DP World Limited (DP) announced it has agreed to acquire Maher Terminal’s Fairview Container Terminal (Fairview) in Prince Rupert, B.C. from Deutsche Bank.
DP considers Fairview to present growth opportunity in a market with attractive and growing demand. Fairview is a purpose-built terminal with an efficient sea-rail link and has a current capacity of 850,000 TEUs, with a just-announced Phase 2 expansion that will take capacity to 1.35 million TEUs. The concession period runs to 2034 with an extension to 2056 after the completion of Phase 2. Total consideration payable is $580 million (US$457 million) for the total outstanding stock of Fairview. Completion of the transaction is subject to applicable Canadian regulatory approvals and is expected to occur in the second half of 2015.
DP World Limited has been a significant investor in Canada, as operator of the Centerm terminal in Port Metro Vancouver. DP anticipates that the transaction will provide significant benefits to Canada, including to the Province of British Columbia, the City of Prince Rupert, First Nations communities, and to importers, exporters and consumers, including:
• Implementation of Phase 2 expected to be completed in the first half of 2017, which will add capacity and efficiency to Canada’s Asia-Pacific Gateway and Corridor. Expansion is projected to create more than one-half million hours of construction work and more than 500 FTE jobs;
• Undertaking of a feasibility assessment in relation to development of the lands intended for further expansion which could potentially increase the capacity to 2.45 million TEUs;
• Access to DP World’s world class productivity-enhancing best practices in container terminal development and operation;
• Access to DP World’s state-of-the-art supply chain security and safety practices;
• Net increase in employment levels in Canada;
• Substantial Canadian participation in the management of Fairview; and
• Enhanced competition in the provision of container terminal services on Canada’s west coast.
Sultan Ahmed Bin Sulayem, Chairman, DP World, said: “We are delighted to extend our global footprint with a second terminal in Canada. The value proposition is compelling and the addition of capacity to our portfolio will contribute to DP World’s continued growth and the delivery of shareholder value.” Mohammed Sharaf, Group Chief Executive Officer, DP World, said: “Fairview Container Terminal offers the fastest access for vessels traveling between Asia and North America. The terminal also offers the highest productivity rates on the west coast and an efficient rail link to the hinterland. The long-term concession and ability to build beyond the current Phase 2 of expansion presents a fantastic opportunity for DP World. We are delighted to announce this transaction and look forward to further enhancing the port’s operations under DP World management.”
DP World has a portfolio of more than 65 marine terminals across six continents, including new developments underway in India, Africa, Europe and the Middle East. Container handling is the company’s core business and generates more than three quarters of its revenue. In 2014, DP World handled 60 million TEUs. With its committed pipeline of developments and expansions, capacity is expected to rise to more than 100 million TEUs by 2020, in line with market demand. DP World has a team of over 36,000 people serving its customers around the world.