Dubai's DP World Inks Deal to Acquire Container Terminal in Canada

By Asa Fitch

DUBAI--Global ports operator DP World (DPW.NDB) has signed a deal valued at about $457 million to operate Canada's Fairview Container Terminal, the Dubai-based company said Thursday, adding to a portfolio of more than 65 terminals worldwide.

DP World acquired the Fairview port from Deutsche Bank AG (DB), which had been running it through Maher Terminals, a company its asset-management arm bought in 2007. Maher has struggled with depressed container volumes since the financial crisis, and Deutsche Bank had been trying to sell either Maher or its assets since last year. The bank has taken more than $1.5 billion in losses on the investment.

The Fairview terminal has a capacity to handle 850,000 standard container units a year, although that is set to increase to 1.35 million units upon the completion of a recently announced expansion, DP World said.

DP World is paying 580 million Canadian dollars ($457 million) for the total stock of Fairview on a debt-free basis, it said. DP World's port concession runs to 2034, it said, although that could be extended to 2056 after the completion of the new expansion.

For DP World, the deal adds to a growing roster of terminals at a time when global trade volumes have been improving. The company, which operates terminals mainly in fast-growing emerging markets but also has a presence in Europe and North America, reported a 12% year-on-year rise in 2014 net profit earlier this month as revenues and container volumes increased at most of its ports.

Prior to the acquisition of Fairview in British Columbia, DP World had one other terminal in Canada, in Vancouver.

The deal is expected to be completed in the second half of this year, pending regulatory approvals, DP World said.

Write to Asa Fitch at [e-mail]

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