In an interview with ET, he said inventory had started to normalize as the pandemic subsided and restocking should begin by the end of the year. On India’s plans, he said APM Terminals, which is part of Maersk Groupplans to invest around ₹3,500 crore in its Port Pipavavbut a large part of the proposed capital expenditure is subject to the extension of the port lease.
Svendsen said the past two years have taught the world the importance of supply chain resilience and multi-sourcing. “I think India is very well positioned to take advantage of this,” he said, adding that as an outsider “it looks like the next time period could be India’s.”
On the state of global supply chains after years of crises ranging from Covid-19 to the Russian-Ukrainian war, he said: “So now we’re back to normal… A lot of what’s hitting our industry right now is really driven by high inventory on the back of Covid which took longer than expected to normalize.”
According to Svendsen, the trend could reverse in the second half of this financial year. “Hopefully at the end of the year we’ll start to see restocking again,” he said. “Freight will continue to flow again as it always does and then the economic cycle is both natural.”
He said the company wants to play a role in India’s infrastructure and logistics sectors by investing in projects aimed at reducing logistics costs. This is in line with the priorities of the Centre, with the high logistics costs being pointed out by the Prime Minister Narendra Modi. “As a company involved in both shipping logistics and port terminals, we would like to play a role in helping to solve some of these issues,” Svendsen said.
Port of Pipavav
The CEO of APM Terminals said the company is focusing on upgrading its port infrastructure. “We have just announced an LPG investment at Pipavav, which is subject to regulatory approvals,” he said, adding that at GTI (located in Nhava Sheva’s Jawaharlal Nehru Port), the company has upgraded l ‘infra to ensure she is capable of handling larger vessels. .
APM Terminals currently operates a 1.35 million twenty foot equivalent (TEU) port in Gujarat.