DP World signs $3B deal with Indian fund
dubai — GloBAl ports opErAtor DP WorlD AnD InDIA’s NAtIonAl InvEstmEnt AnD InFrAstruCturE FunD (NIIF) AnnounCED on MonDAy tHE CrEAtIon oF A FunD to InvEst up to $3 BIllIon In tHE trAnsport AnD loGIstICs sECtors In InDIA.
THE plAtForm wIll InvEst In ports, tErmInAls, trAnsportAtIon AnD loGIstIC BusInEssEs By ACquIrInG AssEts AnD DEvElopInG proJECts In InDIA, tHE worlD’s FourtH-BIGGEst port opErAtor sAID wItHout GIvInG A tImEFrAmE.
THE FunD wIll Also look At opportunItIEs BEyonD sEAports, suCH As InlAnD rIvEr ports AnD trAnsportAtIon, FrEIGHt CorrIDors, spECIAl EConomIC zonEs, InlAnD ContAInEr tErmInAls AnD loGIstICs InFrAstruCturE suCH As ColD storAGE, tHE two orGAnIsAtIons sAID.
THE pArtnErsHIp Follows A mEmorAnDum oF unDErstAnDInG sIGnED In MAy 2017 AnD tHE vIsIt to InDIA oF HIs HIGHnEss SHEIkH MoHAmmED BIn ZAyED Al NAHyAn, Crown PrInCE oF ABu DHABI, AnD DP WorlD Group CHAIrmAn AnD CEO SultAn AHmED BIn SulAyEm In FEBruAry 2016.
In OCtoBEr, tHE NIIF sIGnED A $1 BIllIon InvEstmEnt DEAl wItH A unIt oF ABu DHABI InvEstmEnt AutHorIty, onE oF tHE lArGEst sovErEIGn wEAltH FunDs In tHE worlD.
BIn SulAyEm sAID DP WorlD HAs BEEn A pArt oF InDIA’s GrowtH story For nEArly two DECADEs AnD woulD BE DElIGHtED to ContInuE Its suCCEss By JoInInG ForCEs wItH A stronG strAtEGIC pArtnEr, tHE NIIF.
“WE BElIEvE tHAt our ExpErtIsE In BuIlDInG BEst-In-ClAss loGIstICs InFrAstruCturE toGEtHEr wItH tHE NIIF’s loCAl knowlEDGE AnD GovErnmEnt pArtnErsHIp Is tHE rIGHt ComBInAtIon to tAkE ADvAntAGE oF
the significant growth opportunities in India. We are proud to partner with NIIF and share our expertise and experience in these areas and the global supply chain to provide cost-effective logistics and warehousing solutions to India’s growing economy and trade,” said bin Sulayem.
“Efficient logistics and cargo movement are critical components for the continued growth and development of the Indian economy, and particularly the manufacturing sector,” said Sujoy Bose, CEO, NIIF. “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. This is NIIF’s first investment and is a good example of how the NIIF can work with international capital and expertise to invest at scale to build critical infrastructure in India,” said Bose.
DP World, which operates 78 marine and inland terminals around the world, has established a strong presence in India over the past two decades, supporting a third of India’s container trade.
DP World is on course to deliver 10 per cent growth in gross volumes for 2017 and is looking forward to a continuation of similar numbers in the year ahead. The port operator, whose assets include the largest marine terminal in the Middle East, attributed the strong performance to growing global trade opportunities, diversifying its business across the supply chain and exploring smart innovation technologies.
A series of acquisitions and technology tie-ups saw the global trade enabler expand its business horizons across the world. This included over $1 billion in capital expenditure during 2017. In September 2017, the company took over two state-owned maritime entities in Dubai for $405 million, its second acquisition of assets in the UAE in three years after buying the Jebel Ali free zone owner in a $2.6 billion acquisition.
— issacjohn@khaleejtimes.com