CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Dubai Ports World Announces Multi-Billion Investment Plan

Dubai Ports World Announces Multi-Billion Investment Plan

by Lorys Charalambous, Tax-News.com, Cyprus

06 July 2006


Dubai Ports World, the state-owned ports operator, has announced a multi-billion dollar investment programme, with the aim of increasing container traffic through its existing global network of ports by 40% over the next three to four years.

According to Reuters, Sultan Ahmed bin Sulayem has stated that DP World will spend between US$2 billion and US$3 billion on expanding existing port facilities through projects such as the building of new berths and cranes.

"There are many ports with potential for growth," he observed.

One location where DP World plans to invest heavily is the Port of Callao, in Peru. Last month, the company announced that it had been granted a 30 year concession to develop and operate a new container terminal in the southern zone of the port.

DP World will own 70% of the development company through its subsidiary P&O, with the balance held by a local Peruvian partner, the Unimar group of companies.

Callao is the largest and fastest growing container port on the west coast of South America, with a compound annual growth rate of over 14% per annum since 2000. The new terminal will become the first facility in the Port to be equipped with gantry cranes, with nine expected to be in operation by the completion of the project.

The new facility will initially be constructed with two berths comprising 660m of quay line and 22 hectares of yard, which, dependent upon the timing of the relevant permits and approvals, could be operational in the second half of 2009. Further development will be phased in line with demand growth with total capacity projected to reach 1.35 million TEUs (twenty foot equivalent container units). Preliminary estimates of capital expenditure are approximately US$210 million for the first two berths.

DP World also recently signed a Letter of Intent to undertake the development of the Container Terminal in Tianjin, Northern China. This project includes plans for a 140 hectare terminal area, with a 1,400 metre quay length, and an annual handling capacity of 2.2 million TEUs. Reclamation work for the project is already underway and operations are scheduled to begin in 2011.

The development, known as the Man-made Island Phase 2, will be a joint venture between Tianjin Port Group (TPG) and DP World, through its subsidiary, DP World Tianjin Holdings Limited. Total investment for the project will be up to US$500 million.

Tianjin is already home to China’s fifth largest container port, handling 4.8 million TEU a year, and the Man-made Island Phase 2 is one of the major projects in China’s economic development plan.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »