DP World Increases Australia Terminal Stake
DP World, a leading port and terminal operator, has announced its acquisition of an additional stake worth US$997 million in DP World Australia (DPWA).
Following the closure of its transaction with Gateway Infrastructure Investments, once regulatory approval is received, DPWA will become a consolidated entity within the DP World Group.
DPWA currently manages four terminals at each of Australia’s largest ports, including Sydney, Melbourne, Brisbane and Fremantle.
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In 2017, the port operator handled 3.4 million TEU and generated over $400 million in revenue across the four terminals, which have a combined capacity of 4 million TEU.
In addition to its core terminal and stevedoring operations, DPWA has a strategy to develop business “beyond-the-gate” through its vertically integrated logistics solutions.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, commented: “We are pleased to announce this transaction that brings DP World Australia back into our consolidated portfolio, which presents a more optimal structure to drive this business forward, while continuing our relationship with CIP as a valued partner.
“We remain optimistic on the growth prospects in Australia and believe there is an exciting opportunity to enhance shareholder value by further developing the container terminals operations and expanding beyond the ports into logistics services.”
Corsair Infrastructure Partners (CIP), the manager of Gateway, will continue to oversee a significant investment in DP World Australia.