DP World to buy Canada's Fairview Container Terminal for $457 mn

Dubai port operator DP World, yesterday struck a deal to buy Canada's Fairview Container Terminal from Deutsche Bank for C$580 million ($457 million).

The deal will have to be approved by Canada government's foreign investment provisions, but is unlikely to face any hurdles since Fairview Container Terminal is already owned by a foreign entity.

Fairview is a purpose-built terminal with an efficient sea-rail link and has a current capacity of 850,000 TEU (twenty-foot equivalent container units). It has recently announced Phase 2 expansion that will take capacity to 1.35 million TEU.

The concession period runs to 2034 with an extension to 2056 after the completion of Phase 2.

DP World has been a significant investor in Canada, as operator of the CENTERM terminal in Port Metro Vancouver.

Mohammed Sharaf, CEO of DP World, said, ''Fairview Container Terminal offers the fastest access for vessels traveling between Asia and North America. The terminal also offers the highest productivity rates on the West Coast and an efficient rail link to the hinterland. The long-term concession and ability to build beyond the current phase 2 of expansion presents a fantastic opportunity for DP World.''

DP World has a portfolio of more than 65 marine terminals across six continents, including new developments underway in India, Africa, Europe and the Middle East.

Container handling is the company's core business and generates more than three quarters of its revenue. In 2014, DP World handled 60 million TEU, and its flagship Jebel Ali facility in Dubai has been voted ''Best Seaport in the Middle East'' for 20 consecutive years.