German carrier Hapag-Lloyd has added further muscle to its terminal operation portfolio following its acquisition of a substantial stake in a private terminal and inland transport service provider in India.
The company has signed a binding agreement in terms of which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a Bain Capital Private Equity affiliate.
Additionally, the carrier signed a binding agreement with JMBPL and its promoters, the Kotak family, to subscribe to a capital increase by the company and raise Hapag-Lloyd’s shareholding to 40%. The contracting parties agreed not to disclose any financial details of the deal.
JMBPL’s operations comprise container terminals, a multipurpose terminal, inland container depots, container freight stations, and additional logistics activities, such as rail service offerings across India.
The company employs around 5 400 staff and handles a combined container volume of approximately 1.6 million TEUs. It recently won additional concessions for operating container terminals in Nhava Sheva and Tuticorin.
“Terminal and infrastructure investments are a crucial element of our strategic agenda, and India is one of our key growth markets,” said Rolf Habben Jansen, Hapag-Lloyd CEO.
“Acquiring a significant share in J M Baxi Ports & Logistics Limited will significantly boost our presence in India and it is another important step to build up our terminal and infrastructure business.”
In driving its Strategy 2023, Hapag-Lloyd has continuously expanded its involvement in the terminal sector, most recently through an agreement to acquire the terminal business of Chile-based SM SAAM. It also has stakes in the Italy-based Spinelli Group, the JadeWeserPort in Wilhelmshaven, the Container Terminal Altenwerder in Hamburg, Terminal TC3 in Tangier, and Terminal 2 in Damietta, Egypt, which is currently under construction.
The closing of the transactions is subject to approval by the relevant authorities and to additional conditions necessary for a transaction of this nature.
