DP World buys more space in Brisbane port
Port operator DP World will expand its presence at Port of Brisbane in response to the city's booming population and resource-driven economic growth.
DP World, the world's third biggest port operator with 42 terminals in 22 countries, has secured an added 200 metres of container terminal quay space, which will take its total quay line to 900 metres by 2009.
The expansion will make Brisbane the site of DP World's largest container terminal facility in Australia by quay length, overtaking Sydney and Melbourne.
Cameron Thorpe, general manager, DP World Brisbane, said the port as a whole will be second only to Melbourne in five years time if growth levels are maintained. It is currently the fastest growing container port in Australia.
"It has historically been in the shadow of the bigger ports in the south but with the growth rate, which has averaged 12 per cent in the last ten years, it will overtake Sydney," he said.
DP World's throughput at its five Australian port assets totalled just under 2.5 million TEUs (twenty-foot equivalent container units) in 2006. For the 12 months ending May 2007 Brisbane's volume stood at just under 900,000 TEUs.
"I'm very proud of our investment in Brisbane," said Sultan Ahmad Bin Sulayem, DP World chairman. Once the 2009 expansions are complete, existing operators DP World and Asciano will command around 900 metres of quay space each, enough room for three to four berths.
However, the companies could face heightened competition beyond that date. Hutchison, the world's biggest port operator, has been selected as preferred bidder for two further berths, which are set to open by 2014 and will create a 2.4 kilometre quay.
DP World also bid for the berths, which are at the far end of the port development and best placed for further expansions.
Thorpe warned that the expansions could create overcapacity, despite strong growth rates. "The commercial viability of third operator is in question. It remains to be seen how they will approach this market," he said.
DP World will also have to contend with rental increases of "several hundred per cent" at Port of Brisbane in 2012 when it bids for a 25-year lease extension. It also has an obligation to invest into machinery at the terminal.
"You cannot have growth without investment," said Bin Sulayem.
DP World, the world's third biggest port operator with 42 terminals in 22 countries, has secured an added 200 metres of container terminal quay space, which will take its total quay line to 900 metres by 2009.
The expansion will make Brisbane the site of DP World's largest container terminal facility in Australia by quay length, overtaking Sydney and Melbourne.
Cameron Thorpe, general manager, DP World Brisbane, said the port as a whole will be second only to Melbourne in five years time if growth levels are maintained. It is currently the fastest growing container port in Australia.
"It has historically been in the shadow of the bigger ports in the south but with the growth rate, which has averaged 12 per cent in the last ten years, it will overtake Sydney," he said.
DP World's throughput at its five Australian port assets totalled just under 2.5 million TEUs (twenty-foot equivalent container units) in 2006. For the 12 months ending May 2007 Brisbane's volume stood at just under 900,000 TEUs.
"I'm very proud of our investment in Brisbane," said Sultan Ahmad Bin Sulayem, DP World chairman. Once the 2009 expansions are complete, existing operators DP World and Asciano will command around 900 metres of quay space each, enough room for three to four berths.
However, the companies could face heightened competition beyond that date. Hutchison, the world's biggest port operator, has been selected as preferred bidder for two further berths, which are set to open by 2014 and will create a 2.4 kilometre quay.
DP World also bid for the berths, which are at the far end of the port development and best placed for further expansions.
Thorpe warned that the expansions could create overcapacity, despite strong growth rates. "The commercial viability of third operator is in question. It remains to be seen how they will approach this market," he said.
DP World will also have to contend with rental increases of "several hundred per cent" at Port of Brisbane in 2012 when it bids for a 25-year lease extension. It also has an obligation to invest into machinery at the terminal.
"You cannot have growth without investment," said Bin Sulayem.