Dubai ports operator DP World has announced the signing of a memorandum of understanding with the government of the Indian state of Jammu and Kashmir for a potential logistics zone.
The company said in an announcement on Thursday that the deal was signed at this week’s World Government Summit.
It will see discussions take place for a potential ‘multi-modal’ logistics park and hub in Jammu comprising warehouses and storage to “encourage inter-modal transfer of containers, bulk and break-bulk cargo,” according to DP World.
DP World chairman and CEO Sultan Bin Sulayem said India’s logistics sector would be worth $215bn by 2020, with 34 logistics parks and 1,300 infrastructure projects underway.
The company has invested $1.2bn in India over the last 20 years, according to the announcement.
“Opening up the Indian hinterland through new infrastructure and facilities is one of the ways that the Indian economy will continue to grow and we are delighted to enter into these discussions with representatives of the Jammu and Kashmir government,” Bin Sulayem said.
“India has vast economic potential and unlocking it will provide new trade opportunities. Efficient logistics is the way forward – to get cargo moving faster, safer and more cost effectively for all stakeholders.”
DP World said its operations exported and imported 15 per cent of India’s non-oil imports and exports in 2016, worth $50bn.
Last month the company said it would create $3bn transport and logistics investment fund with India’s National Investment and Infrastructure Fund.