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Hapag-Lloyd Grows Terminal Ops Acquiring Shares in India’s J M Baxi

Hapag invests in India terminal operations
Hapag will have 40% ownership of India's J M Baxi (Baxi file photo)

Published Jan 26, 2023 3:50 PM by The Maritime Executive

Hapag-Lloyd is acquiring a substantial stake in J M Baxi Ports & Logistics, a leading private terminal and inland transport service provider in India. The move comes as India seeks to grow its role in global trade and will help Hapag expand its presence in India. Like other carriers in the container shipping industry, Hapag is seeking to expand its role in terminal operations.

The shipping line signed a binding agreement to acquire a 35 percent stake in Bair from Bain Capital Private Equity which has been an investor in Baxi for the past two years. In addition to the stake acquired from the investors, Hapag-Lloyd will participate in a capital increase by the company which will result in the German company having a 40 percent ownership stake in Baxi.

"India is positioned to have a dramatic impact on global trade,” said Dhruv Kotak, Managing Director of J M Baxi Ports & Logistics. “Whether we do so will depend on how quickly we develop infrastructure and allied logistics services to integrate into global value chains. Interface among ships, ports, and hinterland, is central to the creation of value.”

J M Baxi working with the investment from Bain to expand its port capacity and logistics units, strengthen its financial profile, and grow its workforce. Over the past two years, it has won four major concessions, including operating container terminals in Nhava Sheva and Tuticorin, resulting in a 170 percent growth in port capacity.  The company also built one of the largest over-dimensional cargo logistics units in India.  Operating container terminals, a multi-purpose terminal, inland container depots, container freight stations and additional logistics activities, such as rail service across India, Baxi handles a combined container volume of approximately 1.6 million TEU.

“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, CEO of Hapag-Lloyd. “Acquiring a significant share in J M Baxi Ports & Logistics will significantly boost our presence in India with a trusted local partner and it is another important step to build up our terminal and infrastructure business.”

This investment is the latest in a series of transactions in terminal and logistics for Hapag-Lloyd. Among the other recent transaction designed to expand its involvement in the terminal sector, most recently Hapag agreed to acquire the terminal business of Chile-based SM SAAM. The company 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.