DP World acquires Peru company for $316M
Cosmos Agencia Maritima to extend Dubai firm's footprint in Latin America
DP World, a global leader in ports operations, on Sunday announced its latest $315.7 million acquisition, giving a further fillip to its ongoing ambitious network expansion drive.
The Dubai-based company, which operates a portfolio of 78 marine and inland terminals supported by over 50 related businesses in over 40 countries, completed the acquisition of Peru's Cosmos Agencia Maritima (CAM).
Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, said the acquisition supports the Dubai-based group's recent strategy of extending its core business into complementary sectors. The latest acquisition follows DP World's announcement that it would invest $1.4 billion in 2018, mainly in the UAE where its flagship Jebel Ali Port is located, as well as in Ecuador, Somaliland, South Korea, Mozambique and Egypt.
The ports operator, which is currently embroiled in a dispute over its operations in Djibouti and Somaliland, revealed last week full-year profit growth of 14.9 per cent in 2017 to $1.18 billion.
The Dubai state-owned firm last month said its container volumes across its global terminal had risen 10.1 per cent to 70.1 million twenty-foot equivalent units (TEU). In 2017, DP World invested $1.09 billion across its portfolio, less than the firm's $1.2 billion capital expenditure guidance for the year.
Bin Sulayem said the CAM acquisition not only extended DP World's footprint in Latin America, a region which has significant growth potential but importantly adds to the group's existing presence.
In Peru, the company already operates a container terminal in the port in Callao - a terminal that is one of the most efficient and productive in the region and has been consistently ranked as the best port in South America by its customers.
"The addition of CAM will allow us to offer improved solutions to our customers and the option of alternative container capacity. Overall, we expect this acquisition to further diversify our revenue, improve the quality of our earnings and drive returns," the DP World CEO said.
The Peruvian company owns a fully integrated logistics service business (Neptunia and Triton Transport) that offers end-to-end solutions to its customers, DP World said in a statement. CAM's logistics division offers an integrated platform of solutions in activities related to foreign trade, product storage and distribution, as well as freight services that facilitate development and implementation of industry specific projects.
In addition to the maritime and logistics services offered by Cosmos Group, it also has a 50 per cent stake in Terminales Portuários Euroandinos, in the Port of Paita, which is the second-largest container terminal in the country. DP World has been on vibrant inorganic growth over the past couple of years through acquisitions within the UAE and abroad.
DP World has partnered with India's National Investment and Infrastructure Fund, to create an investment platform of up to $3 billion of equity to acquire assets and develop projects in the ports, transportation and logistics sector in India. Recently, the Dubai group acquired an additional 66.67 per cent stake in Embraport in the Port of Santos from Odebrecht Transport to take its shareholding to 100 per cent.
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