Port operator DP World and India’s infrastructure fund have partnered to invest up to $3bn (€b2.4n)  of equity to buy assets and develop projects in the sector.

DP World and National Investment and Infrastructure Fund (NIIF) will create an investment platform to invest in ports, terminals, transportation and logistics businesses in India. 

The partnership follows the memorandum of understanding signed in May 2017 and the visit to India of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and DP World Group chairman and CEO, Sultan Ahmed bin Sulayem, in February 2016.

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.

Bin Sulayem said: “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, 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.”

Sujoy Bose, the CEO of NIIF, said: “Efficient logistics and cargo movement are critical components for the continued growth and development of the Indian economy, and particularly the manufacturing sector. 

“We are delighted to partner with DP World to create a platform which will aim to 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, Bose said.

NIIF is jointly-owned by the Government of India and investors from India and abroad.

In October last year, Abu Dhabi Investmtent Authority (ADIA) committed $1bn to become first institutional investor in India’s infrastructure fund.