DP World
Coordinates: 24°59′N 55°05′E / 24.983°N 55.083°E
 | |
| Type | Public |
|---|---|
| NASDAQ Dubai: DPW | |
| Industry | Maritime |
| Founded | 2005 |
| Headquarters | Dubai, United Arab Emirates |
Key people | Sultan Ahmed bin Sulayem, Group Chairman and CEO Yuvraj Narayan, Group CFO, |
| Products | Ferries, port services, logistics services |
| Revenue |  US$8.5 billion (2018)[1] |
| US$3.35 billion (2018)[1] | |
| Total assets | US$26.51 billion (2018)[1] |
| Total equity | US$11.99 billion (2018)[1] |
Number of employees | 50,000 |
| Parent | Dubai World |
| Subsidiaries | P&O Ferries |
| Website | www |
DP World is an Emirati multinational logistics company based in Dubai, United Arab Emirates. It specialises in cargo logistics, port terminal operations, maritime services and free trade zones. Formed in 2005 by the merger of Dubai Ports Authority and Dubai Ports International, DP World handles 70 million containers that are brought in by around 70,000 vessels annually. This equates to roughly 10% of global container traffic accounted for by their 82 marine and inland terminals present in over 40 countries. Until 2016, DP World was primarily a global ports operator, and since then it has acquired other companies up and down the value chain.
History[]
Early history[]
Dubai Ports International (DPI) was founded in 1999.[2] Its first project was at Jeddah, Saudi Arabia, collaborating with a local partner on the management and operation of the South Container Terminal (SCT). DPI then went on to develop operations at the ports of Djibouti in 2000, Vizag, India in 2002 and Constanta, Romania in 2003.[2] In January 2005, DPI acquired CSX World Terminals (CSX WT).[3] It was later, in September 2005 that Dubai Ports International officially merged with the Dubai Ports Authority to form DP World.[4] The rapid expansion through acquisition continued in March 2006 when DP World purchased the fourth largest ports operator in the world, P&O for £3.9 billion.
2006: US Port security controversy[]
The ownership of various U.S. ports by DP World (which had been acquired as part of the P&O deal) was seen as highly controversial by many in the United States even though it was supported by the U.S. president George W. Bush; the US ports were sold shortly afterwards.
P&O operated major U.S. port facilities in New York, New Jersey, Philadelphia, Baltimore, New Orleans, and Miami. Before the deal was secured, the arrangement was reviewed by the Committee on Foreign Investment in the United States headed by the U.S. Treasury Department and including the Departments of State, Commerce, and Homeland Security. It was given the green light, but soon after, both Democratic and Republican members of Congress expressed concern over the potential negative impact the deal would have on port security.
On 22 February 2006, President George W. Bush threatened to veto any legislation passed by Congress to block the deal, which would be the first time in his presidency he would exercise the privilege. In a statement to reporters, Bush claimed, "It would send a terrible signal to friends and allies not to let this transaction go through."[5] On 23 February 2006, DP World volunteered to postpone its takeover of significant operations at the seaports and on 9 March 2006, is said that it would transfer its operations of American ports to a "U.S. entity".[6]
The United States House of Representatives held a vote on 16 March 2006 on legislation that would have blocked the DP World deal, with 348 members voting for blocking the deal, and 71 voting against.[7] DP World later sold P&O's American operations to American International Group's asset management division, Global Investment Group for an undisclosed sum.[8]
In August 2006, DP World signed an agreement with the Port Qasim Authority, to invest in a new container terminal at Port Muhammad Qasim near Karachi and announced that it was in discussions with the Pakistani Government about the development of a container terminal at Gwadar in Balochistan.[9] DP World had been favourite to win the Gwadar concession, but withdrew from the bidding.[10] Gwadar Port was subsequently awarded to PSA (Port of Singapore Authority) and opened in March 2007.[11]
2007–2010: NASDAQ Dubai listing[]
In June 2007 the company raised $3.25 billion in Islamic and conventional bond sales to refinance existing debt and fund expansion[12] and issued 3.818 billion shares, representing 20% of the company on the NASDAQ Dubai stock exchange in November 2007 in what was the Middle East's largest initial public offering (IPO) which raised 4.96 billion dollars.[13]
By 2008 the company was handing 46.8 million TEU worldwide, up 8% on 2007, with expansion and development projects in India, China, the Middle East, and elsewhere. Capacity was expected to rise to around 95 million TEU over the next ten years.[2]
In December 2009 Moody's downgraded DP World's financial status to junk after the Dubai 2009 debt standstill.[14]
2010 – present[]
