Tata, Dubai co in JV for biz, logistics parks

Written by Corporate Bureau | Mumbai, Oct 30 | Updated: Oct 31 2007, 06:55am hrs
Tata Realty and Infrastructure Ltd (TRIL), a 100% subsidiary of Tata Sons, has signed a 50:50 joint venture with Jafza International, the global operations arm of Economic Zones World of Dubai, to develop and operate a chain of business and logistics parks in India. The total investment for the parks will be to the tune of Rs 10,000 crore spread over a period of four to five years.

Addressing the media, Salma Hareb, CEO, Jafza and Economic Zones World stated, Jafzas international vision is to develop a global network of business parks, logistics parks and economic zones. Our association with TRIL is a perfect blend of Economic Zones Worlds expertise in developing business parks and TRILs strength in world class real estate capabilities.

According to Dinesh Chandiok, CEO & MD, TRIL, The investment would include Rs 2,400 crore in setting up 7 logistics parks in India during Phase I. For Phase II, plans are on the anvil to jointly set up about 15 to 20 logistics parks by investing the remaining amount jointly. We are examining possibilities of utilising Tatas' land bank in setting up logistics parks. Besides, we will also look at acquiring land privately.

As for the land size, Samir Chaturvedi, executive vice president, Jafza International explained, Each logistics parks would comprise land size of between 250 to 500 acres. In the framework of this JV, the proposed network of business and logistics parks would provide an infrastructure platform for integrated trade and logistics services across the country. Each business park would contain a separate free trade warehousing zone (FTWZ) and domestic tariff area (DTA). The business parks would be set up in different phases and each one will provide world class multimodal connectivity both for international and domestic Indian trade. RK Krishna Kumar, chairman, TRIL and director, Tata Sons added, "We will also look at creating special purpose vehicles (SPVs) in the area of logistics in India and even in building bridges, roads and other facilities in the infrastructure sector." The global logistics market is currently valued at $3.43 trillion, with a growth of 7.5% per year. The current size of the Indian logistics industry is $90 billion, estimated to grow over $125 billion by 2010 at 16% per year.