-
German container line Hapag-Lloyd takes a 35% stake in J M Baxi Ports & Logistics
-
Hapag-Lloyd also signed an agreement to subscribe to a capital increase by JM Baxi, a leading Indian private terminal operator, that will raise Hapag-Lloyd’s stake to 40%
-
The stake will boost Hapag-Lloyd’s presence in India’s key strategic growth market
Hapag-Lloyd signed a binding agreement on January 25 to acquire 35% of Indian port operator JM Baxi Ports & Logistics Limited (JMBPL) from a Bain Capital Private Equity affiliate, the German shipping company announced.
Hamburg-based Hapag-Lloyd AG also signed a binding agreement with JMBPL and its promoters, the Kotak family, to subscribe to a capital increase by the Indian company and raise Hapag-Lloyd’s shareholding to 40%. The contracting parties agreed to not disclose any financial details of the deal.
JM Baxi Ports & Logistics Limited is a private terminal and inland transport service provider in India. The operations comprise container terminals, a multi-purpose terminal, inland container depots, container freight stations and additional logistics activities, such as rail service offerings across India.
The company has around 5,400 employees and handles a combined container volume of around 1.6 million TEUs.
The Indian company won additional concessions recently for operating container terminals in Nhava Sheva and Tuticorin.
“Terminal and infrastructure investments are a crucial element of our strategic agenda and India is one of our key growth markets. Acquiring a significant share in JM Baxi Ports & Logistics Limited 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,” said Rolf Habben Jansen, Hapag-Lloyd chief executive.
Ocean liners were awash with cash from extraordinarily strong earnings in 2021 financial year as global container shipping rates rose to historic highs due to port congestion and strong demand that enabled liners to increase rates.
For 2021, the company reported preliminary EBITDA of US$12.8 billion (€10.9 billion) while EBIT rose to roughly $11.1 billion. The robust earnings enabled the company to acquire terminals.
Even as freight rates started to decline early last year, Hapag-Lloyd reported a 178% y-o-y jump in EBITDA to $5.3 billion in Q1 2022 from $1.9 billion. EBIT rose to $4.8 billion from $1.54 billion while group profit hit $4.7 billion from $1.45 billion.
Hapag-Lloyd has continuously expanded its holdings in the terminal sector, most recently through an agreement 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 under construction.
The closing of the transactions is subject to approval by the relevant authorities and to additional conditions customary for a transaction of this kind, Hapag-Lloyd said.
