Global trade enabler DP World deepened its engagement with revolutionary new technologies, diversified its global business portfolio through investments and acquisitions worth US$3 billion and extended meaningful support to environmental initiatives around the world during 2018; achieving strategic growth in diverse fields.
The headline projects were the launch of DP World Cargospeed with Virgin Hyperloop One and taking over leadership of the technology company, digital transformation of business operations across the global portfolio, the game changing high bay storage system for containers at Jebel Ali, the successful launch of a $3 billion investment platform in India, acquisition of complementary businesses in Europe, India and Peru, and container port development projects in Africa. DP World also successfully closed the 100% acquisition of Drydocks World LLC (Drydocks).
People development was the other key area of focus through association with the Erasmus University in Rotterdam, to develop a strategic skills development programme and the 20Xel programme to recruit the brightest of the UAE nationals for future leadership roles.
DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said: “2018 was a successful year and a period of strategic growth for DP World in diverse fields. We made major strides in our evolution into a company that focuses on smarter trade to make lives better through data driven logistics. Innovation, with an eye on future trade solutions and acquisitions designed to expand our global business footprint were key.
Our sustained interest in tomorrow’s trade enabling technologies saw us taking a leadership role in Virgin Hyperloop One, our partners in developing DP World Cargospeed, the high speed transport system that will revolutionise the way we do trade. Simultaneously, we ended the year by embracing an existing technology to deliver a quantum leap in container stacking and storage in our flagship Jebel Ali Port. On its successful completion, we plan to adopt it across our other terminals.”
Mr. Bin Sulayem added: “Our partnerships and acquisitions too gathered pace in a wide range of locations and sectors. The $3 billion investment platform in India with the government’s National Infrastructure Investment Fund (NIIF) saw us acquire Continental Warehousing Corporation (Nhava Sheva) Ltd. Complementary businesses were also added to our global portfolio in Peru and in Europe with the Unifeeder Group.
“Our activity in Africa gathered pace as we signed an agreement with the Suez Canal Economic Zone (SCZone) to implement the first phase of an integrated industrial and residential zone in Sokhna, Egypt. We will also soon build and operate a 1,000-hectare modern logistics hub outside of Bamako in the Republic of Mali. In the Democratic Republic of Congo, we announced a new concession for the management and development of a greenfield multi-purpose port at Banana, the first deep-sea port in the country along its small coastline of 37 kilometres.
Last but not least, Ethiopia became a shareholder of the Port of Berbera as we invest in infrastructure to develop the Berbera Corridor as a trade gateway for the landlocked nation, which is one of the fastest growing economies in the world. Construction began on the expansion works in Berbera and we look forward to helping the region develop its economic potential.
Elsewhere, our activities in Kazakhstan developed as we signed two framework agreements to run Special Economic Zones (SEZ) in Aktau and Khorgos which act as primary transit points for trans-Eurasian cargo trains. DP World acquired a 51% stake in the Khorgos SEZ and 49% in the Aktau SEZ, with both facilities playing an important role in enhancing trade connectivity along the New Silk Route.
In the Americas, we have agreed on terms for the next phase of expansion for the DP World Prince Rupert Fairview Container Terminal on the Pacific Coast of Canada. In Europe, a new cruise passenger terminal at DP World Limassol opened providing world-class facilities and services for passengers.
The Chairman& CEO of DP World Group concluded: “Despite the challenging global economic uncertainties, we have experienced continued revenue growth by focusing on high value cargo, operational efficiencies and consistently delivering value to our customers through smart solutions. We are committed to continue to build on the gains of the past year as we enter 2019.”
Some of DP World’s headlines in 2018 included:
Global trade enabler DP World and the National Investment And Infrastructure Fund (NIIF) partner to create a $3 billion platform for investments in ports, transportation and logistics sector in India. The equity will invest in acquiring assets and develop projects beyond seaports such as river logistics, freight corridors, ICDs and cold storage.
