Dubai Ports World said it may invest USD 1 billion in its Indian port to enable handling of the largest container ships as the company tries to challenge Colombo’s grip on India's maritime trade with Europe and China.

A news report quoting officials in India said that DP World spent about INR 13 billion (USD 288 million) on the first phase of the Vallarpadam facility, which will have an initial capacity of 1 million twenty-foot equivalent containers a year.

Mr Anil Singh the company's India head was quoted by Arabian Business as saying that "What we are trying to do is compete in the regional and international market.”

Mr Singh said that "It will change the logistic pattern of the country adding that the new terminal at Vallarpadam in Kochi, which is due to open in August, will be able to handle the 13,000 container capacity ships commonly used on Asia-to-Europe routes."

Mr Singh said that presently, these long haul vessels are unable to stop in India, which forces the nation's importers and exporters to spend an extra USD 150 million a year ferrying goods to and from Colombo, Singapore or Dubai.

Dubai World is the state owned holding company that owns 80% of DP World.

According to the official, the remainder of the investment will cover a second phase, which will add another 3 million boxes of capacity within five years.

Container Corp Of India Ltd is among the three other partners in the joint venture terminal.

According to the report, DP World will pay for its share of the investment using its own funds.

(Sourced from Press Trust of India)