Global port operator DP World and the Russian Direct Investment Fund (RDIF) have launched a new joint venture company targeting ports, transportation and logistics infrastructure in Russia.
The two parties signed a document determining the key terms and principles of the joint venture in which DP World will own an 80% shareholding with the remaining 20% held by RDIF.
Under the name ‘DP World Russia’, the company is expected to potentially invest over time a total of USD 2 billion in upgrading Russian port facilities, while introducing international best practices in operations to improve trade connectivity.
“Russia has always been an attractive origin and destination market for us with huge long term growth prospects. This joint venture allows DP World and RDIF to build on each other’s strengths in bringing economic prosperity to Russia. It is also another great example of the strategic partnerships with government stakeholders, a model that has proven very successful for us over the years,” HE Sultan Ahmed Bin Sulayem, DP World Chairman, said.
“DP World’s global expertise and its proven and tested ability to drive trade growth and develop efficient infrastructure, make it the ideal choice to support the long-term goals for the development of Russia,” comments Kirill Dmitriev, CEO of RDIF.