DP World joint venture to invest up to $2b in Russia

DP World Russia, an 80/20 joint venture between the port terminal operator and the Russian Direct Investment Fund, aims to further the development of port and logistics infrastructure in Russia.    DP World has entered into a new joint venture company with the Russian Direct Investment Fund (RDIF) that will aims to further the development of port and inland infrastructure in Russia, the Dubai-based port terminal operator said in a statement.
   Operating under the name DP World Russia, the joint venture is expected to invest a total of $2 billion to upgrade Russian marine port, dry port, and logistics facilities, as well as introduce international best practices in operations to improve trade connectivity throughout the country.
   DP World Chairman Ahmed Bin Sulayem and RDIF CEO Kirill Dmitriev signed the agreement, under which DP World will own 80 percent of the new company with the remaining 20 percent share held by RDIF, on the sidelines of the World Economic Forum in Davos.
  “Russia has always been an attractive origin and destination market for us with huge long term growth prospects,” Ahmed Bin Sulayem said in a statement. “This joint venture allows DP World and RDIF to build on each other’s strengths in bringing economic prosperity to Russia. It is also another great example of the strategic partnerships with government stakeholders, a model that has proven very successful for us over the years. Ports and logistics infrastructure are long term investments and this is why, when we invest, we prefer an approach that recognizes the benefits of sharing resources for a common purpose.
   “RDIF has a proven track record of investing with other global companies and we are pleased to partner with them. This JV will enable us to share with Russia our experience as a global port operator and trade enabler and to further enhance the already established strong relations between our countries.”
   “DP World’s global expertise and its proven and tested ability to drive trade growth and develop efficient infrastructure, make it the ideal choice to support the long-term goals for the development of Russia,” added Dmitriev. “We are glad to welcome DP World in Russia and look forward to creating an effective partnership which will benefit both Russia and UAE.”