Hindustan Infralog Private Limited (HIPL), a joint venture between DP World and the National Investment and Infrastructure Fund (NIIF), has won a bid to develop and operate a warehousing zone in India.
The JV, in which DP World holds a 65 percent stake, will develop the Free Trade Warehousing Zone (FTWZ) at India’s largest container gateway – Jawaharlal Nehru Port Trust (JNPT) in a $78 million deal.
HIPL is the recently created investment vehicle between DP World and NIIF to invest up to $3 billion in ports, logistics and related sectors across the country.
This is its second investment for HIPL following the acquisition of a 90 percent 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.
JNPT is a key gateway hub handling approximately 5 million TEU’s per annum which equates to 33 percent of the India’s container traffic.
The facility is expected to be operational by 2020, a statement said.
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.”For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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