Dubai-headquartered terminal operator DP World has announced that it is launching a new joint venture (JV) with state-owned Russian investment fund to upgrade ports and logistics infrastructure in Russia.
DP World said in a statement that the new company is expected to invest over time a total of US$2 billion in upgrading Russian ports as well as introduce international best practices in operations to improve trade connectivity at the advantage of Russian businesses and consumers.
On the sidelines of the World Economic Forum in Davos, Sultan Ahmed bin Sulayem, DP World Chairman and Kirill Dmitriev, Russian Direct Investment Fund CEO, signed a document determining the key terms and principles of the joint venture in which DP World will own an 80 per cent shareholding with the remaining 20 per cent held by RDIF.
Bin Sulayem 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."
"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," he added.
Dmitriev 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."