Politics · India Bureau
DP World CEO urges government to adopt landlord model in port ventures
DP World's top executive has called for India's government to take on a landlord role in port joint ventures, citing currency pressures from energy imports as a key concern for overseas investors.
LSN India ·
A senior leader at global port operator DP World has advocated for a structural shift in how India manages its port sector, proposing that the government function as a landlord in joint venture arrangements rather than operating ports directly.
Yuvraj Narayan, CEO of DP World, outlined the recommendation while assessing India's broader economic prospects. Despite maintaining confidence in the country's long-term growth trajectory, Narayan identified specific headwinds affecting investor returns and foreign exchange stability.
The executive pointed to India's substantial energy import bill as a significant pressure point on the rupee's valuation. This external account challenge directly impacts the dollar-denominated returns that multinational investors such as DP World seek from their Indian operations, he noted.
The proposal to position government as landlord rather than operational partner would allow private operators greater control over port management and efficiency while securing revenue through lease arrangements. Such a model could potentially address investor concerns regarding currency fluctuations and profitability in India's port infrastructure sector.
DP World operates multiple terminals and facilities across Indian ports as part of its global network. The company's perspective on governance structures reflects broader industry discussions about optimizing India's port infrastructure amid economic uncertainties.