PSA, MSC Discuss Strategic JN Port Phase 2 Partnership

Singapore's PSA International and Mediterranean Shipping Company (MSC) are reportedly engaged in preliminary discussions over a potential strategic partnership for the second phase of PSA's terminal at Jawaharlal Nehru Port (J N Port) in India. The discussions are expected to explore an arrangement where MSC, the world's largest container line, could exclusively utilise the second phase of Bharat Mumbai Container Terminals (BMCT), which is a wholly owned facility of PSA International.

Sources with knowledge of the matter indicate that the talks might also involve MSC considering a minority stake in BMCT. This partnership aligns with MSC's interest in gaining a stronger presence in J N Port, which is a crucial gateway for India's export-import trade.

The 'Right of Use and Right of Way' policy, coupled with the concession agreement, allows PSA International to dilute its stake in BMCT after the lock-in period, which has now concluded.

The expansion of BMCT, adding 1 km of quay with a capacity to handle 2.4 million twenty-foot equivalent units (TEUs) annually, is set to enhance the terminal's operations. The second phase is projected to commence operations in early 2025.

J N Port, India's largest state-owned container gateway, has attracted significant foreign direct investment (FDI) with PSA International winning the rights to develop and operate the terminal at the port through a high revenue share of 35.79 per cent.

MSC's interest in a partnership with PSA could potentially redirect a substantial portion of its shipping volumes through BMCT, further solidifying the port's position as a key player in India's EXIM trade. If the partnership materialises, it would hinge on PSA International's management of the second phase of BMCT.

As the container shipping industry witnesses integration between liner companies and port terminals, the potential PSA-MSC partnership adds another layer to this trend, contributing to the evolution of the logistics landscape.

The evolving scenario comes at a time when J N Port's infrastructure is set to receive a boost through the connection to the western dedicated freight corridor (DFC) network, streamlining container train movement between the port and Northern India's hub. This initiative could enhance the port's competitiveness and efficiency in serving India's trade needs.