Maersk Invests Heavily in Indian Port Development!

Maersk recently signed a significant investment agreement through its terminal operating company APMT with the Indian state of Andhra Pradesh, planning to invest approximately $1 billion (80-90 billion Indian Rupees) to develop and upgrade port infrastructure in the region. This investment aims to upgrade three ports in Andhra Pradesh—Ramayapatnam, Machilipatnam, and Mulapeta—including the introduction of modern cargo handling systems, the development of new terminals, and subsequent operational management. The project is expected to create 10,000 direct jobs.

Maersk has a strong preference for the Indian market. This investment is primarily driven by the following considerations:

1. India is one of the world’s fastest-growing major economies, with a thriving manufacturing sector and expanding exports. Maersk aims to deeply embed itself in India’s trade growth by investing in port infrastructure to capture the logistics demand driven by its economic development.

2. The Maersk Group sees immense development potential in the Indian market. The CEO of its port company APMT even stated that there is an investment opportunity of approximately $5 billion in development. This $1 billion investment in Andhra Pradesh is just part of its larger investment plan.

3. Andhra Pradesh has a 1,053-kilometer coastline and plans to build a seaport or fishing port every 50 kilometers. Maersk’s investment aligns with this vision, helping Andhra Pradesh become a maritime trade gateway in eastern India and a regional logistics hub, while also optimizing its global port and logistics network. Investing in Indian ports will enhance Maersk’s operational efficiency and service capabilities in South Asia, consolidating its supply chain advantages.

   

Maersk has already been expanding its presence in India. It currently operates the Pipavav terminal and the Mumbai terminal in India. Earlier this year, Maersk also signed an agreement with Cochin Shipyard to explore opportunities in ship repair and construction, with the first Maersk vessel expected to undergo maintenance at the shipyard in 2025.