A joint venture majority backed by Dubai port operator DP World has won the bid to develop and operate the free trade warehousing zone (FTWZ) in Mumbai for $78m.
Hindustan Infralog Private Limited (HIPL), a joint venture between DP World (65 per cent) and the National Investment and Infrastructure Fund (NIIF) (35 per cent), will develop the FTWZ at India’s largest container gateway – Jawaharlal Nehru Port Trust (JNPT), a statement said.
JNPT handles approximately 5 million TEU’s per annum which equates to 33 per cent of India’s container traffic.
The FTWZ comes with a long-term concession of 60 years and will be developed across 18 hectares at JNPT’s Special Economic Zone.
It is expected to be operational by 2020.
The FTWZ’s 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”, the statement said.
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”.
The zone is also aimed at supporting the Indian government’s ‘Make in India’ campaign, the statement added.
HIPL was created by DP World and NIIF to invest up to $3bn in ports, logistics and related sectors across India. This is the second investment for HIPL, following the acquisition of a 90 per cent stake in multimodal logistics company Continental Warehousing Corporation (Nhava Sheva).
Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, said: “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.
“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,” he said.
He added: “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.”