São Paulo – The Dubai, UAE-based port operator DP World is considering investing in new Latin America seaport concessions next year. The announcement was made by DP World Operations director Mahmood Al Bastaki during the Latin America edition of the Global Business Forum (GBF) held by the Dubai Chamber of Commerce and Industry this week in Panama City. The news is from online magazine Arabian Business.
The company is eyeing five to seven concessions across the region, although Arabian Business wouldn’t mention in what countries.
Al Bastaki said the operator “has a big focus” on the region. “There are lots of ports that require advanced equipment and know-how,” Arabian Business. quoted the director as saying. DP World’s latest move in Latin America was the acquisition of a 71.3% stake in Chile port operator Pulogsa last January.
“A port is a long-term investment. Wherever we go, we do capacity building, we create jobs for the local economy and local talent have an opportunity to get into a strategic business,” he said.
Al Bastaki said Latin America is particularly attractive to DP World for its relative stability compared with other parts of the world. “It (Latin America) is in good shape. Lately Venezuela has been having some problems, but other than that, the whole continent is in a safe condition,” he said.
Dubai newspaper Gulf News quoted the director as saying geopolitics is impacting global trade, citing the examples of Venezuela, Sudan and Algeria. Algeria’s president Abdelaziz Bouteflika recently stepped down amid protests, and this Thursday (11) saw Sudan’s army oust president Omar Al Bashir, who’d been in power for 30 years, also amid protests.
“These things affect trading hubs, supply chains and goods movement. All these war countries when they are in crisis they will not get into consuming and spending and it will affect the world trade. We being in the business of port terminal operator we don’t carry much cargo because there is no demand. So political stability plays a big role,” he said.
Al Bastaki said he expects to see Latin America trade soar, and mentioned operations in Brazil. “Brazil was always the main player because of the size and due to manufacturing and exporting capabilities and there’s been little bit slowdown and it is bound to grow because of the population increase.” The company runs the DP World Santos terminal (pictured), previously named Embraport, on the São Paulo coast.
Last year saw DP World invest USD 3 billion in diversifying its global portfolio. Investments included the purchase of 100% of Peruvian logistics company Cosmos Agency Maritima SAC in a USD 315 million deal that gave DP World a 50% stake in the Paita port, which is home to the country’s second biggest shipping container terminal.
Translated by Gabriel Pomerancblum
