With the acquisition of P&O assets, DP World has under its control India's three major container terminals: Nhava Sheva, Mumbai; Chennai Container Terminal, Chennai; and Mundra International Container Terminal, Gujarat; apart from a share in the Vishaka Container Terminal at Vishakapatnam and the new container terminal in Vallarpadam, Kerala — commanding more than half of container handling operations in India. Against the total Indian container trade volumes of about 4.3 million TEUs, P&O Ports handled about 2 million TEUs last year.

Observers believe that if the mounting opposition to the takeover fails to subside, Indian government intervention would be inevitable. Spearheading the campaign against the takeover is Gujarat state, which is considering to block the sales on the ground that the takeover of Mundra International Container Terminal is in violation of a contractual agreement it had with P&O.

However, industry sources indicated that the most potent ammunition in the hands of the opponents of the deal is the monopoly clause. It is feared that there would be a natural tendency for DP World to divert traffic to their container terminals, which may be at the cost of other nearby ports.

Another hurdle is that the proposed takeover will have to be vetted by the government before it comes through. "This is a direct fallout of a clause in agreements signed between India's private port operators and the government, according to which any change in the equity structure of the company has to be approved by the government. The clause enables the government to guard against the emergence of a monopoly situation," industry sources pointed out. It is understood that the government is taking the legal opinion to determine the effect of changes in the equity structure.

For DP World, apart from the P&O operations, there are several major projects in the pipeline to strengthen its global network. These include developments in Asia, Europe, and the Middle East. The international container transshipment terminal at Vallarpadam is the largest single operator container terminal currently planned in India.

Another cornerstone project is the development of Pusan Newport, in which DP World has a 39.55 per cent interest and management contract.

In March 2005, DP World was awarded a 30-year concession to develop and operate the container terminal at the Port of Fujairah.

This was followed by the awarding of a management contract for Mina Zayed Port in Abu Dhabi. These concessions will enable DP World to streamline operations at the major container facilities of the UAE. A few months ago, DP World also announced agreements to develop new container terminals at Yarimca, Turkey and Qingdao, China.

DP World also has interests in logistics businesses in Hong Kong and China, notably ATL, the market leading logistics operator based at Kwai Chung, Hong Kong.