Govt puts shipping sector on alert post Dubai financial crisis
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Last Updated: Friday, November 27, 2009, 20:20
  
New Delhi: The government on Friday said it has sought detailed information from all ports associated with DP World to assess the impact of Dubai debt crisis on Indian shipping sector.

"Alerted after reports of Dubai financial crisis, we have begun an internal examination of the situation. DP World, owned by Dubai government has significant presence in Indian ports," a senior Shipping Ministry official told a news agency.

"Most likely on Monday, we are going to hold a meeting to assess the situation and take a decision. We have already sought information from all ports, where DP World is present, seeking details, including the volume of trade," the official added.

Dubai World's arm DP World, the world’s fourth biggest container port operator, has operations on India’s west coast in Mundra (Gujarat), Navi Mumbai (Maharashtra), Kochi (Kerala) and on the east coast in Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh) and Kulpi (West Bengal). It has operations in 31 countries.

Reeling under a USD 59-billion debt, state-owned investment holding company Dubai World has sought extension of time for repayment to creditors, raising another storm in the financial world which had the world markets plunging.

The terminal at DP World Nhava Sheva, a flagship company of DP World in India handled around 1.5 million TEUS (twenty foot equivalent units) in 2007-08.

Said to be the country's first privately managed container terminal, DP World Nhava Sheva which was developed at a total cost of USD 250 million, is managed under a build-operate-transfer agreement set up with the state-owned major port Jawaharlal Nehru Port Trust(JNPT).

An official of Adani Group operated Mundra port said DPL has one of the container terminals at Mundra and the trade volume was 7,00,000 TEUs last year.

PTI


First Published: Friday, November 27, 2009, 20:20


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