Delhi – In a significant development for the shipping industry, the MSC Taerim, a container ship operated by Mediterranean Shipping Company S.A. (MSC), successfully docked at the Dakshin Bharat Gateway Terminal (DBGT) in V O Chidambaranar Port after two decades without a mainline direct call to Europe. This commendable feat marks a turning point for the DBGT as it opens up opportunities for enhanced trade and connectivity between India and Europe.
Unlocking New Trade Routes: A Major Milestone for India’s Infrastructure
The docking of this container ship is a significant milestone for India’s infrastructure and trade. The DBGT, operated by Dakshin Bharat Gateway Terminal Pvt Ltd, is one of the two container terminals at V O Chidambaranar Port, one of the major ports in India.
MSC’s Expansion Plans and the Feasibility of a Regular Mainline Service
The arrival of the MSC Taerim was an ad hoc call, primarily aimed at assessing the feasibility of establishing a regular direct mainline service to Europe. MSC, the largest container shipping line in the world by capacity, is keen on venturing into this market from the DBGT. However, MSC is yet to receive security clearance from the Union government to acquire a 49 percent stake in the terminal. This clearance is required as part of MSC’s global deal with Bollore Africa Logistics, where the Swiss shipping giant purchased the latter for a whopping €5.7 billion.
A Complex Ownership Structure and Potential for Growth
With a 51 percent stake, India Ports and Logistics Pvt Ltd holds the majority ownership of the DBGT. Additionally, Starlog Enterprises Ltd, a Mumbai-listed Star Ports Ltd subsidiary, owns 51 percent of India Ports and Logistics. The remaining stake is held by Bollore Africa Logistics, Africa’s largest transport and logistics operator. The complex ownership structure underscores the various stakeholders involved in driving growth and performance at the DBGT.
Making Definite Strides: Volumes and Expansion
MSC’s significance at the DBGT cannot be understated. The shipping company already controls an impressive 44 percent of the volumes handled at the terminal, mainly catering to the transhipment hub at Colombo Port. Laden with promising potential, the DBGT with its 14.2-meter water depth and an annual capacity of 720,000 twenty-foot equivalent units (TEUs) now witnesses the upscale arrival of even more MSC ship calls, effectively boosting volume growth.
Officials at the V O C Port Authority confidently stressed that MSC practically owns the terminal, with only final labeling tasks remaining, adding that the necessary security approvals would be granted in due course. Leveraging the strategic geographic location along with solid port facilities, such as the rail-linked inland container depot (ICD) near V O C Port, MSC aims to streamline container movement over long distances and further expand its market share in Thoothukudi.
Enhancing Trade Connectivity: Poise Positioning to Drive Economic Growth
The MSC Taerim’s direct call to the DBGT emphasizes India’s objective of leveraging maritime transportation to unlock new trade opportunities and enhance economic growth. It heralds the revival of dormant trade routes and encourages greater cooperation between India and Europe. This successful new endeavor signifies a positive right step forward and brings tremendous hope, strengthening the cargo-handling capabilities of India and the DBGT. With the DBGT poised to reach new heights, India stands poised for greater trade connectivity and broadened global trade avenues.
As the DBGT expands its direct connectivity with Europe, India’s infrastructure sector receives a significant boost, policymakers see value in investing in crucial port installations, and businesses thrive in a resilient and connected world.
