|24 February, 2020

Dubai's DP World buys Canadian terminal, Fraser Surrey Docks

New facility expands Dubai firm's footprint in North America

Photo used for illustrative purpose. General view of a stock yard of DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, United Arab Emirates, December 27, 2018.

Photo used for illustrative purpose. General view of a stock yard of DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, United Arab Emirates, December 27, 2018.

REUTERS/Hamad I Mohammed

DP World, one of the world’s largest ports operator, has just added a new terminal in its portfolio.

The Dubai government-controlled firm confirmed on Monday that it has completed the acquisition of Canadian marine terminal Fraser Surrey Docks from Macquarie Infrastructure Partners (MIP).

The new property is one of the largest modern and multi-purpose terminals on the West Coast of North America, operating more than 1,200 metres of berth, 189 acres of yard and moves approximately 1 million tonnes of agricultural products every year.

It is envisioned to be the next leading stevedore and general cargo operator in Canada.

The acquisition, which was done alongside DP World’s partner Caisse de dépôt et placement du Québec (CDPQ), has enabled the UAE-based firm to expand its footprint in Canada, according to Sultan Ahmed bin Sulayem, group chairman and CEO of DP World. 

The company has been a significant investor in the North American state, operating terminals in Vancouver, Nanaimo, Prince Rupert and St. John’s.

“The acquisition of Fraser Surrey Docks bolsters our footprint in the West Coast of Canada. DP World has been seeing growing demand from our customers for multi-purpose facilities in the region and we believe Fraser Surrey Docks has the relevant infrastructure and is in the right location to service this demand,” said Sulayem.

DP World first announced its plans to buy the Canadian marine terminal in May last year. Back in 2016, the company tied up with CDPQ to create a $3.7-billion platform to invest in ports and terminals worldwide. The partnership has since then leveraged the company’s global expansion strategy.

Just last week, the company unveiled plans to return to full state-ownership and delist from the Dubai Stock Exchange.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.Maceda@refinitiv.com

#Dubai #UAE #Port #Acquisition

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© ZAWYA 2020

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