NIIF, DP World to set up $3-bn investment platform for ports, terminals, logistics biz
MUMBAI/NEWDELHI: The National Investment and Infrastructure Fund (NIIF), India’s first sovereign wealth fund, and Dubaibased ports operator DP World Pvt. Ltd, on Monday announced the creation of an investment platform to invest up to $3 billion in ports, terminals, transportation and logistics businesses in India.
This is the first investment platform from NIIF and will see investment up to $3 billion of equity to acquire assets and develop projects in these sectors, the companies said in a joint statement. The platform will also look at opportunities beyond sea ports such as river ports and transportation, freight corridors, port-led special economic zones, inland container terminals and logistics infrastructure.
The formation of partnership follows the MoU signed in May 2017 and the visit to India by Sheikh Mohammed bin Zayedal Nahyan, crown prince of Abu Dhabi, and Sultan Ahmed bin Sulayem, chairman and CEO of DP World, in February 2016.
According tobin Sulayem, the expertise of DP World in building logistics infrastructure, together with the NIIF’s local knowledge and government partnership, will be the right combination to take advantage of the significant growth opportunities in India.
With 78 operating marine and inland terminals, DP World, majority owned by the Dubai government, is the world’ s fourth biggest container port operator.
According to Sujoy Bose, chief executive of NIIF, efficient logistics and cargo movement are cr it- ical components for the continued growth and development of the Indian economy, particularly the manufacturing sector. “We are delighted to partner with DP World to create a platform which will aim to reduce the cost of moving cargo between port and origin/ destination ,” added Bose.
The announcement comes in conjunction with UAE ambassador Ahmed al Ban na’ s trip to New Delhi, during which he said the UAE will be investing $1-1.5 billion in India this year. The investment will be made in sectors such as logistics and dry ports.