DP World sells Yemen port venture stake
Dubai, September 20, 2012
Global port operator DP World said it has reached an agreement with Yemeni port officials to sell its entire 50 per cent stake in the Yemeni port venture, Dubai and Aden Ports Corporation (DAPDC) for $27 million.
As per the new agreement, Aden Port Development Company, a wholly-owned unit of Yemen Gulf of Aden Ports Corporation (YGAPC), will be responsible for the Aden port operations from today, said a statement from Dubai-based DP World.
DP World said an amicable agreement has been reached with Yemeni authorities, thus strengthening the excellent relationship between the governments and peoples of Yeman and the UAE.
Last month media reports in Yemen said that the ports authority had begun contacts with DP World on cancelling the contract to manage Aden port.
The reports citing a senior Yemeni transport ministry official said the board of Gulf of Aden Ports Corp had decided to cancel the DP World agreement and was in contact with the Dubai port operator to complete the process of cancellation amicably.
"We are pleased to have reached an agreement with DP World on an amicable basis after due deliberation," said a senior official Yemeni port official on Thursday.
"The agreement protects the interests of the Republic of Yemen and YGAPC and secures the future for this strategically located terminal. It provides stability and an excellent base from which to boost the national economy," the official stated.
"We are excited by the prospect of building on the progress made so as to further develop and expand the port to realise its full potential as a leading modern and efficient transhipment hub," he added.
On its successful exit, DP World said the investment in the Aden facility was recognised by its joint venture partner, YGAPC, through the agreement reached today.
"The agreement protects the interests of DP World, its partners and the Yemeni parties who will run and operate a terminal boosted by two new Liebherr Super Post-Panamax quay cranes," said the port operator in its statement.
"We believe that the work we have started will go a long way in further supporting the facility’s position," it added.-TradeArabia News Service