DP World Completed the Purchase of TIS Container Terminal (Andrey Stavnitser and Yegor Grebennikov)
DP World (Dubai, UAE), which operates 123 logistics and transport companies in 54 countries, announced the acquisition of 51% of the shares of the TIS Container Terminal (‘Pivdennyy’ Port, Ukraine). All relevant terms of the transaction have been fulfilled; the official approvals from government agencies received, according to the DP World website.
The purchase of the terminal stake is the second case of DP World's successful partnership with TIS shareholders. The first joint project of the companies was the tug operator P&O Maritime Ukraine serving more than 50 clients in the 3 largest ports of Ukraine.
As a part of its global strategy, DP World seeks to facilitate global trade, and for this purpose, they are expanding company’s participation in various segments of the world supply chain. The company is constantly investing in their own port, logistics and transport businesses. The key goal of these investments is to establish direct links with end users and offer logistics solutions that would eliminate bottlenecks in supply chains as well as accelerate the movement of goods.
Thus, DP World expands the geography of their presence, and the TIS container terminal strengthens the company’s position as a leader among specialized sea terminals in Ukraine. DP World will be able to make better use of their global network of ports, economic zones, warehouses and to offer optimized logistics solutions within the country.
Moreover, now the company will be in a position to make a unique offer for the Black Sea region: direct transportations between their own terminals in Constanta, Yarymdzha and Pivdennyy with the use of their own UniFeeder network. In synergy with DP World's expertise in terms of removing bottlenecks in supply chains, this will provide an opportunity to ship goods along key trade routes for Eastern Europe using DP World's assets in Romania and Turkey.
In 2019, the market of containerized cargo carriages in Ukraine grew by 20%. The favorable location at the intersection of sea and land routes combined with the best rail infrastructure in the country made TIS-CT an attractive target for the acquisition by DP World.
This spring, DP World acquired SeaRates.com service, which, together with the similar LandRates.com and AirRates.com, enables customers to transport cargo around the world. DP World also established the Digital Freight Alliance. Transport specialists from different countries get access to new tools, routes, services on the single platform. Ukraine is now included in this ecosystem.
Under the terms of the deal, DP World acquired a majority stake in the terminal; now they will provide management of the TIS-CT. The company will become a key player in the region striving to expand its market share by using the leading positions of TIS-CT in the rail transportation market.
‘A new era starts today. Our presence in Ukraine will expand our global portfolio of services and make the company a player in a very attractive market. We are extremely pleased to begin this new phase. The acquisition is in line with our long-term strategy to facilitate global trade. DP World is looking forward to bringing its experience, expertise and resources to the development of the TIS Container Terminal. We intend to build on the success that the company's shareholders have achieved over the previous years,’ - comments Sultan Ahmed bin Sulayem, Chairman of the Board and CEO of DP World.