Maersk, the world’s largest container shipping line, is set to buy up the DP World equity stake in South Asia Gateway Terminals, the private box facility at Colombo port launched eight years ago by P&O Ports.
The Danish line is the biggest customer at Colombo port, the South Asian region’s main transhipment hub.
Maersk is becoming increasingly more powerful in the Indian sub-continent after its newly built container terminal at Jawaharlal Nehru port, Gateway Terminals India, went on stream in September 2006, and is today well on the way to achieving its full installed capacity of 1.3m teu.
Despite JNPT’s increasing importance, Colombo’s strategic location has meant that cargo intended for the Indian sub-continent has been booming in recent years.
The port crossed the 3m teu mark for the year 2006, with over 70% of the cargo being transhipment containers for or from India.
Maersk, which uses both SAGT and the Jaya Container Terminal, run by the state-owned Sri Lanka Ports Authority, had earlier indirectly acquired a 10% stake in SAGT when its parent bought P&O Nedlloyd in 2005.
DP World acquired control of 16.25% of SAGT’s equity after it bought over the UK-based P&O Ports last year. Subsequently, it was involved in a legal tussle over this equity with Maersk, which also has a director on the board. State-run SLPA, ironically also owns 15% of the equity.
The two warring private sector factions have now come to an amicable understanding, and DP World will exit SAGT, leaving Maersk the owner of 26.25% of the terminal’s equity, second only to the shareholding of John Keells Holdings.
The Danish line is the biggest customer at Colombo port, the South Asian region’s main transhipment hub.
Maersk is becoming increasingly more powerful in the Indian sub-continent after its newly built container terminal at Jawaharlal Nehru port, Gateway Terminals India, went on stream in September 2006, and is today well on the way to achieving its full installed capacity of 1.3m teu.
Despite JNPT’s increasing importance, Colombo’s strategic location has meant that cargo intended for the Indian sub-continent has been booming in recent years.
The port crossed the 3m teu mark for the year 2006, with over 70% of the cargo being transhipment containers for or from India.
Maersk, which uses both SAGT and the Jaya Container Terminal, run by the state-owned Sri Lanka Ports Authority, had earlier indirectly acquired a 10% stake in SAGT when its parent bought P&O Nedlloyd in 2005.
DP World acquired control of 16.25% of SAGT’s equity after it bought over the UK-based P&O Ports last year. Subsequently, it was involved in a legal tussle over this equity with Maersk, which also has a director on the board. State-run SLPA, ironically also owns 15% of the equity.
The two warring private sector factions have now come to an amicable understanding, and DP World will exit SAGT, leaving Maersk the owner of 26.25% of the terminal’s equity, second only to the shareholding of John Keells Holdings.