Dubai Ports eyes SEZ in India, open to stakes in ports

Dubai Ports International (DPI) is looking at setting up a special economic zone (SEZ) in India.

DPI is the overseas arm of the UAE government's Ports, Customs & Free Zone Corporation (PCFZC).

Mohammad Sharaf, managing director, PCFZC, said: "We are looking to set up a SEZ in India in the line of the Jebel Ali Free Zone. We are studying the SEZ policy of the Indian government."

"We are also exploring possibilities of picking up stakes in ports in India. DPI wants to be a majority stake-holder in any of the Indian ports," he said.

However, initially the corporation would remain a minority stake holder in the SEZ.

DPI had recently bid for the international container transhipment terminal at Vallarpadam near Kochi. It is expected to receive the letter of intent from the Union ministry of shipping for the project by October 21. DPI had proposed a 33.30 per cent revenue sharing agreement for setting up the project.

"Once we receive the government's nod, we expects to start operations at the terminal by early next year. This project will require an investment of $400 million. If required, we are ready to invest more in the terminal," said Sharaf.

The proposed terminal would have a capacity to handle three million twenty equivalent units (TEUs) of containers per year. DPI, as per the agreement, would first take charge of operations at the existing Rajiv Gandhi Container Terminal. It will get eight years to shift to the Vallarpadam terminal under the 30-year long concession agreement.

"While this will be our second project in India as we are already handling the 25,000 TEU terminal at Vizag Port along with J M Baxi Group, it would be the highest investment by DPI in any project in India.

DPI at present operates in five overseas projects including a project at Malaysia and Romania, each apart from the Vizag Terminal which it had taken over in June last year.

The second highest bidder for the Vallarpadam terminal was a consortium of IL&FS-Punj Llyod which quoted a 10 per cent revenue sharing pact with the government.