Canada’s second-largest public pension fund has purchased a large stake in the Prince Rupert and Vancouver container terminals.
DP World, the owner of Fairview Container Terminal, announced on Friday morning that they’ve sold a portion of their ownership in Fairview Terminal to Caisse de dépôt et placement du Québec (CDPQ). The partnership creates an investment platform totalling $5-billion, with DP World keeping 55 per cent of its shares and CDPQ taking 45 per cent.
Spokesperson for DP World, Angela Kirkham, said that DP World maintains full management control at both the Prince Rupert and Vancouver terminals.
“It will be business as usual for our employees and customers there,” she wrote in an email.
The partnership allows DP World the flexibility to invest in future growth opportunities at a low cost capital.
“DP World would have the majority equity stake in those investments and thus DP World would control the investment vehicle and consolidate the underlying assets on its balance sheet. In addition, DP World would be the terminal operator of those assets at usual management fee,” Kirkham said.
She added that there has been a strong growth in Prince Rupert and it continues to perform in line with their expectations.
“We remain excited about the long term growth potential of Prince Rupert. Expansion plans are continuing. We are adding 500,000 TEUs to Prince Rupert for 2017.”
CEO of DP World Sultan Ahmed Bin Sulayem said in the press release that the Quebec-based pension fund manager has a shared vision.
“As a global trade enabler, DP World is proud to announce the partnership with CDPQ to invest in growth opportunities in port and terminal businesses around the world,” he said.
“The opportunity landscape in the port and terminal sector remains significant and this partnership offers us greater flexibility to capitalize on these opportunities while maintaining a strong balance sheet and retaining control.”
The CEO and president of CDPQ Michael Sabia said that this new investment platform created with DP World will give them a “unique access to high-quality transactions, and the opportunity to invest in the best port infrastructure worldwide.”