Port Saint John officials have announced a lease agreement with DP World for the operation of its container terminal within the context of the largest private and public sector investment in the New Brunswick port in decades. This means that starting on January 1, 2017, DP World will replace Logistec Corporation, which has been managing the Rodney Container Terminal for 20 years.
The long-term lease with DP World will continue for about 30 years following completion of the Port’s expansion program. DP World will introduce new assets including the revamping of terminal cargo handling equipment to deliver exceptional customer service, stated a Port Saint John press release.
Dubai-based DP World, one of the largest marine terminal operators in the world handling more than 170,000 TEUs per day, is already present in Canada with terminal operations in Prince Rupert, Vancouver and Nanaimo. Saint John will represent its first presence on the east coast of North America.
The announcement follows the recent funding commitments for the $205 million West Side Modernization Project from the Federal and Provincial Governments together with Port Saint John, which will see the container terminal revitalized, and the container berths and main channel deepened over the next seven years.
A prime goal is to attract larger containerships to the Bay of Fundy port at either high or low tides, thereby enabling Saint John to emerge as a bigger container player on the East Coast.
Port Saint John is Eastern Canada’s largest port by tonnage and has a diverse cargo base, including dry and liquid bulk, break bulk, and cruise. Total traffic in 2015 was 26.4 million tonnes. Container traffic has nearly doubled since 2012 to 97,100 TEU thanks in part to the arrival of Mediterranean Shipping Company.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are delighted to further extend our presence in Canada to the Port of Saint John, New Brunswick. We believe that the future growth prospects for the port are strong and we are excited to be participating with Saint John Port Authority in their expansion plans. Our investments and commitment to Canada are for the long term, contributing to trade and the development of its national and local economies as well as providing employment for people with a leader of world trade.
“We are delighted to have a presence on the east coast of North America for the first time and see great growth potential. We are excited to work with the shipping community and our worldwide network and have been working with port management on our plans to build on the experience and success of our operations in Western Canada.” Peter Gaulton, Chair of the Board of Directors, Port Saint John, said: “We are pleased to join together with a global trade partner who shares our vision for the growth potential of this Port based on its geographic location and rail optionality. When reviewing the proposal for terminal operations, we were impressed by the presence that DP World already has at three major port authorities in British Columbia and the depth and breadth of their business in ports and terminals worldwide.”
Earlier this year DP World said that they wouldn’t rule out U.S. port acquisitions despite the rebuff the terminal company received in 2006.
