Dubai Port Raises Stake in Australian Port

Dubai-based port operator DP World says it has acquired additional assets in DP World Australia (DPWA), giving the firm a majority stake in its Australian terminals.

The percentage of what has been acquired from Gateway Infrastructure Investments and other financial investors is still being finalized and subject to regulatory approval. However, it valued DPWA at an enterprise value of approximately AU$1.4 billion (US$ 997 million).


Following the closure of the transaction, DP World Australia will become a consolidated entity within the DP World Group and is expected to be earnings neutral in the first full year of ownership. The acquisition is expected to close in Q1 2019.

Corsair Infrastructure Partners (CIP), the manager of the Gateway Fund, will continue to manage a significant investment in DP World Australia.
 
DP World Australia (DPWA) is a leading container port operator that manages 4 terminals at each of Australia’s major ports (Sydney, Melbourne, Brisbane and Fremantle) with a capacity of approximately 4mn TEU’s.  

In 2017, DPWA handled 3.4mn TEU’s and generated over USD400mn1 of revenues. In addition to core terminal and stevedoring operations, DPWA has a strategy to grow the business ‘beyond-the-gate’ through its vertically integrated logistics solutions via DPW Logistics Australia and JVs (1-Stop and AWH).

Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World,said: “We are pleased to announce this transaction that brings DP World Australia back into our consolidated portfolio, which presents a more optimal structure to drive this business forward, while continuing our relationship with CIP as a valued partner. We remain optimistic on the growth prospects in Australia and believe there is an exciting opportunity to enhance shareholder value by further developing the container terminals operations and expanding beyond the ports into logistics services.”