DP World has no plan to sell assets
DP World, the world’s third largest port operator, has no plans to dispose its assets to bolster revenues and profits in 2011, its top official said, Khaleejtimes reports.
“We have no plans to sell DP World’s assets in 2011,” DP World chief executive Mohammed Sharaf told Khaleej Times on the sidelines of London Gateway launch project in London.
He said the company has sufficient finances to fund its expansion projects and boost its global port handling capacity from 67 million twenty-foot equivalent units, or TEU, to 95 million TEU by 2020.
Dubai-headquartered DP World reported 300 per cent jump in first-half profits as it booked gains from the sale of its Australian port operations to Citi Infrastructure Investors for $1.5 billion in December 2010. In August, the port operator posted a first-half profit of $705.3 million but cautioned that the outlook for the second half of the year remains foggy amid concerns about a global slowdown.
“The company has sufficient finances and resources to fund its new developments and major expansions underway in 10 countries,” Sharaf said. “Financing is not an issue. It all depends on market conditions to increase the capacity across the globe” he said.
“The shipping business declined across the globe in 2008 and 2009, but we continued to invest in our key markets including India, Pakistan and London Gateway,” Sharaf added.
DP World operates more than 60 terminals across six continents, with container handling generating around 80 per cent of its revenue. With a pipeline of expansion and development projects in key growth markets including India, Pakistan, China and the Middle East, the company is expected to rise to around 95 million TEU by 2020. It handled nearly 50 million TEU in 2010.
New acquisitions, projects
Sharaf said the company will continue to explore global markets. “If there is an opportunity to get good return on investment, we are ready to invest in developments either it is in emerging markets or in developed states.”
“The company constantly invests in terminal infrastructure, facilities and people, working closely with customers and business partners to provide quality services today and tomorrow, when and where customers need them.”
Sharaf said there is no change in the company’s policy regarding the selection of projects for investment. “The company’s investment policy remains the same to develop infrastructure in all markets across the globe, although the focus has been on emerging markets because they lack the normal standard infrastructure.”
In reply to a question about the US market, he said DP World has no immediate plan to enter the US market. “We don’t have an immediate plan to enter the US market. We serve its needs through our ports in Vancouver, Peru and Dominican Republic.”
About the major developments in the region, he said the Sokhna port expansion project in Egypt is on track to boost its capacity up to 1.1 million TEUs by year-end.
Ain Sokhna is the closest port to Cairo and considered as an investment gateway to Egypt as most of the cargo from the east destined for Egypt is imported through this port. DP World acquired the port operations in February 2008 and launched various projects to transform the Egyptian port into a logistical transshipment hub in the region.
“We have no plans to sell DP World’s assets in 2011,” DP World chief executive Mohammed Sharaf told Khaleej Times on the sidelines of London Gateway launch project in London.
He said the company has sufficient finances to fund its expansion projects and boost its global port handling capacity from 67 million twenty-foot equivalent units, or TEU, to 95 million TEU by 2020.
Dubai-headquartered DP World reported 300 per cent jump in first-half profits as it booked gains from the sale of its Australian port operations to Citi Infrastructure Investors for $1.5 billion in December 2010. In August, the port operator posted a first-half profit of $705.3 million but cautioned that the outlook for the second half of the year remains foggy amid concerns about a global slowdown.
“The company has sufficient finances and resources to fund its new developments and major expansions underway in 10 countries,” Sharaf said. “Financing is not an issue. It all depends on market conditions to increase the capacity across the globe” he said.
“The shipping business declined across the globe in 2008 and 2009, but we continued to invest in our key markets including India, Pakistan and London Gateway,” Sharaf added.
DP World operates more than 60 terminals across six continents, with container handling generating around 80 per cent of its revenue. With a pipeline of expansion and development projects in key growth markets including India, Pakistan, China and the Middle East, the company is expected to rise to around 95 million TEU by 2020. It handled nearly 50 million TEU in 2010.
New acquisitions, projects
Sharaf said the company will continue to explore global markets. “If there is an opportunity to get good return on investment, we are ready to invest in developments either it is in emerging markets or in developed states.”
“The company constantly invests in terminal infrastructure, facilities and people, working closely with customers and business partners to provide quality services today and tomorrow, when and where customers need them.”
Sharaf said there is no change in the company’s policy regarding the selection of projects for investment. “The company’s investment policy remains the same to develop infrastructure in all markets across the globe, although the focus has been on emerging markets because they lack the normal standard infrastructure.”
In reply to a question about the US market, he said DP World has no immediate plan to enter the US market. “We don’t have an immediate plan to enter the US market. We serve its needs through our ports in Vancouver, Peru and Dominican Republic.”
About the major developments in the region, he said the Sokhna port expansion project in Egypt is on track to boost its capacity up to 1.1 million TEUs by year-end.
Ain Sokhna is the closest port to Cairo and considered as an investment gateway to Egypt as most of the cargo from the east destined for Egypt is imported through this port. DP World acquired the port operations in February 2008 and launched various projects to transform the Egyptian port into a logistical transshipment hub in the region.