DP World embarked on a programme to drive digital transformation across its business operations worldwide using Oracle Cloud Applications (SaaS).The digital transformation programme supports the company’s strategy to develop complementary sectors in the global supply chain such as industrial parks, free zones and logistics to add value for all its stakeholders. The move supports its vision to become a digitised global trade enabler. As part of this new platform it will also incorporate technologies in Artificial Intelligence, Machine Learning, Internet Of Things (IOT) and Block Chain, to deliver smarter operations and create intelligent logistics to benefit customers.
As part of its growing India story, DP World signs agreement with the Government of Jammu and Kashmir to explore opportunities to develop trade infrastructure in the Indian state. Projects under discussion include warehouses and specialised storage solutions that will encourage inter-modal transfer of containers, bulk and break-bulk cargo. Opening up the Indian hinterland through new infrastructure and facilities is one of the ways that the Indian economy will continue to grow.
DP World commenced arbitration proceedings against the Government of Djibouti at the London Court of International Arbitration following the illegal seizure of the Doraleh Container Terminal S.A. The Terminal was designed, built and successfully operated by DP World under a concession awarded in 2006. The state-of-the-art Terminal is the largest employer and biggest source of revenue in the country. It has operated at a profit every year since it opened.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World and Admiral Mohab Mamish, Chairman of the Suez Canal Authority and the Suez Canal Economic Zone (SCZone), signed an agreement to implement the first phase of development of an integrated industrial and residential zone in Sokhna. The joint venture between SCZone (51%) and DP World (49%) with DP World managing the zone, will result in the development a comprehensive industrial zone in Sokhna spanning 75 square kilometres, as well as increasing the capacity of Sokhna port and linking it to the industrial zone to fuel foreign investment and trade growth.
March was a busy month for the global trade enabler, with acquisitions and concessions from Asia to Latin America and Africa.
Ethiopia became a shareholder of the Port of Berbera following the signing of an agreement with global trade enabler DP World and the Somaliland Port Authority. DP World will hold a 51% stake in the project, Somaliland 30% and Ethiopia the remaining 19%. The government of Ethiopia will also invest in infrastructure to develop the Berbera Corridor as a trade gateway for the inland country, which is one of the fastest growing economies in the world.
DP World and the Somaliland Government signed in Dubai the final agreement to develop a greenfield economic free zone in Somaliland to complement the growth of the Port of Berbera signed between DP World and its government in Dubai.
Just two months after its launch, Hindustan Infralog Private Limited (HIPL), a joint venture between global trade enabler DP World and India’s National Investment And Infrastructure Fund (NIIF), announced the acquisition of a 90% stake in Continental Warehousing Corporation (Nhava Seva) Ltd (CWCNSL), an integrated multimodal logistics player in India. CWCNSL’s founders, the Reddy family, will retain the remaining 10% shareholding and will remain involved in the business operations. It is the first investment of HIPL, the investment vehicle created to invest up to US$ 3 billion in ports, logistics and related sectors. CWCNSL’s logistics network is spread across key strategic locations in India, including Warehousing, Container Freight Stations (CFS), Inland Container Depots (ICD), Private Freight Terminals (PFT) and integrated logistics solutions.
DP World extended its footprint in Latin America with the acquisition of Peruvian logistics provider Cosmos AgenciaMaritima S.A.C. (CAM) for $315.7 million. CAM owns a fully integrated logistics service business (Neptunia S.A and Triton Transport S.A) that offers end-to-end solutions to its customers. The logistics division offers an integrated platform of solutions in activities related to foreign trade, product storage and distribution, as well as freight services that facilitate development and implementation of industry specific projects.In addition to the maritime and logistics services offered by Cosmos Group, DP World also has a 50% stake in TerminalesPortuáriosEuroandinos S. A., in the Port of Paita, the second largest container terminal in Peru.
