Monday, 6 April 2015 00:00
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Dubai-based DP World, a major global marine terminal operator, plans to acquire Maher Terminal’s Fairview Container Terminal (Fairview) in Prince Rupert, Canada, from Deutsche Bank for $ 457 million.
Fairview presents growth opportunity in a market with attractive and growing demand, a statement said.
Fairview is a purpose built terminal with an efficient sea-rail link and has a current capacity of 850,000 TEU (20-foot equivalent container units), with a just-announced Phase 2 expansion that will take capacity to 1.35 million TEU.
The concession period runs to 2034 with an extension to 2056 after the completion of Phase 2. Total consideration payable is C$ 580 million ($ 457 million) for the total outstanding stock of Fairview on a cash-free, debt-free basis.
The completion of the transaction is subject to applicable Canadian regulatory approvals and is expected to occur in the second half of 2015.
DP World has been a significant investor in Canada, as operator of the CENTERM terminal in Port Metro Vancouver. The transaction will provide significant benefits to Canada, including to the Province of British Columbia, to the City of Prince Rupert, to First Nations communities, and to importers, exporters and consumers, chiefly including:
nImplementation of the phase 2 expansion expected to be completed in the first half of 2017, which will add capacity and efficiency to Canada’s Asia-Pacific Gateway and Corridor. Expansion is projected to create more than one-half million hours of construction work and more than 500 FTE jobs
nUndertake feasibility assessment in relation to development of the lands intended for further expansion which could potentially increase the capacity to 2.45 million TEU
DP World Chairman Sultan Ahmed Bin Sulayem said, “We are delighted to extend our global footprint with a second terminal in Canada. The value proposition is compelling and the addition of capacity to our portfolio will contribute to DP World’s continued growth and the delivery of shareholder value.”
DP World Group Chief Executive Officer Mohammed Sharaf said: “Fairview Container Terminal offers the fastest access for vessels travelling between Asia and North America. The terminal also offers the highest productivity rates on the West Coast and an efficient rail link to the hinterland. The long-term concession and ability to build beyond the current phase 2 of expansion presents a fantastic opportunity for DP World.”
“We are delighted to announce this transaction and look forward to further enhancing the port’s operations under DP World management,” he added.
