DP World extends reach in China

18 November 2005
Dubai's DP Worldhas strengthened its holdings in the Far East by signing a new agreement with Qingdao government to develop a $500 million container terminal at a greenfield site in Shandong province in Eastern China. The agreement comes only days after DP World's early November announcement that it is set to acquire a coastal site in Turkey to develop a greenfield container terminal. The company is also understood to have tabled a bid in excess of $5,000 million to acquire the UK's P&O(MEED 4:11:05).

Located in Qingdao, the terminal will be 100 per cent owned by DP World and is expected to have capacity of more than 2 million 20-foot equivalent units (TEUs). The project involves the construction of a 1,320-metre-long quay and four deep draft berths. The terminal will commence operations by 2009. Qingdao is already home to the country's third largest container port, which handles in excess of 6 million TEU annually.

The latest investment adds to DP World's other interests in China at the ports of Tianjin and Yantai. The operator also acquired operations at CT3 and CT8 in Hong Kong when it took over US-based operator CSX Terminalsin 2004 (MEED 10:12:04).

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