DP World plans to shell out USD 3 bn on new port infrastructure in Africa over the next three to five years, DP World CEO and Managing Director for sub-Saharan Africa Mohammed Akoojee told Bloomberg in an interview. The logistics giant is considering investments in the partial privatization of South African rail, port, and pipeline company Transnet, and the port of Lamu in Kenya, where there is also a privatization process underway.

The rationale: The investment target comes on the back of the region’s long-term growth potential, Akoojee said, adding that “the cost of logistics and supply chain across Africa is very high relative to other global markets.” Heightened demand for critical minerals also signals the need for greater logistics capacity. “We’ve seen demand increasing over the last few years, largely driven by the whole electrification drive globally and the demand for commodities like cobalt, lithium,” Akoojee added.

IN OTHER DP WORLD NEWS-

#1- The Callao port expansion project is complete: The logistics giant has completed its USD 400 mn Bicentennial Pier expansion project at Callao port in Peru, according to a press release. The expansion boosts the port’s container handling capacity by 80%, the statement said.

Background: The expansion has extended the pier from 650 to over 1k meters, making Callao one of few ports in South America able to accommodate three vessels simultaneously. The port’s handling capacity has increased from 1.5 mn TEUs per year to 2.7 mn TEUs, while the container yard space has expanded to 40 hectares. The project also involved the addition of 14 electric cranes and 20 electric ITVs.

REMEMBER- DP World commenced the expansion project in September 2021 with an initial investment of USD 350 mn. The Port of Callao handles almost 90% of Peru’s container traffic, with DP World managing around 60% of the port’s containerized cargo.

#2- DP World has more than doubled its container shipping capacity at Romania’s Constanta port, which is part of a EUR 130 mn investment by the company to boost its cargo capacity in the country, DP World Romania CEO Cosmin Carstea told Reuters in an interview. The company’s container shipping capacity has now surged to 1.5 mn (TEUs) from the 700k TEUs handled in the year prior, Carstea said. The facilities can increase flows by some 2mn metric tons per year, the newswire added.

Background: Some EUR 65 mn of the investment went into new facilities at Constanta port, including a 5-hectare cargo terminal catering to heavy, large, and complex cargo and roll on/roll off (RoRo) vessels. The investment — which targets three sites in Romania — is expected to boost cargo volumes by some 2 mn tonnes a year, strengthening trade links between Black, North, and Adraitic seas, and mainland Europe.

#3- The company is also looking to invest in Thailand’s Land Bridge project — a logistics corridor connecting Chumphon in the Gulf of Thailand to Ranong on the Andaman Coast, Bangkok Post reports, citing a statement from Thailand’s Transport Minister Suriya Juangroongruangkit. DP World Chairman and CEO Sultan Ahmed bin Sulayem is set to meet with Thai Prime Minister Srettha Thavisin next month on 1 July to discuss the matter. Thailand said it was looking for investors for the Land Bridge Project — set to cost THB 1 tn — back in September, Bangkok Post reported at the time. The project, first revealed in 2021, looks to boost connectivity in the southern Andaman region.

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