APM Terminals Inland Services Expands in India

• New facilities to be added to seven existing locations;
• RFID, other technologies added to accelerate handling.

Nhava Sheva, India - With most of India’s containerized import cargo destined for Inland Container Depots (ICDs) or CFS facilities - due to existing infrastructure limitations - the inland container logistics market has been projected to exceed $3.5 billion USD in 2013. An estimated 60% of India’s container shipments are destined for ICDs, with 40% ultimately handled at CFS facilities. “More than half of all India’s inland container traffic is carried by truck with less than 40% moving by rail despite challenging road conditions” noted APM Terminals Inland Services Director for South Asia and Managing Director of APM Terminals India (PVT) Ltd. Subhasis Ghosh, adding “Within such an environment, expertise in these areas becomes even more valuable for India’s import and export community”.

APM Terminals CEO Kim Fejfer was given a tour of the company’s Inland Services Container Freight Station (CFS) at Nhava Sheva on May 28th as part of a week-long India visit in which Inland Services expansion plans figured prominently with local managers. APM Terminals India has recently begun new projects at Pipavav and Cochin, and currently operates facilities at seven locations within India which handled approximately one million TEUs in 2012.

“We recognize Inland Services as a particularly important component of the high-growth Indian market, and we will explore investment and expansion opportunities accordingly” said Mr. Fejfer.

APM Terminals’ Inland Services are divided into three business areas: Container Freight Stations (CFS); Equipment Maintenance and Repair (EMR) and Transportation. After registering a 30% increase in container volume in 2012, Mr. Ghosh is confident of similar growth this year. In the 1st Quarter of 2013, APM Terminals India Inland Services handled 300,000 TEUs. “With the Indian Government’s ambitious plans to increase overall port capacity, Inland Services will become an increasingly important segment of the domestic logistics chain”.

In April, APM Terminals India announced plans to open a 50,000 square meter (12.4 acre) CFS facility at Pipavav Port in the State of Gujarat with a projected annual throughput capacity of 30,000 TEUs, featuring both direct rail and highway access. APM Terminals India’s Nhava Sheva CFS, recently recognized by Volkswagen India in its annual “Supplier Appreciation Award”, has successfully implemented a Radio Frequency Identification (RFID) system at its CFS annex in Nhava Sheva to speed container location and movement.

“Increased productivity and enhanced Inland Services options can go a long way toward addressing infrastructure deficiencies and promoting trade and economic growth, and we intend to remain industry leaders in both areas” said Mr. Fejfer during his tour of the NhavaSheva CFS.