Dubai Ports Authority to expand
Dubai Ports International acquires international terminal business, after signing an agreement with CSX Corporation
Dubai Ports International (DPI) has signed a definitive agreement with CSX Corporation to acquire the international terminal business, conducted by CSX World Terminals for $US 1.15 billion.
The transaction will be financed from a committed facility arranged and underwritten by Deutsche Bank and will be completed in the first quarter of 2005.
The acquisition will add nine terminals with 24 berths and a combined capacity of 14.6 million TEUs, it will also see Dubai Ports rank among the top six global port operators.
“This is a major step in DPI's global expansion strategy. The acquisition will give DPI an important platform in the North Asia region, notably in Hong Kong, China and Korea and further expands our global network in Europe and the Americas,” said Sultan Ahmed Bin Sulayem, executive chairman, Dubai Ports.
“We look forward to working with our new and existing partners to contribute to the local social environment. It will allow us to participate in the current and long-term growth of the global transportation industry,” added Sulayem.
Dubai Port Authority's capacity is set to reach 21.8 million TEUs by 2020 when Dubai's Jebel Ali port will boast 82 berths, 125 quayside cranes and double the shoreline to 30 kilometres following land reclamation.
“For DPI, the acquisition of CSX World Terminals is a strong strategic fit. At our existing operating locations we have employed innovative technologies and efficiencies to drive growth and we are keen to extend these skills to CSX World Terminals,” said Mohammed Sharaf, managing director, Dubai Ports International.