DP World wins lease agreement for Rodney Container Terminal in Saint John, Canada
DP World says it has signed a long-term lease agreement for the expansion and operation of the multi-purpose Rodney Container Terminal at Saint John, New Brunswick, Canada.
The global trade enabler will start running existing operations on 1 January 2017 and work in partnership with the Saint John Port Authority on a planned expansion programme expected to be completed in 2021, with the lease continuing for 30 years after.
The Rodney Container Terminal is a multi-purpose terminal handling container traffic in Saint John, the only Atlantic Canada port that is served by the country’s Class I railways, Canada National Railway (CN) and Canada Pacific Railway (CP) and is CP’s only Atlantic gateway port. The lease will follow the Port Authority’s completion of the expansion works, which will create a 350 metre deep-water berth, an enhanced stacking area and a 12,000 foot intermodal rail yard capable of handling a full train.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are delighted to further extend our presence in Canada to the Port of Saint John, New Brunswick. We believe that the future growth prospects for the port are strong and we are excited to be participating with Saint John Port Authority in their expansion plans. Our investments and commitment to Canada are for the long term, contributing to trade and the development of its national and local economies as well as providing employment for people with a leader of world trade. Our international experience and expertise will be further enhanced with this project.”
Jim Quinn, CEO, Saint John Port Authority, said: “We are delighted to welcome DP World as the new operator of Rodney Container Terminal and to share in the expansion project for the terminal. The commitments that DP World has made to invest in equipment and systems, commercial promotion and sustainability are critical for the long-term success of the project.”
DP World is already a major investor in Canada operating the CENTERM terminal in Vancouver, the Fairview Terminal in Prince Rupert and the Duke Point Terminal in Nanaimo. Its entry into Saint John will focus on Canada’s trade with Europe and Latin America increasing sector competition in eastern Canada.
DP World’s involvement in Saint John is expected to bring significant benefits to importers and exporters in New Brunswick and the Maritimes, a region of Canada that also includes other Atlantic provinces Prince Edward Island, Nova Scotia and Newfoundland, through:
·Immediate investment in modern container handling equipment capable of serving post-panamax container vessels
·Additional gantry cranes and container handling equipment in line with the Port Authority’s expansion works programme
·DP World’s strong relationships with global ocean carriers and both Canadian Class I railways, CN and CP
·Access to DP World’s world class productivity in container terminal development and operation
·Access to DP World’s state-of-the-art supply chain security and safety practices
·Enhanced competition through the entrant of a new terminal operator in the region
·The transaction is not subject to any pre-closing Canadian regulatory approvals.