DP World to spend $2.5 billion to expand logistics network this year

DP World, the Dubai-based global ports operator, is to invest $2.5 billion this year to expand its logistics network as it seeks to boost international trade.

The company will launch major infrastructure projects across India, Africa, South America and Europe in response to “rising demand for resilient, integrated supply chain solutions”, it said in a statement on Tuesday.

The four major developments across four continents will extend DP World’s end-to-end capabilities and significantly expand capacity in its network of ports, the statement added.

“Global trade is evolving fast. Despite short-term uncertainty, this $2.5 billion commitment reflects our confidence in long-term trade growth and our determination to build the infrastructure needed to keep the world connected,” said Sultan bin Sulayem, chairman and group chief executive of DP World.

“Nobody can match us for the diversity and breadth of our supply chain solutions.”

With port operations ranging from Canada to Australia, DP World has passed 100 million 20-foot equivalent units (TEUs) of container-handling capacity across its global operations, it said this year. Its global gross container handling capacity increased by 5 per cent in 2024.

The Dubai company holds a 9.2 per cent share of the global container market, supported by a 33 per cent growth in capacity since 2014, it said on January 7.

Its revenue for 2024 grew 9.7 per cent to a record $20 billion on improved ports and terminals performance as well as contributions from new acquisitions and concessions. However, profit for the year was down 2 per cent at $1.5 billion due to higher finance costs.

Some of DP World's recent initiatives have included the addition of a $450 million berth at London Gateway and a $400 million expansion in Peru’s Port of Callao.

Construction is under way on a $510 million terminal at Tuna Tekra in Gujarat on India’s north-west coast, DP World said. Featuring a 1.1km berth and annual capacity of 2.19 million TEU, the terminal will connect India’s vast hinterland to global markets through a road and rail network, enabling faster, more efficient trade access for Indian businesses, according to the statement.

DP World is also moving ahead with the development of a deep-sea port at Banana in the Democratic Republic of Congo (DRC). The 450,000-TEU-a-year facility on the DRC’s Atlantic coast will bring significant cost and time savings for the country's trade, as it will attract more direct calls from larger vessels from Asia and Europe, the logistics company said.

Work is also under way on the 1.2 million-TEU-a-year Ndayane Port in Senegal. An initial investment of $830 million is being made in this project.

At the port of Posorja in Ecuador, DP World has initiated a $140 million berth expansion that will increase the length of the dock to 700 metres, enabling it to accommodate two post-Panamax vessels at the same time, the statement said.

DP World is also investing $1 billion in the London Gateway logistics hub to build two shipping berths and a second rail terminal. The expansion will create 400 jobs and move London Gateway closer to becoming Britain’s biggest container port by the end of the decade, the company said.

Mr bin Sulayem said DP World’s “integrated model” offers visibility and control across the entire supply chain, helping partners reduce risks and costs.