Dubai-based terminal operator DP World has signed a Memorandum of Understanding (MoU) with India’s National Investment and Infrastructure Fund (NIIF) targeting development of the logistics sector in India.
The agreement comes as a result of the visit to India in February 2016 of Sultan Ahmed bin Sulayem, DP World Group Chairman and CEO, when DP World announced that it was seeking opportunities in the country worth over USD 1 billion over the next few years.
As disclosed, the investment will be aimed at development of port infrastructure of the Sagarmala project, creation of the Delhi – Mumbai Industrial Corridor, river transportation and cold chain storage, investing in port-led special economic zones, free trade zones, ICDs and cruise terminals.
“We have been a part of India’s growth story for nearly two decades now and we are delighted to further strengthen this relationship with the National Investment and Infrastructure Fund (NIIF). The NIIF plays a crucial role in financing India’s infrastructure and we welcome their approach to encouraging development in the sector,” DP World CEO said.
“This will further develop Prime Minister Modi’s “Make in India” and “Invest India” campaigns by encouraging foreign direct investment (FDI) and funding for landmark projects like Sagarmala and Bharatmala.”
“One of the key priorities of the Indian Government is preventing the loss of agricultural produce. This can be managed through adequate marine and warehousing infrastructure including cold storage as well as development of inland waterways, reducing logistics costs at the same time,” bin Sulayem added.
Under Sagarmala program, 415 projects, at an estimated investment of approximately Rs.8 Lac Crore, have been identified, including port modernization and new port development, port connectivity enhancement, port-linked industrialization and coastal community development over the period 2015 to 2035.
As part of the program, six new port locations have been identified, namely – Vadhavan, Enayam, Sagar Island, Paradip Outer Harbour, Sirkazhi and Belekeri.
The key aim of the projects, as pointed out by the country’s government, is increasing the share of coastal shipping and inland navigation in the transport modal mix.