WASHINGTON: DP World said yesterday it has raised its stake in a terminal in South Korea, becoming the largest stakeholder as the Dubai-based ports operator continues its investment spree. DP World has bought a 23.94 per cent stake in Pusan Newport Company (PNC) from South Korean conglomerate Samsung Corporation, raising its holding in the terminal to 66.03 per cent, it said in a statement yesterday. The Nasdaq Dubai-listed company didn’t disclose the value of the deal.
PNC is the largest terminal in Pusan, with a capacity of 5.25 million twenty-foot equivalent units (TEU), DP World said. The port of Pusan is the sixth largest worldwide with an annual capacity of 19.5 million TEU, accouting for 75 per cent of total container volumes in the Asian country, DP World said. DP World said earlier this month it was creating with Caisse de dépôt et placement du Québec, Canada’s second largest pension fund, a US$3.7 billion financial vehicle to invest in ports globally.
The new entity, in which it will hold a 55 per cent stake, will be used to invest in ports and terminals worldwide, excluding the UAE. While most of the money will be used for existing projects, a quarter of the funds will be dedicated to new developments. DP World, operator of 77 marine and inland terminals spanning six continents, has been able to maintain its growth despite challenging market conditions, particularly those most affected by the weak oil prices.
The port operator’s net profit attributable to equity holders before separately disclosed items in the six months to June 30 rose by 50.2 per cent year-on-year to $608 million. The port operator reported a 2.2 per cent increase in gross container volume on a reported basis in the first nine months of this year, although throughput in the UAE declined during the period. The increase in gross levels was attributed to “a robust performance” from Europe and India, while Australia and Latin America had “challenging” conditions. DP World expects new developments in the Netherlands, India, UK and Turkey to counter a soft near-term global trade growth outlook, according to the group’s chairman, Sultan bin Sulayem.
