DP World spent $6 billion to become an integral global supply chain player

DP World spent more than $6 billion to become an integral supply chain player, according to the company’s CEO, His Excellency Sultan Ahmed bin Sulayem.

He was speaking at a session titled ‘Trade in a changing world, at the 21st Arab Media Forum in Dubai. The session was moderated by Egyptian writer and journalist Imad Eddine Adib.

Speaking of DP Worldthe transformation from a traditional port operator to a major player in the global supply chain, Bin Sulayem saying:

“In 2016, it became clear to us that factors beyond port boundaries had a notable influence on the on-time delivery of cargo. Faced with this revelation, we made a decisive and forward-thinking decision. Our commitment was unwavering: to provide the most exceptional service to our cargo owners, guaranteeing punctuality and profitability in their operations.”

Due, DP World decided to extend its services to the entire supply chain.

“We transformed our role from simply operating ports to becoming a global leader in end-to-end smart supply chain logistics, facilitating global trade flows.”

Bin Sulayem he commented.

This required a massive investment of over $6 billion, which encompassed the acquisition of startups around the world spanning various segments of the supply chain, from warehousing to transportation. DP World is now India’s largest transport company following the privatization of the sector by the Indian government, and even owns a major railway network to transport goods across the country.

Bin Sulayem He added that the slow evolution of the supply chain industry led the company to invest in all aspects of the chain. The company is recognized today for its exceptional efficiency, and has become a benchmark for shipping companies when it comes to fast and efficient loading and unloading of containers. Bin Sulayem noted.

Commenting on the recent agreement forged at the G20 meeting to link Middle Eastern countries by rail and connect them with India through seaports, facilitating the flow of energy and trade from the Gulf to Europe, Bin Sulayem He stressed that the final objective is to speed up the delivery of goods and introduce new alternative routes.

“In the supply chain industry, time, speed, quality and cost are key elements.”

The new corridor will complement the existing sea route through the Red Sea and the Suez Canal, adding much-needed flexibility to the global trade system, but will not replace it, he explained.

In fact, DP WorldDecades-long investments in the Jebel Ali port, with a capacity of almost 20 million TEUs a year, mean it will be the beating of the new trade corridor. The port and free zone of Jebel Ali (Jafza) have world-class infrastructure and connections with shipping lines to serve a market of 3.5 billion people throughout the Mediterranean, Africa, the Middle East, South Asia and beyond .

DP World has made significant investments in several countries around the world, with a commitment to persist in this strategy whenever viable opportunities arise, he added.

The company’s operations span 73 countries around the world, including several Arab countries. Its first venture outside the UAE was in Saudi Arabia, where it obtained a concession to operate the Southern Container Terminal at the Islamic Port of Jeddah. DP World signed a new 30-year concession agreement with Saudi Arabia’s Mawani in 2019 and plans to invest more than $800 million to expand and modernize the terminal, bringing capacity to 5 million TEU. It is also investing in a new $500 million logistics park to support Saudi Arabia’s vision for 2030.
DP World also has operations in Egypt, where it has transformed Sokhna’s capacity since taking over in 2008, focusing on efficiency and sustainability, and in Algeria, where it has invested almost $130 million in the ports of Djazair and Djen. -Djen since 2009.

At the beginning of this year, DP World launched the first direct cargo service between the United Arab Emirates and Iraq to make the flow of goods between the two countries faster, safer and more efficient. Until now, goods had to be transported by road from the UAE, which meant passing through multiple countries and borders and journeys took up to two weeks. DP World designed and built vessels to transport cargo directly from Jebel Ali to the port of Umm Qasr in southern Iraq, so that goods can be delivered in just 36 hours.

News source: Dubai Press Office