DP World and the Government of Kazakhstan signed two framework agreements in Abu Dhabi relating to the acquisition, governance and management of Special Economic Zones (SEZ) in Aktau and Khorgos. DP World has been providing management services to the Port of Aktau, Kazakhstan’s main cargo and bulk terminal on the Caspian Sea, and Khorgos SEZ, which is strategically situated on the China-Kazakhstan border and has been acting as the primary transit point for trans-Eurasian cargo trains.DP World will now acquire a 51% stake in the Khorgos SEZ and 49% in the Aktau SEZ, with both facilities playing an important role in enhancing trade connectivity along the New Silk Route.
DP World’s African presence expanded following a new 30-year concession, with an option of a further 20-year extension, for the management and development of a greenfield multi-purpose port at Banana, Democratic Republic of the Congo (DRC). The Port of Banana will be the first deep-sea port in the country along its small coastline of 37 kilometres. DP World will set up a joint venture with 70% control, and the government of DRC holding a 30% share, to manage and invest in the facility. The initial investment of $350 million will be spread over 24 months and the total project cost of more than $1 billion over four phases will be dependent on market demand for the port, industrial and logistics zone infrastructure.
DP World unveiled a new partnership with Virgin Hyperloop One to build an ultra high speed cargo delivery system. The joint venture, named DP World Cargospeed, will design a hyperloop system to deliver freight from point to point. The announcement was attended by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in addition to Richard Branson, the Chairman of Virgin Hyperloop One, and Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World. The revolutionary new transport network is designed to move goods anywhere in the world and will provide deliveries at air speed at the price of transport by land. The proposed network would serve both passengers and freight, connecting ports to the supply chain.Time sensitive goods would be packed in special pods that would replace the traditional shipping containers and could be loaded directly into hyperloop pods.
DP World staged the first ever live virtual Annual General Meeting for shareholders at its headquarters in Jebel Ali. Shareholders were connected by a live webcast and telephone conference facility across the region and the world in order to cast their votes on the re-election of Board members and to be briefed on the company’s recent performance and growth strategy. Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said it’s “a very useful way of keeping the key up to date with what is happening across our business and global network.”
DP World signed a Memorandum of Understanding (MoU) for a strategic skills development programme, which will focus on leadership and business management with the renowned Erasmus University, in Rotterdam, the Netherlands. The joint initiative called “Evolve”, will develop aspiring business unit and regional heads across DP World’s global portfolio in 40 countries.
The President of Cyprus, His Excellency Mr. NicosAnastasiades, inaugurated the new cruise passenger terminal at DP World Limassol at a ceremony attended by DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem and 300 guests. The terminal will enable the largest cruise ships in the world to visit the country for the first time. It provides world-class facilities and services for passengers and features seven pods with a total floor area of 8,205 m2. At DP World Limassol, the terminal is separated into three principal areas: Cruise, Oil and Gas logistics zone, and Domestic/transit trade area. This allows DP World Limassol to offer additional services and operations that support the Cyprus economy.
A Memorandum of Understanding (MoU) agreed by DP World, Egypt’s Holding Company for Maritime and Land Transport and the Suez Canal Authority is aiming to develop a new Inland Container Depot (ICD) in Egypt’s 6th of October City, a satellite town in the Giza Governorate and part of the urban area of Cairo. The proposed ICD will increase the flow of cargo between ships and major land transportation networks in the country, creating a central distribution point.
Global trade enabler DP World successful closed the acquisition of 100% shares of Cosmos AgenciaMarítima S.A.C. (CAM) in Peru signed in March. CAM is a leading fully integrated logistics provider in Peru and deal was valued at $315.7 million. This also includes 100% of the shares in Triton Transports and Neptunia, and 50% in TerminalesPortuariosEuroandinos S.A., in the Port of Paita, which is the second largest container terminal in Peru.This transaction expands DP World’s footprint in Peru by adding another container terminal to the existing terminal at Callao as well as integrated logistics services.
