Dubai Taps Into Chinese Growth Through Acquisition Of Port Operations
Dubai Port International has announced the signature of an agreement with CSX
Corporation to acquire its international freight terminal business, a move that
will see Dubai become one of the world’s most significant port operators,
particularly in Hong Kong and China.
Paying a sum of US$1.15 billion, DPI, the investment arm of the state-owned
Dubai Ports Authority, outbid the world’s two largest container port operators, Hutchinson Whampoa and Singapore’s PSA international, for CSX’s
ports and logistics concern. As a leader in the world freight business, CSX has operations in Asia, Europe,
Australia and Latin America. However, it is the operations in Hong Kong –
the world’s busiest container port - Tianjin and Yantai in booming
China that have aroused the most interest. The deal includes 9 terminals with combined future capacity of 14.6 million
TEUs (20-foot equivalent units, the standard measure for a single container)
in Hong Kong, Yantai and Tianjin, in addition operations in Adelaide in Australia, Venezuela
and the Dominican Republic. When the transaction is completed in the first quarter of 2005, Dubai Ports
will also have a controlling stake in the highly profitable container Terminal
No. 3 at Hong Kong's main Kwai Chung Container Port. “This is a major step in DPI's global expansion strategy” noted
Sultan Ahmed Bin Sulayem, Executive Chairman, Dubai Ports. “The acquisition will give DPI an important platform in the North Asia
region, notably in Hong Kong, China and Korea and further expands our global
network in Europe and the Americas,” he added. .
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