Posted on August 4, 2016
By Bruce Barnard, JOC.com
DP World has signed an agreement to operate and expand the container terminal at Saint John, New Brunswick, spreading its Canadian footprint and sharpening competition on the eastern Atlantic seaboard.
The Dubai-based company’s lease of the Rodney Container Terminal begins on Jan. 1, 2017, and will continue for 30 years after the completion of the Saint John Port Authority’s $156.7 million expansion program scheduled for 2021.
DP World, which will participate in the expansion project, did not disclose financial details of the deal, which is not subject to any pre-closing Canadian regulatory approvals.
The expansion involves the construction of a 350-meter (1,148-foot) deep-water berth, an enhanced stacking area and a 12,000 foot intermodal railyard capable of handling a full train.
DP World said there will be immediate investment in equipment to handle post-Panamax container vessels as well as additional gantry cranes at the terminal, which will focus on Canada’s trade with Europe and South America.
Saint John is the only Atlantic Canadian port that is served by the country’s Class I railways, Canadian National Railway and Canadian Pacific Railway, and is the latter’s only Atlantic gateway port.
The port handled 97,114 twenty-foot equivalent units in 2015, up from 89,615 TEUs a year earlier, while total throughput, including dry and liquid bulk and conventional general cargo, grew by 10 percent to 26.4 million tonnes (27.1 million tons).
“We believe that the future growth prospects for the port are strong and we are excited to be participating with Saint John Port Authority in their expansion plans,” said DP World CEO Sultan Ahmed Bin Sulayem.
“The commitments that DP World has made to invest in equipment and systems, commercial promotion and sustainability are critical for the long-term success of the project,” said Jim Quinn, president and CEO of Saint John Port Authority.
DP World currently operates the Centerm terminal in Vancouver, the Fairview terminal in Prince Rupert and the Duke Point terminal in Nanaimo.
The company handled 31.4 million TEUs across its global network in the first half, a 2.5 percent increase on the year-earlier period.
Source: JOC.com
