APM Terminals Pipavav has signed an agreement with the Gujarat government in India to develop its port facilities with an investment of Rs.1700 Crores (€276 million).
Port Pipavav has also signed an agreement with Swan Energy for a Rs.3500 Crores (€569 million) investment into the port.
United Arab Emirates (UAE) based Gulf Petrochem has also agreed to invest in the port, and has a sub-lease agreement to build a petrochemical terminal in the site.
Ashok Goel, Gul Petrochem’s managing director says the entry into the port is a ‘very significant’ move for the company.
The terminal will be the first outside of the UAE and Mr Goel believes the India market has ‘huge growth potential’.
Gulf Petrochem is to build 300,000m³ of storage for fuel oil, diesel, bitumen and base oil, as well as petrochemicals.
Gulf Petrochem is also currently building an oil terminal in Fujairah in the UAE that will have a capacity of 412,000m³ and is due for completion in Q1 2012.
Port Pipavav has been increasing the size of its port since APM Terminals bought out the management and operations in 2005.