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DP World and CDPQ announce US$5 billion investment in strategic assets

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DP World and CDPQ announce US$5 billion investment in strategic assets in the UAE. Image: DP World
DP World and CDPQ announce US$5 billion investment in strategic assets in the UAE. Image: DP World
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DP World and CDPQ, a global investment group, announced an investment of US$5 billion in three of DP World’s flagship UAE assets.

CDPQ will invest US$2.5 billion in the Jebel Ali Port, the Jebel Ali Free Zone and the National Industries Park through a new joint venture in which it will hold a stake of approximately 22%[2], with the remainder of the transaction being financed by debt. Other long-term investors will have the opportunity to acquire an additional stake of up to US$3 billion. The transaction implies a total enterprise value of approximately US$23 billion for the three assets.

The Jebel Ali Port, Free Zone and National Industries Park together comprise a best-in-class group of infrastructure with a solid long-term track record of growth. Combined, they form a world-class integrated ecosystem for the supply and logistics chains of over 8,700 companies from around the world, serving more than 3.5 billion people globally. The three assets generated pro-forma 2021 revenue of US$1.9 billion.

Jebel Ali Port (JAP) — A leading international gateway port and the second largest outside of Asia, ideally located to serve the East-West trade corridor through its connectivity to 150 cities globally via 180+ shipping lanes.

Jebel Ali Free Zone (JAFZ) — The largest free zone in the Middle East and one of the largest in the world. It is home to companies from 140 countries, including approximately 150 Fortune 500 enterprises.

National Industries Park (NIP) — A 21 sq. km area designated for manufacturing and processing companies.

The three assets will remain fully consolidated businesses within the DP World Group, and day-to-day operations, customers, service providers and employees will not be affected.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are delighted to announce the broadening of our partnership with CDPQ. The DP World and CDPQ co-investments have been very successful, thanks to our complementary expertise and long-term investment horizon. We believe this new partnership will enhance our assets and allow us to capture the significant growth potential of the wider region. The transaction[3] also achieves our objective of reducing DP World’s net leverage to below 4x Net Debt to EBITDA and this has been achieved despite the challenges of the pandemic and recent global economic conditions. The significant strengthening of our balance sheet, the continued resilience of our business, diversity in our portfolio and continued focus on supply chain solutions will support our target of achieving a strong investment-grade rating for the Group. Overall, we believe this transaction provides a strong platform for the UAE assets to meet their long-term growth objectives, while the stronger balance sheet supports the Group’s wider end-to-end supply chain solution strategy, which will drive sustainable value for all DP World stakeholders.”

Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, said: “This investment in Jebel Ali is another great illustration of the partnership between CDPQ and DP World, which now spans four continents and eighteen terminals. Today, we are pleased to deepen our long-standing relationship with a world-class logistics and supply chain operator by investing in this strategic trade infrastructure, one that will play a pivotal role in the evolution of the global economy. DP World is well positioned to provide innovative solutions to their customers worldwide, and we welcome this opportunity to invest in a best-in-class group of infrastructure that provides CDPQ with exposure to new fast-growing markets and trade routes in Africa and South Asia.”

Tranche 1 (US$5 billion) of the transaction is expected to close in the second or third quarter of 2022, and tranche 2 (up to US$3 billion) is expected to close during the fourth quarter of 2022.

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Container Terminal

Hamburger Hafen und Logistik AG introduces Truck FIT

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Hamburger Hafen und Logistik AG introduces Truck FIT. Image: HHLA
Hamburger Hafen und Logistik AG introduces Truck FIT. Image: HHLA
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In collaboration with various haulage companies, Hamburger Hafen und Logistik AG has continued to successfully develop its slot-booking process for truck visits to the Port of Hamburg with the introduction of Truck FIT. Stuhr Container Logistic GmbH & Co. KG is supporting the update, since the changes introduced will also allow haulage companies’ capacities to be planned and managed more reliably.

Jens Hansen, Chief Operating Officer of HHLA, says, “With the introduction of the slot-booking process and the Truck FIT system updates, we are continually improving the processes at the Hamburg terminals. This reduces the amount of time trucks spend at the terminal and thus relieves public infrastructure. Collaborating with the haulage companies has enabled us to further develop the system based on the needs of the users and brought us closer to our common goal: the transparent and reliable allocation of slots.”

The system updates were made in close coordination with participating haulage companies. An important development partner for HHLA was Stuhr Container Logistic. The Hamburg haulage company is an expert in container transport in and around the Port of Hamburg. The company was involved in the planning and implementation of the project from the very beginning.

Heiner Stuhr, Managing Partner of Stuhr Container Logistic, on Truck FIT: “At first, we were sceptical of the changes to the system because we feared that the flexibility our business needs would get lost. However, in our role as a development partner, we were able to express our concerns transparently from the start. The HHLA project team engaged in dialogue with us and always found the right solution.” Thanks to the feedback from haulage companies, the system was further developed based on the needs of users. “Now there are more bookable slots available at short notice than there were before the adjustments, which has a positive impact on our business,” adds Heiner Stuhr.

Oliver Dux, Managing Director of Container Terminal Altenwerder, declares, “We are very grateful to all our project partners – including Stuhr – for supporting HHLA’s introduction of Truck FIT despite the difficult circumstances. The current situation in particular illustrates how important it is for all parties that are affected by the supply chain disruptions to work together and to find solutions.”

