Public RelationsShipping ministry calls for status report on DP World
The Union shipping ministry has asked all ports in the country with a presence of Dubai World’s maritime subsidiary, DP World, to report on how much trade goes through the company-operated terminals.
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This order has gone out even though the government of Dubai has said DP World and its debt are excluded from the restructuring to be initiated in the parent company, Dubai World.
A senior official at the ministry said, “We have asked for detailed information from the ports where DP World operates container terminals. We will carry out an internal assessment on the impact the developments in Dubai World may have on the shipping sector in India.”
DP World is the fourth largest container terminal operator in the world. In India, it operates Mundra International Container Terminal (Gujarat), Nhava Sheva International Container Terminal (Navi Mumbai) and international Container Terminals at Chennai, Kochi and Visakhapatnam.
Further, DP World is developing an International Container Transshipment Terminal (ICTT) at Vallarpadam in Kerala and a minor port at Kulpi in West Bengal.
Vishwas Udgirkar, executive director, PricewaterhouseCoopers, said, “With Dubai World seeking a six-month standstill on its debt amounting to $60 billion, DP World’s ability to bring in funds to finance container terminal development projects is likely to be affected.”
The first phase of ICTT is scheduled for completion in April 2010. In the light of recent developments, Udgirkar adds, DP World may have to look for new investors to finance the project, which will delay commissioning.
The project, being developed at an estimated cost of $500 million (Rs 2,330 crore), is proposed to be built in two phases.
Apart from India, DP World is developing 10 more container terminals at Khalifa (Abu Dhabi), Qingdao (China), Fos (France), Rotterdam (Netherlands), Karachi (Pakistan), Callao (Peru), Dakar (Senegal), Yarimca (Turkey), London Gateway (UK), and Brazil.
DP World reported revenues of $1,384 million in the first six months of 2009, a 13 per cent decline from the $1,598 million it had made in the corresponding period last year.