UAE-based DP World, one of the world’s biggest port operators, says it has reached a deal to acquire Maher Terminal’s Fairview Container Terminal in Prince Rupert, British Columbia, Canada from Deutsche Bank.
The Fairview terminal is a purpose built sea-rail link terminal with a current capacity of 850,000 TEU per year, but will be expanding to 1.35 million TEU per year with the recently-announced “Phase 2” expansion.
The terminal will acquired for a total consideration of C$580 million, or approximately USD $457 million, and is expected to close in second half of 2015.
In Canada, DP World Limited is operator of the CENTERM terminal in Port Metro Vancouver and sees Fairview as a key gateway port for Trans-Pacific trade between Asia and North America with an excellent opportunity for growth.
Sultan Ahmed Bin Sulayem, Chairman, DP World, said: “We are delighted to extend our global footprint with a second terminal in Canada. The value proposition is compelling and the addition of capacity to our portfolio will contribute to DP World’s continued growth and the delivery of shareholder value.”
Mohammed Sharaf, Group Chief Executive Officer, DP World, said: “Fairview Container Terminal offers the fastest access for vessels traveling between Asia and North America. The terminal also offers the highest productivity rates on the West Coast and an efficient rail link to the hinterland. The long-term concession and ability to build beyond the current phase 2 of expansion presents a fantastic opportunity for DP World.”
The Phase 2 expansion is expected to be completed in the first half of 2017. DP World says there is the possibility of even further expansion -to the tune of 2.45 million TEU per year- depending on the outcome of a feasibility assessment.
The Fairview Container Terminal spans 59 acres and was first commissioned in 2007. The terminal includes a single berth with
three four super post panamax cranes, a 9,000 TEU container yard, 72 reefer plugs, 7 working rail tracks and 6 storage tracks. The expansion will involve the addition of a second berth and four additional cranes.
The facility is currently operated by Maher Terminals of New Jersey, which has 30-year concession period with the Prince Rupert Port Authority that ends in 2034 but will extend to 2056.
DP World has a current portfolio of more than 65 marine terminals across six continents, with its core container handling business making up more than three quarters of its revenue. In 2014, DP World ports handled 60 million TEU. By 2020, DP World says that number will swell to 100 million TEU based on its committed pipeline of developments and expansion.