DP World confirms $1.9bn Chinese port venture

DP WORLD is set to expand its presence in the lucrative Chinese market after confirming reports that it is part of a landmark $1.9bn investment project tailored toward port development in the country.

News ID: 59095

Date: 20 December 2015 - 10:53

A spokesman for the Dubai-based operator told Lloyd’s List that the funds represent a total investment by all the partners involved in a joint venture, which includes DP World, in Chinese terminals for the years up to 2020.
“DP World’s share of the capex will reflect its minority shareholding in the respective projects,” said the spokesman.
Although unable to clarify exactly what this total investment represents for DP World and indeed the exact number and specifics or each project or the other companies involved, the spokesman did however state that the company’s stake in each venture is typically around the 20% mark.
News of the deal first came to light after the official Twitter account of Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan, who is on a three-day official visit to Beijing to oversee a host of business deals between the United Arab Emirates and China, confirmed from his Shanghai residency that he had observed a signing ceremony between DP World and Chinese port representatives.
Although the tweet failed to disclose any further details, local media went on to say that the agreement was for a $636m smart container terminal in the port of Qingdao in China’s eastern Shandong province, where DP World already has a presence, and a deal worth $1.2bn to build a second port in Tianjin City, located in the northeast of the country.
According to local reports, the new Qingdao and Tianjin City facilities are scheduled for completion in 2017 and 2018 respectively.
The spokesman for DP World was unable to confirm these reports.