Marking World Environment Day, DP World’s Jebel Ali Free Zone (Jafza) launched the UAE’s first green storage and warehouse facilities in Dubai, helping business to reduce their carbon footprint. The global trade enabler’s sustainable, long term growth is aligned with the United Nation’s ninth Sustainable Development Goal (SDG) to build resilient infrastructure, promote sustainable industrialisation and foster innovation.
Elsewhere, global trade enabler DP World has become the first company in its sector to join the World Ocean Council (WOC) as part of its leadership journey to actively engage in the protection of the world’s oceans. By becoming a member of the growing international multi-industry alliance on “Corporate Ocean Responsibility” DP World will advance its role as a responsible leadership company.
The Port of Prince Rupert and DP World have agreed on terms of a project development plan that outlines the next phase of expansion for the DP World Prince Rupert Fairview Container Terminal on the Pacific Coast of Canada. The Phase 2B expansion will increase annual throughput capacity at Canada’s second largest container terminal to 1.8 million TEUs (twenty-foot equivalent units) when complete in 2022. The project follows the 2017 completion of Fairview Phase 2A, which increased the terminal capacity by 500,000 TEUs to its current capacity of 1.35 million TEUs. Construction on Phase 2B will begin in mid-2019.
A new electronic trade portal that will enable trade and make life easier for business has been launched in the Dominican Republic by Dubai Trade World (DT World).As a subsidiary of DP World, DT World will provide its ‘Mawani’ system that connects logistics services onto one platform, as well as management and consultancy services to DR Trade – a new joint venture company formed by DP World Caucedo and the Haina International Terminal.
A range of food donation drives were organised during this year’s Holy Month of Ramadan by global trade enabler DP World across its network to benefit more than 120,000 people in the UAE, Senegal, Indonesia, Algeria, Djibouti, Egypt, Mozambique and Republic of Somaliland.
Michael Johnson Performance (MJP), an internationally recognised leader in athletic development and improvement, joins forces with DP World to launch MJP Dubai, a first of its kind world class sports facility in the Middle East. The 38,750 square feet facility located in the heart of Dubai offers members the ultimate fitness experience with individual personal training sessions, group fitness classes, sports medicine and nutrition, and athletic development programs for young athletes, and high performance training programs for professional athletes, all under one roof.
Hindustan Infralog Private Limited (HIPL), a joint venture between DP World and the National Investment and Infrastructure Fund (NIIF), announced that the transaction to acquire 90% stake in Continental Warehousing Corporation (Nhava Seva) Ltd in India has now closed.
Global trade enabler DP World has signed a 20- year concession with the Republic of Mali to build and operate a 1,000-hectare modern logistics hub outside of Bamako. The multimodal logistics platform, Mali Logistics Hub (MLH), will have inland container depots (ICD) and Container Freight Stations (CFS) that will facilitate the import and export of goods. The MLH will be located on the main road corridor from Dakar, Senegal to Bamako and will be capable of handling 300,000 TEU (twentyfoot equivalent unit), 4 million tons of bulk and general cargo.The first phase of the project, with an estimated initial investment of $50 million, will include an inland container depot and container freight station. DP World will also provide the Republic of Mali with three locomotive trains to boost cargo and passenger traffic along the Bamako-Dakar rail system.
An Arbitral Tribunal of the London Court of International Arbitration (“LCIA”) today confirmed the illegitimacy of the Government of Djibouti’s action of seizing control of the Doraleh Container Terminal from DP World. The LCIA Tribunal has ruled that Doraleh Container Terminal’s Concession Agreement “remains valid and binding notwithstanding Law 202 and the 2018 Decrees”. Law 202 and the referenced decrees were devices enacted by Djibouti to seek to evade Djibouti’s contractual obligations, and these have been found to be ineffective in law. DP World will now reflect on the ruling and review its options.
