Dubai: A Dh1.83 billion ($500 million) joint venture between Sharjah-based ports and logistics operator Gulftainer and Russia's state-run Russian Technologies' investment vehicle Prominvest, has identified 40 major ports, logistics and other infrastructure projects in Russia and neighbouring countries for investment, an official said.
Badr Jafar, Executive Director of the Crescent Group and Vice Chairman of Gulftainer Co Ltd, told Gulf News the new joint venture will make the announcements shortly.
"Currently, Russian ports handle about 3 million twenty-foot-equivalent units (TEUs), while its inland port's capacity is about 1.5 million TEUs, and that creates a bottleneck. We will identify opportunities to expand capabilities so that the traffic moves efficiently and boosts trade in the growing economy," he told Gulf News from the Black Sea resort city of Sochi, where he signed the agreement to create the joint venture in the presence of Prime Minister Vladimir Putin.
Rapid growth
"The rapid growth of the Russian economy will increase demand for a more efficient and wider range of port and logistic services. Gulftainer and Prominvest will together meet that challenge using Gulftainer's well established reputation for optimum efficiency in the ports and logistics industry, plus the vast expertise and local knowledge of the successful Prominvest organisation in Russia," Jafar said.
Crescent Petroleum, part of the Crescent Group, earlier signed a joint venture agreement with Rosneft, one of Russia's largest energy companies, to invest in energy exploration opportunities in the region, where energy is largely controlled by state-owned enterprises.
"This is another major demonstration by the Crescent Group of its commitment to building strong economic ties with our Russian brothers, pulling together the synergies and strengths in our respective areas of expertise," Jafar said.
Gulftainer Co LLC operates container terminals in Sharjah's ports, including Khor Fakkan. With 4 million TEU throughput, it is the largest private commercial port operator in the Middle East, second only to DP World.
Joining forces
Crescent also owns a stake in Dana Gas, a public joint stock company listed on the Abu Dhabi Exchange.
Prominvest CEO Mikhail Shelkov said, "Prominvest are delighted and proud to join forces with two companies — the Crescent Group and Gulftainer — who are both market leaders in their respective fields. We are at the forefront of co-operation between Russia and the Gulf region and this agreement firmly establishes the commitment of our organisations to develop and expand supply chain logistics in the Russian Federation."
Dubai UAE public and private sector entities are becoming major investors in Russia and Central Asian republics with billions of dollars being pumped into major infrastructure, real estate and energy projects.
Following the footsteps of the state-owned entities of Abu Dhabi and Ras Al Khaimah that have invested heavily in Kazakhstan and Georgia respectively, two UAE private companies, Gulftainer and Damac Properties, have announced nearly Dh3 billion in investments in Russia.
Of this, Gulftainer is involved in $500 million (Dh1.83 billion) while Sajwani's Damac Properties is participating in a $300 million (Dh1.1 billion) fund.
Damac, the largest private developer in Dubai, has delivered 3,600 homes to investors and buyers and is slated to deliver another 3,500 across the GCC in the next 12 months. It will invest $300 million in real estate projects, including the facilities for the 2014 Winter Olympic Games in Sochi.
Hussain Sajwani, Chairman of Damac Properties, said, "Damac Properties, as the Middle East's largest private luxury developer, continues to pursue growth by expanding and diversifying in international markets.
"We now have projects in North Africa, Jordan, Lebanon, Qatar and Saudi Arabia. With a proven track record of developing and delivering luxury properties and a strong capital position, we are continually assessing investment opportunities in other territories."
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