Friday, December 2, 2016

Quebec based pension fund takes 45% share of DP World's Canadian operations

DP World the owners and operators of Fairview Terminal
have taken on a partner, with Caisse de Depot et Placement
from Quebec taking a 45 percent share of DP's Canadian interests

The ownership situation at Prince Rupert's Fairview Terminal is taking on a bit more Canadian content, one with a Qu├ębecois accent. That coming with the announcement today that a Quebec based pension fund has signed on to a forty-five percent share of both DP World's North Coast terminal and their port operations in Vancouver.

The announcement made by way of a Press release from Caisse de Depot et placement de Quebec, outlines how this newly formed partnership between DP and the Quebec investment organization has created a 3.7 Billion dollar investment platform designed to invest in global port and terminal business globally.

The combination of resources brings one of the significant players in the global shipping industry together with a major Canadian investment source, with the Caisse de Depot et Placement having over 254 billion dollars in assets listed as of June of this year.

DP World will continue to control the majority of the shares of the terminal which makes for one of Canada's two west coast based shipping gateways to the world.

The DP holdings in Vancouver and Prince Rupert are the first two terminals that are part of the new investment platform. Sultan Ahmed Bin Sulayem, the Group Chairman and CEO of DP world made note of how the partnership offers both opportunity and flexibility to capitalize on the growth potential of the global shipping sector.

“As a global trade enabler, DP World is proud to announce the partnership with CDPQ to invest in growth opportunities in port and terminal businesses around the world. In CDPQ we have found a partner with shared vision who is willing to participate in the risk and reward of investing throughout the life cycle of trade-enabling assets across the globe. 

The partial monetization of our Canadian assets further strengthens our balance sheet. The opportunity landscape in the port and terminal sector remains significant and this partnership offers us greater flexibility to capitalise on these opportunities while maintaining a strong balance sheet and retaining control. 

By combining our in-depth knowledge of container handling and CDPQ’s expertise in infrastructure investing and long-term horizon, we can continue to develop the port and terminal sector globally.”

Bloomberg Financial News offers up some background towards today's announcement and how the first stage of partnership on the west coast parts is just the first step towards a much larger investment plan.

DP World currently is putting the finishing touches to their Phase II expansion project at Fairview, they have also indicated their interest in further exploration of a potential expansion to the south of the main terminal site.

Today's partnership with the Quebec pension fund, one of the largest institutional investors in the country may provide further financing towards those potential expansion plans.

You can learn more about the work of the Caisse de Depot de placement here, more items related to DP World can be found on our archive page.

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