Wednesday, Jul 20, 2011
(Adds details on terminal in paragraphs 6-8; background in paragraph 9; updated share price in the last paragraph.)
DUBAI (Zawya Dow Jones)--Dubai-based ports operator DP World (DPW.DIF) said Wednesday it bought controlling interests in two companies operating cargo terminals in Suriname, giving it a foothold in the South American state for the first time.
DP World, in an emailed statement, said it acquired a controlling interest in Integra Port Services, which holds a concession for a container and break-bulk cargo terminal within Nieuwe Haven Port in the capital Paramaribo, and in Suriname Port Services, the owner of a private break-bulk cargo facility upstream from Paramaribo.
DP World will have a management services agreement for both terminals.
The Dubai firm didn't provide any details on the value of the transaction, which the company said is expected to close in the third quarter this year.
"These terminals are well placed to handle all cargo into Suriname today but importantly they have the potential to expand in line with future demand as trade continues to grow, underpinned by Suriname's diversified natural resources sector, including oil, gold, bauxite, agriculture, and forestry," DP World's senior vice president and managing director of Americas, Matthew Leech, said in the statement.
The Nieuwe Haven terminal, which handles origin and destination cargo for Suriname, has an annual container throughput capacity in excess of 100,000 twenty-foot equivalent units, or TEUs, DP World said.
IPS in April 2010 won a 15-year concession, with an option to extend for another 15 years, to manage and operate its terminal within Nieuwe Haven. IPS is the largest terminal operator at the port, which has the potential to double capacity to meet growing demand driven by a rise in trade on the back of economic growth, improved road links into French Guiana and offshore oil exploration in the area.
Suriname Port Services is a freehold break-bulk facility about 20 miles upstream from the capital specializing in the handling of mining and logging equipment, offshore supply and cement, according to today's statement.
DP World, which in 2010 handled nearly 50 million TEUs across its global portfolio, in June made its long-awaited debut on the London Stock Exchange as part of a broader push to lift its international profile, boost liquidity and ultimately lift its flagging share price.
The company's shares were last trading flat at $12.25 on the Nasdaq Dubai exchange.
-By Oliver Klaus, Dow Jones Newswires; +9714 446-1693; oliver.klaus@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
20-07-11 0624GMT
