Dubai's DP World eyes Latin America expansion, to buy Chile ports company

Dubai: Ports operator DP World is set to strengthen its global footprint as it eyes a 100 per cent stake in a company in Latin America.

The UAE-based firm announced on Sunday that it had entered into an agreement to acquire 71.3 per cent stake in Puertos y Logistica S.A. (Pulogsa) from Minera Valparaiso and other share shareholders associated with the Matte Group.

DP World also plans to offer $502 million for a 100 per cent “equity ownership” in the ports company which is listed on the Santiago stock exchange.

Pulogsa runs a long-term concession for Puerto Central (PCE), a multi-purpose terminal in San Antonio, in Chile’s Central Region V. It also owns and operates Puero Lirquen (PLQ) in Chile’s Southern Region VIII.

The Dubai-owned company runs a number of ports facilities in South America, such as the Port Callao, a container terminal.

In March 2018, DP World announced it had acquired a logistics firm in Peru, Cosmos Agencia Maritima, for more than $300 million.

With the new assets, DP World will be able to serve cargo owners and shipping lines at five key gateways on the west coast of South America in Posorja (Ecuador), Callao and Paita (Peru) and San Antonio and Lirquen (Chile,” according to Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World.

“We are delighted to extend our global footprint with a major entry into Chile… with attractive growth prospects and a dynamic business environment,” Sulayem said.

“The overall value proposition for these terminals is compelling and the addition of capacity to our portfolio will help drive long-term value to all our stakeholders.”