Govt puts shipping sector on alert post Dubai financial crisis
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.
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
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
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.