DP World to continue using P&O brand

Ho Chi Minh City: DP World, which became the world's third largest port operator earlier this year after acquiring 165-year British group P&O, has integrated the company's business to its own but it will continue to use P&O's brand name, Dubai officials told Gulf News in this Vietnamese city.

"P&O is a very important name. We bought the company, we bought the ports, but the trade name is important. We should not lose it," said DP World chairman Sultan Ahmad Bin Sulayem, who was in Vietnam to launch the building of a container port facility outside Ho Chi Minh City.

DP World is investing $200 million in the Saigon Premier Container Terminal facility, an 80:20 joint venture between P&O Ports and Vietnamese state-owned Tan Thuan Industrial Promotion Company (IPC).

Bin Sulayem said P&O's name will continue to be used in regions where the former British-owned firm has had a strong presence. To reinforce the company's British origins, the new port's ground breaking ceremony on Wednesday was led by Prince Andrew, the Duke of York.

From July 1 a new umbrella company, known as Ports & Free Zone World, will come into existence in Dubai that will manage DP World, P&O and Jafza.

"Under Ports & Free Zone World you will see all the port activities taking place domestically, regionally and internationally," Jamal Majid Bin Thaniah, group chief executive officer of the new entity told Gulf News.

The Ports, Customs and Free Zone Corporation (PCFC), which managed the DP World and Jafza earlier, will act as a regulatory body, Bin Thaniah said.

He said both DP World and P&O had their brand values, but Dubai has to capitalise on the historic P&O logo. "We are in the process of deciding how we can continue to use the P&O logo commercially," he added.

Bin Thaniah said the Vietnam venture was part of DP World's strategic expansion in Asia.

"Vietnam is a fast-growing country. It is going to be a country that will host major manufacturing bases. There is a lot of business potential and we have come at the right time to invest and to add a new port to our network," he said.

The 1.5 million TEU (20-foot equivalent unit) capacity Saigon terminal will be ready in 2008 and will be equipped with 10 post-Panamax cranes.

A new industrial zone will be linked to the new port complex. "We will be exploring the opportunities with Vietnamese officials to see whether we can bring in our sister company Jafza to manage the free zone," he said.