DP World, India’s NIIF Set Stage for USD 3 Bn Investment

DP World and India’s National Investment and Infrastructure Fund (NIIF) have set up a USD 3 billion worth investment platform to invest in ports, terminals, transportation and logistics businesses in India.

The partnership follows the Memorandum of Understanding (MoU) signed in May 2017 targeting development of the logistics sector in India.

Aside to acquiring and developing sea port assets 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.

 “DP World has been a part of India’s growth story for nearly two decades and we are delighted to continue our success by joining forces with a strong strategic partner, the National Investment and Infrastructure Fund (NIIF). We believe that our expertise in building best-in-class logistics infrastructure together with the NIIF’s local knowledge and government partnership is the right combination to take advantage of the significant growth opportunities in India,” Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said.

“Efficient logistics and cargo movement are critical components for the continued growth and development of the Indian economy, and particularly the manufacturing sector,” Sujoy Bose, CEO, National Investment and Infrastructure Fund, said, adding that the platform would reduce the cost of moving cargo between port and origin/destination.

“This is NIIF’s first investment and is a good example of how NIIF can work with international capital and expertise to invest at scale to build critical infrastructure in India.”

The first close of the NIIF Master Fund took place on October 16, 2017 with contributions from a subsidiary of Abu Dhabi Investment Authority (ADIA) and four Domestic Institutional Investors (DIIs),  HDFC Group, ICICI Bank, Kotak Mahindra Life and Axis Bank.

Three alternative investment funds are being established under NIIF, which is being assigned with a budget of USD 6 billion, 49 percent of which is being contributed by the Government of India.