MIDDLE EAST

DPI Grabs CSXWT for US$1.4 billion

22 years ago

Quite literally at time of going to press we learned that Dubai Ports International (DPI) has secured the global assets of CSX World Terminals for US$1.4billion. DPI was a late runner and there will be those who are surprised to see them paying such a price. Clearly, DPI was determined to leap into the big time with this one and was determined not to miss out – at any price. It will indeed be interesting to monitor their competitors reaction to what certainly represents an interesting benchmark.

In comparison, vessel loading and unloading added just US$6.8m to the overall cost of moving goods through the port. The report also emphasises that US$11.7m in bribes were required to smooth the passage of export consignments through Chittagong.

There must be questions over the long-term viability of Hong Kong’s role as southern China’s major entrepot, given the phenomenal growth in terminal capacity taking place in China itself where land and labour costs are so much cheaper.

The report in PR News Service says DPI, the port investment arm of the Dubai Port Authority (DPA), is expected to start operating on the Hong Kong waterfront early 2005 at Container Terminal 3 (CT3). Included in the Hong Kong sector of the CSXWT assets, is a 57% stake in CT3, a 16.7% stake in Asia Container Terminals (ACT), which operates the two berths at CT8 West, and 28% of Asia Terminals, the huge warehouse complex behind CT3. See also PS on p.50.