Dubai's DP World wins $200m India port deal
Dubai-based DP World Limited has announced that it has been chosen to build and operate a single berth terminal in India.
The world's third largest port operator said it has received a letter of award from Jawaharlal Nehru Port Trust, Government of India to build the facility alongside its existing terminal operation at Nhava Sheva, Mumbai.
The new facility is expected to be operational in 2015, DP World said in a statement.
DP World added that it will be investing approximately $200m to build a container terminal of 330 metres quay length and 17 hectares of yard which will have an annual handling capacity of 800,000 TEUs (twenty foot equivalent container units).
The new quay has been awarded for a 17-year concession period and will be equipped with four rail mounted quay cranes and 12 rubber tyred gantry cranes.
Mohammed Sharaf, Group CEO, DP World said: “We thank the Government of India and the Jawaharlal Nehru Port Trust for awarding us this project.
"India is one of our most important markets and we are committed to supporting its growth over the long term."
DP World currently operates five Indian terminals at Chennai, Mundra, Nhava Sheva, Visakhapatnam and Cochin and the company's Asia Pacific and Indian Subcontinent region was the main driver of its volume growth in the first six months of 2012.
Anil Singh, senior vice president and managing director, DP World Subcontinent, added: “We are extremely pleased to receive the award for the 330 metre project. Timely capacity on the west coast of India is critical to our country’s economic growth. JNPT is India’s largest trade gateway and additional port capacity will ease the congestion concerns of the shipping community.
"We look forward to working with Jawarharlal Nehru port on the project to continue to service India’s trade as the premier gateway.”
DP World on Tuesday reported a slight decline in its consolidated terminal volumes for the third quarter.
It said that terminals in which it owns majority stakes recorded a 0.7 percent year-on-year fall to 6.94 million TEU in the third quarter.
It said the Asia-Pacific and Indian subcontinent region and the Europe, Middle East and Africa region reported lower volumes.
DP World, which operates more than 60 terminals across six continents, has in the last several months sold stakes in Russian container terminal Vostochnaya Stevedoring Co, British-based Tilbury Container Services and operations in Belgium. It has also quit its venture in Yemen.
DP World reported a marginal net profit increase of 0.4 percent to $247m in the first half of 2012.
In the first six months of the year, the port operator saw its revenue increase to $1.53bn, compared to $1.5bn in the year ago period.