Global port operator DP World on Wednesday said its joint venture (JV) with NIIF has won the bid to build a Free Trade Warehousing Zone at JNPT Mumbai for USD 78 million.
The facility is expected to be operational by 2020.
"Hindustan Infralog Private Limited (HIPL), a joint venture between DP World (65 per cent) and the National Investment and Infrastructure Fund (NIIF) (35 per cent), 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) for USD 78 million," DP World said in a statement.
It said HIPL is the recently created investment vehicle between DP World and NIIF to invest up to USD 3 billion in ports, logistics and related sectors across the country.
This is the second investment for HIPL following the acquisition of a 90 per cent stake in multi-modal 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 5 million TEU’s per annum which equates to 33 per cent of the India's container traffic," it said.
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.
This will offer long-term advantages to domestic/global traders and manufacturers by facilitating a reliable and swift flow of cargo and improving effectiveness of the supply chain, it said.
The statement said it will position India as a global trading hub and further support the government's 'Make in India' campaign.
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."
DP World has a portfolio of 78 operating marine and inland terminals supported by over 50 related businesses in over 40 countries across six continents.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)