Monday, March 19, 2018

International Port and Container Terminal Group Strengthens Overseas Logistics Presence

Two Acquisitions for UAE Based Operator
Shipping News Feature
DUBAI – PERU – INDIA – DP World, the UAE based group best known for owning and operating ports and container terminals around the globe, has reinforced its move into general logistics with two new acquisitions. DP has picked up Peruvian based Cosmos Agencia Maritima S.A.C. (CAM) for $315.7 million and, together with its joint venture partner the National Investment and Infrastructure Fund (NIIF), acquired a 90% stake in Continental Warehousing Corporation (Nhava Seva) Ltd (CWCNSL), an integrated multimodal logistics player in India.

The Indian deal was in the name of the joint venture company, Hindustan Infralog Private Limited (HIPL), with a purchase consideration 5% below DP World’s net asset value as of the last financial year and it is the first investment of HIPL, the recently created investment vehicle between DP World and NIIF to invest up to US$ 3 billion in ports, logistics and related sectors.

CWCNSL was founded in 1997 by the Reddy family, who will retain the remaining 10% shareholding and will stay involved in the business operations. The group and is an integrated multimodal logistics provider of Warehousing, Container Freight Stations (CFS), Inland Container Depots (ICD) and Private Freight Terminals (PFT). CWCNSL has assets spread across key strategic locations in India covering a total area of over 400 acres and providing over 660,000 TEU capacity. In addition, CWCNSL’s wholly owned subsidiary Delex Cargo India Private Ltd provides door-to-door logistics solutions including freight forwarding, 3rd party logistics, express logistics and hub-and-spoke model of delivery across 54 locations in 40 cities.

The Peru deal sees DP World gain two integrated logistics service businesses, Neptunia S.A and Triton Transport S.A, which are subsidiaries on CAM and, in addition to the maritime and logistics services offered by the Cosmos Group, it also has a 50% stake in Terminales Portuários Euroandinos S. A., in the Port of Paita (Peru), which is the second largest container terminal in the country. The purchase also includes certain real estate assets used for business operations from associated Peruvian holdings and is subject to ratification from the authorities. Speaking of the two developments Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said:

“We are delighted to add Cosmos Agencia Maritima into the DP World portfolio and this acquisition supports our recent strategy of extending our core business into complementary sectors. The acquisition not only extends our footprint in Latin America, a region which we believe has significant growth potential but importantly adds to our existing presence Peru, where we already operate a container terminal in the port in Callao.

”[In India] we are delighted to start our recent partnership with NIIF with this strategic acquisition to develop logistics and warehousing solutions to support India’s growing economy and trade. The acquisition of Continental Warehousing Corporation provides us with a scalable platform to accelerate growth in the rapidly evolving logistics sector in India. We look forward to actively collaborating with the Reddy family, our partners in Continental Warehousing Corporation, to drive and realize the company’s growth.”