Global logistics company Dubai Ports (DP) World along with the Dubai city government has inked a memorandum of understanding (MOU) with the government of India, Trade Arabia reports. The states in particular that signed were Jammu and Kashmir with the goal of developing an inland ports in those areas.
The deal was formally announced at the 2018 World Government Summit in Dubai through a speech delivered by Sultan Ahmed Bin Sulayem, CEO of DP World. “Opening up the Indian hinterland through new infrastructure and facilities is one of the ways that the Indian economy will continue to grow and we are delighted to enter into these discussions with representative of the Jammu and Kashmir government.”
The proposed multi-modal logistics park and hub is slated to be built in Jammu and contain specialized storage solutions. Apart from these, the park will also comprise warehouses with the goal of accomplishing and encouraging intermodal transfer for the containers, bulk and break-bulk cargo.
Sultan Ahmed Bin Sulayem voiced his faith in his company’s investment in India. “India has vast economic potential and unlocking it will provide new trade opportunities. Efficient logistics is the way forward - to get cargo moving faster, safer and more cost effectively for all stakeholders.” He also shared the research that he used as a basis to justify his investment, stating that India’s logistics sector is expected to blow up to $215 billion by 2020.
“DP World has already invested $1.2 billion in the last 20 years supporting 28% of all container trade and we look forward to growing this partnership further in Jammu and Kashmir,” he added. He also broke down the $215 billion estimated value into “34 mega multi-modal logistics parks and over 1,300 infrastructure projects underway” without mentioning which investments are sourced from DP World.
Sultan Ahmed Bin Sulayem mentioned in his CNBC interview how DP World has “been in India for 10 years and we are operating in six locations.”
“The problem in India, once it’s in the dark it’s another matter to take it into the city because once you get out of the gate, then it is with the logistic transportation which takes a lot of time to reach,” he said.
Sulayem also mentioned blockchain in his conversation with CNBC. Asked how he sees blockchain will boost international trade, he replied. “Blockchain is about authentication.”
“If we look at the cost of taking something from ‘a’ to ‘b’, including the port and the shipping companies, their part of the fare, they get paid, [it] is not even 20 percent of the cost of paper work. And they get buried not only in India, it’s worldwide,” he said.
The part of tracking the shipment from pickup to dropoff is also a concern. “If it changes hands nobody can fiddle without the owner of this and locking that and giving the code for the next person.”
With a technology that will help DP World and its clientele track shipments and lessen delays through real-time tracking, the DP World CEO foresees faster transactions sealed and cargo to be handled better. “So, this is something that will basically utilize the information that’s already there, but it will help the customs through their ports and the consignee who will receive that cargo.”
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