Maersk Partners with Tamil Nadu to Boost Trade and Logistics Infrastructure
In a significant development, AP Moller – Maersk (Maersk) and the Indian state of Tamil Nadu have officially inked a Memorandum of Understanding (MoU) during the Tamil Nadu Global Investors Meet 2024. This strategic partnership aims to explore opportunities and enhance the state’s burgeoning trade.
Vikash Agarwal, Managing Director of Maersk South Asia, highlighted the company’s enduring 25-year relationship with Tamil Nadu. He praised the state’s business-friendly environment, robust infrastructure, and a talent pool geared for the future. Expressing confidence in Tamil Nadu’s growth potential, Agarwal outlined plans to develop integrated logistics hubs, construct warehousing infrastructure, and establish a sustainable distribution network to bolster Maersk’s logistics solutions across various sectors like renewables, automotive, and electronics.
Tamil Nadu, currently the third-largest contributor to India’s GDP, aspires to become the second-largest next year. With ambitions to achieve a $1 trillion economy by 2030, the state provides an attractive landscape for Maersk. The partnership is poised to capitalize on Tamil Nadu’s conducive business ecosystem, well-defined roadmap, competitive environment, and a burgeoning pool of young, future-ready talent.
Maersk already plays a crucial role in connecting Tamil Nadu to the global ocean network through two major service calls. The company’s extensive distribution network links ocean ports to the hinterland, where many manufacturers and consumers are situated. Furthermore, Maersk operates a cold storage facility in Chennai, catering to frozen and chilled cargo.
The state of Tamil Nadu is currently connected to the global ocean network through Maersk’s two major service calls. Further, Maersk has a robust distribution network that connects the ocean ports to the hinterland, where many of the manufacturers and consumers are located. Maersk also has a cold storage facility in Chennai, which caters to its customers’ frozen and chilled cargo, the company said in a press release.
In addition to these, Maersk will now explore opportunities to invest in land development to create logistics hubs. These logistics hubs will implement the best practices from global examples to drive maximum efficiency while delivering resilience to customers’ supply chains. Maersk will also study the customer needs for storage facilities and build modern, state-of-the-art warehousing facilities that would incorporate the latest warehouse management systems for the most efficient inventory management and focus on waste reduction. Finally, Maersk will also invest in building a fleet of electric trucks that will ensure sustainable and environment-friendly distribution. This is an imperative for some of the top customers of Maersk who have set for themselves stringent NetZero targets and who rely on logistics partners who can deliver decarbonised solutions.
Looking ahead, Maersk will explore investments in land development to establish logistics hubs, incorporating global best practices for maximum efficiency and supply chain resilience. The company plans to address customer storage needs by building state-of-the-art warehousing facilities equipped with the latest warehouse management systems. Notably, Maersk commits to sustainability by investing in an electric truck fleet, aligning with the decarbonization goals of its top customers.
V Vishnu, Managing Director and CEO of Guidance, expressed enthusiasm about collaborating with Maersk as a strategic logistics partner. Recognizing the importance of effective logistics and supply chain solutions in attracting global investments, Vishnu anticipates the collaboration bringing global expertise, network, and ambition to foster trade growth in the state.
The government of Tamil Nadu pledges to facilitate Maersk’s initiatives by providing access to information, expediting decision-making processes, and creating a conducive environment for the implementation of cutting-edge technology and global best practices. This collaboration is positioned to not only benefit Maersk but also contribute significantly to the growth and development of trade in Tamil Nadu.