Dubai-based port and terminal operator DP World would invest up to USD 3 billion over the next three years in an effort to add new capacity and assets.
According to local media reports, the company’s Chairman and CEO, Sultan Ahmed Bin Sulayem informed that the port operator plans to spend around USD 1 billion in capital expenditure each year until 2020.
He added that the budget is flexible as it depends on the business opportunities that arise during the period.
Final capex for FY2017 and capex expectations for 2018 are set to be revealed on March 15. The company’s spokesperson told World Maritime News that so far DP World has guided for USD 950 million from 2018-2020.
DP World would reportedly look for expansion opportunities in Saudi Arabia, in an effort to operate more ports in the region’s biggest economy. The company would also invest in Jeddah Islamic Port to expand the port’s capacity.
Furthermore, the CEO said that the company would seek expansion opportunities in the UAE and other regions.
On January 8, DP World marked its 10-year public listing on Nasdaq Dubai. The company said that the listing has been instrumental to its growth history.
“It has given us access to the top global and regional institutional investor base and the retail community. We have grown from 42 terminals in 22 countries before the listing to almost double with 78 terminals in 40 countries within a decade, while profits have risen from USD 440 million to over USD 1 billion during this period,” Bin Sulayem, said.
The company ended the year as the largest listed company in Dubai with a market capitalisation of USD 21 billion. The DP World share price reached USD 25 at the end of 2017, a 10-year high having risen 43% in the year on the back of strong container volume growth.
World Maritime News Staff