Dubai-based port and terminal operator DP World and North America’s pension fund managers Caisse de dépôt et placement du Québec (CDPQ) have joined forces to create an investment vehicle to invest in ports and terminals globally, excluding the United Arab Emirates.
The investment platform, which totals USD 3.7 billion, with DP World holding a 55% share and CDPQ the remaining 45%, will invest in these assets across their life cycle, with a focus on investment grade countries.
DP World said that the investment would cover mostly existing assets, with up to 25% invested in greenfield opportunities.
The investment vehicle will be seeded with two of DP World’s Canadian container terminals, located on the Pacific Coast in Vancouver and Prince Rupert, with CDPQ acquiring a 45% stake of the combined assets for USD 640 million.
CDPQ’s investment in the two Canadian terminals are subject to a number of customary regulatory approvals.
“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,” Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said.