APM Terminals

APM Terminals Pipavav to invest $90 mln to bolster LPG handling capacity

APM Terminals Pipavav, an all-weather port located just 152 nautical miles from Nhava Sheva, Mumbai, has revealed plans that will see an investment of around $90 million in a new liquid berth.

Image credit APMT Terminals Pipavav

The port’s current capacity to handle 2 MMT of liquid bulk will increase to 5.2 MMT.

The investment supports the port’s objective of contributing to the growth of India’s logistics infrastructure, bolstering connectivity to northwest hinterlands.

This expansion will have a positive impact on the state of Gujarat’s economy by boosting trade and commerce, APM Terminals Pipavav said.

The port’s LPG handling capacity expansion comes at a time when homes are moving to LPG following the Indian Prime Minister’s flagship program ‘Pradhan Mantri Ujjwala Yojana (PMUY).

The social welfare scheme was launched by the Government of India in 2016 with the aim of enabling households to replace traditional cooking fuels such as wood, coal, and cow dung with LPG cylinders.

The active domestic LPG consumers have increased from 14.52 crore in April 2014 to 31.36 cr as of March 2023.

According to the Ministry of Petroleum and Natural Gas, the scheme has had a significant impact on the health of women and children, as it has led to a reduction in indoor air pollution caused by traditional cooking fuels. This, in turn, has resulted in a decrease in the incidence of respiratory diseases and eye-related problems.

APM Terminals Pipavav currently offers a DFC-compliant rail line for the movement of LPG, thereby reducing dependency on road transport. It is one of the few ports in India that has an LPG rail siding within the port that can accommodate a full train carrying approximately 1200 MT of LPG cargo.

Setting up the new berth is subject to necessary regulatory and other approvals.