DP World’s investment in logistics tops $10bn

DP World, one of the world’s largest port operators, has invested more than $10 billion in the global logistics sector since 2012, making it one of the top five overseas investors during the period.

The company was ranked fifth in the world last year by total value of direct investments allocated to the overseas logistics services sector, according to data from fDi Intelligence. Also in the top five were Amazon, the world’s biggest e-commerce marketplace, and Denmark’s AP Moller Maersk.

Although the world economy slowed and demand for logistics services stalled, DP World invested $320 million last year, the Dubai Media Office said on Sunday.

The logistics industry is expected to record single-digit growth in 2023.

“The data shared by fDi Intelligence demonstrates where we stand globally within the logistics sector, not only in the last year but consistently over the last 10 years,” said Sultan bin Sulayem, group chairman and chief executive of DP World.

“Investing in developing economies helps trade go further, facilitates economic growth, attracts foreign investment and generates thousands of jobs – raising the quality of life for everyone.”

DP World’s annual profit rose 37 per cent last year on higher revenue growth, driven by the solid performance of ports and terminals, and marine services.

The company expects about $1.7 billion in capital expenditure to be invested this year in the UAE, Jeddah in Saudi Arabia, London Gateway in the UK, Dakar, the Democratic Republic of the Congo’s Banana port, Peru’s Callao and DPW Logistics in South Africa.

This month, DP World and the Somaliland government opened the new Berbera Economic Zone, which, along with Berbera Port, is expected to develop the area into a major trade centre serving the Horn of Africa.

Global trade growth is set to remain “subdued” this year after a major slowdown in the fourth quarter, the UN Conference on Trade and Development said.