PSA’s $1.3bn Mumbai terminal expansion bolsters India’s trade ambitions despite tariff risks

PSA Mumbai, a subsidiary of Singapore-headquartered PSA International, has inaugurated phase two of its terminal expansion, with plans to double the current annual capacity to 4.8m teu.

The ceremony featured virtual speeches from Singapore Prime Minister Lawrence Wong and his Indian counterpart, Narendra Modi, during Wong’s visit to New Delhi. The terminal marks the city state’s largest foreign direct investment in the South Asian nation, with PSA pouring $1.3bn into its development.

The facility is equipped with six berths and 2,000 m of continuous quay length, allowing it to accommodate multiple mega containerships at the same time.

The expansion project “brings together capacity, connectivity and sustainability in a terminal for India — a catalyst for advancing India’s trade ambitions”, said PSA International group chief executive Ong Kim Pong.

India’s recent years of steady economic growth, boasting an impressive recovery since the pandemic, has made it a prime prospect for global trade. The country recorded ecnomic growth of 9.7%, 7.6% and 9.2% in 2022, 2023 and 2024 respectively, according to government data.

Cargo handling rose by 4.3% year on year to 819m tonne during India’s fiscal year 2024–2025, maintaining a compound annual growth rate of 4% since FY2014-2015.

Container throughput jumped 10% year on year in FY2024-2025, and has increased 70% over the decade.

Jawaharlal Nehru port, where PSA Mumbai terminal is located, handled more than 7m teu last year, an 11% increase from 2023. This marked the highest‑ever throughput by the port in a calendar year.

Other port operators are also looking to capture a share of this strong growth. Dubai-headquartered DP World in May announced a $2.5bn investment in infrastructure projects across India, Africa, south America and Europe.

Of this, $510m will be invested in India. DP World will construct a new container terminal at Tuna Tekra in Gujarat, northwest India, with an annual capacity of 2.2m teu.

But new US tariffs could disrupt cargo flows through India’s ports. The 50% duty on India‑origin goods, which took effect on August 27, is expected to curb the country’s export options.