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4 Sectors To Benefit From The Mumbai Trans Harbour Link

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Mumbaikars, are you ready to experience the Atal Setu, the trans harbor link, which boasts of reducing your long commute to Navi Mumbai? Of course, a  long drive to Pune, Lonavala, or Khandala during peak traffic hours became desirable. 20 minutes is all you need to reach Navi Mumbai from Mumbai. 

Looks like those days of endless traffic and long commutes may be ending, thanks to the Atal Setu, the shiny new Mumbai Trans Harbour Link (MTHL) that Prime Minister Narendra Modi is inaugurating today. 

All About the MTHL

India’s longest sea bridge, built at approximately ₹17,840 crore, will be inaugurated by the PM today, 12 January 2024. The 22-km bridge spans a 16.5 km extension into the sea and will service 70,000 vehicles daily, connecting Sewri in Mumbai to Nhava Sheva in Navi Mumbai. The bridge will be like a time machine for your daily commute, cutting down two hours to a swift 20 minutes.

Stocks That Will Benefit From The Atal Setu

Besides benefiting commuters, MTHL will also be a bridge to development for the city. The faster connectivity and access to the city’s tech talent pool will likely attract international MNCs to set up their global centers here. Easier access to construction and labor will further boost economic development. That apart, here are the sectors that may benefit from Atal Setu:

Infrastructure & Construction Stocks

The infrastructure sector in Mumbai will see a spike thanks to the bridge. According to brokerage firm Jefferies, the Mumbai metro area will complete an estimated $10 billion in projects by the end of 2024 and $60 billion more in the next three to seven years. And this will all be in synergy with Atal Setu. Construction companies, cement manufacturers, material suppliers, and engineering firms will get busier.

The Atal Setu will see the development of new roads, bridges, and other infrastructure projects around it. Companies involved in these include Larsen & Toubro Ltd. (L&T), Shapoorji Pallonji & Co. Ltd., JMC Projects (India) Ltd., ACC Ltd., Ambuja Cements Ltd, UltraTech Cement Ltd, and others.

Real Estate Stocks

Those who thought localities such as Chembur, Ghatkopar, or Panvel were not cool enough will soon have a change of mind. With better connectivity, areas around the MTHL will become sought after and could also see a  price rise of  ~50-60%. The annual leasing activity could also increase by 20-25% from 2025, with approximately 9 million square feet of supply infusion in Navi Mumbai. 

image 16
Source: Anarock Research (Moneycontrol)

Residential and commercial properties in Navi Mumbai will see higher demand, leading to high property values and increased development activity. Some prominent names in this category include L&T Realty and Oberoi Realty, Another prominent developer with projects in Navi Mumbai Hiranandani Developers, DB Realty Ltd, and CIDCO (City and Industrial Development Corporation of Maharashtra) 

Ports & Logistics Stocks

With the Atal Setu bridge considerably shortening the travel time between Mumbai and Navi Mumbai, the transportation costs and time will likely be reduced, benefiting the logistics sector. More cargo traffic will increase freight forwarding and container transportation business volumes.

Streamlined logistics operations in the Mumbai-Navi Mumbai corridor may make these logistics companies Container Corporation of India Ltd. (CONCOR), Gateway Distriparks Ltd, VRL Logistics Ltd, DP World: Owns and operates Jawaharlal Nehru Port Trust (JNPT), Adani Ports & SEZ and others more competitive.

Tourism and Hospitality Stocks

The Atal Setu construction plan always had cultural and heritage tourism as one of its goals. Developing infrastructure around these sites will attract domestic and international tourists.  This trans harbor link will also connect rural areas easily; homestays, cultural immersions, and eco-lodges may see increased demand as tourists today look for experiential travel. Besides, industrial and IT development will likely benefit business tourism. 

Enhanced tourism will promote hospitality, which could mean higher hotel occupancy rates. These names have existing or planned ventures in Mumbai and Navi Mumbai Taj Hotels, IHCL (Indian Hotels Company Limited), Marriott International., The Leela Group and MakeMyTrip Ltd

We’ve only looked at these sectors; however, increased connectivity could boost the automobile industry. The improved accessibility to shopping avenues in Navi Mumbai may lead to higher retail sales and revenue. Will there be other benefits of the trans harbor? We must wait and watch after the link is inaugurated and people start commuting. 

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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.

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