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Nhava Sheva port
Executives at DP World Group in India are in the crosshairs of local authorities over allegations of bribery.
India’s premier investigating agency, the Central Bureau of Investigation (CBI), has booked two senior representatives of the Dubai-based logistics conglomerate, claiming they had been involved in seeking and securing government approvals through unfair/illegal means.
The investigation links an officer at India’s Ministry of Defence, handling the export of defence products, to several logistics firms, including DP World, and names two of its executives, Rajiv Yadav, senior director for defence and strategic accounts, and a Ravjeet Singh, documents reveal.
The CBI has reportedly indicted them for a criminal conspiracy with the Indian defence officer – “…..for arranging approvals from the Ministry of External Affairs in respect of their consignment bound for Dubai”, says the charge report.
DP World has so far remained tight-lipped about the case, refusing to comment in response to a enquiry by The Loadstar.
The controversy could raise questions over DP World’s compliance policy and trade regulations, according to industry observers.
The group has high investment stakes in India, across marine terminals and inland verticals, with ambitions to expand its footprint in a futuristic strategy as regional bilateral trade volumes expand.
Group chairman and CEO Sultan Ahmed bin Sulayem recently pledged to pour a fresh tranche of $5bn into the Indian market for infrastructure expansion, adding to the $3bn the company has already invested.
DP World operates container terminals in Nhava Sheva (JNPA), Mundra, Chennai, and Cochin, accounting for almost 25% of Indian box trade. And it has been known to be pushing for an extension of its concession rights at Nhava Sheva (NSICT), which are due to end in 2028.
Launched in 1997, NSICT was India’s first container terminal developed through a build-operate-transfer (BOT) model across the 12 government/major ports, following privatisation in the 1990s. Able to retain this operating licence allows the global terminal operator to handle ultra-large containerships, as its second facility, NSIGT, has quay length constraints of a minor 330 metre berth.
Landside, DP World operates more than 100 freight trains across India’s ports.
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