This time the Dubai-headquartered terminal operator has signed a long-term lease agreement for the expansion and operation of the multi-purpose Rodney Container Terminal (RTC) at Saint John in New Brunswick, Canada.
DP World will take over existing operations at the port in the south-eastern corner of Canada on January 1 next year before embarking on an expansion programme with the Saint John Port Authority to be completed in 2021. The lease will then run 30 years until 2051.
The RTC is the only Atlantic Canada port served by the country’s Class I railways, Canada National Railway (CN) and Canada Pacific Railway (CP) and is CP’s only Atlantic gateway port. The lease will follow the port authority’s completion of planned expansion works including a 350 metre deep-water berth, an enhanced stacking area and a 12,000 foot intermodal rail yard capable of handling a full train.
It is DP World’s fourth terminal concession in Canada, complementing its operations at CENTERM terminal in Port Metro Vancouver and at the Duke Point Terminal just across the Salish Sea at Nanaimo Port, and at Fairview Container Terminal in Prince Rupert, British Columbia. DP World bolstered its stake in Prince Rupert, a key gateway port for trans-Pacific trade, with the $457m acquisition of Maher Terminal’s operations in April 2015.
The RTC concession came just a day after DP World announced it had signed a MoU with the state run Taiwan International Ports Corporation (TIPC) for the development of Kaohsiung Port’s Terminal 7.
Its entry into Saint John will focus on Canada’s trade with Europe and Latin America, increasing sector competition in eastern Canada. It is expected to bring significant benefits to importers and exporters in New Brunswick and the Maritimes, a region of Canada that also includes other Atlantic provinces Prince Edward Island, Nova Scotia and Newfoundland.
“We believe that the future growth prospects for the Port of Saint John are strong and we are excited to be participating with Saint John Port Authority in their expansion plans,” said DP World group chairman and ceo Sultan Ahmed Bin Sulayem.
“Our investments and commitment to Canada are for the long term, contributing to trade and the development of its national and local economies as well as providing employment for people with a leader of world trade. Our international experience and expertise will be further enhanced with this project.”
Saint John Port Authority ceo Jim Quinn has hailed the DP World agreement which will see an immediate investment in post-panamax cranes and additional gantry cranes and container handling equipment.
“We are delighted to welcome DP World as the new operator of Rodney Container Terminal and to share in the expansion project for the terminal. The commitments that DP World has made to invest in equipment and systems, commercial promotion and sustainability are critical for the long-term success of the project,” said Quinn.
The transaction is not subject to any pre-closing Canadian regulatory approvals.