Dubai, UAE—DP World Limited is buying Maher Terminal’s Fairview Container Terminal (Fairview) in Prince Rupert, British Columbia, from Deutsche Bank.
Fairview is a purpose-built terminal with a current capacity of 850,000 TEU (twenty-foot equivalent container units), with a just-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. Total consideration payable is C$580 million (US$457 million*) for the total outstanding stock of Fairview on a cash-free, debt-free basis (subject to customary adjustments). The completion of the transaction is subject to applicable Canadian regulatory approvals and is expected to occur in the second half of 2015.
- DP World Limited has been a significant investor in Canada, as operator of the CENTERM terminal in Port Metro Vancouver. The transaction will provide significant benefits to Canada, including to the Province of British Columbia, to the City of Prince Rupert, to First Nations communities, and to importers, exporters and consumers, including:
- Implementation of the phase 2 expansion expected to be completed in the first half of 2017, which will add capacity and efficiency to Canada’s Asia-Pacific Gateway and Corridor. Expansion is projected to create more than one-half million hours of construction work and more than 500 FTE jobs;
- Undertake feasibility assessment in relation to development of the lands intended for further expansion which could potentially increase the capacity to 2.45 million TEU;
- Access to DP World’s world class productivity-enhancing best practices in container terminal development and operation;
- Access to DP World’s state-of-the-art supply chain security and safety practices;
- Net increase in employment levels in Canada;
- Substantial Canadian participation in the management of Fairview;
- Enhanced competition in the provision of container terminal services on Canada’s west coast.
Sultan Ahmed Bin Sulayem, Chairman, DP World, said: “We are delighted to extend our global footprint with a second terminal in Canada. The value proposition is compelling and the addition of capacity to our portfolio will contribute to DP World’s continued growth and the delivery of shareholder value.”
Mohammed Sharaf, Group Chief Executive Officer, 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.”