31 Oct 2018 10.28am
DP World has won a bid to develop and operate the Free Trade Warehousing Zone (FTWZ) at India’s largest container gateway – Jawaharlal Nehru Port Trust (JNPT) – for USD$78 million.
The 60-year concession agreement for the Mumbai gateway will see the JNPT run by the Hindustan Infralog Private Limited (HIPL), a $3 billion joint venture between DP World and the National Investment and Infrastructure Fund (NIIF).
It is the HIPL’s second investment following the 90% stake it took in multimodal logistics company Continental Warehousing Corporation Ltd.
The HIPL will develop 18 hectares of the JNPT’s Special Economic Zone (SEZ), with the goal of increasing TEU traffic and utilizing its proximity to India’s biggest port.
The JNPT handles 5 million TEU per year, approximately 33% of India’s container traffic.
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According to a statement from DP World, the deal will offer long-term advantages to domestic and global traders and manufacturers by facilitating a reliable and swift flow of cargo.
Sultan Ahmed Bin Sulayem, CEO, DP World, commented: “We are delighted to have won this long-term concession to develop the Free Trade Warehousing Zone in such a strategic location.
“DP World has a proven track-record in developing trade-zones and HIPL will aim to leverage on our global expertise to build out this much needed-capacity to support India’s fast-growing export-import trade.
“Furthermore, this asset strongly complements our port terminals in JNPT and our newly acquired inland Continental-Warehousing-Corporation business.
“Once operational, we will be able to offer a complete compelling one-stop solution to our customers.
“This investment is consistent with DP World’s strategy of extending its core business into other port-related, maritime, transportation and logistics sectors with the objective of diversifying revenues and enhancing returns”.
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