DP World, Canada fund to invest $4.5b in global ports

International port operator DP World reached a deal on Thursday with one of Canada’s biggest pension-fund managers to pour an additional $4.5 billion into their joint venture of ports and terminals.

The new capital signals a major push to expand and brings the total amount invested by one of the world’s largest port operators and Canadian infrastructure investor Caisse de Dépôt et Placement du Québec to $8.2 billion.

DP World and CDPQ agreed in 2016 to invest in 10 port terminals across the world. DP World said the new agreement would “broaden its footprint” in areas where it already operates and allow it to shop for ports and terminals in Europe and Asia Pacific. DP World has a 55% share in the fund, with CDPQ holding the remaining 45%.

DP World runs operations as far east as Brisbane, Australia, and as far west as Prince Rupert, Canada.

“Even during a uniquely challenging period the ports sector has demonstrated a fair degree of resilience,” said Emmanuel Jaclot, CDPQ’s executive vice president and head of infrastructure.

Unifeeder announced recently the acquisition of Transworld Feeders, Avana Logistek Limited, including its subsidiary Avana Global, and Transworld Feeders, the containerised Indian coastal and EXIM feeder shipping operations of Shreyas Shipping and Logistics Limited, excluding vessels and bulk operations.

The transaction, made via Unifeeder, through its Unifeeder ISC (Indian Subcontinent) platform, a majority owned subsidiary of DP World, is subject to regulatory approvals.

Transworld Feeders and Avana Global are leading independent feeder and NVOCC, Non-Vessel Operating Common Carriers, operators, offering container feedering services and regional trade solutions connecting a wide range of ports in the Middle East, the Indian Subcontinent and Far East through their dense network. The central hub port at Jebel Ali (UAE) plays a pivotal role for a large part of the services. Both the companies have a strong presence within trade routes west of the Indian Subcontinent and complement the recent acquisition of Feedertech and Perma Shipping, which have a strong market position in the trade routes towards the east of the Indian Subcontinent.

Transworld Feeders Pvt. Ltd. and Avana Logistek Limited maintain a comprehensive coverage of all main ports, terminals and inland destinations in India. Avana Logistek Limited also provides first mile and last mile delivery solutions within the Indian domestic market. Both are market leaders in providing logistic solutions to cargo owners, traders, forwarders, and shipping lines.

Further, they will both complement and expand our ability to offer a broader range of India focused solutions. These new entities will continue to operate an asset-light structure as per the Unifeeder model, which delivers greater flexibility and efficiency for customers.

“We are delighted to announce these bolt-on acquisitions which give us complete coverage in fast-growing markets between East Africa, Gulf, and the wider Indian Subcontinent. These new activities are in line with our strategy and complement our recent acquisitions of Feedertech and Perma Shipping. We now have the capability to offer superior connectivity between Asia, the Indian Subcontinent, the Middle East, and East Africa, and this greater scale and comprehensive network presence will allow us to reduce inefficiencies in the supply chains to the benefit of all our customers,” Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said. He added, “Transworld Feeders and Avana are both strong and well-known brands that handle approximately 1.2mn TEU per annum and operate in fast-growing markets. Our Unifeeder ISC platform will continue to operate an asset-light, independent common-user platform, as we continue to build the Unifeeder brand, which is best known for efficient connectivity, flexibility, and reliability. Unifeeder now has full-scale capability to offer feedering and regional trade connectivity in Northern Europe, Mediterranean, Northern Africa, Middle East, Indian Subcontinent and Asia.

Agencies