Dubai-based cargo handling company, DP World, has completed its acquisition of TIS Container Terminal in the Port of Yuzhny, Ukraine.
DP World now has a 51 per cent stake in the business, following satisfaction of specific conditions including confirmation of regulatory approval from the relevant government authorities.
This project will be DP World's second partnership with TIS shareholders, the first being its partnership in the P&O Maritime Ukraine which provides harbour towage services in the principal Black Sea ports in the Ukraine.
DP World's global strategy is to become a trade enabler and solutions provider as the company looks to participate across a wider part of the supply chain.
DP World has invested significantly across its Ports, Logistics & Maritime Services businesses. The aim is to connect directly with customers to offer logistics solutions and remove inefficiencies in the supply chain to accelerate trade. This acquisition will expand DP World's operations as well as strengthen TIS Container Terminal as one of the key market leading purpose-built terminals in Ukraine by leveraging DP World's global network of ports, economic zones, warehousing and inland logistics solutions.
Also, this acquisition helps make Ukraine's trade more resilient during challenging economic times and gives DP World the potential to offer a unique Black Sea product by linking its terminals in Constanta and Yarimca with TIS Container Terminal using its Unifeeder network. This suite of trade enabling solutions, coupled with its technology to remove inefficiencies in the supply chain, offers cargo owners 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 Ukrainian container market growth of over 20 per cent in 2019 is an attractive market to enter according to DP World. TIS Container Terminal with excellent maritime and landside connectivity including the market leading rail connectivity is a the ideal facility for DP World in the country. Following DP World's acquisition of SeaRates.com, a digital platform that enables customers to transport cargo worldwide, along with LandRates.com and AirRates.com.
DP World has also created the Digital Freight Alliance which is an online association that brings freight forwarders globally onto one platform, giving them access to new tools, routes and services, and enabling them to do more business anytime anywhere, which can be harmonised with DP World's Ukraine footprint.
Under the terms of agreement, DP World has acquired a majority stake and will take control of the terminal operations going forward. DP World will be a key player in the region and will look to expand the catchment of the terminal using its market leading rail connectivity.
DP World CEO and Group Chairman, Sultan Ahmed Bin Sulayem, said the acquisition ushers in a new and promising era to expand the company's global portfolio in Ukraine.
“We are excited about this important milestone and this acquisition supports our long-lasting commitment to enabling global trade,” he said. “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. In so doing, we will look to build on and expand the commercial success that TIS Container terminal has achieved.”