DP World in $3bn India ports venture
LONDON: Dubai-based DP World plans to create a $3 billion joint venture to develop port projects and other infrastructure in India.
It has tied up with India’s National Investment and Infrastructure Fund (NIIF) to develop logistics-focused infrastructure around the country.
DP World said it would look beyond seaports to “river ports and transportation, freight corridors, port-led special economic zones, inland container terminals and logistics infrastructure including cold storage.”
It follows an announcement in October of a $1 billion investment by Abu Dhabi Investment Authority in the NIIF, which also functions like a sovereign wealth fund.
“Efficient logistics and cargo movement are critical components for the continued growth and development of the Indian economy, and particularly the manufacturing sector,” said NIIF CEO Sujoy Bose. “This is NIIF’s first investment and is a good example of how NIIF can work with international capital and expertise to invest at scale to build critical infrastructure in India.”
India is spending almost $60 billion on a massive infrastructure program aimed at modernizing its railways, ports, airports and roads.
The infrastructure push is part of Prime Minister Narendra Modi’s “Make in India” agenda.
Modi is due to speak at the annual gathering of world leaders, businesspeople and academics attending the World Economic Forum in Davos this week.
He is also due to visit the UAE next month.
DP World already has a large network of ports in India with others under construction.
The investment comes at a crucial time as Modi seeks to sustain infrastructure spending that could help propel India to become the fastest growing major economy in 2018.