DP World agreed to buy a majority stake in a container terminal in Ukraine as it continues to expand its global portfolio of assets.
The world’s largest port operator will acquire a 51 per cent stake in TIS container terminal in the Port of Yuzhny, subject to certain conditions, it said in a statement on Thursday. The Dubai-based firm did not disclose the value of the stake.
DP World’s P&O Maritime Services already has a joint venture with TIS group in Ukraine to provide tugging, pilotage and other marine services in several Ukrainian ports.
“We are delighted to extend our Ukraine footprint with this venture and are excited about the significant growth potential of the terminal,” said Sultan Ahmed Bin Sulayem, group chairman and chief executive of DP World.
“The strategic partnership with TIS group will enable the terminal to continue growing, further cementing TIS container terminal’s position as the leading gateway to Ukraine."
TIS container terminal is well connected to most major Ukrainian cities, placing it in an ideal position to capitalise on trade flows, DP World said. The Ukrainian container market grew more than 20 per cent in 2019, it added.
DP World has been on an acquisition spree in the last few quarters as it solidifies its presence in existing markets and capitalise on growth opportunities in new markets. Its recent deals include UK transport and logistics company P&O Ferries, Indian rail logistics company Kribhco Infrastructure and Chilean ports operator Puertos y Logistica.
It also acquired a 44 per cent share in Swissterminal Holding, a container terminal operator in Switzerland, last month.
DP World reported flat growth in its shipping container volumes in 2019 amid market uncertainty from trade wars and geopolitical tensions.
The ports operator handled 71.2 million twenty-foot equivalent units (TEUs) across its global portfolio of container terminals last year, with gross container volumes flat year-on-year on a reported basis and up one per cent on a like-for-like basis.
