DP World to invest half a billion dollars in India

Dubai-based ports giant DP World will invest around US$510 million to build a new container terminal at the Kandla port in the Indian state of Gujarat, its group chairman said on Friday.

"It will enable the delivery of trade opportunities by connecting northern, western and central India with global markets," Sultan Ahmed Bin Sulayem, who is also DP World's CEO, said after the signing of an agreement between the Deendayal Port Authority and DP World officials.

The Indian government earlier this year approved a plan by Hindustan Infralog, a joint venture between DP World and the state-owned National Investment and Infrastructure Fund, to develop the terminal on a Build-Operate-Transfer (BOT) basis.

DP world, which operates in 73 countries, last week reported a nearly 10% fall in first-half profit to US$651 million despite a 13.9%YoY rise in revenue to more than US$9 billion.

The new terminal, which should be completed by early 2027, will boost container traffic in India and reduce the cost of logistics, company officials said.

DP World operates five container terminals in India – two in Mumbai and one each in Mundra, Cochin and Chennai – with a combined capacity of about 6 million twenty foot equivalent units (TEUs), giving it a market share of 28% of container traffic volume in the country. The new terminal will take the combined capacity to 8.19 million TEUs, a company statement said.

DP World’s Indian port and terminal investments are aligned with the country's Vision 2047, which aims to quadruple port handling capacity and develop logistics infrastructure to boost economic growth, the statement said.

 

DP World and CMA CGM form Chile container depot

DP World and CMA CGM have created a new company Chile Inland Services (CIS), a joint venture to operate a container depot and bonded storage facility 10 km from the Port of San Antonio.

In April, CIS began its first phase of operations, consisting of a five-hectare facility providing maintenance, repair, and specialized refrigeration services for maritime containers.

By the end of 2023, CIS services intend to expand to 11 hectares and include additional container storage space, a secure customs area for full container storage and a bonded warehouse for cargo consolidation and deconsolidation.

"We are pleased to officially open Chile Inland Services. This investment represents an important milestone for us as we continue to develop smart logistics solutions for our customers. Our goal is to develop integrated logistics services in key locations, making it easier for Chilean companies to move their goods through the Port of San Antonio," said Curtis Dorion, CEO of DP World Chile.

Efrain Osorio, General Manager of CMA CGM for Chile, Peru, and Bolivia said "Our strategic participation with DP World in CIS seeks to differentiate us in the market, raise the level of service by taking what we do at sea and in ports to specialized logistics services on land, and offer our customers a preferential service throughout the country. Chile continues to grow in exports and cargoes are becoming more and more sophisticated".

 

India: DP World to develop container terminal at Deendayal Port

DP World has won a major concession to develop, operate and maintain a container terminal at Deendayal port in Gujarat, on the western coast of India.

The project involves the construction of a mega-container terminal at Tuna-Tekra through a Public-Private Partnership (PPP).

Once complete, the terminal will include a 1,100-metre berth, and will be capable of handling vessels carrying more than 18,000 teu. Total capacity will be 2.19 million teu.

The contract was awarded by the Deendayal Port Authority under on a Build-Operate-Transfer (BOT) basis.

The future terminal will help unlock future container traffic growth in India, catering to exports and imports from Northern, Western and Central India, reducing logistics cost and enhancing efficiencies across supply chains.

"India represents a significant landscape for opportunity. As the value chain becomes more integrated, significant growth opportunities exist across the entire Indian ports and logistics space,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.

“With the development of Tuna Tekra mega-container terminal in Gujarat, DP World will be well placed to capture these opportunities, further connecting Northern, Western and Central India with global trade and driving value for all our stakeholders.

This is yet another step in our collective efforts with the National Investment and Infrastructure Fund to leverage our expertise in logistics infrastructure and local knowledge to further strengthen India’s supply chain," he added.

DP World already operates five terminals – two in Mumbai, one each in Mundra, Cochin and Chennai – with a combined capacity of approximately 6 million teu and with the addition of Tuna Tekra Container Terminal DP World will have a capacity of 8.19 million teu.

This is along with seven multimodal inland terminals connected to DP World’s rail network, cold storage facilities and container freight stations. It is also developing three economic zones across the country in Mumbai, Cochin and Chennai.

The new terminal will be constructed and equipped with most modern facilities and equipment over an area of approximately 63 hectares. The terminal will be well connected to the hinterland through the network of roads, highways, railways and the Dedicated Freight Corridors.