DP World announced the acquisition of 100% of the Unifeeder Group (“Unifeeder”) for €660 million from Nordic Capital Fund VIII and certain minority shareholders. Based in Aarhus (Denmark), Unifeeder operates the largest and most densely connected common user container feeder and an important and growing shortsea network in Europe, serving both deep-sea container hubs and the intra-Europe container freight market.
A new order from the High Court of Justice in London has ruled that the Djibouti government cannot treat the joint venture agreement with global trade enabler DP World as terminated and cannot remove directors of the Doraleh Container Terminal (DCT) joint venture company without DP World’s consent.
The move followed notification of an extraordinary meeting on 9 September called by the Djibouti government to replace directors of the Doraleh Container terminal (DCT) joint venture company. The Djibouti government hold 66% of the shares in DCT and DP World 33%.
Construction work on the multi-purpose Port of Berbera in Somaliland has started. H.E. President of the Republic of Somaliland, Muse Bihi Abdi and DP World Group Chairman and CEO Sultan Ahmed bin Sulayem launched the first phase of work. The first phase will consist of building a 400-metre quay and 250,000 square metre yard extension as well as the development of a free zone to create a new regional trading hub. DP World Berbera, the joint venture company, will also serve land locked countries in the Horn of Africa such as Ethiopia which has a 19% stake in the project as a shareholder. Long term DP World partner
Hindustan Infralog Private Limited (HIPL), a joint venture between DP World (65%) and the National Investment and Infrastructure Fund (NIIF) (35%), has won the bid to develop and operate the Free Trade Warehousing Zone (FTWZ) at India’s largest container gateway – Jawaharlal Nehru Port Trust (JNPT) for $78mn. This is the second investment for HIPL, following the acquisition of a 90% stake in multimodal logistics company Continental Warehousing Corporation (Nhava Sheva) Ltd. The FTWZ comes with a long-term concession of 60 years and will be developed across 18 hectares at JNPT’s Special Economic Zone (SEZ). The facility is expected to be operational by 2020.
DP World joined four other leading global container port operators to undertake a week-long initiative to promote sustainable resource usage in their respective port and facility networks.During the fifth annual Go Green Initiative, 8,332 employees of DP World, Hutchison Ports, PSA International, Port of Rotterdam and Shanghai International Port Group collected a total of 1,966 kg of aluminium cans and 2,227 mobile phones for recycling
Virgin Hyperloop One, the only company that has developed a full scale hyperloop system, announced that Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, has been elected as its new Chairman. Jay Walder, who is one of the world’s leading mass transportation and technology executives, has been appointed as its new CEO. Walder will also join the company’s Board of Directors.
Global trade enabler DP World has successfully closed the acquisition of 100% of the Unifeeder Group, an integrated logistics company with the largest and best-connected feeder and growing shortsea network in Northern Europe with connectivity to approximately 100 ports. Unifeeder’s current operations, which offer a unique platform for independent logistics solutions, are complementary to DP World’s existing business and offer future growth opportunities. The transaction valued at €660 million will enhance DP World’s presence in the global supply chain and broaden its services to customers with a view to ultimately reduce inefficiencies and improve the competitiveness of global trade.
A revolutionary new container storage and stacking project was launched in Jebel Ali Port by DP World and industrial engineering specialists SMS Group. The High Bay Storage, an intelligent storing system, will be applied for the first time ever at Jebel Ali Terminal 4, in time for the Dubai Expo 2020 world fair.The system was originally developed by SMS group subsidiary AMOVA for round the clock handling of metal coils that weigh as much as 50 tons each in racks as high as 50 metres. Containers are stored in an eleven-story rack, creating 200 percent more capacity than a conventional container terminal. Each container can be accessed without having to move another one, enabling 100 percent utilization in a terminal yard.
Following the successful roll out of its 20Xel leadership programme for UAE national graduates, DP World is seeking a new batch of applicants to join the next intake. The programme provides participants with management opportunities with a range of focus areas involving leadership training and contact with senior management, developing business skills and experiencing coaching and networking opportunities to build successful leadership habits while learning about DP World’s global business.