Listen to the full interview on The Inside Brief with Manus Cranny, available on YouTube, Apple, Podcasts, Spotify and all other major platforms.
DP World is ready to return to Venezuela if the right investment opportunities arise as the global ports operator's decisions are led by cargo flows rather than politics, its chairman has told The National.
The Dubai-based container shipping and logistics giant, which had previously run Venezuelan terminal operations at Puerto Cabello, is closely monitoring developments in the South American country following the capture of President Nicolas Maduro by the US.
“Tomorrow if there's a cargo opportunity in Venezuela, we will go … We can start within 24 hours if we need to. We know the place very well, the teams, everybody,” Sultan bin Sulayem, DP World's group chairman and chief executive, told The Inside Brief with Manus Cranny at the company's headquarters in Jebel Ali Free Zone.
DP World was previously approached by the government to resume its operations in the country but US sanctions on Venezuela had made it difficult to do business.
“There wasn't much business at that time, now there will be. But we're watching like everybody else. We're watching and listening and getting the information right. And in the event we need to go, we'll go,” Mr bin Sulayem said.
US forces captured the Venezuelan President in a military raid on Caracas earlier this month, marking the most dramatic US intervention in Latin America since the 1989 invasion of Panama. Mr Maduro was transferred to New York to face charges, including drug trafficking.
Following the move, President Donald Trump's administration has been escalating its blockade of vessels that are under sanctions and travelling to and from the South American country, a member of Opec.
DP World had previously run terminal operations at Puerto Cabello until 2009 when former Venezuelan president Hugo Chavez ordered the military to take over the country's ports and airports.
The current developments in Venezuela are “localised” and are unlikely to affect DP World's global business, Mr bin Sulayem said. “Actually, it's a country we'd love to do business with.”
In Latin America, DP World already has operations in Argentina, Brazil, Peru, Chile, Colombia, Ecuador, Mexico, Panama, Suriname and Dominican Republic, according to its website.
Global trade in turbulent times
DP World's expansion strategy is based on strong cargo flows in growth markets, the company chairman said.
“We are businessmen, we don't understand politics,” Mr bin Sulayem said. “I have the expertise about moving cargo, but what happens politically in a country, I don't understand it.”
That perspective comes amid sweeping regime changes in countries such as Venezuela and Syria, as well as geopolitical tensions in key trade corridors such as Iran.
In Syria, DP World began operations at Tartus port in November after signing a 30-year development and operational agreement.
The pact with Tartus, Syria's second largest port, also includes an $800 million commitment to upgrade infrastructure. DP World was among the first investors in the country following the end of Syria's 13-year civil war and easing of US sanctions.
“We are already there with over 40 of our teams working, developing the port. We're already getting more cranes,” Mr bin Sulayem said.
“The future is very bright. That country is coming back.”
At a lunch meeting with Syrian President Ahmad Al Shara to discuss the ports deal, the DP World head found the new leader to be keen on progress.
“He's very optimistic and he's a very calm person, a good listener. He will listen to what you're talking about, and he is eager to learn and he has confidence that things will get better in his country, but you can see that already,” Mr bin Sulayem said.
In another regional hotspot, intensifying anti-regime protests are rocking Iran, a key corridor for global trade. The protests began in late December over economic issues, but many Iranians are now calling for major changes to the government.
In terms of its implications on global trade, Mr bin Sulayem said that the main concern is ensuring that sea cargo to its ports are not affected. He cited examples of the Iran-Iraq war and the recent Israeli missile attacks on Iran where these conflicts did not affect maritime trade.
Asked if a new regime in Iran would be positive for global trade, he said that “any stability is good for business”.
UK expansion
DP World's global network stretches from Peru to Australia, with a presence in 85 countries and more than 90 terminals.
“We're not looking at what politicians are deciding, we look at what the potential is in real numbers,” Mr bin Sulayem said, citing growth in countries such as Brazil and the UK.
Despite the UK's economic woes, DP World's London Gateway is thriving, marking the opening of the port's fourth terminal and plans for three more terminals.
“When you ask an economist, he'll tell you UK business is bad … at the same time we are approving expansion. It is not expansion for expectation, it is expansion for dealing with existing business,” he said. “Our customers, the shipping line, are demanding we have facilities. So, there is growth.”
DP World is also open to new investments in the US, should the right opportunities arise, he added.
In the UAE, the Jebel Ali-based company expects that the expansion of Al Maktoum International Airport will boost air-to-sea cargo flows.
“It's going to be amazing. Al Maktoum to Jebel Ali port, it will be almost the fastest highway of cargo connection, seamless connection between a ship and plane and I think that will be an advantage for us.”
