DP World Plans $4.5bn In New Port Investments With Canadian Pension Fund

DP WORLD and Canadian pension investor Caisse de dépôt et placement du Québec have committed an additional $4.5bn to their port investment platform, almost doubling its size to $8.2bn.

Since inception in December 2016, the fund — which is owned 55% by DP World and 45% by CDPQ — has invested in 10 port terminals globally, across various stages of the asset life cycle.

Under the plan, the platform will target both new and existing regions, including Europe and Asia Pacific.

There will also be diversification across a wider part of the integrated marine supply chain, including logistics services linked to terminals.

“The opportunity for the port and logistics industry is significant and the outlook remains positive as consumer demand triggers major shifts across the global supply chain,” said Sultan Ahmed Bin Sulayem, chief executive of DP World.

“Best-in-class, well connected ports and efficient supply chains will continue to play an active role in advancing global trade and cultivating the business environments closest to their operations.’’

Emmanuel Jaclot, head of infrastructure at CDPQ, said the platform will seek investments in high-quality port and terminal infrastructure assets that will help design the future of smart trade and logistics.

“We will further diversify our geographic reach and look to seize new opportunities in a sector that, even during a uniquely challenging period, is driven by long-term fundamental trends.’’

Anglosphere pension funds have taken on increasing exposure to ports in recent decades, with the port sector’s dependable unspectacular but steady return seen as a good match for the long-term requirements of pension investors.

Britain’s Forth Ports has been wholly owned by Canadian, Australian and British pension funds since 2018.

Canadian and other pension funds also hold a significant stake in Associated British Ports.