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DP World restructures Belgium operations

DUBAI — DP World Ltd, the world’s third-largest port operator, has sold some non-core operations in Belgium and has quit a venture in Yemen as part of a series of disposals of overseas assets.

In Belgium, DP sold its stake in DP World Breakbulk NV and AProjects NV, whose assets it said were worth $61 million, to a company called Orienta NV.

“This sale forms part of a restructure of our businesses here in Antwerp, Belgium,” Rob Harrison, managing director of DP World’s businesses in Belgium, said in a statement on Thursday.

In Yemen, the Dubai-based operator’s local unit sold its 50 per cent stake in Aden Port Development Co for $27 million to its joint venture partner, state-firm Yemen Gulf of Aden Ports Corp.

Harrison said the disposal of assets in Belgium would allow DP World to focus on its expertise in container terminal management and related areas.

DP World Breakbulk is a joint venture formed in 2007 and operates a general cargo terminal at the Port of Antwerp, while AProjects offers logistical services.

Under the agreement with Yemen Gulf of Aden Ports Corporation, or YGAPC, DP World will cease its management of Aden Container Terminal on September 20^th, and Aden Port Development Company, a wholly owned subsidiary of YGAPC, will take full responsibility of the port’s operations.

YGAPC said in statement that the agreement protects the interests of the Republic of Yemen and YGAPC and secures the future for this strategically located terminal. It provides stability and an excellent base from which to boost the national economy.

“We are excited by the prospect of building on the progress made so as to further develop and expand the Port to realise its full potential as a leading modern and efficient transhipment hub.”

DP World said the agreement reached protects the interests of DP World, its partners and the Yemeni parties who will run and operate a terminal boosted by two new Liebherr Super Post-Panamax quay cranes.

“We believe that the work we have started will go a long way in further supporting the facility’s position.”

DP World, which makes the bulk of its money from regional operations, has been selling assets in developed markets, including the $1.5 billion sale of its Australian operations to private equity firm Citi Infrastructure Investors last year. In July, DP World said it was forced to hand over its 60 per cent holding in Adelaide’s container terminal to Flinders Port after the Australian firm exercised its right to buy the stake. The company also sold its 34 per cent stake in UK-based Tilbury Container Services Ltd for $75.48 million in January.

In August, DP World said profit before tax climbed 12 per cent to $310 million in first half of this year due to strong growth in its key markets of Middle East, Africa and South America.

Revenues for the six months ended June 30 rose to $1.53 billion from $1.5 billion in the corresponding period last year. The company’s revenues from Middle East, Africa and Europe operations rose 14 per cent to $1 billion, but revenues from its operations in Asia-Pacific, Indian subcontinent and Australia dropped in the first half.

With a pipeline of expansion and development projects in key growth markets including India, China and the Middle East, the total container handling capacity of the operator is expected to rise to around 103 million TEUs by 2020.

In April DP World fully repaid and cancelled its $3 billion syndicated loan facility due in October 2012 using cash balances.

• issacjohn@khaleejtimes.com