Fund set up to support India's first logisitics city

An investment fund that will aid the development of India's first integrated logistics city has been launched by Bahrain's Khaleeji Commercial Bank.

The Global Logistix Navi Mumbai Investment Company has been set up to raise $430 million (Dh1.57bn) of capital to support the project, which is being built on a 400-acre site in Navi Mumbai.

"Global Logistix stands to play an integral part in Navi Mumbai," said Khaleeji CEO Ebrahim H Ebrahim. "The economic conditions in India are perfect at the moment to support such an initiative. We are looking forward to sustaining this important endeavour as it will aid the infrastructure and logistics industry development that is sorely needed in that region of the world."

The initial development supported by the fund will include the construction of warehouses, a control building, a maintenance depot, staff accommodation, parking areas and various other amenities.

"The project is intended to provide all logistical services in one fully integrated park. This will give potential and existing businesses the opportunity to increase their operating efficiency and market exposure and minimise their operating costs.

"Once completed the development will provide a state-of-the-art platform for market participants of varying sizes. The bank sees Mumbai's need for a large-scale logistics park as it is the largest retail market in India. It has 20 per cent of the country's total retail activities within its borders."

India is slated to overtake the UK and Germany as the third-largest economy in the world by 2050. Khaleeji is one of Bahrain's leading Islamic banks.