In the second quarter of 2010 DP World gave the go-ahead for construction of the £1.5 billion London Gateway port.[15][16] Work started in February 2010[17] with the port due to open in the fourth quarter of 2013. By April 2011, Moody's upgraded DP World's financial status to 'investment grade'.[18] Since December 2010, DP World has undertaken a series of asset disposals, exiting markets where it does not have a significant presence and seeking to redeploy funds in fast-growing markets.[19]
In March 2021, the company said that, due to the Covid-19 pandemic, it had witnessed a drop of its profits by 29% comparing to 2019.[20]
In May 2021, Abdulla Bin Damithan has been appointed as CEO and managing director of UAE business.[21]
Location of DP World's operations[]
Container Terminals
Non-Container Terminals
New Developments and Major ExpansionsDP World has a portfolio of 78 operating marine and inland terminals supported by over 50 related businesses in 40 countries across six continents.[22]
The table below lists current terminals and new developments managed by DP World.[23]
| Port | City | Country | showType |
|---|
Corporate affairs[]
Supply chain security[]
DP World has been certified as a partner in the Customs-Trade Partnership Against Terrorism (C‑TPAT) initiative by U.S. Customs and Border Protection – to date, the only international port operator to have achieved this recognition. This certification is primarily based on DP World's commitment to the independently audited international ISO 28000 security standards. DP World was the first global maritime terminal operator to achieve ISO 28000 supply chain security certification and is rolling out the standard to all its terminals.[24]
Counter piracy[]
In June 2012, in partnership with the UAE Ministry of Foreign Affairs, DP World convened the second high-level, public-private counterpiracy conference, in Dubai.[25] The Washington Post reported "Diplomats and business leaders...are pushing for stronger partnerships between the public and private sectors in combating piracy off the coast of Somalia".[26]
The April 2011 conference was the first time companies rather than governments had contributed financial support to the UN counter-piracy trust fund.[27] The inaugural conference was attended by more than 65 governments and representatives of international organisations, including the United Nations[28] and more than 120 leaders from maritime industry related companies.
Berbera operations[]
In 2016 a US$442 million agreement was reached between DP World and the government of Somaliland.[29] The deal involves enhancing and operating the regional trade and logistics hub at the Port of Berbera.[30] The project, which will be phased in, will also involve the setting up of a free zone.
On 1 March 2018, Ethiopia became a major shareholder following an agreement with DP World and the Somaliland Port Authority. DP World holds a 51% stake in the project, Somaliland 30% and Ethiopia the remaining 19%. As part of the agreement, the government of Ethiopia will invest in infrastructure to develop the Berbera Corridor as a trade gateway for the inland country, which is one of the fastest growing countries in the world. There are also plans to construct an additional berth at the Port of Berbera, in line with the Berbera master plan, which DP World has started implementing, while adding new equipment to further improve efficiencies and productivity of the port.[31]
The agreement comes as part of a larger government-to-government Memorandum of understanding between Government of the United Arab Emirates and the Government of Somaliland to further strengthen their strategic ties.[32] Somalia's attempts to obstruct and block the deal were frustrated and failed to stop the project from commencing.[33]
Sport sponsorship[]
DP World sponsor the newly re-titled DP World Tour Championship, Dubai, played at Jumeirah Golf Estates.[34] For the first three editions of the tournament previously known as "The Dubai World Championship", DP World had been a presenting sponsor. DP World also support the Hong Kong Open, the penultimate event on The Race to Dubai and the BMW PGA Championship at Wentworth Club.
For the Formula One 2020 Season, DP World and Renault F1 Team, have signed an agreement making DP World the Global Logistics Partner of the team, which will become the Renault DP World F1 Team as from the 2020 Season.[35]
In the 2020 season of the Indian Premier League, DP World is the Global Logistics Partner for the Royal Challengers Bangalore team.[36]
References[]
- ^ Jump up to: a b c d "Investor Relations – Everything you need to know about our company and the financial markets". DP World. Retrieved 10 April 2019.
- ^ Jump up to: a b c "About DP World – History". Archived from the original on 5 November 2012. Retrieved 2012-11-27.
- ^ International, CSX Corporation; Dubai Ports. "Dubai Ports International Completes Acquisition Of CSX World Terminals". www.prnewswire.com. Retrieved 13 November 2017.
- ^ "Dubai merger sees world's largest port operation". 29 September 2005. Retrieved 13 November 2017.
- ^ "Bush threatens veto in ports row". BBC News. 22 February 2006. Retrieved 1 May 2010.
- ^ Sale of P&O Ports North America[permanent dead link]
- ^ "H.R. 4939 (109th): Emergency Supplemental Appropriations Act for Defense, the ... – House Vote #65 – Mar 16, 2006". GovTrack.us. Retrieved 13 November 2017.
