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DP World signals intent to drive forward global expansion plans

DP World signals intent to drive forward global expansion plans
DP World will continue to drive forward with its global expansion plans, despite challenging market conditions and the possibility of protectionist policies from US President Donald Trump.

Speaking on a conference call following the release of DP World’s 2016 financial results, Sultan Bin Sulayem, group chairman and ceo said: “We see some good times [ahead].”

DP World operates ports in China and Canada, two countries targeted by Trump's vow to make steep changes to US trade policy, but Bin Sulayem said the controversial President wants to “balance trade.”

"It is my belief that when the Americans…….. or Donald Trump talks about trade and free trade, he talks about fair trade. He is trying to balance trade with other countries. He wants other countries to open their markets,” he commented.

In its financial results, it was revealed that DP World will invest $1.2bn on adding capacity to its Jebel Ali port, and its other ports in China, Senegal, Somaliland, Canada and UK.

It has also stated its intention to expand in Ecuador where it has a 50 year concession agreement to develop a port.

“We are optimistic about Latin America, that’s why we’re expanding and building, for example, in Ecuador. We are optimistic about Africa, as usual, and our business is doing well in all our terminals in Africa. Europe is improving, and so I can see growth there,” said Bin Sulayem.

On top of those, the chairman said DP World is also still exploring opportunities for investment in Russia after signing a deal in September with a Russian firm to look into investing in ports, special economic zones, and logistics facilities.

On Russia, he added: “We continue to look for opportunities in Russia with our partners. There are a few deals on the table today; it is just a matter of negotiations, and as soon as we are ready with the partners, we will sign.”

The chairman’s comments came after DP World announced stronger than expected financial results, having achieved $1.13bn net profit in 2016, a 28% increase on $883m profit in 2015.

The company’s revenues increased by almost 5% year-on-year in 2016 to $4.16bn.