The slot-booking process was introduced in the Port of Hamburg in 2017 to prevent bottlenecks at the terminals and to relieve the traffic situation. At the beginning of 2022, HHLA began updating the system with the introduction of Truck FIT, since the no-show rate – the proportion of unused slots – had grown significantly. With the system update, haulage companies with a no-show rate that is too high will be offered a limited contingent of slots during peak times the following week. Slots can still be booked freely during off-peak times. Since the end of June, it is no longer possible to swap slots that have already been booked. In a final step, the system’s transparency will be further increased through the disclosure of actual throughput times at the terminals.

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CMA CGM and J M Baxi win privatization tender for Jawaharlal Nehru Port Container Terminal

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CMA CGM and J M Baxi win privatization tender for Jawaharlal Nehru Port Container Terminal. Image: Wikimedia/ Ccmarathe
CMA CGM and J M Baxi win privatization tender for Jawaharlal Nehru Port Container Terminal. Image: Wikimedia/ Ccmarathe
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CMA Terminals, a fully owned subsidiary of the CMA CGM Group, a global player in sea, land, air and logistics solutions together with J M Baxi Ports & Logistics Ltd., a unit of the 106-year-old Mumbai-based J M Baxi Group, have won the tender for privatization of Jawaharlal Nehru Port Container Terminal and will constitute a Joint Venture named Nhava Sheva Freeport Terminal Pvt Ltd. The signing of the 30-year Concession Agreement will take place on July 29th with Jawaharlal Nehru Port Authority.

Nhava Sheva Freeport Terminal will be owned by J M Baxi Ports & Logistics and CMA CGM’s subsidiary CMA Terminals and will operate as a multi-user terminal. This agreement seals a long-term partnership, as part of a broader strategy towards developing cooperation in the fields of new logistics solutions, supply chain digitalization and training enhancement for younger generations in the fields of shipping and logistics.

A key partnership between two major terminal actors

Nhava Sheva Freeport Terminal will take-over JNPCT’s 680-meter quay length and 54 Ha of yard, developing it to become an efficient gateway for Northwest India, by enhancing capacity with an upgrade of equipment, yard, and systems.

The consortium is well positioned to execute the plan, thanks to CMA Terminals Holding’s experience at 50 active port terminals across 33 countries together with J M Baxi Ports & Logistics’ strong track record of managing brownfield terminal concessions in India and 2 containers terminals at Vizag and Kandla.

Nhava Sheva Freeport Terminal’s offering is further enhanced by its intermodal connectivity via a rail freight corridor that connects the terminal to main production and consumption centers in India. This offers terminal customers quality integrated services at sea and ashore.

Strengthening the CMA CGM Group’s strategic presence in India

With this new concession agreement, CMA CGM is growing its terminal footprint while supporting the growth and efficiency of its commercial and operational activities in India. The group is consolidating its end-to-end service offering and establishing greater control over the logistics chain to offer its customers higher quality, integrated, digital and more environmentally friendly services in a context that requires a comprehensive approach to the supply chain. As one of the nation’s top ocean-freight carriers, CMA CGM is well positioned to serve its customers, thanks to a strong presence in India over the past three decades.

The CMA CGM Group has been operating for over 33 years with 20 branch offices PAN India and a combined workforce of 7 528 staff members. The group operates 14 weekly mainline services at 5 gateway ports in India, connecting major global destinations with a state-of-the-art intermodal network on land and in air. The Group reiterates its support to the Indian economy through this partnership which aims at broadening the country’s national trade with a wider access to regional and global markets.

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Container Terminal

Porto Itapoa launches a new warehouse and a last-mile transport service

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Porto Itapoa launches a new warehouse and a last-mile transport service. Image: APM Terminals
Porto Itapoa launches a new warehouse and a last-mile transport service. Image: APM Terminals
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A new warehouse and a last-mile transport service at Porto Itapoa, Brazil offers customers increased flexibility and efficiency and lower operating costs. This is part of an ongoing investment at the terminal which will also increase capacity from 1.2 million TEUs to 2 million TEUs once completed in 2023. The R$ 750 million expansion plan at Porto Itapoa will also increase the yard from 250,000 m² to 455,000 m².

Reduced or zero demurrage

“This is particularly important as free-time – the length of time, a container can be stored free of charge at the port – has reduced considerably since the beginning of the pandemic to help reduce congestion. It can also help customers reduce or completely remove demurrage charges – a penalty paid by customers for using a container beyond the contracted term.”

The storage facility offers additional flexibility for companies that are close to reaching their maximum stocking capacity. “As operational procedures also fall under our responsibility, the customer has much less administration and more convenience,” adds Pandolfo.

Less-than-truckload last mile service

Porto Itapoa already offered fractional cargo operations, but this is now supported by its new fractional cargo transport service which reduces logistics complexity and adds flexibility for customers.

Deliveries are made within a 160km and 260km radius of Porto Itapoa, directly to the customer’s door using transport managed by the Terminal itself. “In this way, we speed up a step in the customer’s logistics chain, reduce complexity and guarantee delivery,” explains Pandolfo.

APM Terminals holds a 30% share in Porto Itapoá. The terminal began operations in June 2011 and is considered to be one of the most agile, efficient and sustainable container terminals in Latin America.

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