DP World Ltd., the Dubai government-owned ports operator, agreed to buy a container terminal on Canada's west coast for C$580-million ($457-million) as it seeks to benefit from trade between Asia and North America.
DP World will acquire Maher Terminal LLC's Fairview Container Terminal in Prince Rupert, British Columbia from Deutsche Bank AG, it said in an e-mailed statement today. The acquisition of Fairview, which has a current capacity of 850,000 twenty-foot equivalent container units, is subject to regulatory approval and expected to close in the second-half of the year.
Fairview "offers the fastest access for vessels travelling between Asia and North America," Mohammed Sharaf, DP World's group chief executive officer, said in the statement. The terminal has an efficient rail link to the hinterland, while the long-term concession and the potential to expand the facility "presents a fantastic opportunity for DP World," he said.
The company, which operates ports from China to Peru, is seeking to boost capacity by about 4 per cent to 42 million TEUs this year and to 55 million TEUs by 2020, it said while presenting its full-year results March 19. The company last month completed the purchase of Dubai industrial-parks operator Economic Zones World FZE for $2.6-billion from its own parent Dubai World, rather than see the complex sold to a rival.
Fairview Container Terminal has just announced an expansion that will take capacity to 1.35 million TEUs, DP World said in today's statement. The concession period runs to 2034 with an extension to 2056 after the completion of the expansion.
DP World's shares rose 0.2 per cent to $21.60 at 10:29 a.m. on NASDAQ Dubai. They have gained 2.9 per cent this year.