DP World, NIIF to Build Free Trade Warehousing Zone in India
- Business & Finance
A joint venture of DP World and 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).
Hindustan Infralog Private Limited (HIPL), the JV between Dubai’s port and terminal operator (65%) and India’s fund manager (35%), is to build FTWZ for USD 78 million. The facility is expected to be operational by 2020.
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 in India. This is the second investment for HIPL following the acquisition of a 90% stake in multimodal logistics company Continental Warehousing Corporation (Nhava Sheva).
As informed, 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’s 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, according to DP World and NIIF.
The project is aimed at positioning India as a global trading hub and further supporting the government’s ‘Make in India’ campaign.
“We are delighted to have won this long-term concession to develop the Free Trade Warehousing Zone in such a strategic location (…) this asset strongly complements our port terminals in JNPT and our newly acquired inland Continental-Warehousing-Corporation business,” Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said.