DP World Begins $1.6-B Dubai Port Upgrade
The Dubai based company handled 30.6-M 20-ft equivalent units in 1-H of this year
DP World (LO:DPW) perhaps the world’s largest port operator, has started building a new $1.6-B container terminal in Dubai in response to demand for more capacity and larger vessels, it said Tuesday.
Dubai’s Jebel Ali port, owned by DP World, has established itself as 1 of the largest container ports in the Middle East, boosted by Dubai’s status as a growing center for commerce.
The emirate’s hosting of the World Expo in 2020 is expected to provide a further boost to trade.
DP World said Phase 1 of container Terminal 4 at the port will create new capacity of 3.1-M 20-ft equivalent units (TEU) by Y 2018, taking total capacity at DP World’s flagship port to 22.1-M TEU.
“The new capacity is a response to feedback from customers expressing the need for more capacity at Jebel Ali due to an expected increase in trade in the run-up to Expo 2020. Shipping lines will be able to bring more of the world’s largest vessels to our terminals,” said Chairman Sultan Ahmed Bin Sulayem.
The complex will be equipped with around 110 cranes, with a total quay length of about 11,000 metres, it added.
DP World made the announcement on the same day as it reported 1-H of Y 2015 gross container volumes across its global ports were up 4.1% on a like-for-like basis from a year earlier and up 4.2%on a reported basis.
The Dubai-based company handled 30.6-M TEU with growth largely driven by its terminals in Europe and the United Arab Emirates (UAE), it said in a separate statement.
Business in the UAE grew by 6%, with Europe showing steady growth despite a difficult geopolitical environment, it said.
“Full-year market volume growth is now forecast to be at approximately 3% and DP World is expected to perform ahead of the market,” CEO Mohammed Sharaf said.
Consolidated volumes, at terminals over which DP World has control, rose 3.5% to 14.4-M TEU.
Stay tuned…
Paul Ebeling
HeffX-LTN
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