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Dubai: DP World, the world's third largest port operator, yesterday deepened its involvement in China with a new venture that will build a container terminal at Tianjin at a cost of $500 million (Dh1.83 billion). The Dubai-based company already operates container berths at six ports in China with a combined throughput of about 11 million TEUs (20-foot equivalent units). It has a 50 per cent stake in the new project to be developed by DP World Tianjin Holdings Limited, a joint venture between DP World and China's Tianjin Port Group Company Limited (TPG). In a joint venture with TPG, the Dubai firm currently operates the Tianjin Orient Container Terminal.
Jamal Majid Bin Thaniah, vice-chairman of DP World and group chief executive officer of Ports and Free Zone World, a new entity that oversees DP World and P&O's operations, said China was a strategic region because of the high container volume handled at its ports. "China today handles 90 million TEUs. It has become the factory of the world and many foreign companies are moving their production there. We are strategically positioning ourselves in China," Bin Thaniah told Gulf News. Despite the hue and cry in the US over DP World managing container berths at six US ports under Dubai's acquisition of P&O in February, industry analysts point out DP World was more interested in Asian ports rather than the American port assets in buying P&O. The P&O acquisition gave DP World the key port of Qingdao with a throughput of six million TEUs. With annual volumes of 1.5 million TEUs and 1.3 million TEUs respectively, Hong Kong and Shekou are DP World's other major facilities in China. DP World is also present in Yantian and Yantai. A letter of intent to develop the new terminal was signed in Dubai yesterday during a visit by a Chinese delegation led by Tianjin's executive vice-mayor Huang Xing Gua. The Phase 2 Container Terminal Project in the Bohai area of northern China includes plans for a 140 hectare terminal area, with a 1,400 metre quay length, and an annual handling capacity of 2.2 million TEUs. Reclamation work for the project is already underway and operations are scheduled to begin in 2011. Tianjin falls under the central government's authority and the region's industrial development is part of Beijing's plans to achieve balanced growth among various regions.
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