Port Saint John and DP World Enter Long-Term Lease for Operation of West Side Container Terminal
SAINT JOHN (NB) – Today Port Saint John officials announced a lease agreement with global trade enabler DP World for the operation of its container terminal, the largest private sector investment in the port in decades.The long-term lease starts January 1, 2017 and will continue for about 30 years following completion of the Port’s expansion program. DP World will introduce new assets including the revamping of terminal cargo handling equipment to deliver exceptional customer service.This announcement follows the recent funding commitments for the $205 million West Side Modernization Project from the Federal and Provincial Governments together with Port Saint John, which will see the container terminal revitalised and the container berths and main channel deepened over the next seven years.Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are delighted to further extend our presence in Canada to the Port of Saint John, New Brunswick. 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. Our investments and commitment to Canada are for the long term, contributing to trade and the development of its national and local economies as well as providing employment for people with a leader of world trade. Our international experience and expertise will be further enhanced with this project."“We are delighted to have a presence on the east coast of North America for the first time and see great growth potential. We are excited to work with the shipping community and our worldwide network and have been working with port management on our plans to build on the experience and success of our operations in Western Canada. We will be making a major effort to grow business which will in turn have positive economic impact in the region.”Peter Gaulton, Chair of the Board of Directors, Port Saint John, said: “We are pleased to join together with a global trade partner who shares our vision for the growth potential of this Port based on its geographic location and rail optionality. When reviewing the proposal for terminal operations, we were impressed by the presence that DP World already has at three major port authorities in British Columbia and the depth and breadth of their business in ports and terminals worldwide.”In Canada, DP World has terminal operations in the ports of Prince Rupert, Vancouver and Nanaimo.Port Saint John is Eastern Canada’s largest port by tonnage and has a diverse cargo base, including dry and liquid bulk, break bulk, and cruise.
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Backgrounder DP World Saint John Announcement – July 28, 2016
What is a port authority?In Canada, there are 18 Port Authorities which are given this designation under the Canada Marine Act (1998, 2008) due to their national significance to international trade, linkages to major road and rail infrastructure, and importance to the economy of Canada. Under the Canada Marine Act the designated port authorities operate as autonomous, commercially viable government business enterprises (under the oversight of Transport Canada). These port authorities have the legislated responsibility to act as agents of the Crown while managing federal marine lands and waters in their jurisdictions which are set forth in each port authority’s letters patent.While port authorities have the authority to act as operators of terminals in their jurisdictions, most often port authorities operate as ‘landlords’ and enter into lease arrangements with the private sector for the operation of terminals. These private sector companies are called ‘terminal operators’.What is a terminal operator? A terminal operator is a company that contracts with a port authority to move cargo through a port. This includes the movement of cargo between ships, trucks, and trains and optimizing the movement of goods with regulatory bodies such as border services and other inspection agencies. In order to maintain efficiency in operations terminal operators invest in equipment such as gantry cranes and other mechanical equipment to move cargo on and across the dock to other modes of transport. Terminal operators also employ labour (often called stevedores or longshoremen) at a port to move cargo and they have responsibility under legislation for safety and security in the terminal in which they operate (in conjunction with the port authority). Terminal operators engage in business development independently and/or with the port authority to increase business through the terminal in which they operate.Who is DP World and where do they operate?
- DP World began in 1972 as a local port operator in Port Rashid in Dubai, United Arab Emirates.
- Between 1972-1988 DP World evolved from serving local trade in Dubai to operating 2 ports in the UAE (Port Rashid & Jebel Ali) and becoming Dubai Ports Authority.
- Between 1999-2004 Dubai Ports FZE was formed and business expanded to Saudi Arabia, Djibouti, India, and Romania.
- Since 2005, DP World has expanded further with the acquisition of CSX World Terminals (2005) and Peninsular & Oriental Steam Navigation Company (P & O) in 2006. These acquisitions increased the global network and market position in Asia, India, Australia, the Americas, Europe and Africa.
- In 2007, DP World was listed on NASDAQ Dubai.
- Today DP World is one of the largest marine terminal operators in the world, handling more than 170,000 TEUs a day, and serving approximately 70,000 vessels a year.
- DP World owns or operates 77 marine and inland terminals in 40 countries around the world and employs 37,000 people worldwide.
- In Canada, DP World has 3 operations at Port Authorities in British Columbia: 1) DP World Vancouver (Canada’s largest container terminal), DP World Prince Rupert and DP World Nanaimo.
What is DP World’s strategic approach? Source: http://web.dpworld.com/wp-content/uploads/2014/01/DPW_CorporateBrochure_A03.pdf DP World is a trade enabler on a massive scale. It is therefore essential that any development to our business model is considered in highly strategic terms. Our Business Development department goes to great lengths to coordinate with all divisions of the company, from HQ all the way down to regional offices, looking closely at areas of potential growth. This holistic approach allows us to develop under-served trade routes as well as carry origin and destination cargo which delivers higher margins to our customers. We make our decisions using extensive data resources. Our team of experts and consultants are able to carefully assess and analyse a wealth of information, developing critical responses that give us the edge in reacting to any and all challenges that may arise. We work hard to maintain our front-line service and give our customers the assurance that despite market volatility and geo-political change, the high-quality service they expect is the service they will receive.