DP World gets $2.6b contract of Dubai’s Jebel Ali port

DP World, one of the largest port operators said that $2.6b acquisition would help flourish Jebel Ali port’s operations and Free Zone Complex along with increasing earnings by 15%.

EZW’s primary business unit is a vast commercial and industrial logistics park adjacent to the port.

The two firms are both majority owned by the government through its Dubai World conglomerate, which was at the center of the financial crisis that rattled markets worldwide when it came to a head in the emirate in 2009.

The deal, which must be approved by shareholders, includes absorbing $859 million of Economic Zones World’s debt.

The International Monetary Fund estimated in July that Dubai and its government-backed companies must repay or refinance $92 billion through 2019 alone.

DP World said it planned to fund the proposed acquisition, and the ongoing operations of the enlarged company, from existing cash resources and existing committed conventional and Murabaha term loan and revolving facilities.

In a statement, Sultan Ahmed Bin Sulayem, DP World’s chairman, said the Jebel Ali port and free zone support and drive the growth of Dubai and the wider region.

He said: “Together, we will be able to offer seamless supply chain services to shippers and shipping lines, linking sea, road and air across the port and the free zone to the new Al Maktoum Airport via the Dubai Logistics Corridor to help them further improve efficiency.”

DP World said it is separately seeking approval from its shareholders to delist its shares from the London Stock Exchange.

The firm, which operates more than 65 sea cargo terminals on six continents, said it will maintain its Nasdaq Dubai listing.

Copyright Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.