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.”
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