The National Investment and Infrastructure Fund (NIIF) and Dubai-based port operator DP World have set up a platform to invest in ports, terminals, transportation and logistics businesses in India.
The platform–NIIF’s first–will invest up to $3 billion (nearly Rs 19,100 crore) of equity to acquire assets and develop projects in these sectors, the companies said in a statement.
The platform will also look at opportunities beyond sea ports such as river ports and transportation, freight corridors, port-led special economic zones, inland container terminals and logistics infrastructure, including cold storage.
“Our expertise in building best-in-class logistics infrastructure together with NIIF’s local knowledge and government partnership is the right combination to take advantage of the growth opportunities in India,” said Sultan Ahmed Bin Sulayem, group chairman and chief executive officer of DP World.
NIIF CEO Sujoy Bose said that efficient logistics and cargo movement are critical for growth of the economy, particularly the manufacturing sector, and that the platform will aim to reduce the cost of moving cargo between ports and the place of origin.
The Indian government had created NIIF to catalyse capital from international and domestic investors into energy, transportation, housing, water, waste management and other infrastructure and allied sectors in India.
NIIF’s strategy includes anchoring equity, quasi-equity and debt funds in partnership with investors targeting investments in the relevant sectors in India.
The government has committed around Rs 20,000 crore ($3 billion) for the fund, or about 49% of the total target corpus of Rs 40,000 crore. The corpus will be managed by NIIF through one or more funds to be set up in partnership with other partners.
DP World is one of the leading port operators in the world. It has a portfolio of 78 operating marine and inland terminals. Container handling is the company’s core business and generates more than three quarters of its revenue.
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