DP World to boost Santos Port handling capacity by 25%: UAE’s port operator DP World is earmarking USD 296 mn in a bid to boost capacity and improve terminal operations at Brazil’s Santos Port, aiming to increase the total handling capacity at the port by 25% to 2.1 mn TEUs by 2028, according to a statement released last week.

Where’s the money going? The investment ticket will be funneled toward infrastructure development, including the construction of a new berth and expanding the yard, enlarging inspection areas, revamping access gates, and adding more reefer towers. It will also fund the uptake of four quay cranes, 15 rubber-tired gantry cranes, and 40 internal transfer vehicles.

Background: The new investment builds on a larger total of over USD 555 mn that DP World has invested in Brazil since launching there 12 years ago. Last year, DP World said it invested some USD 83.3 mn into expansion projects in Santos, which are currently underway. This includes the development of a 190-meter quay extension to enhance berth flexibility and boost handling capacity to 1.7 mn TEUs by next year.

DATA POINT- The Santos terminal saw its container throughput rise by a record breaking 14% y-o-y to 1.25 mn TEUs in 2024, the statement adds. Since DP World launched operations at the terminal in 2013, it has processed over 10 mn TEUs of goods.

A special love for Santos? The firm extended its agreement with global shipping line Hapag-Lloyd over container handling operations in Santos for another 10 years in September. It also inked an eight-year strategic agreement with Danish shipping giant Maersk to expand maritime services and container handling capacity at the port. DP World inked an agreement with Brazil’s leading railway operator Rumo to establish a new terminal for grains and fertilizers at Santos Port last year.

MORE FROM UAE PLAYERS-

Karachi Port lands a new handling, storage facility: Karachi Gateway Terminal Multipurpose (KGTML) — a JV formed by the majority shareholder AD Ports and UAE-based Kaheel Terminals — inked an agreement with major agricultural commodity house Louis Dreyfus Company (LDC) to develop and operate a clean bulk handling and storage facility at Pakistan’s Karachi Port, according to a statement. The project comes on top of the previous USD 75 mn investment committed by KGTML during the first phase of the project.

What’s in store? Under the agreement, KGTML is set to invest in the development of a food-grade clean bulk facility — including a handling and conveyor system designed for the handling and storage of dry agricultural bulk cargo. Meanwhile, the ADQ-backed LDC is set to provide the required inbound volumes of agricultural goods, the statement adds.

IN CONTEXT- KGTML was formed after AD Ports Group and Pakistan’s Karachi Port Trust inked a 25-year concession agreement in February 2024 to develop a bulk and general cargo terminal along berths 11 to 17 at Karachi Port’s East Wharf, with a total of USD 175 mn investments earmarked over five years.

A lot of Emirati eyes on Karachi: KGTML inked an agreement back in September with VanOord to expand berth capacity at the JV’s terminals in Karachi port. DP World is set to funnel USD 400 mn into a freight corridor connecting Pakistan’s two largest ports — Karachi Port and Port Qasim, which together handle about 90% of the country’s trade.

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