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World’s third largest port company, Dubai Port (DP) World does not plan to monetize any of India assets as it is one of the growing markets for the company, Sultan Ahmed Bin Sulayem, chairman of the company said today. DP World has sold its assets in Russia, Australia and Hong Kong which are more mature markets for the company, to cut its debts.
The company’s net debt fell to $2.9billion at the end of 2012. In India, the company operates five terminals in India. The company had cut its operations at the Nhava Sheva International container terminal in Jawaharlal Nehru Port by 16% this year due to the revised tariffs by the tariff authority of major ports. Sulayem said, that if the government comes out with new guidelines the terminal will increase the volume of cargo handled.
“There are certain factors that limit the operators here. The more you work, the more you lose. We are in discussions with the government and will hopefully resolve these issues,” said Sulayem.
He also said that India is the largest trading partner for the company, ahead even of China. “Our ports in India are very important to our national network of customers. We are happy so far with our performance here. We have never hit a dead end here, for instance cabotage was an obstacle and it was resolved,” Sulayem added. The company, which operates the international container trans-shipment terminal in Vallarpadam, Kochi handled its first mainline vessel Zimline in March this year.
DP World is also in talks with the West Bengal government to take off it non-major port project in Kulpi which has remained stuck for over seven years. The company has no intentions of pulling out of the project yet. “We are ready. We are only waiting for them (government) to give us a go ahead,” Sulayem said.
