DP World expects to spend about US$1 billion every year for the next three years as the world’s fourth-biggest port operator looks to ramp up investments, add capacity and acquire new assets to strengthen its global footprint.
"We are looking at about close to US$1bn [in capital expenditure] from now to till 2020," DP World group chairman and chief executive Sultan Ahmed Bin Sulayem told The National in an interview in Dubai. "This is what is envisaged but of course our budget is flexible, depending on any businesses opportunities that we see."
The company, which is set to post 10 per cent growth in its gross container volumes in 2017 on the back of a stronger-than-expected recovery in the global trade last year, has spent about the same amount on capex in 2017.
Saudi Arabia is among the global trading hubs where the company plans to expand its presence. DP World is eyeing deals to operate more ports in the region’s biggest economy and is considering further investments into Jeddah Islamic Port to add further capacity. The company operates the South Container Terminal in the Red Sea port, which is the main hub, handling 59 per cent of the kingdom’s imports by sea and serves its main commercial centres.
“We have plans to expand Jeddah [port],” Mr Sulayem said without elaborating on the size of planned investments into exiting port facilities.
Saudi Arabia, which still relies heavily on sale of crude for revenues, is implementing economic reforms under its Vision 2030 programme after a slide in crude prices from Mid-2014 peak of $115 a barrel. In December the kingdom announced a record budget with an emphasis on infrastructure spending, which opens up new business opportunities for companies such as DP World.
Vision 2030 "gives visibility of what [growth] prospects are there …..and we are looking at expanding our investments in Saudi Arabia,” he said.
The kingdom’s expansionary budget is a sign of commitment from the government to turn its economy around, and it is “all good news”.
“If you look at Dubai and the UAE, what got us growing since 2010 was the government commitment to invest in infrastructure and what they need to do in Saudi Arabia in [terms of] infrastructure [spending] is big,” Mr Sulayem noted. “That’s going to be, in my opinion, one of the most important growth initiatives in the region. It is not just Saudi, that investment in growth is going to touch everybody [in the region].”
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Read more:
DP World expects 10% growth in 2017 gross container volumes
DP World snaps up remainder of Brazil’s Embraport
DP World provides new funding for Virgin Hyperloop One
DP World to buy two Dubai maritime entities for $405m
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The Nasdaq Dubai-listed port operator, is also eyeing acquisition opportunities in the UAE and beyond, Mr Sulayem said without identifying the assets.
“We go where the business goes,” he said. “We have an appetite for anything that will increase our EBITDA [earning before interest, tax depreciation and amortisation]. We look at opportunities around the world.”
In September the company took over two state-owned maritime entities in Dubai for $405 million, its second acquisition of assets in the UAE in three years after buying the Jebel Ali free zone owner for $2.6bn.
The acquisitions will help diversify the company’s business and are set to be concluded by the end of the first quarter of 2018.
DP World’s debt plans will depend on the size of future acquisitions, Mr Sulayem said when asked if the company plans to raise funds from debt capital markets this year.
Further investment into Virgin Hyperloop One, the futuristic transportation company, which appointed Virgin Group founder Richard Branson as its new chairman, however, will be evaluated on merit, he said.
“We invested with them. I’m not going to say we will invest in the future. It depends on the deal and each investment in the future has its own [merits],” Mr Sulayem said.
The company in December participated in the latest $50m funding round for the company. The firm joined Russia’s Caspian Venture Capital in the financing, which came ahead of the transportation company’s Series C round of funding.
Mr Sulayem said that the investments already poured into the technology firm are in line with the strategy to invest in core businesses.
“It is [our core business] actually, because Hyperloop is a technology that deals with cargo and we are a cargo company,” he said. “To me, Hyperloop is more of a R&D [research and development] investment. Just by investing in Hyperloop we have developed amazing technologies in the ports to deal with how fast you move containers.”
In terms of domestic operations, Mr Sulayem said that DP World has added 1.5 million twenty foot equivalent units (TEUs) capacity at Terminal 3 of home port Jebel Ali in the second half of last year. That brings the total to 4 million TEUs and makes it the world’s largest semi-automated facility. Terminal 4 is "equipped and ready", he added.
"We never want our customers to have to [experience] congestion," Mr Sulayem said. "Any time we go to 70 per cent capacity, we automatically invest to expand."
Brief scores:
Toss: Northern Warriors, elected to field first
Bengal Tigers 130-1 (10 ov)
Roy 60 not out, Rutherford 47 not out
Northern Warriors 94-7 (10 ov)
Simmons 44; Yamin 4-4
The Uefa Awards winners
Uefa Men's Player of the Year: Virgil van Dijk (Liverpool)
Uefa Women's Player of the Year: Lucy Bronze (Lyon)
Best players of the 2018/19 Uefa Champions League
Goalkeeper: Alisson (Liverpool)
Defender: Virgil van Dijk (Liverpool)
Midfielder: Frenkie de Jong (Ajax)
Forward: Lionel Messi (Barcelona)
Uefa President's Award: Eric Cantona
COMPANY%20PROFILE%20
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Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
COMPANY%20PROFILE
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Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
Packages which the US Secret Service said contained possible explosive devices were sent to:
- Former first lady Hillary Clinton
- Former US president Barack Obama
- Philanthropist and businessman George Soros
- Former CIA director John Brennan at CNN's New York bureau
- Former Attorney General Eric Holder (delivered to former DNC chair Debbie Wasserman Schultz)
- California Congresswoman Maxine Waters (two devices)
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
THE BIO
Favourite author - Paulo Coelho
Favourite holiday destination - Cuba
New York Times or Jordan Times? NYT is a school and JT was my practice field
Role model - My Grandfather
Dream interviewee - Che Guevara
Company%20Profile
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UAE currency: the story behind the money in your pockets
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
England squad
Moeen Ali, James Anderson, Jofra Archer, Jonny Bairstow, Dominic Bess, James Bracey, Stuart Broad, Rory Burns, Jos Buttler, Zak Crawley, Sam Curran, Joe Denly, Ben Foakes, Lewis Gregory, Keaton Jennings, Dan Lawrence, Jack Leach, Saqib Mahmood, Craig Overton, Jamie Overton, Matthew Parkinson, Ollie Pope, Ollie Robinson, Joe Root, Dom Sibley, Ben Stokes, Olly Stone, Amar Virdi, Chris Woakes, Mark Wood
FIXTURES
Nov 04-05: v Western Australia XI, Perth
Nov 08-11: v Cricket Australia XI, Adelaide
Nov 15-18 v Cricket Australia XI, Townsville (d/n)
Nov 23-27: 1ST TEST v AUSTRALIA, Brisbane
Dec 02-06: 2ND TEST v AUSTRALIA, Adelaide (d/n)
Dec 09-10: v Cricket Australia XI, Perth
Dec 14-18: 3RD TEST v AUSTRALIA, Perth
Dec 26-30 4TH TEST v AUSTRALIA, Melbourne
Jan 04-08: 5TH TEST v AUSTRALIA, Sydney
Note: d/n = day/night
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
The specs
Engine: 2.4-litre 4-cylinder
Transmission: CVT auto
Power: 181bhp
Torque: 244Nm
Price: Dh122,900
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now