Dubai-based port and terminal operator DP World has completed the acquisition of a 51 per cent stake in TIS Container Terminal in the Port of Yuzhny, Ukraine.
The completion of the transaction comes after DP World satisfied specific conditions including the regulatory approval from the relevant government authorities.
Under the terms of agreement, DP World has acquired the majority stake and will take control of the terminal operations going forward.
Announced earlier this year, the acquisition will be DP World’s second partnership with TIS shareholders, the first being the P&O Maritime business. The P&O JV provides harbour towage services in the principal Black Sea ports in Ukraine.
According to the port operator, the new acquisition will expand DP World’s operations as well as strengthen TIS Container Terminal as one of the key purpose-built terminals in Ukraine — the country in which the container market grew over 20 per cent in 2019.
Furthermore, the acquisition is expected to contribute to making Ukraine’s trade more resilient during challenging economic times as it gives DP World the potential to offer a Black Sea product by linking its terminals in Constanta and Yarimca with TIS Container Terminal using its Unifeeder network.
Cargo owners will have the ability to deploy their cargo strategically across essential trade lanes that serve Eastern European markets and complement DP World’s existing portfolio in Romania and Turkey, the port operator added.
“Today ushers in a new and promising era, as we expand our global portfolio in Ukraine. We are excited about this important milestone and this acquisition supports our long-lasting commitment to enabling global trade,” Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, commented.
“This acquisition establishes DP World in a highly attractive market, we look forward to contributing our experience, expertise and resources to the continued development and growth of the TIS container terminal.”