DP World doubles Nhava Sheva warehousing capacity with US$52M Phase 2
Discussions covered the development of Vadhavan Port and further investment in the JNPA Special Economic Zone.
INDIA – DP World has inaugurated Phase 2 of the Nhava Sheva Business Park, adding one million square feet of warehousing capacity across 42 acres at an investment of approximately ₹500 crore (US$52 million), according to a company statement.
The expansion doubles the facility’s total warehousing space to two million square feet following Phase 1, which spans 44 acres and one million square feet of capacity.
H.E. Essa Kazim, Executive Chairman, and Yuvraj Narayan, Group Chief Executive Officer, inaugurated the facility during a board visit to India, which was Kazim’s first in his new role.
Partnership review and pipeline
The board met Jawaharlal Nehru Port Authority Chairman Gaurav Dayal and Deputy Chairman Ravish Kumar to review a partnership that began with the Nhava Sheva International Container Terminal concession and helped shape India’s public-private port model.
Discussions covered the development of Vadhavan Port and further investment in the JNPA Special Economic Zone.
The NSBP expansion is part of DP World’s plan to build an integrated logistics ecosystem at Nhava Sheva, linking port operations with container freight stations, rail, warehousing and Free Trade Warehousing Zone capabilities.
Essa Kazim said: “Our commitment goes beyond investing in infrastructure; it is about building enduring partnerships, strengthening connectivity and creating integrated supply chain solutions that enable Indian businesses to compete more effectively in global markets.”
Competitive positioning and market context
The investment positions DP World against competing warehouse developers in the JNPA hinterland, where demand for Grade-A logistics space has risen alongside India’s manufacturing expansion and e-commerce growth.
Consequently, co-locating warehousing with port and rail infrastructure reduces drayage costs and transit times for exporters, a commercial advantage that standalone warehouse operators cannot match.
The timing aligns with India’s logistics cost trajectory. According to a CII-Knight Frank report, logistics costs have declined to 10-10.7% of GDP in FY26, down from 13-14% a decade ago, generating annual savings of US$123-133 billion.
Meanwhile, the government’s newly approved Integrated Transport & Logistics Authority is tasked with driving costs below 10% through multimodal coordination, a policy shift that rewards operators with integrated port-warehouse-rail assets.
Lastly, the scale of warehousing capacity now available at Nhava Sheva gives DP World leverage in contract negotiations with multinational shippers seeking single-provider solutions covering port handling, storage and inland distribution.
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