Abu Dhabi is exploring investing upwards of USD 2 bn (INR 176 bn) in India’s Maharashtra’s ports, shipbuilding, and ship recycling sectors, according to a statement from Maharashtra’s Ports Development Minister Nitesh Rane on X. The investments will be explored under an MoU inked between Abu Dhabi Ports Group, Abu Dhabi Investment Office, and Maharashtra Ports Department.

IN CONTEXT- India and the UAE are planning to expand their 10-year trade agreement to cover eight new sectors — including logistics — with an aim of more than USD 100 bn in annual bilateral trade. Last year, India and the UAE inked several agreements on bilateral trade, including setting up a multi-modal trade corridor.

Maharashtra’s maritime sector might be in hot demand: The second-most populous state in India has recently secured MoUs exploring investments totaling c. USD 6.3 bn in the shipping sector from over half a dozen players, including Adani Ports and Special Economic Zone and JSW Infrastructure, earlier this week, the Economic Times reported. Adani Ports will explore investing c. USD 4.8 bn in ports and industrial facilities in Dighi, whereas JSW Infrastructure is looking into investing c. USD 420 mn in Jaigarh and Dharamtar ports.

AD Ports has been eyeing India for some time: Earlier in 2024, AD Ports inked twoMoUs with Indian port operator Gujarat Maritime Board and transport and infrastructure company Rites to explore investments in port expansions, logistics parks, economic and freezones, rail, and other infrastructure.

ALSO FROM INDIA + UAE: DP World’s marine and ship repair subsidiary Drydocks World inked a head of terms agreement with India’s Cochin Shipyard to set up India’s first ship repair cluster at the International Ship Repair Facility in Cochin, Kerala, according to a press release. Several international shipping routes pass by the facility, and the tie-up looks to boost its position as a key ship repair hub.

ICYMI- Earlier this year, the two entities inked an MoU to develop a ship repair cluster in Kochi and Vadinar, aiming to strengthen its maintenance capacity and repair facilities.

REMEMBER- DP World already holds an extensiveportfolio in India, spanning industrial parks, logistical zones, rail, and ports. The port operator launched operations at the Vallarpadam terminal in the Cochin Economic Zone last year — and operates Mumbai’s Nhava Sheva Business Park and Chennai’s Integrated Chennai Business Park as well. The firm also operates five container terminals in India’s Mundra, Cochin, and Chennai, as well as two in Mumbai. The Emirati major also inked an MoU earlier this year to pilot the deployment of autonomous magnetic rail (MagRail) freight movement solutions in India.

IN OTHER PORT UPDATES FROM SAUDI

RSGT eyes new JV with CMA CGM: Saudi’s Red Sea Gateway Terminal (RSGT) has inked a term sheet for a potential joint venture (JV) with French logistics giant CMA CGM’s subsidiary CMA Terminals to invest in Jeddah Islamic Port, according to a statement. If finalized, the JV would build and operate a new terminal — Terminal Four — at the port, with a planned 2.6 mn TEU capacity at an investment of SAR 1.7 bn (USD 450 mn).

In the works for some time: The potential sub-concession would fall under RSGT’s existing long-term agreement with Saudi Ports Authority (Mawani) — signed back in 2020 — that includes an option for RSGT to expand the port’s capacity by establishing a new terminal on an allocated plot of land. The move also aligns with RSGT’s target to expand its handling capacity to 8.8 mn TEUs per annum, in line with Saudi Arabia’s Vision 2030.

Right on cue? RSGT announced plans to invest some SAR 1.6 bn as part of its 20-year concession for the Kingdom’s four western ports — Jeddah Islamic Port, Yanbu Commercial Port, King Fahd Industrial Port, and Jazan Port in June. RSGT plans to invest SAR 672 mn (USD 180 mn) in the next five years alone to enhance infrastructure, equipment, and technology in the ports.

DATA POINT- The total volume of handled cargo — both unloaded and loaded — across Saudi ports exceeded 334.5 mn tons in FY 2024. Of that, Jeddah Islamic Port handled some 14.1% of cargo in the Kingdom.

Jeddah’s been getting a lot of attention: Mawani and Dubai-based DP World inaugurated the SAR 3 bn (USD 800 mn) South Container Terminal at Jeddah Islamic Port in March after a multi-year expansion and development work. The expansion has increased the terminal’s handling capacity to 4 mn TEUs.

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