DP World, NIIF Win Bid at Mumbai's JNPT
Global port operator DP World said its joint venture (JV) with National Investment and Infrastructure Fund (NIIF) has won the bid to build a Free Trade Warehousing Zone (FTWZ) at Jawaharlal Nehru Port Trust (JNPT) Mumbai for USD 78 million.
"Hindustan Infralog Private Limited (HIPL), a joint venture between DP World (65%) and the NIIF (35%), has won the bid to develop and operate the FTWZ at India’s largest container gateway – JNPT for $78mn," said a press statement from the port operator.
HIPL is the recently created investment vehicle between DP World and NIIF to invest up to USD 3 billion in ports, logistics and related sectors across the country. 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 5mn TEU’s per annum which equates to 33% of the 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. This will offer long-term advantages to domestic/global traders and manufacturers by facilitating a reliable and swift flow of cargo and improving effectiveness of the supply chain.
Importantly, it will 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.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said, “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," he added.