DP World-CDPQ platform secures funds for new terminal investments

Dubai-based port and terminal operator DP World and Canada’s insitutional investor Caisse de dépôt et placement du Québec (CDPQ) have announced the expansion of their ports and terminals investment platform through a new commitment of $4.5 billion.

DP World

As informed, the commitment increases the total size of the platform to $8.2 billion.

DP World controls 55 per cent share of the platform, while CDPQ holds the remaining 45 per cent.

Since its launch in December 2016, the platform has invested in ten port terminals globally and across various stages of the asset life cycle.

According to DP World, the enhanced platform will continue to target assets globally, but with an increased scope to broaden its footprint in new and existing geographies, such as Europe and Asia Pacific. The investment platform will pursue its deployment and diversification objectives by expanding across a wider part of the integrated marine supply chain, such as logistics services linked to terminals.

“The partnership between DP World and CDPQ has been very successful, and we have benefited from each other’s expertise. The opportunity landscape for the port and logistics industry is significant and the outlook remains positive as consumer demand triggers major shifts across the global supply chain,” Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, commented.

“(W)ell connected ports and efficient supply chains will continue to play an active role in advancing global trade and cultivating the business environments closest to their operations. Alongside CDPQ, … we look forward to working together on new investments that will connect key international trade locations worldwide.”

 “Building on the success of the first collaboration with our strategic partner, DP World,… the enhanced platform will seek investments in high-quality port and terminal infrastructure assets that will help design the future of smart trade and logistics,” Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, said.

“As we take the next step in our partnership, we will further diversify our geographic reach and look to seize new opportunities in a sector that, even during a uniquely challenging period, is driven by long-term fundamental trends.”

Despite the impacts of COVID-19 and shifts in the global supply chain landscape, the ports sector has demonstrated a fair degree of resilience. Through recent strategic investments in automation and digital technology, DP World said it has strengthened its logistics capabilities, combined with the maritime services operations and worldwide network of ports and terminals, to provide a full suite of end-to-end smart supply chain solutions.

In the first half of 2020, the port operator reported a profit attributable to owners of $313 million, a decrease of 58.5 per cent from $753 million seen in the corresponding period a year earlier.

On the other hand, the company reported revenue growth of 17.7 per cent on a reported basis having booked $4.07 billion in revenue for the period. DP World said the results were better than expected given the negative impact of COVID-19 on the world trade.