Business Standard: May 05, 2017
New Delhi: The UAE-based DP World has committed $1 billion investment in Indian infrastructure, including logistics and container terminals.
"We have already invested $1 billion and will soon invest another $1 billion," Sultan Ahmed bin Sulayem, chief executive officer, DP World, said at the India Integrated Transport and Logistics Summit 2017.
DP World runs marine and inland terminals and offers maritime, logistics, ancillary and technology-driven trade services. It has invested in five international ports in India.
There was also a need to reach internal markets, invest in cold storage facilities and networks, as well as use coastal and inland waterways to increase efficiencies, Sulayem said.
Earlier this year, DP World had hinted at investment opportunities of over $1 billion in Indian ports and logistics. The Dubai-headquartered company now supports over 30% of India's container trade.
Transport Minister Nitin Gadkari said investments worth Rs 2 lakh crore were expected during the logistics summit. The three-day summit is being attended by players from Singapore, Hong Kong and Abu Dhabi.
Gadkari said 20 agreements were in advanced stages of finalisation among government agencies like the National Highways Authority of India, CONCOR, Major Port Trusts, Land Ports Authority of India, Central Railside Warehousing Company and state governments.
The Centre plans to build 35 multi-modal logistics parks in the country to cater to 50% of freight movement. The parks will lead to a 10% reduction in transportation costs and a 12% reduction in carbon dioxide emissions.
Land parcels have been identified and pre-feasibility studies initiated at six locations. The parks will be developed jointly by the NHAI, National Highways Infrastructure Development Corporation and state governments.
Fifteen such logistics parks will be built in five years and 20 more in the next 10 years. The government is working on a uniform policy for the development of these parks. The transport ministry has sought infrastructure status for these parks.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.