J M Baxi Ports & Logistics Ltd, a unit of the Mumbai-based 105-year-old J M Baxi Group, has acquired the residual 26% stake in Visakha Container Terminal Pvt Ltd from DP World. The deal means that Visakha Container Terminal is now 100% owned by J M Baxi Ports & Logistics Ltd.
The acquisition gives J M Baxi complete control over this large hub terminal on the east coast, cementing its strong position as the dominant provider of integrated logistics and ports services on the east coast of India. With the extensive terminal and rail network on the east coast, it is now positioned to give shipping lines and large importers and exporters a one-stop solution for their door-to-door shipping needs. J M Baxi is now the most vertically integrated maritime logistics company on the east coast.
Visakha Container Terminal has a capacity of 1.30 million twenty-foot equivalent units (TEUs) and is part of the central government-owned Visakhapatnam Port Authority. Starting operations in 2003 on a 30-year concession, VCT began with a capacity of about 600,000 TEUs. Going from strength to strength, the terminal handled 512,000 TEUs in FY 22, up from 48,100 TEUs in FY21. In March 2022, a new part of the terminal was opened, which can handle an additional capacity of 750,000 TEUs. This expansion increased the terminal’s total capacity to 1,300,000 TEUs and its quay length to 845 metres. With this addition, there is now more flexibility when berthing vessels at VCT, even when they arrive out of their scheduled window. The new facility along with its specialised equipment will speed up the evacuation of containers, enhance operational efficiency and facilitate the faster movement of shipments, thereby reducing the cost of logistics and improving the effectiveness of the supply chain for the EXIM trade. Additionally, it will enable faster turnaround times for vessels, and it provides space for new services to call at VCT. The increased yard capacity also increases the room available for stacking containers.
