Friday, September 2, 2016

Port and Logistics Group Tie Up with Russian Infrastructure Specialists

DP World and Summa Sign a Memorandum of Understanding
Shipping News Feature
DUBAI – RUSSIA – There are few places in the world where port logistics specialist DP World does not have a sphere of influence and the group’s latest move should make expanding its presence in the Russian freight market considerably easier. The Dubai based ‘global trade enabler’ has signed a Memorandum of Understanding with the Summa Group, a diversified business with significant infrastructure investments in Russia, to explore investment opportunities in ports, special economic zones and inland logistics facilities in the Russian Federation.

Whilst the partnership intends to also focus on the development and implementation of cutting-edge freight delivery and port processing technologies it will study the development and promotion of the Asia-Pacific Economic Cooperation (APEC) and Russian Far East transportation corridors, including between the free ports Vladivostok and Zarubino, a field in which both partners have experience. Zarubino lies close to the borders with North Korea and China and is joined to its north eastern neighbour by a rail link. Speaking of the arrangement DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said:

“We are always on the lookout for opportunities to collaborate with industry peers. This is one of the many ways in which we grow and develop our expertise, by sharing what lessons we’ve learnt in each of our sectors. The Summa Group have been extensively involved in developing trade infrastructure in Russia and elsewhere and we have done the same with a network of 77 operating marine and inland terminals across six continents and other international interests such as DP World Russia, a joint venture company that targets marine, dry ports and logistics infrastructure in the country. I am pleased to have entered discussions with the Summa Group on potential areas of collaboration as Russia has always been an attractive origin and destination market for us with huge long term growth prospects.”

The Summa Group is run by Ziyavudin Magomedov, estimated in 2011 to be the 41st richest man in Russia with a personal wealth of around $3 billion. Since then however his fortunes have apparently dwindled somewhat, a similar fate suffered by many Russian billionaires. Magomedov’s initial success has previously been attributed by the press to his close association with one time Russian President and current Prime Minister Dmitry Medvedev. On this latest move Ziyavudin Magomedov, Chairman of the Summa Group, said:

”We welcome the partnership with DP World, the global leader in port infrastructure and management, to develop the free trade zones in Russia, CIS and beyond. As you know, The Summa Group is heavily focused on transport and logistics along main trade corridors and partnership with DP World will only enhance such presence, traction and reach. Furthermore, I am confident that together we will also implement and deploy such high-tech solutions that will help transform these trade corridors and the transport and logistics arena as a whole.”

Photo: DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem (Right), Summa Group Chairman Ziyavudin Magomedov (Left) and Russian Minister of Transport Maksim Sokolov (Rear) at the MoU signing.