Larger Container Lines Drive Operational Gains From ‘Own Terminals’ In India

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As the Red Sea crisis remains a major drag on container supply chains, ‘own terminal advantages’ are believed to be benefiting the larger container lines serving Indian trades.

Terminal partnerships

Mediterranean Shipping Co. (MSC) and CMA CGM have container terminal partnerships with the Adani Group at Mundra Port, India’s busiest box gateway.

According to industry sources, this strategic investment model has placed these two carriers, particularly MSC, in a uniquely advantageous position relative to smaller lines amid widespread schedule disruptions and unscheduled or ad-hoc calls because of the Red Sea crisis-linked vessel diversions.

Sources noted that many smaller carriers have had to seek alternative berthing at terminals in Nhava Sheva.

That shift is also reflected in the transhipment volume data for Nhava Sheva. The port’s combined transhipment movements in the last two months have hit an all-time high. April-May transhipment volumes soared to 64,040 TEUs from 15,045 TEUs.

Transhipment activity 

MSC already has significant transhipment activity out of Mundra, making the private port a hub point for the region.

Mundra’s container volumes have expanded at an impressive pace in recent years – hitting 7.4 million TEUs in the fiscal year 2023-24, which was 15% higher than the total throughput reported by Nhava Sheva.

Trade sources have also voiced concerns over similar “special treatment” being extended to MSC vessels at the other Adani Group-operated terminals in southern India, such as Ennore and Kattupalli.

MSC, through its subsidiary Terminal Investments Limited (TiL), recently acquired a 49% stake in the Adani Ennore Container Terminal (AECTPL).

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Source: Containernews