Pipavav Port

active

Pipavav Port was the country's first private sector port and commenced operations in November 1996 after investments of approximately US$55 million in the first phase. Pipavav port had a quay length of about 1,200 metres and over 400 hectares of land was available for the development of the port and port-related businesses and handled mainly bulk cargo. Gujarat Pipavav Port Ltd (GPPL) was a joint venture between the Mumbai-based Seaking (Sea King) Engineers and state-owned Gujarat Maritime Board (GMB) (via GPIDC). In accordance with the privitisation policy of the Government of Gujarat, GMB divested its equity stake in GPPL in October 1998 to PSA Corporation of Singapore for around US$60 million and injected a loan of about US$40 million. Commonwealth Development Corporation of the UK also acquired a minority stake (5%). The Industrial Development Bank of India (IDBI) held 11%. In October 2001, Maersk Sealand took over the management control of the port in a Rs 155-crore deal for 12.5% in Pipavav Port trust. By end 2003, apart from Sea King (37%) and APM terminals, the other shareholders in GPPL were PSA Corporation Ltd (22.5%), IDBI (10 per cent), CDC Plc, AMP Australia, New York Life Insurance and Unit Trust of India (UTI). OECF (US$57 million, 30 years, 10 years moratorium, 2.3% interest rate per annum) and Industrial Development Bank of India disbursed loans to GPPL for establishment and operation of shipbreaking facilities in 1995. Both businesses were split in 1998. PSA was planning to develop the port into a container port. In the first phase of the redevelopment, the port was to have a container wharf length of 600 metres with five quay cranes. The converted container terminal was to have an estimated handling capacity of 600,000 TEUs (20-ft equivalent units). GPPL was also in talks with Indian railways for a railway line (estimated US$79 million project cost) connecting the port to its hinterland (Surendranagar-Bhavnagar-Pipavav) and a consortium led by British Gas to establish a LNG terminal at the port (MoU in Sept. 1997). In October 2000, the company announced its intention to expand its equity base and induct new strategic and financial investors. In 2005 AP Moller Maersk became the lead promoter with 54% stake in APM Terminals and makes significant investments in port machinery and infrastructure expansion, and takes over complete operations. Board of Directors formed along with other investors. In 2010, Gujarat Pipavav Port Limited (GPPL)successfully conducts its IPO and is listed in Indian Stock exchanges. Currently GPPL had a majority shareholder in AP Moller-Maersk (which held 43% of the share) and 57% was in public shareholding. In 2013, the project entailed expansion in cargo handling capacity of Gujarat Pipavav Port in Gujarat, India. The development included a new container berth adjacent to the existing berth, expanding the container yard, relocating the existing liquid berth and building and expanding the associated evacuation infrastructure Funding for the expansion project was closed on 30th April 2013 with a debt equity ratio of 57:43.The estimated capital cost of the expansion was US$ 226mn. Financing comprised a 13-year term loan of US$ 60mn arranged by IFC, a 9-year term loan of US$ 92mn arranged by Standard Chartered and DNB ASA (Norway),and US$ 114mn sponsor Equity. April - 2004. CLOSE on the heels of its successful bid to develop and operate a new container terminal at Jawaharlal Nehru Port, the Denmark-based AP Moller-Maersk A/S Group is close to acquiring a controlling stake in Gujarat Pipavav Port Ltd (GPPL), the company set up to operate and manage Pipavav Port in Gujarat. APM Terminals, part of the AP Moller-Maersk Group will take management control of Pipavav Port by increasing its stake from the existing 12.5 per cent to 26 per cent through a combination of primary and secondary share acquisitions a top GPPL official told Business Line. The Foreign Investment Promotion Board had recently cleared the GPPL proposal to increase the foreign direct investment limit in the port operating company from 49 per cent to 100 per cent as part of a Rs 1,100-crore restructuring plan. "APM Terminals will lead the project immediately after the restructuring plan is finalised and will look after the operations of the port," the official said. The Danish shipping and port major will buy out the stake held by Sea King Infrastructure Ltd (SKIL), which is currently the majority shareholder in GPPL with 37 per cent. DNB ASA (Norway Development Agency) and Standard Chartered Bank funded 90mn USD for the expansion project in 2013. Exact split between the 2 couldn't be ascertained.