Rent-A-Port eyes India for port, logistics projects

MUMBAI: If development of ports and port-based infrastructure like special economic zones are a craze with Indian corporate, it has also started attracting specialized agencies with innovative solutions to assist port and other logistics developers.

Antwerp-based Rent-A-Port, a specialized company for port development and logistics, is one of the first such companies that have started logging into Indian port scene with innovative plans and programmes.

"We are half way into a project in India, where we are busy with planning and development of new port infrastructure including breakwaters, berths, dredging, reclamation etc, in which we have considerable experience, said Neerav Kumar Gupta, who is in-charge of the company operation in the south east Asian region. Confidentiality clauses, said Mr Gupta, prevented him from giving any more details about the project.

"We do not get involved in a port project unless we co- invest with the local entrepreneur. We are not consultants," Mr Gupta said talking about how different the company and its services are.

"Unlike consultants, as co-investors we also share the financial risk and therefore are more responsible for the completion of the project and successful operation of the facilities in which we have a stake."

"We have combined both our strengths as financiers as well as project managements. The company acts as an antenna with infrastructure specialists (both technical and financial), who study the infrastructural investment opportunities in ports and industrial zones, inviting its shareholders to join as equity partners. It also enables developers to finance the port infrastructure while keeping it 'off balance sheet'.

Mr Gupta, who was the CMD of the Dredging Corporation of India, said his company is looking at a couple of projects in the country.

Rent-A-Port expects to export large quantities of high grade limestone from its captive mines at Oman, later this year to India for steel making companies. It is a partner and operator in one of the biggest quarries in the Middle East with reserves in excess of 500 million tonnes. The company is understood to look at setting up dedicated berths for this activity in Indian coast.

The company has on going strategic partnerships with the Port of Antwerp, National Railway Company of Belgium and Sea-Tech, the engineering division of Sea-Invest, which is the biggest company in Europe in designing, handling and operating of bulk cargo systems and facilities.

The company's shareholders are AVH (Ackermans & van Haaren) and CFE, who are the largest civil engineering group and construction services company specialized in real estate, mining, financial services, concessions, dredging etc.

Rent-A-Port has a wealth of in-house expertise in analysis, design, construction, development and management of port, logistic and marine infrastructures as well as free trade zones, Mr Gupta said. "We go with the local investor and co-invest with them. We use the local expertise while we bring in the external expertise along with funds," he said.

"Our main focus is greenfield and brown field ports in all developing countries including India. We do the entire designing of the port, assist in tendering and also help promoters with supervision and operation of the project."
One of the shining examples of the company's forte is the successful operations at Vietnam where at the deep sea port of Dinh Vu it has developed a large port based SEZ.

"We have designed, financed and supervised the project in 1999 and it is an extremely successful port SEZ facility today. As co-investor and management partner, the company developed a low lying land area of over 1,000 hectares into a modern industrial park and deep-sea port in Hai Phong, Northern Vietnam.

Though its main focus is greenfield and brown field ports, the company is principally not looking at projects in the major ports of the country. In fact, we have innovative solutions for shallow ports and have designed unique solutions for bulk and oil handling at various venues across the world."

Talking about port development, Mr Gupta said that the Vietnamese are very open, and has very friendly policies and they want the projects to happen. In contrast, in India, he said, "Our attitude needs to change. As a government, you should facilitate, not hinder projects which the country needs, the locality needs."