Mumbai, May 5: Consultancy firm Ernst and Young has predicted in its report — Transforming Indian Ports into World Class Facilities — that there will be more mergers and acquisitions in the Indian port sector in the future.

“Of late, Indian ports are witnessing an unprecedented interest from strategic buyers, including international liners and terminal operators. Financial suitors such as banks, hedge funds, private equity investors and even pension funds are interested in funding private ports. The sector will see increased M&A activity in the near future,” said Rajesh Samson, associate director of Ernst and Young.

Interested investors include the Port of Singapore Authority (PSA), which has shown consistent interest in the expansion of the sector. PSA is acquiring a 49 per cent stake in ABG Kandla Container Terminal from Mumbai-based ABG Infralogistics. The Singapore player had earlier acquired a 49 per cent stake in ABG’s Calcutta Container Terminal. PSA has already undertaken construction of a container terminal for the Hazira Private Port in Gujrat on a build, own and operate basis.

Earlier this year, four private equity firms — Blackstone, Merrill Lynch, Deutsche Bank and Galleon Group — picked up a 2.25 per cent stake in Pipavav Shipyard for Rs 105 crore.

Rent-A-Port, the investment arm of Port of Antwerp, Belgium, has recently opened an office in India.The company is planning to invest in private greenfield and brownfield port projects.