DP World, the global ports operator, is set to inject 2.15B rupees (approximately $25.8M) into the logistics and warehousing sector within the state of Telangana, according to an announcement by an Indian minister.
The Dubai-based company plans to expand its presence in the southern Indian state by dedicating 1.65B rupees towards its inland container depot operations in Hyderabad, the state capital, as stated by Kalvakuntla Rao, Telangana’s Minister for IT and Industries.
Additionally, DP World will allocate 500M rupees to establish a cold storage warehouse with a capacity of 5,000 pallets in the Medchal region, according to The National News.
“An international logistics giant like DP World expanding its operations will bolster the state’s logistics sector. The Telangana government will extend the required support to the DP World,” Mr Rao wrote on X, formerly Twitter.
Mr. Rao Meets DP World Executives for Collaboration
While in the UAE, Mr. Rao, who is presently visiting, had a meeting with Anil Mohta, the executive vice president of DP World, and Saloosh Shastree, the director for project development, to investigate potential collaboration opportunities.
Sultan bin Sulayem, group chairman and chief executive of DP World, said the move will “enhance the flow of trade” for customers.
“This investment will further strengthen India’s logistics infrastructure to make the country one of the next great logistics powerhouses, with the sector set to grow to $380 billion by 2025,” he said in a LinkedIn post on Thursday.
Just last month, it revealed a $510M investment commitment to establish and manage a new massive container terminal within the Indian state of Gujarat, in accordance with the concession agreement inked with the Deendayal Port Authority earlier this year.
Despite a weaker container shipping market and reduced sea-freight rates, the company experienced a 33 percent surge in profit during the first half of the year compared to the previous year, due to increased revenue.
DP World reported that profit attributable to the company’s owners, on a like-for-like basis, rose to $651M for the six months ending in June, as of last month.
Furthermore, the company has announced intentions to augment its container-handling capacity by approximately three million twenty-foot equivalent units (TEUs) by the end of this year to meet the rising demand in key trade markets.
