DP World acquires another port in Peru

Yesterday, 18 March 2018, DP World announced the acquisition of Cosmos Agencia Maritima S.A.C., a fully integrated logistics services provider based in Peru. Cosmos Group owns Neptunia S.A and Triton Transport S.A, that offer maritime and logistics services, and also possesses a 50% stake in Terminales Portuarios Euroandinos S. A. at the port of Paita, which is the second largest container terminal in the country.

According to the information disclosed by DP World, the deal was valued at USD 315.72 mln.

Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, commented on the transaction: “We are delighted to add Cosmos Agencia Maritima into the DP World portfolio and this acquisition supports our recent strategy of extending our core business into complementary sectors.”

The Cosmos logistics division offers an integrated platform of solutions in activities related to foreign trade, product storage and distribution, as well as freight services that facilitate development and implementation of industry specific projects.

DP World Callao terminal. Source: DP World

Sultan Bin Sulayem has reminded that DP World is already present in Peru by operating a container terminal in the port in Callao. The 1.2 mln TEU facility one of the most efficient and productive in the region, reporting over 30 gross crane moves per hour on average, and has been consistently ranked as the best port in South America by the customers.

“The addition of Cosmos Agencia Maritima will allow us to offer improved solutions to our customers and the option of alternative container capacity,” he said.

This acquisition raised fears among the local market players that the consolidation of the logistics assets in the hands of DP World might give rise to price wars. By acquiring Cosmos Group, the global port operator obtains a direct access to the customer base – to mining and petroleum companies, that account for the largest part of the country’s export and import volumes. DP World’s integration of the port services together with logistics solutions might generate an aggressive competition on the part of other market participants, informs the local newspaper Gestion quoting the industry sources.

On the other hand, Edgar Patino, President of the National Port Authority, welcomes the entry of the Dubai-based port operator into the logistics of Peru as a very good sign of the company’s confidence in the country’s growth potential in the world trade. As for the competition between the logistics operators, this would only serve to improve the efficiency of their services, he believes.

Last week, DP World disclosed its 2017 financial results. The company’s revenue grew 13.2% to USD 4,715 mln and adjusted EBITDA increased 9.1%, to USD 2,469 mln. The gross throughput reached 70.1 mln TEU, which marked a 10.1% increase, representing the company’s highest growth rate since 2011.

Julia Louppova:
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