Caisse in $5-billion tie-up with DP World

TORONTO • The Caisse de dépôt et placement du Québec has teamed up with Dubai-based DP World to create a $5 billion investment platform to invest in ports and terminals around the world.

DP World, which operates business including marine and inland terminals, logistics services, and technologydriven trade operations, will hold a 55 per cent share in the investment platform. The Caisse will hold the balance.

The new platform will be used to invest mostly in existing assets around the world, outside the United Arab Emirates, but up to 25 per cent will be earmarked for greenfield projects.

“The platform will invest in ports and terminals globally (excluding the UAE) across the life cycle of the asset, with a focus on investment grade countries,” the investment partners said in a statement Friday.

“Through this platform, DP World will share new investment opportunities and CDPQ (the Caisse) will have the option of co-investing alongside DP World.”

The first two assets in the investment vehicle will be two of DP World’s Canadian container terminals, located in Vancouver and Prince Rupert, B.C., with the Caisse acquiring a 45 per cent stake of the combined assets for $865 million.

Michael Sabia, chief executive of the Caisse, said the partnership would give the large Quebec pension manager “access to high-quality transactions, and the opportunity to invest in the best port infrastructure worldwide.”

In an interview, Macky Tall, executive vice-president of infrastructure at the Caisse, said officials from DP World and the Canadian pension manager have known each other for a few years because the Dubaibased company is such a large player in the port and container sectors.

A more formal approach was made when the Caisse learned DP World was looking for a partner to support its investments.

“The opportunity has materialized ore concretely in the last few months,” Tall said.

He added that the partners share the view that value should be created through operational improvements “rather than financial engineering.”

Sultan Ahmed Bin Sulayem, group chairman and chief executive of DP World, said in statement that opportunities in the port and terminal sector are “significant.”

The partnership with the Caisse “offers us greater flexibility to capitalize on these opportunities while maintaining a strong balance sheet and retaining control,” he said.

“By combining our indepth knowledge of container handling and CDPQ’s expertise in infrastructure investing and long-term horizon, we can continue to develop the port and terminal sector globally.”