DP World seeks longer port contracts, to invest $700-800 mn more

Dubai-based logistics major DP World is lining up $700-800 million in fresh investments for India and wants longer-term contracts for five of its terminals whose concessions end from 2027 onwards, group CEO Yuvraj Narayan said in an interview. The terminals are Nhava Sheva International Container Terminal, Nhava Sheva (India) Gateway Terminal, Mundra, Vallarpadam and Chennai.

DP World also plans to bid for upcoming projects at Vadhavan in Maharashtra and Dadri in Uttar Pradesh, and is developing a new mega container terminal at Tuna Tekra in Gujarat expected to become operational next year. CEO Narayan argued for a long-term partnership model where the government is a shareholder, saying handing assets back at concession expiry discourages investment in equipment and technology.

The company, which has invested about $2.5 billion in India so far, sees the country as a long-term growth market even though returns from India remain among the weakest in its global portfolio. On port issues, Narayan said utilization of Indian container terminals is below 60%, compared with 95% at mature ports globally, and blamed poor hinterland connectivity rather than lack of capacity.