Hindustan Infralog (HIPL), a joint venture between Dubai-based DP World (65%) and India’s National Investment and Infrastructure Fund (NIIF) (35%), has won a bid to develop and operate the Free Trade Warehousing Zone (FTWZ) at Jawaharlal Nehru Port Trust (JNPT), India’s largest container gateway, for $78m.
HIPL has been formed recently to invest up to $3bn in ports, logistics and related sectors across the country.
This is the second investment for HIPL after the acquisition of a 90% stake in multimodal logistics company Continental Warehousing Corporation (Nhava Sheva).
The FTWZ includes a long-term concession of 60 years and will be developed across 18 hectares at JNPT’s Special Economic Zone (SEZ).
JNPT, a major gateway hub, handles approximately five million TEUs per annum, representing 33% of the container traffic in India.
The FTWZ will be located close to the port and the Navi Mumbai International Airport, which is under construction, and the western dedicated freight corridor, which will provide direct access to global and domestic markets.
It will also offer long-term advantages to domestic and global traders and manufacturers by facilitating a swift flow of cargo and improving effectiveness of the supply chain.
Furthermore, it is expected to position India as a global trading hub and also support the government’s ‘Make in India’ campaign.
The facility is expected to begin operations by 2020.
DP World group chairman and CEO Sultan Ahmed Bin Sulayem 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.”
Image:DP World officials during a site visit. Photo: Courtesy of DP World.