Panama City: The current geopolitical situation in different countries from Venezuela to Algeria to Sudan is hitting global trade, a top executive of DP world said on Wednesday.
“Sudan has a problem, Algeria has a problem and in Latin America, Venezuela has a problem. These things affect trading hubs, supply chains and goods movement,” said Mahmood Al Bastaki, chief operating officer of DP World while speaking at Global Business Forum Latin America in Panama City.
Venezuela has been going through a political crisis in the last few months whereas protests broke out in Algeria and Sudan calling for a change in the leadership.
“All these war countries when they are in crisis they will not get into consuming and spending and it will affect the world trade. We being in the business of port terminal operator we don’t carry much cargo because there is no demand. So political stability plays a big role.”
On Latin America, he said it is in a good shape and there will be a big growth in the region.
“Brazil was always the main player because of the size and due to manufacturing and exporting capabilities and there’s been little bit slowdown and it is bound to grow because of the population increase. There is a big opportunity for Latin Americans to leverage all over the world.”
Speaking about expansion plans in Latin America, he said the company is focusing in a big way to boost its presence in the region.
“We as a DP world don’t come just as an infrastructure player only like putting cranes, making yards and deepening water. We also want to link the city to the rest of the world. How can I make more trade flow to the ports? That’s the value of DP World. We are in eighty ports covering six continents. We have the knowhow and knowledge of trade routes and what can move people. Port is playing a big role in attracting businesses.”
DP World is in several Latin American countries and has plans to expand further, he added.
“We are in Peru, in Dominican Republic, Argentina, Brazil and in Chile. In the pipeline there are more than five or seven ports which you might be hearing from us in the next one year. They are currently under negotiation. We do a long term concession agreement for port management.”
He also said Latin America contributes substantial revenue to the company but did not give a figure.