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Apr.20, 2015

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INTERNATIONAL MARITIME IMPORTING | EXPORTING | PORTS | CARRIERS | BREAKBULK | GLOBAL LOGISTICS www.joc.com THE JOURNAL OF COMMERCE 35 By Bruce Barnard DP WORLD THIS month announced plans to acquire Maher Terminals' Fairview Con- tainer Terminal in Prince Rupert, British Columbia, from Germany's Deutsche Bank for $457 million, positioning the Dubai ter- minal operator as one of the fastest-growing gateways for Asia-North America trade. The deal, which is subject to regulatory approval, is expected to be completed in the second half of the year. "Fairview Container Terminal offers the fastest access for vessels traveling between Asia and North America," said Mohammed Sharaf, group chief executive for state-owned DP World. "The terminal also offers the highest productivity rates on the West Coast and an efficient rail link to the hinterland." The long-term concession to operate the terminal and the potential to expand "pres- ents a fantastic opportunity for DP World," Sharaf said. Fairview has annual capacity of 850,000 20-foot-equivalent container units, which will rise to 1.35 million TEUs under a recently announced Phase 2 expansion. The conces- sion runs to 2034 with an extension to 2056 after the completion of the expansion project. The project, scheduled for completion in mid-2017, will boost the port's annual capac- ity by 500,000 TEUs with the construction of a second berth, a container yard expan- sion and four more gantry cranes. Canadian National Railway, the sole rail provider at the port, also will extend on-dock rail to serve the expanded terminal. Prince Rupert hopes the new berth will attract more liner services, either from its existing carriers Cosco and Hanjin Shipping, their fellow CKYHE alliance members, or another carrier, Shaun Stevenson, vice presi- dent of trade development and public affairs at the Prince Rupert Port Authority, told the 15th Annual TPM Conference in Long Beach, California, in March. Three weekly services — two from Cosco and one from Hanjin, both of which have slot-sharing capacity for alli- ance partners — currently call at the port. DP World already has a presence in Can- ada as operator of the Centerm terminal in Port Metro Vancouver. The deal does not include the flagship Maher Terminals facility at the Port of New York and New Jersey. Including that facility in the deal would have reopened the political furor that erupted in 2006 over the Dubai-based company's acquisition of U.S. port leases as part of an acquisition of U.K.- based P&O Ports. The sale went through, but only after P&O Ports' U.S. assets were excluded from the deal. Deutsche Bank began seeking potential buyers for all or part of its terminal assets last year after writing down a large percent- age of the reported $2.3 billion, including debt, the German bank paid to acquire Maher in 2007. The acquisition was one of several in which buyers paid high multiples for terminal assets before volume slumped in the 2009 recession. Merger-and-acquisition activity among terminals has resumed during the last two years, with buyers paying smaller multiples. Maher has tried unsuccessfully to per- suade the U.S. Federal Maritime Commission in court to force the Port Authority of New York and New Jersey to reduce costs of the ter- minal's lease from the port authority. Maher's New York- New Jersey terminal is the largest in the port. The terminal endured a rough patch in the summer of 2013 because of difficulties in the startup of a new terminal operating system, but many truckers and customers now say Maher often is the smoothest-running ter- minal in the port. JOC Contact Bruce Barnard at brucebarnard47@hotmail.com. DP WORLD EXPANDS CANADIAN FOOTPRINT The Dubai terminal operator plans to acquire Maher's Fairview facility at Prince Rupert for $457 million Fairview has annual capacity of 850,000 TEUs, which will rise to 1.35 million under a recently announced Phase 2 expansion.

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