Adani Ports and Special Economic Zone Ltd (APSEZ) has dismissed concerns that the Western Dedicated Freight Corridor (DFC) could siphon cargo away from its flagship Mundra Port in Gujarat, saying structural advantages like draft, vessel turnaround and integrated logistics will keep the port competitive.

The Western DFC, a 1,506-km electrified freight corridor connecting Dadri in Uttar Pradesh to ports including Mundra and Nhava Sheva, is designed to enable faster, high-capacity double-stack container trains. While it is expected to increase freight efficiency across northern and western India, APSEZ said the corridor would have minimal impact on Mundra’s volumes, as the port’s operational and cost advantages remain unmatched.

Ashwani Gupta, Whole-time Director & CEO of APSEZ, recently told investors, “Anything which comes to Mundra can also go to a Vizhinjam for the transshipment. So that is the competitiveness in Mundra as a port. Now we can always say that the catchment area for our competitor and us are different, so that will always continue. Now the question is what is the impact of DFC on us? It is negligible, or I would say zero even, because when it comes to the travel time, the travel time on the DFC will improve but the travel time on connections to the competitor port and to the competitor ICD will remain the same as it is between Mundra and our other ICDs in the NCR.” 

Gupta explained that Mundra's competitive-ness comes from more than just railconnec-tivity. Its deep draft, faster vessel turnaround and integrated logistics ecosystem mean that shipping lines will continue to favour Mundra over competing ports. Even after the WDFC becomes fully functional, Mundra retains a 300-350 km distance advantage, equivalent to five to six additional railway slabs - a structural cost edge that customers are un-likely to ignore.

Divij Taneja, Chief Executive Officer (Logistics) of the company, rein-forced the view, noting, "We don't see too much disruption. We're look-ing at our volumes remaining steady." He added that while some cargo may shift from road to rail, Mundra's total container volumes are ex-pected to remain largely unaffected.

On growth, Taneja said, "If I'm looking at Adani Logistics, in particular, we are targeting double-digit growth... roughly at 11 per cent." With the DFC expected to increase overall freight efficiency, APSEZ says Mundra Port's structural advantages - shorter hinterland distance, integrated services and superior turnaround times will safeguard market share, even as India's container transport network modernises. 

Source: The Hindu Business Line 

#theshippingtribune #latestnews #shippingnews #dailynews #Maritimenews #shippingindustry #news #media #newsupdate #maritime #shippingnewsworldwide