DP World, one of the world's largest port operators, said on Sunday it has completed the acquisition of Canadian terminal Fraser Surrey Docks (FSD) from a Macquarie Group fund.
The Dubai company announced it would acquire the Vancouver marine terminal last May. DP World purchased the terminal from Macquarie Infrastructure Partners (MIP), a fund managed by the Macquarie Infrastructure and Real Assets division of Macquarie Group.
"DP World is pleased to advise that it has closed the transaction to acquire Fraser Surrey Docks," it said in a statement to Nasdaq Dubai, where the company shares trade.
Canadian subsidiary DP World Canada Investment, in which Canada's second-biggest pension manager Caisse de depot et placement du Quebec (CDPQ) owns a 45 per cent stake, has bought the terminal.
The purchase consideration is below 2.5 per cent of DP World’s net asset value as of December 31, 2018, the port operator said.
Fraser Surrey Docks, located in the greater Vancouver area of British Columbia on the west coast of Canada, is one of the city's major steel import terminals.
It operates more than 1,200 meters of berth and 189 acres of yard. FSD also handles over a million tonnes of grain and received approximately 250,000 twenty foot equivalent shipping containers in 2018.
The acquisition expands DP World’s footprint in Canada, where it also operates a terminal in the inner harbour of downtown Vancouver and another in Prince Rupert.
"Our customers in Vancouver require additional facilities for non-container activities and we believe FSD can offer this much needed capacity," DP World said in an August 2019 report on first-half financial results.
Earlier this month, DP World said it is returning to full state ownership after it delists from Nasdaq Dubai.
The company, which operates ports around the world, said its parent company Port and Free Zone World will acquire 19.55 per cent of DP World's shares traded on Nasdaq Dubai for a 29 per cent premium.
The ports operator is returning to private ownership as it seeks to transform into an infrastructure-led logistics provider.
