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DP World Takes Operational Control over Port of Algiers

DUBAI - DP World, one of the world’s largest marine terminal operators, has taken over operations at the Port of Algiers, now known as 
DP World Djazair.

DP World’s 30-year concession is in line with the Algeria’s commitment to develop both the Port of Algiers and the port of Djen Djen.

DP World Djazair handles more than 60 per cent of the country’s external trade, while Djen Djen will become the main hub for eastern Algeria, as well as a transshipment hub for the western Mediterranean. DP World expects to take control of Djen Djen in late April, a top official of the operator told Khaleej Times. This will bring the Dubai operator’s global network to 49 terminals in 27 countries.

DP World announced in November 2008 that it would expand and run the ports of Algiers and Djen Djen under a concession granted to a joint venture between the Dubai firm and the Algerian government.

“We are always looking for opportunities around the world and this is one of those we have identified. We concluded the deal in November last year and we were working for it,” said Anil Singh, Senior Vice-President and Director of Africa Region.

The company has already pledged an initial investment of $108 million to expand the container facilities in Algiers and is planning to make significant investments in Djen Djen. The Port of Algiers offers a total surface storage area of almost 70 acres. It has 12 warehouses in 12 acres, and a container terminal having an area of 17 hectares. Its grain silo boasts a capacity for 30,000 tonnes. In 2007, the Port of Algiers handled over 11 million tonnes of cargo.

DP World chairman Sultan Ahmad bin Sulayem said last year that the port of Algiers lacked advanced machinery and equipment and that particular issue would be resolved instantly.

The port operator has planned to redevelop the main container terminal at Algiers to expand its capacity from the current 500,000 TEUs (twenty-foot equivalent container units) to around 800,000 TEUs.

“As with our other terminals, we will be investing in training and development of local people in Algeria, offering new opportunities for career growth as part of a global company,” DP World Chief Executive Officer Mohammed Sharaf said.

DP World Djazair Director-General Mohamed Al Khadar said that the port at Algiers has “tremendous potential, and will play a crucial role in facilitating Algeria’s growth and development.”

In 2008, DP World handled more than 46.8 million TEUs across its portfolio from the Americas to Asia — an increase of 8 per cent compared to 2007. With a number of major expansion and development projects in key growth markets in the pipeline, including India, China and the Middle East, the capacity is expected to rise to around 95 million TEUs over the next ten years.

Algiers (El - Jazair) is the capital and main seaport of Algeria. Built on the slopes of the Sahel Hills, It stretches for ten miles along the Bay of Algiers.

DP World will announce its annual results for 2008 on March 25, 2009.

· abdulbasit@khaleejtimes.com