DP World now in full control of Embraport
dubai — DP World, the world’s fourth largest ports operator, announced on Monday the acquisition of an additional 66.67 per cent stake in a Brazilin port to increase its shareholding to 100 per cent.
The Dubai-based ports operator has acquired Embraport (Empresa Brasileira de Terminais Portuários) from Odebrecht Transport. While the transaction value was not disclosed, DP World said it increased its shareholding to 100 per cent and the terminal will be rebranded to DP World Santos. DP World first invested in the Embraport terminal in 2009.
The purchase consideration is below five per cent of DP World’s net asset value as of 2017 first half. The latest buy-out comes as the global terminal operator recorded at a consolidated level a 24.2 per cent improvement in performance on a reported basis and up 6.2 per cent year-on-year on a like-for-like basis in the first nine months. Across a portfolio of 77 terminals in 40 countries, DP World handled 52.3 million twenty-foot equivalent units (TEU) during the first nine months of 2017.
DP World Santos is the largest Brazilian private multi-modal port terminal and operates in the Port of Santos, which is the busiest container port in Latin America handling 3.4 million TEU in 2016 and has strategic access to sea, road and rail, and 90 per cent of the cargo is destined for Brazil’s most populous city, São Paulo. DP World Santos has an annual capacity of 1.2 million TEU and the first phase of the project has created 653 meters of wharf, 207,000 square meters of terminal area.
“We are delighted to fully consolidate our stake in DP World Santos and to underline our commitment to the Port of Santos and the future of trade in Brazil,” said DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem.
He said DP World has become a major player in the South American infrastructure sector with a network of container terminals in Peru, Dominican Republic, Argentina, Ecuador and Suriname. “We remain committed to our role as a global trade enabler and targeting a broader strategy to grow complementary sectors in the global supply chain.”
—issacjohn@khaleejtimes.com