Author: ADAM SCHRECK | AP
Thursday 30 December 2010
DP World and Abu Dhabi Terminals said Thursday that ADT will assume control of Mina Zayed in the new year, when an existing management services agreement expires. The move won’t have a material effect on DP World’s earnings, according to a regulatory filing.
Plans for management of a far larger deep-water facility known as Khalifa Port opening in 2012 have not been decided, the companies said. They say they will continue to work closely together.
Abu Dhabi controls the United Arab Emirates federation’s presidency and most of the OPEC member’s oil wealth. Like Dubai, it’s working to diversify its economy with help from state-sponsored companies and is eager to build its own industrial expertise.
“We are committed to improving the capabilities of ADT to better serve our customers and to enhance the capabilities of the company in anticipation of the move to the new Khalifa Port,” ADT Chairman Tawfeeq Al-Mubarak said.
ADT is a division of the state-owned Abu Dhabi Port Co., which was set up in 2006 to manage sea trade in the emirate. ADPC is overseeing the development of the emirate’s new Khalifa Port on a man-made island between Abu Dhabi and Dubai.
It will anchor a massive industrial zone that Abu Dhabi envisions will cover 420 sq km by 2030. The first stage of the project is scheduled to open toward the end of 2012 and cost more than $7 billion.
DP World is considered one of Dubai’s industrial crown jewels. It is the world’s fourth largest port operator, with business at 50 cargo terminals on six continents, including the Mideast’s largest in Dubai. It is part of struggling state conglomerate Dubai World, but is not included in its parent’s $24.9 billion debt restructuring.
Last week, DP World sold the bulk of its Australian businesses to a Citi investment fund and an unnamed investor for $1.5 billion in a bid to trim its debt. The deal left it with a 25 percent stake in the operations and ongoing management oversight of the ports in Brisbane, Sydney, Melbourne, Adelaide and Fremantle.
DP World is hoping to list its shares on the London Stock Exchange next year, prompting speculation Dubai might sell off a bigger stake in the firm. About a fifth of DP World’s shares are currently available to investors through the Nasdaq Dubai, where they would continue to trade alongside those in London.
DP World shares edged half a penny higher to close at 63 cents apiece Thursday.