A growing trend among European ports to enter into agreements with Indian ports for developing trade prospects
In order to secure more cargo traffic, European ports which had been content with merely setting up representative offices in India have switched over to a more aggressive mode since the past few years. A distinct trend has developed in this direction with more and more ports queuing up to sign business agreements with Indian ports.
Antwerp Port, the second-largest European port by volume, had signed a Memorandum of Understanding (MoU) with the biggest private port, Mundra, three years back to absorb some of the international port management practices. Last Friday on 26th March 2010 there was a renewal agreement signed by both the parties.
Jawaharlal Nehru Port (JNPT), India’s largest container port, which has been looking to grow rapidly, also established mutual relationship with Antwerp port. Accordingly an MOU was signed in 2008. Later Gijon Port Authority of Spain signed an ‘International Sister Sea-Ports Agreement’ with JNPT. Among other things it envisaged an exchange of experts, undertaking studies of mutual interest and development of trade prospects between the two countries.
Last week, on 23rd of this month, a Memorandum of Cooperation (MoC) was signed between the Mumbai Port Trust (MbPT) and Antwerp Port in the presence of Marc Van Peel, Chairman of Antwerp Port Authority, G. K. Vasan, Minister for Shipping, the Crown Prince Philippe of Belgium and K. Mohandas, Secretary in the Shipping Ministry.
Last year again another port of Europe, this time from France viz. Port of Marseille, signed an agreement with Mumbai port to share operational experience and promote each other’s trade. According to its Chairman, Rahul Asthana, “Mumbai Port, which handles crude, auto and containerized cargo, has been gaining operational experience from Port of Marseille through this agreement.”
As part of another development, Capt. Avinash Batra Chairman of Seahorse Ship Agencies Pvt. Ltd which represents Port of Marseille in India informed that Seahorse would soon be representing other ports in France who are looking to expanding their footprints here. Accordingly, these ports too plan to enter into business agreements with ports in India. Ports of Amsterdam which set up offices in India some years back is also looking for a collaborative role with ports in India.
Antwerp port has been scouting for ports which could be developed for cost-effective transportation of goods to Europe. They have set up a special purpose vehicle (SPV) known as Port of Antwerp International, to develop at least two green field ports in India.
“The SPV will participate in projects related to port development,” Yannick Dufraimont, CEO of the company, said, suggesting equity participation may also happen. At least one port would have to be on the west coast, either in Gujarat or Maharashtra, he added.
Luc Arnouts, Chief Commercial Officer of Antwerp Port stated, “Mundra port and ours have benefited immensely from the exchange of visit by number of teams over the past three years. There is a lot we can learn from each other and benefit from it.”