Global ports operator DP World has entered into several preliminary deals valued at 250 billion rupees ($3 billion) with the state of Gujarat in India.
The agreements encompass the establishment of new ports, terminals and economic zones, reaffirming DP World’s commitment to enabling trade in the Indian state, the companysaid in a statement on Wednesday.
Sultan bin Sulayem, group chairman and chief executive of DP World, finalised the agreements with MK Das, Gujarat’s additional chief secretary, in the presence of President Sheikh Mohamed and Indian Prime Minister Narendra Modi, during the continuing Vibrant Gujarat Global Summit.
Under the agreements, DP World will develop multipurpose deep-draft ports in South Gujarat and around the western coast of the state towards Kutch. It will also develop special economic zones, cargo terminals and private freight stations in various parts of the state.
It has also joined forces with Gujarat Maritime Board to jointly identify opportunities to develop additional ports along the coast of Gujarat.
“The policies of the government and our experience here is what gives us the confidence to do even more in India,” Mr Sulayem said.
Sheikh Mohamed addressed the three-day Vibrant Gujarat Global Summit on Wednesday, telling those in attendance the UAE supports co-operation to promote economic growth and development.
The Emirates is India’s third-largest trading partner and second-largest export destination.
Dubai-based DP World, which has been present in Gujarat since 2003, has invested almost $2.5 billion in the state to date. The company said it aims to invest more in the next three years in new projects.
Its existing investments in Gujarat include a container terminal in Mundra, along with rail-connected private freight terminals at Ahmedabad and Hazira.
In August, it signed a $510 million concession agreement with the Deendayal Port Authority in the state to develop, operate and maintain a new 2.19 million TEU (twenty-foot equivalent units) per year mega-container terminal at Tuna-Tekra in Kandla.
DP World is also stepping up investment in other parts of India, the world’s most populous nation.
In September, it announced an investment of 2.15 billion rupees in the logistics and warehousing sector in the state of Telangana.
