DP World and China’s Zhidi to explore setting up logistics hub in Dubai

Pair to collaborate on 'sophisticated, next generation' facility in the Jebel Ali freezone

Dubai Nasdaq-listed DP World plans to return to private ownership following a $16.75 per share offer to minority shareholders - a 29 per cent premium on the previous day's closing price. The National

Dubai's DP World and China's Zhejiang Zhidi Holding, better known as Zhidi Company, signed an agreement to jointly explore setting up a new logistics hub in Abu Dhabi.

The pair "will jointly explore the establishment of a sophisticated next-generation logistics hub to meet the rising demand for conventional and e-commerce services in Dubai", DP World said in a statement.

“We are greatly honoured to sign this MoU with Zhidi Company. It brings together two of the most respected companies of the UAE and China to work towards the overall economic growth of both countries,” said Mohammed Al Muallem, chief executive and managing director of DP World's UAE business.

“With China being the top trade partner of Dubai and the UAE, we are happy to see the increasing interest from Chinese companies to invest in Dubai and strengthen their presence in Jebel Ali Free Zone (Jafza),” added Mr Al Muallem, who is also the chief executive of Jafza.

The MoU, signed between the two sides, will be executed in stages and once the initial phases are complete, it will explore more possibilities for cooperation, including logistics business closely related to e-commerce.

“Through the signing of MoU, it is possible to boost the economic development of our two countries and the regions,” said Wuwei, chairman of Zhidi Company.

“We hope to identify and determine the specific scope of the cooperation plan at the earliest [and] realise complementary development activities as soon as possible,” he added.

Zhidi Company is a conglomerate of well-known enterprises in Zhejiang province, with significant advantages in port operations, logistic services, e-commerce, renewable resources and commodity trade and have close business contacts and solid cooperation with Dubai.

The collaboration agreement follows on from an earlier partnership announced by DP World and Zhejiang China Commodity City Group (CCC) Company to set up a Traders' Market project in Jebel Ali.

CCC is a platform used by around 75,000 Chinese traders and the Traders' Market is a 'smart marketplace' which is being created within Jafza.

Construction of the 220,000 square metre first phase of the 800,000 sq m development, in which DP World holds a 70 per cent stake, is due to complete by the end of 2021. It is expected to cost $150 million (Dh550m).