Deal part of wider $3 billion investment
Hindustan Infralog Private Limited (HIPL), a joint venture between DP World (65%) and the National Investment and Infrastructure Fund (NIIF) (35%), 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).
The total cost of the winning bid was around US$78 million.
HIPL is the recently created investment vehicle between DP World and NIIF to invest up to US$3 billion in ports, logistics and related sectors across the country.
This is the second investment for HIPL; following the acquisition of a 90% 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 (SEZ).
JNPT is a key gateway hub handling approximately 5mn 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.
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.”
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