Maersk to invest US$ 5 billion in India’s logistics expansion

Maersk plans a US$ 5 billion investment in India’s ports, terminals, and logistics, focusing on Pipavav expansion, Vadhavan Port, and warehousing. Half of the funds will go to Pipavav and logistics, while Vadhavan depends on bidding. The company aims to streamline supply chains and explore air freighters and green fuel.

Global shipping major A.P. Moller Maersk plans to invest US$ 5 billion in India’s ports, terminals, and logistics infrastructure in the coming years, Keith Svendsen, CEO of APM Terminals, revealed in an exclusive interview with ET. The investment will prioritise the expansion of the Pipavav terminal, the development of a container terminal at Vadhavan Port, and the growth of Maersk’s logistics segment in India.

“We see an investment opportunity pipeline of about US$ 5 billion in ports and terminals and landside infrastructure development,” said Svendsen, adding that the company aims to reduce logistics costs by offering end-to-end supply chain solutions under one roof, covering transportation, port handling, warehousing, and distribution. About half of the total investment will be allocated to Pipavav Terminal and logistics services.

Maersk signed an MoU with the Jawaharlal Nehru Port Authority (JNPA) last year to develop a container terminal at Maharashtra’s Vadhavan mega port. While the Vadhavan investment will depend on the bidding process, Svendsen affirmed that Maersk has set aside funds for the project. “We are keen to invest and compete for its development,” he said. The company is also set to dredge the Pipavav terminal to accommodate larger vessels, making it future-ready.

In logistics, Maersk is scaling up its warehousing and supply chain operations, with 26 facilities spanning over 300,000 square meters and 7,000 weekly railway moves. Christopher Cook, Managing Director for South Asia, noted that logistics has become a growing segment for Maersk, making the company one of India’s top seven providers. “We are now looking to expand in tier 2 and tier 3 cities in the coming years,” Cook added. The company is also exploring air freighters and green fuel partnerships in India, though immediate plans are yet to be finalised.