Dubai launches P&O Ports to specialise in emerging markets
Dubai has launched a ports operator focusing on medium-sized developments in emerging markets.
The Dubai Ports, Customs and Free Zone Corporation (PCFC) on Wednesday launched P&O Ports, which has already signed initial agreements to start talks with the authorities in Madagascar, the Port of Berbera in Somaliland and Albania to enhance their port infrastructure, said the PCFC chairman Sultan bin Sulayem.
“The new company, specialised in developing and operating marine and inland ports in markets with a need for well-managed trade and logistics infrastructure, is designed to support sustainable development in emerging economies,” PCFC said in a statement.
“These brownfield ports, predominantly handling general cargo and bulk commodities, are a source of great opportunity, but tend to be uneconomic for larger operators. P&O Ports, as a newly created, specialised company, provides the flexibility to compete more efficiently within this sector.”
Mr bin Sulayem also serves as the chairman of Dubai’s flagship port operator DP World, the world’s fourth-largest that has more than 65 marine terminals across six continents.
“We have the drive and ambition to take our company and this prestigious brand to new heights, identifying the next wave of opportunities for the development and operation of mixed cargo ports worldwide, particularly in emerging economies,” he said.
“The launch of P&O Ports complements Dubai’s global investments in the port industry and diversifies its operations to include maritime terminals of all sizes.”
DP World reported an 11.7 per cent increase in net profit to US$675 million 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 – produced the lion’s share of revenue as the UAE achieved a record year of throughput.
DP World handled 60 million twenty-foot equivalent units (TEU) across its global portfolio of container terminals in 2014, with gross container volumes increasing by 8.9 per cent on a reported basis.
New volume at UK’s London Gateway (UK) and Brazil’s Embraport (Brazil) contributed to the increase in reported volumes.
Capacity at DP World is 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 units by 2020, depending on market demand.
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Updated: March 25, 2015 04:00 AM