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Maersk seems to be betting big on India's economic reform success

Wednesday, 20 December 2017 09:38

MAERSK has high hopes that India's reform efforts to ease supply chain disruptions will now take effect after a slow first half, says the shipping giant's latest market analysis.

India had a 10 per cent increase in container trade during the third quarter year on year, a trend that should gain momentum once shipper concerns over refunds from the new Goods and Services Tax (GST) come through.

That should increase consumer spending, and recent announcements giving status to logistics and announcing plans to establish a group to promote exports could lift economy, it says, reports IHS Media.

"The growth we have seen this quarter reflects the resilience of India's global trade environment," said the Maersk economic report.

"Not only is India repeatedly outpacing the global growth average, but it is also one of the strongest global import-export partners among the BRICS [Brazil, Russia, India, China and South Africa]nations," said Maersk Line India subcontinent managing director Steve Felder.

The Maersk report said as India's "Ease-of-doing-business competitiveness steadily improves, with a giant leap of 30 spots to 100 in the World Bank's global rankings, the Maersk Group is positioning itself to support that expected growth, with upgraded end-to-end logistics offerings, especially for reefer cargo, and customer services improvements".

To that end, its port operator APM Terminals Inland Services last month opened a new 12-acre inland container depot (ICD) in Pune, about 150 kilometres from Mumbai, bringing the number of its logistics sites in the country to seven.

Said Mr Felder: "We are committed to continuing to invest in further enhancing our capabilities in this area."