DPI International says its most recent acquisition places it among the top six global port operators and raises the potential for revenue growth.

The UAE port operator announced in December 2004 it had signed a definitive agreement with CSX Corporation to acquire the international terminal business conducted by CSX World Terminals and other related interests for a cash consideration of $1.15 billion, subject to customary adjustments.
 The transaction will be financed from a committed facility arranged and underwritten by Deutsche Bank. Completion of the transaction is expected to take place in the first quarter of 2005.
CSX World Terminals is a leading international container terminal developer and operator with operations in Asia, Europe, Australia and Latin America. The company’s container terminal portfolio currently consists of interests in 9 terminals with 24 berths and combined future capacity of 14.6 million teu.  CSX World Terminals operates all the terminals.
Key existing port operations include CT3 and CT8 in Hong Kong, Tianjin and Yantai in China and operations in Australia, Germany, the Dominican Republic and Venezuela. In addition, CSX World Terminals has interests in logistics businesses in Hong Kong and China, notably ATL, the market-leading logistics operator based at Kwai Chung.
As well as an existing portfolio of significant scale and global reach, CSX World Terminals has a strong pipeline of development projects. In particular, it has a 25 per cent interest in, and will be the operator of, Pusan Newport, a 9-berth facility with a capacity of 5.5 million teu that is currently under development and is expected to commence operations in 2006.
Deutsche Bank acted as financial adviser to Dubai Ports International and Citigroup acted as financial adviser to CSX with respect to the transaction.
The transaction is consistent with DPI’s international growth strategy and follows successful acquisitions and management contracts in the Middle East, Europe and India.
DPI said the acquisition put it in the top-six bracket of global port operators. By gaining a global portfolio of container terminals, it would be able to participate in the current and long-term growth of the global transportation and logistics industry and provide superior services. The deal also gave it access to new growth markets in Asia and Latin America.
 “This is a major step in DPI’s global expansion strategy,” commented Sultan Ahmed Bin Sulayem, executive chairman, Dubai Ports.
“The acquisition will give DPI an important platform in the North Asia region, notably in Hong Kong, China and Korea and further expands our global network in Europe and the Americas,” he said.
“We look forward to working with our new and existing partners, customers and the relevant governments and regulatory bodies to contribute to the fabric of the local social environment.  This, in turn, will allow us to better participate in the current and long-term growth of the global transportation industry.
“This is a service-led industry, in which the people make the difference. In this acquisition we are delighted to welcome all of CSX World Terminals’ employees, who have demonstrated their commitment to the operations and contributed to the success of the company to date. We look forward to supporting the management and employees of the company to grow and develop the business going forward.”
Mohammed Sharaf, managing director, Dubai Ports International, said the acquisition of CSX World Terminals would be a strong strategic fit for DPI, bridging DPI’s terminal network between East and West. 
“DPI has a proven track record of owning ports on a profitable basis around the world - we are a performance-driven organisation.  At our existing operating locations we have employed innovative technologies and efficiencies to drive growth and we are keen to extend these skills to CSX World Terminals.
“Our people are our most important assets, and we believe having the right people in the right position is essential. Our commitment to invest in the development of our people will continue into the future. With this already established, we will be able to continue to provide our customers with a level of service that is second to none.”
Michael Ward, Chairman, CSX Corporation, remarked: “On behalf of CSX, I am delighted to join the announcement of the agreement to sell CSX World Terminals to Dubai Ports International. We have been highly impressed with the quality of DPI’s management and believe it will do an excellent job with this important portfolio of assets and terrific team. We look forward to working with DPI through what we expect will be a brief transition to closing.”
Ward added that the transaction would be “another important step in our continuing efforts to focus on the North American railroad business. CSX is focused on leadership in the US rail industry through safe, reliable service to customers and consistent, continuous improvement quality in all aspects of our performance.”
CSX acquired Sea-Land Corporation in 1987 and has, for the past several years, sold off parts of international ocean-shipping assets. This transaction would complete that divestiture.
Earlier in 2004, DPI was the successful bidder for a 38-year concession to operate exclusively and manage the existing Rajiv Gandhi Container Terminal and develop a greenfield site into a major international container transshipment terminal.
DPI won the bid in the face of competition from Port of Singapore Authority, P&O Ports, Maersk Sealand and ICTSI.
DPI also operates the Jeddah Islamic Port and a container terminal in the Port of Constantza in Romania.