DP World Limited has agreed upon acquiring Maher Terminal’s Fairview Container Terminal (Fairview), that is located in Prince Rupert, British Columbia, Canada. The company is to acquire the terminal in question from Deutsche Bank.
Fairview is a purpose constructed terminal that has an established sea-rail link and is capable of handling 850,000 TEU (twenty-foot equivalent container units). It was also announced recently that a phase two expansion operation will be carried out in order to increase the capacity level to 1.35 million TEU.
The current concession period is to run up to 2034, and there is an extension in place for it to proceed to 2056 after phase two is completed.
The total consideration payable is in the amount of CAD580 million (US S457 million) for Fairview’s total outstanding stock on a cash-free, debt-free basis.
The above-stated transaction’s completion is to be put into compliance in order to receive all necessary Canadian regulatory approvals. Expectations are for it to happen at some point during 2015’s second half.
DP World Limited has proven to be a significant investor when regarding Canada’s market, noting the fact that the company operates the CENTERM terminal that is located in the Port Metro Vancouver.
“Fairview Container Terminal currently provides its clients with the fastest access possible for vessels that sail on routes between North America and Asia, the highest level of productivity when regarding the West Coast and a proper and sufficient rail-based link to the hinterland. Given the long-term concession along with the ability to go even farther than the current expansion phase 2, we have created a splendid opportunity for the company to develop even more. We are proud to announce this current transaction and have set our sight on further enhancements to port operations,” commented DP World Group Chief Executive Officer, Mohammed Sharaf.