Feature, Freight News, Sea

Canadian investor gives DP World financial muscle

[ December 5, 2016   //   ]

Port owner and operator DP World has set up a $3.7bn investment vehicle in partnership with Caisse de dépôt et placement du Québec (CDPQ), one of North America’s largest pension fund managers. DP World holds a 55% share and CDPQ the remaining 45%.

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. It will also invest mostly in existing assets, but with up to 25% invested in greenfield opportunities.

The investment vehicle will be seeded with two of DP World’s Canadian container terminals, in Vancouver and Prince Rupert, with CDPQ acquiring a 45% stake of the combined assets for US$ 640 million.

DP World group chairman and chief executive, Sultan Ahmed Bin Sulayem, said: “In CDPQ we have found a partner with shared vision who is willing to participate in the risk and reward of investing throughout the life cycle of trade-enabling assets across the globe. The partial monetization of our Canadian assets further strengthens our balance sheet.

“The opportunity landscape in the port and terminal sector remains significant and this partnership offers us greater flexibility to capitalise on these opportunities while maintaining a strong balance sheet and retaining control.

“By combining our in-depth 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.”

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