DP World announces proposed acquisition of Fairview Container Terminal in Prince Rupert, Canada
DP World Limited today announces its agreement to acquire Maher Terminal ’ s Fairview Container Terminal (Fairview) in Prince Rupert, British Columbia, Canada from Deutsche Bank, the company said in its press release.
Fairview presents growth opportunity in a market with attractive and growing demand. Fairview is a purpose built terminal with an efficient sea - rail link and has a current capacity of 850,000 TEU (twenty - foot equivalent container units), with a just - announced Phase 2 expansion that will take capacity to 1.35 million TEU.
The concession period runs to 2034 with an extension to 2056 after the completion of Phase 2. Total consideration payable is C$ 580 million (US$ 457 million) for the total outstanding stock of Fairview on a cash - free, debt - free basis (subject to customary adjustments).
The completion of the transaction is subject to applicable Canadian regulatory approvals and is expected to occur in the second half of 2015. DP World Limited has been a significant investor in Canada, as operator of the CENTERM terminal in Port Metro Vancouver.
The transaction will provide significant benefits to Canada, including to the Province of British Columbia, to the City of Prince Rupert, to First Nations communities, and to importers, exporters and consumers, including:
Implementation of the phase 2 expansion expected to be completed in the first half of 2017, which will add capacity and efficiency to Canada’s Asia - Pacific Gateway and Corridor. Expansion is projected to create more than one - half million hours of construction work and more than 500 FTE jobs
Undertake feasibility assessment in relation to development of the lands intended for further expansion which could potentially increase the capacity to 2.45 million TEU
Access to DP World’s world class product ivity - enhancing best practices in container terminal development and operation
Access to DP World’s state - of - the - art supply chain security and safety practices
Net increase in employment levels in Canada
Substantial Canadian participation in the management of Fairview
Enhanced competition in the provision of container terminal services on Canada’s west coast