ADB Extends $40 Million Loan to Indian Port Company
27 October 2014
The Asian Development Bank (ADB) is extending $40 million in loan to Ocean Sparkle Ltd (OSL), one of India’s largest port operations and management companies, to expand and improve fleet services. This first private sector investment in India’s ports sector will fuel efficiency, lower freight costs, hasten shipping, and expand maritime trade.
The 2014-2016 project will help OSL purchase 10 tugboats used in Indian ports and neighboring South Asian markets along east-west shipping routes. It will also finance acquisition of two platform vessels and anchor handling tug supply vessels for future offshore oil and gas activities. Fleet improvement will further boost competitiveness in India’s major and non-major ports, enhance economic growth, and generate additional jobs and business opportunities for people in the region.
ADB’s 12-year loan allows the company to amortize over a longer period the high up-front costs of purchasing the marine vessels. As one of the major hubs for global trade, India will benefit through lesser cargo handling costs, faster vessel turnaround, greater port efficiency, and enhanced international competitiveness.