DP World – Bringing a sea change

Ennarasu KarunesanFrom being a local port operator, Dubai DP World has grown to being a global player today. This impressive journey started in 1972 in
Dubai at Port Rashid. Soon DP World opened Jebel Ali port in 1979 and by 1991 the operations at both the ports were merged to create
Dubai Ports Authority. In 1999 Dubai Ports International FZE was created to open facilities in Jeddah, Saudi Arabia. Then Doraleh in
Djibouti was opened in 2000, Visakhapatnam in India in 2002, Constanta in Romania in 2003 and again in India at Cochin in 2004. The
steady expansion has given the port operator a world footing.

Major acquisitions happened in 2005 and 2006 when DP World got CSX World Terminals and The Peninsular & Oriental Steam Navigation Company, respectively. The move helped the company strengthen their market hold in Asia, Australia, Americas, Europe and Africa.

A major leap forward came to DP World when it was listed in NASDAQ Dubai in 2007 and with London Stock Exchange in 2011. DP World has  been making waves in recent news whether for its port cooperation agreement with Qingdao port or for its decision to buy Economic Zones World for US $ 2.6 billion or for proving to the world that its Jebel Ali Port is the best in the world handling an average of 138 moves per vessel per hour. While the port cooperation agreement between Qingdao port and DP World reinforces their mutual focus point which is enhanced dialogue, green port initiatives and stimulating business growth, DP World’s decision to buy Economic Zones World from Port and Free Zone World including the assumption of net debt of US $ 859 million, further strengthens and emphasizes DP World’s strategic location and role of a game-changer in the industry in future. The free zone is an integral part of DP World’s supply chain logistics serving its global
clients. The acquisition, when it comes through, will offer DP World a bouquet of benefits, some of which are:

1. Becoming leading integrated port and free zone in the Middle East

2. Enabling it to control and optimize investment levels at Jebel Ali Free Zone

3. Reaping steady and recurring revenues

4. Developing Dubai as a trading and logistics hub

5. Benefiting DP World’s shareholders with handsome financial returns

A high-powered meeting ‘Extraordinary General Meeting’ is scheduled to be held on December 18, 2014 at DP World Wheelhouse, Jebel Ali Port to be able to pass proposed resolutions. DP World’s Jebel Ali port beat more than 480 ports worldwide to secure the most coveted rank of Number One in Port Productivity Report from the US-based Journal of Commerce. Besides recording an average of 138 moves per vessel per hour – the highest among all the competitors – Jebel Ali Port also topped the list for handling ships with more than 8000 TEU capacity with an impressive 163 MPH (moves per hour).

Even more formidable it will become when DP World becomes fully operational in the span of one year when it plans to add a further 2 million TEU to bring up its capacity to handle 10 mega vessels of 18, 000 TEU. Currently, its total capacity is 17 million TEU growing steadily at a rate of 12.6% annually.

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