DP World purchases second Canadian terminal for C$580m

DP World, the world’s fourth-largest port operator, will buy Maher Terminal’s Fairview container terminal on Canada’s west coast from Deutsche Bank.

DP World has agreed to acquire a second terminal in Canada for C$580 million (Dh1.69 billion) as the Dubai-based port operator seeks to boost its capacity and capture transpacific trade between Asia and North America.

DP World, the world’s fourth- largest port operator, will buy the terminal from Deutsche Bank.

Maher Terminal’s Fairview container terminal on Canada’s west coast has a capacity of 850,000 twenty foot equivalent units (TEU). Phase 2 expansion of the terminal in British Columbia will take its capacity to 1.35 million TEU in the first half of 2017.

The completion of the deal is subject to Canadian regulatory approval and is expected to be concluded in the second half of this year.

“Fairview Container Terminal offers the fastest access for vessels traveling between Asia and North America,” said Mohammed Sharaf, group chief executive.

“The terminal also offers the highest productivity rates on the west coast and an efficient rail link to the hinterland. The long-term concession and ability to build beyond the current phase 2 of expansion presents a fantastic opportunity for DP World.”

The concession period for the terminal runs to 2034 and could be extended to 2056 upon completion of Phase 2.

Further development of land could lead to further expansion of the terminal to a potential 2.45m TEU, the statement said.

DP World already operates the Centerm terminal in Port Metro, Vancouver.

DP World reported an 11.7 per cent increase in net profit to US$675m for 2014 as container volumes increased across its global ports network. It posted an 11 per cent increase in revenue to $3.4 billion last year.

The Middle East, Europe and Africa division – dominated by the company’s home port at Jebel Ali in Dubai – produced the lion’s share of revenue as the UAE achieved a record year of throughput.

DP World handled 60 million TEU across its global portfolio of container terminals in 2014, with gross container volumes increasing by 8.9 per cent on a reported basis.

Before the Canada acquisition, capacity at DP World was forecast to rise to more than 80 million TEU this year from 70 million last year through expansions in Jebel Ali in Dubai, Turkey, Rotterdam and India. The firm plans to boost capacity to 100 million TEU by 2020, depending on market demand.

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