are
you still not convinced of the new rate norms to pull out from the court
case that was filed against the rate cut of 2012 ordered by TAMP?
We
do see it as a step in the right direction. It does seem like a good
way to find a solution and we consider that to be positive.
…. but not to the extent of retracting from the litigation?
As
long as there's no firm outcome, then we would actually wish to see the
conclusion before we can comment on it. So, for now, we see it as a
good step. We see it as a positive indication and we also know that
there's still some developments that needs to happen.
Your
two existing facilities are located on India’s western coast. Are you
looking at expanding your terminal presence in India, particularly on
India’s eastern coast?
Not at this stage. We are pleased
with the two facilities that we have and right now the focus is to stay
on with those two facilities. As a company, we are now more focused on
investments into other parts of the supply chain on the inland side, in
logistics, and facilitating a better customer experience throughout the
supply chain. So, at this stage, we are not working on any projects on
the eastern coast.
To boost your hinterland presence, are you looking at acquisitions?
Overall,
India is an important country for APM Terminals with good growth
potential. It’s a country where we would like to continue to invest and
serve our customers better. We actually have quite an extensive set-up
on the inland side. We have seven different facilities that we are
running here today. Last year, we opened our new cold chain facility in
Chennai. We have had other additions to the product catalog to draw
customers. We will continue to look at opportunities on the inland side.
Have you given up on exiting from Pipavav port with the concession set to end in 2028?
In
general, we are pleased with the activities at Pipavav. The nature of
our businesses is such that the concession eventually will run out. But
certainly, it is our expectation and our intention to also have the
concession extended when time comes.
So, you are keen to continue beyond 2028?
We
are definitely keen to get the concession extended. We are happy with
our activities. It's good business. As I said, India is not only an
important part for our business, but for many of our customers
throughout the world. So, absolutely, we will be keen to continue our
activities and the concession at Pipavav.
PSA International had recently hauled you to India’s anti-trust regulator alleging unfair practices at JNPT.
We
believe that we have a competitive terminal at JNPT which our customers
prefer. We have the most productive terminal in the market which
handled more than two million TEUs in FY19. That is what we focus on.
I'm not going to comment on an ongoing case. All I can say is that we
are focusing on serving our customers at our facility and we do that
quite well.
