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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

APM Terminals expands its API offering

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APM Terminals expands its API offering. Image: APM Terminals
APM Terminals expands its API offering. Image: APM Terminals
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In response to customer feedback, this month APM Terminals rolled out a new API which enables customers to track the schedules and key milestones for all vessels calling at a specific terminal. Furthermore, real-time API data connectivity was made available for an additional three terminals.

APM Terminals has offered a Vessel Schedule API for some years, however this was more suited to customers looking to track a specific vessel calling a terminal. The new Terminal Vessel Schedule enables customers to track all vessels calling a terminal, for up to one week in the past and two weeks ahead.

The Terminal Vessels Schedule provides customers with, among other things, real-time and reliable terminal Estimated Time of Arrival/Departure, Earliest Receiving Date, Cut-Off Times for different cargo types, vessel details and more.

Why use APIs?

APM Terminals’ innovative, industry-leading range of seven APIs enables customers to pull real-time container status, truck appointment and vessel data from its Terminal Operating Systems, into their own internal systems, such as a Logistics or Transport Management System (TMS). Developed in line with industry standards, they offer self-service, straight forward, one-time-only implementation.

Real-time data feeds remove the need to look up information manually via our existing Track & Trace channels, making this the ideal solution for shipping lines, inland transporters, cargo owners and managers, and data aggregators who process higher volumes.

The pricing structure of the new Terminal Vessel Schedule is particularly interesting for larger customers tracking a number of vessels as unlike the existing Vessel Schedule API, pricing is not per vessel called via the API, but for unlimited calls for a period of 30 days, for a specific terminal. As with the company’s existing range of APIs, API calls are purchased using API credits which can be bought in bundles. The larger the bundle, the lower the price per credit.

New Terminals

API connectivity was added for the company’s two Ports in India, APM Terminals Mumbai and APM Terminal Pipavav, as well as the Suez Canal Container Terminal (SCCT) in Egypt. SCCT support data for Vessel Schedules, Import Containers and Export Containers. The Indian terminals support data for Vessel Schedules, Import Containers, Container Event History and Empty Container Returns.

With these additional Terminals, APM Terminals now offer’s API connectivity for 22 of its terminals, with an additional five planned to be added this year.

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MOL join the Port Island Phase 2 Development Project at the Port of Kobe

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MOL join the Port Island Phase 2 Development Project at the Port of Kobe, Image: MOL
MOL join the Port Island Phase 2 Development Project at the Port of Kobe, Image: MOL
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Mitsui O.S.K. Lines, Ltd. announced the signing of a memorandum of understanding for the Port Island Phase 2 Development Project at the Port of Kobe with Kobe-Osaka International Port Corporation and Kawasaki Kisen Kaisha, Ltd.

Following the phase 2 South Pier expansion and improvement work undertaken by Kobe-Osaka International Port Corporation, MOL will add berth PC-14 and the land behind the terminal to its lease and expand Kobe International Container Terminal. MOL currently leases KICT and operates berths PC-15/16/17 along with Sankyu Inc., Sumitomo Warehouse Co., Ltd., and Nickel & Lyons Ltd. The MoU also calls for “K” Line, which currently operates a container terminal on Rokko Island, to join KICT. After the completion of the expansion and improvement work, KICT will be the largest terminal in western Japan, handling about 40% of international container cargo at the Port of Kobe.

The expanded KICT will have a total wharf length of 1,750m, up from the current 1,050m, providing more flexible berth windows and streamlining connections for containers with other routes. Furthermore, a Container freight station directly connected to the terminal and a logistics facility with an overhead crane that can move larger cargo, will be built on the land behind the terminal, offering one-stop service from loading of cargo containers to delivery to the terminal. MOL Group company Shosen Koun Co., Ltd. will operate these facilities, delivering convenient and competitive logistics services to customers throughout the group.

MOL has positioned environmental strategy as one of the key elements of in its “BLUE ACTION 2035” management plan, and set the goal of achieving net zero greenhouse (GHG) emissions by 2050 in the “MOL Group Environmental Vision 2.2.” Last year, Shosen Koun became the first company in Japan to introduce two new transfer cranes (RTGs), which can be converted from conventional diesel engines to hydrogen fuel cells to power the RTGs used for container handling operations at KICT. And the company will adopt the new electric RTGs in the terminal expansion area. In addition, it plans to install solar panels on the container gate and the roof of the logistics facility. Through these concerted group-wide initiatives, the MOL Group will contribute to the reduction of GHG emissions from the container terminal.

MOL has positioned the Port of Kobe as an important base for its domestic business for many years, and its group companies currently operate the port, logistics, tugboat, and real estate businesses, each of which has deep roots in the local community. In April of last year, the Kobe Shosen Mitsui Building celebrated the centennial anniversary of its completion. With the KICT expansion project, the MOL Group will further solidify its business base and offer stress-free services to customers.

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Container Terminal

APM Terminals Callao receives largest capacity container ship MSC Chiyo

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APM Terminals Callao receives largest capacity container ship MSC Chiyo. Image: APM Terminals
APM Terminals Callao receives largest capacity container ship MSC Chiyo. Image: APM Terminals
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The Callao Multipurpose North Terminal, operated by APM Terminals, welcomed “MSC Chiyo”, the largest capacity container ship to ever call in Peru. The new container ship, operated by shipping line MSC (Mediterranean Shipping Company) came into operation this year.

At 366m long and 51m wide, the vessel operates on the ANDES Service, which connects Callao with the Asian continent. The MSC Chiyo has a higher-than-normal container capacity due to its maximum draft of 17 meters. With 16,616 TEU (20-foot container equivalent) on board, it became the largest capacity vessel to ever arrive on the west coast, compared to the 14,000 TEU ships normally operating on the same service.

During its stay at APM Terminals Callao, 2,586 crane moves were made in total. This included 1,522 import TEUs and 1,483 export TEUs, which were handled with the terminals five super post panamax ship-to-shore cranes for almost the entire operation. An impressive crane productivity of 115 moves per hour was achieved.

“At APM Terminals Callao we are proud to be the main port in the country and to be the first to receive ships of this capacity,” commented Fernando Fauche, Commercial Director of APM Terminals Callao.

“One of the factors that make events like this a reality is the great care and priority we give to our internal safety and security standards, ensuring that they are 100% met and providing guarantees to our clients. The arrival of this large vessel is undoubtedly a milestone for the terminal, and events like this reaffirm our mission to become an international hub for the different players in the logistics sector and thus continue to meet the needs of the local and global market.”

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