- ^ King Jr., N.; Hitt, G. (11 December 2006). "Dubai Ports World Sells U.S. Assets". The Wall Street Journal.
- ^ "DP World to invest on new terminal in Pakistan" (PDF). Retrieved 21 March 2012.[permanent dead link]
- ^ "PSA wins Gwadar". Archived from the original on 4 March 2016. Retrieved 21 March 2012.
- ^ "Pakistan launches strategic port". 20 March 2007. Retrieved 13 November 2017 – via news.bbc.co.uk.
- ^ "DP World raises $3.25b from two bond issues". Gulf News. Retrieved 9 December 2009.
- ^ "Investor Centre". DP World. Archived from the original on 7 August 2011. Retrieved 2009-12-08.
- ^ Moya, Elena (8 December 2009). "Six Dubai companies downgraded to junk status". The Guardian. London. Retrieved 8 December 2009.
- ^ Editorial, Reuters (4 January 2010). "DP World to go ahead with London Gateway". Reuters. Retrieved 13 November 2017.
- ^ "Dubai's port firm seeking stock listing in London". seattletimes.com. Retrieved 13 November 2017.
- ^ "London Gateway port, Essex". Local Transport Today. Retrieved 11 February 2010.
- ^ "Moody's upgrades DP World to Baa3; outlook stable". 11 April 2011. Retrieved 13 November 2017.
- ^ "UPDATE 2-DP World sells Hong Kong assets for $742 mln". Reuters. 7 March 2013. Retrieved 13 November 2017.
- ^ "Dubai port operator DP World sees 2020 profits drop 29% amid virus". Arab News. 18 March 2021. Retrieved 18 March 2021.
- ^ "DP World appoints new CEO in UAE". Arab News. 22 May 2021. Retrieved 22 May 2021.
- ^ "DP World's Q1 shipping container volumes fall in UAE, flat globally". www.zawya.com. Retrieved 24 May 2019.
- ^ "Our Locations – 40 Countries in 6 Continents – DP World". www.dpworld.com. Retrieved 25 August 2019.
- ^ "DP World joins partnership against terrorism. – Free Online Library". www.thefreelibrary.com. Retrieved 13 November 2017.
- ^ "2nd UAE Counter-Piracy Conference Renews Commitment To Public Private Partnership" (PDF). Archived from the original (PDF) on 1 December 2016. Retrieved 13 November 2017.
- ^ "- The Washington Post". Washington Post. Retrieved 13 November 2017.[dead link]
- ^ Bloomberg Businessweek | Diplomats, businessmen urge tougher piracy fight | 19 April 2011 Archived 12 March 2016 at the Wayback Machine
- ^ "Latest Statements – United Nations Secretary-General". www.un.org. Retrieved 13 November 2017.
- ^ "Somaliland and DP World celebrate 30-year concession for $442 million Port of Berbera (Somaliland) – Asoko Insight". Asoko Insight. Retrieved 19 June 2017.
- ^ "Somalia project opens up Africa for DP World". thenational.ae. 30 May 2016. Retrieved 30 May 2016.
- ^ "Ethiopia acquires 19% stake in DP World Berbera Port" (PDF). Retrieved 21 May 2018.
- ^ "Dubai's DP World Agrees to Manage Port in Somaliland for 30 Years". Wall Street Journal. 30 May 2016. Retrieved 30 May 2016.
- ^ Reuters (20 April 2018). "DP World Should Rethink Port Deals in Somalia-Foreign Minister". The New York Times. ISSN 0362-4331. Retrieved 22 April 2018.
- ^ europeantour.com. "DP World enters three-year Race to Dubai agreement – European Tour". www.europeantour.com. Retrieved 13 November 2017.
- ^ "DP WORLD TO BECOME RENAULT F1 TEAM GLOBAL LOGISTICS PARTNER AND TITLE PARTNER..." en.media.groupe.renault.com. Retrieved 12 July 2020.
- ^ "Royal Challengers Bangalore ropes in DP World as Global Logistics Partner". The Sports News.
External links[]
- DP World – Global
- BBC story on takeover of P&O
- Republican Congresswoman Sue Myrick's letter to President Bush regarding the DP World ports purchase
- SourceWatch article on DP World
| show Authority control  |
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- P&O (company)
- Transport companies established in 1999
- Government-owned companies of the United Arab Emirates
- Companies based in Dubai
- Port operating companies
- Port companies of the United Arab Emirates
- Transport operators of the United Kingdom
- Companies formed by merger
- Multinational companies headquartered in the United Arab Emirates
- Emirati companies established in 1999