DP World to create an investment avenue for ports, terminals, transportation and logistics businesses in India … reports Asian Lite News.
The Indian government’s National Investment and Infrastructure Fund, NIIF, which has been designated as the primary vehicle to channel UAE investment into India’s big projects, has opened its account with an agreement with DP World to create an investment avenue for ports, terminals, transportation and logistics businesses in India.
Jointly with DP World, the NIIF’s platform “will invest in opportunities in the ports sector and beyond sea ports into areas such as river ports and transportation, freight corridors, port-led special economic zones, inland container terminals, and logistics infrastructure including cold storage,” Subhash Chandra Garg, Secretary, Department of Economic Affairs in the Indian Ministry of Finance, said in a statement.
Garg’s statement followed an announcement by DP World that it “will invest up to three billion US dollars of equity to acquire assets and develop projects in this sector” in India as a follow up to a Memorandum of Understanding, MoU, it signed in this regard in May 2017.
Sujoy Bose, CEO of the Indian Fund, said in his statement that “efficient logistics and cargo movement are critical components for the continued growth and development of the Indian economy, and particularly the manufacturing sector. We are delighted to partner with DP World 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 NIIF can work with international capital and expertise to invest at scale to build critical infrastructure in India.”
Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said, “DP World has been a part of India’s growth story for nearly two decades and we are delighted to continue our success by joining forces with a strong strategic partner, the NIIF.”
He added, “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.”
On the occasion of launching the new investment platform, DP World recalled the visit to India of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem, in February 2016.
The Indian government statement said “the first close of the NIIF Master Fund took place on October, 16, 2017 with contributions from a subsidiary of Abu Dhabi Investment Authority, ADIA, and four Indian domestic institutional investors.”