DP World and the Russian Direct Investment Fund form a new joint venture
Press release, 21.01.2016
Davos, Switzerland / Dubai, United Arab Emirates / Moscow, Russia, 21 January 2016: Global trade enabler DP World and the Russian Direct Investment Fund (RDIF) today announced the launch of a new joint venture company targeting ports, transportation and logistics infrastructure in Russia.
His Excellency Sultan Ahmed Bin Sulayem, DP World Chairman and Kirill Dmitriev, Russian Direct Investment Fund CEO, on the sidelines of the World Economic Forum in Davos, signed a document determining the key terms and principles of the joint venture in which DP World will own an 80% shareholding with the remaining 20% held by RDIF.
Under the name ‘DP World Russia’, the company will target marine, dry ports and logistics infrastructure in different parts of Russia.
‘DP World Russia’ is expected to potentially invest over time a total of US $2 billion in upgrading Russian port facilities, while introducing international best practices in operations to improve trade connectivity for the benefit of Russian businesses, consumers and community.
HE Sultan Ahmed Bin Sulayem,DP World Chairman, said:
“Russia has always been an attractive origin and destination market for us with huge long term growth prospects. This joint venture allows DP World and RDIF to build on each other’s strengths in bringing economic prosperity to Russia. It is also another great example of the strategic partnerships with government stakeholders, a model that has proven very successful for us over the years. Ports and logistics infrastructure are long term investments and this is why, when we invest, we prefer an approach that recognises the benefits of sharing resources for a common purpose.
RDIF has a proven track record of investing with other global companies and we are pleased to partner with them. This JV will enable us to share with Russia our experience as a global port operator and trade enabler and to further enhance the already established strong relations between our countries.”
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“DP World’s global expertise and its proven and tested ability to drive trade growth and develop efficient infrastructure, make it the ideal choice to support the long-term goals for the development of Russia. We are glad to welcome DP World in Russia and look forward to creating an effective partnership which will benefit both Russia and UAE.”
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About DP World:
DP World has a portfolio of more than 65 marine terminals across six continents (1), including new developments underway in India, Africa, Europe and the Middle East.
Container handling is the company’s core business and generates more than three quarters of its revenue. In 2014, DP World handled 60 million TEU (twenty-foot equivalent container units). With its committed pipeline of developments and expansions, capacity is expected to rise to more than 100 million TEU by 2020, in line with market demand.
DP World has a dedicated, experienced and professional team of over 36,000 people serving its customers around the world, and the company constantly invests in terminal infrastructure, facilities and people to provide quality services today and tomorrow, when and where customers need them.
In taking this customer-centric approach, DP World is building on the established relationships and superior level of service demonstrated at its flagship Jebel Ali facility in Dubai, which has been voted “Best Seaport in the Middle East” for 20 consecutive years.
About the Russian Direct Investment Fund (RDIF)
RDIF is a $10 billion fund established by the Russian Government to make equity investments primarily in the Russian economy.
RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia.
RDIF has invested and committed for this purpose over RUB 760 billion, of which RDIF alone invested RUB 70 billion and over RUB 690 billion came from co-investors, partners and banks.
RDIF also attracted over $25 billion of foreign capital into the Russian economy through long-term strategic partnerships. Further information at www.rdif.ru
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