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DP World is willing to 
buy assets in 
Latin America

LIMA — DP World Limited, the world’s third-largest port operator, said it’s ready to look at acquisitions in Latin America to meet demand from customers and has enough cash for investments without needing to sell assets.

By (Bloomberg)

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Published: Wed 3 Oct 2012, 11:08 PM

Last updated: Tue 7 Apr 2015, 12:27 PM

“If the customer says ‘we need you there,’ we’ll be there,” said Chairman Sultan Ahmed bin Sulayem. “If the economics are good, why not. The Latin American market is very important to us.”

The operator of ports from China to Russia and Peru isn’t looking at buying assets in the US where acquisition costs are “prohibitive” and can serve the market from other ports in the region, he said on Tuesday in an interview during a conference in Lima. DP World isn’t pursuing deals in Latin America, he said.

The company increased container volumes at its more than 60 terminals by 7.5 per cent in the first half, with its Asia Pacific and Indian subcontinent operations driving growth. While trade is growing in Latin America, Africa and Asia, the company is cutting costs in Europe, where trade is “stagnant,” Bin Sulayem said.

“I don’t see a reduction in trade but I don’t see growth,” he said. “Europe will come back. When the boom comes again, we’ll be ready for it.”

Global container volumes will probably grow 4.3 per cent this year, Drewry Shipping Consultants Limited said July 3. Because of the weakness in Europe’s economy, the industry won’t have a strong peak season in 2012 and operators will experience some “rate erosion” in the summer, it said.

Shares of DP World traded on Nasdaq Dubai rose 0.9 per cent to $11.35, bringing their advance this year to 17 per cent.

DP World has no plans for an initial public offering in India, where it has brought its local container terminals together under one company.

“When we did that people said ’oh, they’re preparing for IPO’,” he said. “If it’s going to be in the interests of the company we do it. But we don’t have any plans. If things change we can always adapt.”