Changes in global supply chains and sourcing benefit India: Keith Svendsen, CEO of APM Terminals

India is very well positioned to benefit from global supply chain resilience and the multi-sourcing trend, said Keith Svendsen, CEO of APM Terminals.

In an interview, he said that stock levels had gradually returned to normal as the pandemic weakened and that replenishment should begin by the end of the year. On the plans for India, he said that APM Terminals, part of Maersk Group, plans to invest about ₹3,500 crore in its Pipavav port, but a large part of the planned investment depends on the renewal of the port lease.

Svendsen said the last few years have shown the world the importance of supply chain resilience and multi-sourcing. “I think India is very well positioned to benefit from this,” he said, adding that to an outsider “it looks like the next period may affect India.”

On the state of global supply chains after years of crises from Covid-19 to the Russia-Ukraine war, he said, “So now we’re back to normal… A lot of what’s hitting our industry right now is really driven by high inventories due to Covid , which took longer than expected to normalize.”

According to Svendsen, the trend could reverse in the second half of this fiscal year. “We hope that there will be some restocking at the end of the year,” he said. “Freight traffic will continue to flow as always, and then the economic cycle is natural for both.”

He said the company wants to play a role in India’s infrastructure and logistics sector by investing in projects to reduce logistics costs. This is in line with the center’s priorities, as Prime Minister Narendra Modi points to high logistics costs. “As a company that is active in both ship logistics and terminal ports, we would like to help solve some of these problems,” said Svendsen.

Port of Pipavav

The CEO of APM Terminals said the company is focused on upgrading infrastructure at its port. “We have just announced an LPG investment in Pipavav, which is subject to regulatory approval,” he said, adding that at GTI (at Jawaharlal Nehru Port in Nhava Sheva) the company has upgraded infrastructure to ensure it can accommodate larger ships can handle .

APM Terminals currently operates a 1.35 million TEU (Twenty Foot Equivalent Units) port in Gujarat.

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