Dubai Ports World eyes up to $3 bln expansion http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-07-03T004310Z_01_L02500677_RTRUKOC_0_US-TRANSPORT-EMIRATES-DPWORLD.xml&archived=False
Sun Jul 2, 2006
DUBAI (Reuters) - State-owned Dubai Ports World will spend up to $3 billion over the next three to four years as it seeks to boost container traffic at existing ports by 40 percent, its chairman said on Sunday.
Sultan Ahmed bin Sulayem told reporters the firm would invest in facilities such as new cranes and berths.
"We will spend between $2 billion and $3 billion to expand existing ports. Many of these are greenfield developments. There are many ports with potential for growth."
He said the firm would develop ports including Callao, Peru, and Ho Chi Minh City, Vietnam.
DP World had not decided how to finance the expansion, but Sulayem said it was looking at all options, including bonds, bank loans and a possible share sale.
In March, DP World bought British ports operator P&O for $6.85 billion, giving it control of 51 ports around the world. They have a combined annual throughput of more than 50 million TEUs (twenty foot equivalent units). Sulayem said the firm would consider further acquisitions, but that it was not actively pursuing any deals.
He said DP World and its adviser Deutsche Bank were "evaluating" bids for five US ports acquired as part of the P&O deal. He declined to say which firms had bid, or the value of the bids.
DP World agreed to sell the U.S. assets of P&O to a US firm, following widespread political and popular opposition to the idea of an Arab government controlling US ports.
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