DP World, one of the world’s biggest port operators, will buy Canada’s Fairview Container Terminal from Deutsche Bank for $457 million. This acquisition will invest in a “growth opportunity in a market with attractive and growing demand”.
Fairview Container Terminal is purpose-built terminal in Prince Rupert, British Columbia under the Prince Rupert Port Authority. This port is one of the most efficient with a sea-rail link and a current capacity of 850,000 TEU which is anticipated to rise to 1.35 million TEU following a just-announced phase-two expansion.
DP World operates in more than 65 marine terminals across six continents. The transaction is subject to Canadian regulatory approval. DP World expects to complete the deal in the second half of 2015.
The Centerm Terminal in Port Metro Vancouver in Canada is already owned by DP World. The Dubai-based ports operator said the concession period runs to 2034 with an extension to 2056 after the completion of phase two. This transaction will have amazing benefits to Canada, including to the Province of British Columbia, to the City of Prince Rupert, to First Nations communities right down to importers, exporters and consumers. These were mentioned in an exclusive statement from DP World.
Mohammed Sharaf, group chief executive officer of DP World mentioned in a statement that Fairview Container Terminal offers the fastest access for vessels travelling between Asia and North America. This terminal also boasts the highest productivity rates on the West Coast. Sharaf is also excited regarding the long-term concession and ability to build beyond the current phase two of the terminal’s expansion since it is a fantastic opportunity for DP World.
“We are delighted to announce this transaction and look forward to further enhancing the port’s operations under DP World management,” he said.
For 2014, DP World posted an 11.8 per cent rise in net profit to $675 million compared with $604 million in the prior year. Last year’s revenue was $3.41 billion, up 11 per cent from 2013. DP World invested $807 million across its portfolio in 2014, adding two million TEU.
About DP World
DP World is an Emirati marine terminal operator. It is based in Dubai and is one of the largest marine terminal operators in the world. The company operates more than 60 terminals across six continents, with container handling generating around 80% of its revenue. DP World has 11 new developments and major expansions in 10 countries. It has several expansion projects all over the world including India, China and the Middle East. The company was founded in 2005 by merging Dubai Ports Authority and Dubai Ports International. It purchased Peninsular and Oriental Steam Navigation Company (P&O) of the United Kingdom in 2006 for £3.9 billion ($7 billion). The company does not currently operate in the United States where its purchase of a number of U.S. ports led to controversy. DP World stock market evolution: http://www.bloomberg.com/quote/DPW:DU
About Mohammed Sharaf
Sharaf is the Chief Executive Officer DP World. He has a Degree in Business Administration from the University of Arizona, Tucson. Sharaf has nearly 20 years’ experience in the transport and logistics business. Began shipping career at Holland Hook Terminal, Port of New York/New Jersey. Currently, CEO, DP World, the global port operator formed in 2005 joining domestic and international arms of the Dubai Ports Organization.
About Prince Rupert Port Authority
The Prince Rupert Port Authority (PRPA) is a port authority under the Canada Marine Act as an autonomous and commercially viable agency. It has responsibility for all federally owned waterfront properties on Prince Rupert Harbour, located in and around the city of Prince Rupert on the North Coast of British Columbia.
Created on May 1, 1999, it the Prince Rupert Port Corporation (PRPC). PRPC was the successor to the National Harbours Board, which previously operated all federally owned ports in Canada. The port authority reports to the Minister of Transport and has a Board of Directors consisting of local business and community figures. The PRPA port facilities include Atlin Terminal, Northlands Cruise Terminal, Lightening Dock, Ocean Dock, Pinnacle Pellet Terminal, Fairview Terminal, Prince Rupert Grain and Ridley Terminals. All PRPA facilities are serviced by CN Rail.
About Fairview Container Terminal
The Fairview Container Terminal is a 24 hectare (59 acre) port terminal. It is the first dedicated intermodal (ship to rail) container terminal in North America, with an operational capacity to move 750,000 TEUs (Twenty foot Equivalent Units) per year. It is designed to efficiently handle the largest concentration of intermodal rail business. The terminal was completed in September 2007 and commenced operations with the arrival of COSCO’s Antwerp on October 31, 2007.