Dubai’s DP World to spend $1.2 bln on expansions in 2017

Dubai-based ports operator DP World will invest $1.2 billion this year on its facilities in the United Arab Emirates, Canada, Africa and South America, as part of its expansion plans.

The company, which recently announced its plans to expand Egypt’s Sokhna port, is also eyeing opportunities in inland ports, like Kigali in Rwanda and Kazakhstan, a DP World spokesperson told Argaam.

“We will continue to play to our key area of expertise, maritime container ports. But we see great opportunities in inland ports,” the spokesperson said.

“Inland transport, logistics hubs and industrial zones with added complementary or related services will be very important for future growth in world trade,” the person added.

The port operator has so far invested $1 billion to upgrade and develop the Sokhna port since acquiring it in 2008.

DP World is also seeking to acquire a stake in Thessaloniki Port Authority, the operator for Greece’s second largest container hub.

“We seek opportunities around the world wherever they arise,” the spokesperson said, without giving further details.

According to Hellenic Republic Asset Development Fund (HRADF), DP World’s UK unit, P&O Steam Navigation, sent in its bid after HRADF offered to sell 67 percent share capital in the Greek operator as part of the country’s larger privatization plan.

Thessaloniki Port Authority is listed on the Athens Stock Exchange.

The HRADF, which unsealed the binding offers earlier this month, has asked for submission of improved offers from the three firms that participated: P&O Steam Navigation, International Container Terminals Services (Philippines) and a consortium of Deutsche Invest Equity Partners, Belterra Investments, and Terminal Link.

The winning bidder will reportedly have a 40-year operating concession and must invest 180 million euros by 2021 to upgrade and expand the port.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com