Thursday, June 11, 2020

Middle Eastern Port and Logistics Group Takes Over Black Sea Container Terminal

Strategic Acquisition of Ukrainian Facility Confirmed
Shipping News Feature

UKRAINE – UAE – In February DP World, the port and logistics outfit based in Dubai, agreed to purchase a 51% stake in TIS Container Terminal in the Port of Yuzhny, Ukraine. This acquisition has now been completed after agreement of specific conditions including confirmation of regulatory approval from the relevant government authorities.

This project will be DP World's second partnership with TIS shareholders, the first being what the company terms ‘a very successful partnership in P&O Maritime Ukraine’, a company which provides harbour towage services within the principal Black Sea ports in the Ukraine.

The partners say this latest acquisition will expand DP World's operations as well as strengthen the TIS Container Terminal as one of the key market leading purpose-built terminals in Ukraine by leveraging DP World's global network of ports, economic zones, warehousing and inland logistics solutions.

Furthermore, they predict that the acquisition will help make Ukraine's trade more resilient during challenging economic times, whilst giving DP World the potential to offer a unique Black Sea product by linking its terminals in Constanta and Yarimca with TIS Container Terminal using its short sea network run by subsidiary Unifeeder.

The Ukrainian container market growth of over 20% in 2019 is an attractive market to enter and the TIS Container Terminal has, according to DP World, excellent maritime and landside connections. Under the terms of agreement, DP World has acquired a majority stake and will take control of the terminal operations going forward. DP World aims to be a key player in the region and will look to expand the catchment of the terminal using its rail connectivity. Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said:

"Today ushers in a new and promising era, as we expand our global portfolio in Ukraine. We are excited about this important milestone and this acquisition supports our long-lasting commitment to enabling global trade.

”This acquisition establishes DP World in a highly attractive market, we look forward to contributing our experience, expertise and resources to the continued development and growth of the TIS container terminal. In so doing, we will look to build on and expand the commercial success that TIS Container terminal has achieved".