DP World JV wins concession to develop and operate freezone in India
A joint venture between DP World and India’s National Investment and Infrastructure Fund (NIIF) has won the bid to develop and operate the Free Trade Warehousing Zone (FTWZ) at India’s largest container gateway – Jawaharlal Nehru Port Trust (JNPT).
The deal is worth US $78-million and is part of a much-larger US $3-billion planned investment in ports, logistics and related sectors across India by the joint venture, which is 65% owned by DP World.
This is the second investment for HIPL; following the acquisition of a 90% stake in multimodal logistics company Continental Warehousing Corporation (Nhava Sheva) Ltd.
The FTWZ comes with a long-term concession of 60 years and will be developed across 18 hectares at JNPT’s Special Economic Zone (SEZ). JNPT is a key gateway hub handling approximately 5-million TEU per annum which equates to 33% of India’s container traffic.
The FTWZ’s strategic proximity to the port and the upcoming Navi Mumbai International Airport and western dedicated freight corridor, gives it direct access to global and domestic markets and will offer long-term advantages to domestic/global traders and manufacturers by facilitating a reliable and swift flow of cargo.
The new freezone is intended to position India as a global trading hub and further support the government’s ‘Make in India’ campaign. The facility is expected to be operational by 2020.
“We are delighted to have won this long-term concession to develop the Free Trade Warehousing Zone in such a strategic location,” said Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World. “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,” he added. “Once operational, we will be able to offer a complete compelling one-stop solution to our customers.”
This investment is part of 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.