Dubai Ports World to boost capacity 50%, still keen on U.S. investments

Dubai Ports World to boost capacity 50%, still keen on U.S. investments Dubai Ports World Chairman Sultan Ahmed bin Sulayem said in an interview with Reuters that the state-owned global ports operator will grow its container handling capacity 50 percent over the next three years, and still sees investment opportunities in the United States despite the fuss over its acquisition of P&O Ports.
   DP World runs 52 ports worldwide with eight new terminal projects under construction.
   'We expect to grow our port operations,' Sulayem said. 'Our ability to handle cargoes, whatever we have now, we expect to grow by 50 percent in the next three years.'
   In December, DP World agreed to sell its P&O Ports North America marine terminal business to insurance and investment services giant AIG, nine months after acquiring the unit and becoming embroiled in a political firestorm over national security. Despite the row, Sulayem told Reuters that it's still keen to invest in the United States.
   'The United States is a very attractive market. Bear in mind (the sale of the U.S. operation) didn't stop us to invest. After we decided to sell, we invested almost $2 billion in real estate, (and the) retail sector, in the U.S.,' he said.
   Dubai World's investment arm, Istithmar, of which Sulayem is executive chairman, has just purchased the Hotel Washington, in Washington, D.C., and last year acquired retailer Loehmann's, the Knickerbocker Hotel and office block 280 Park Avenue in New York.
   'The U.S. is the major ally. There is huge cooperation between the governments. There have been maybe some events, but ' whether there is protectionism or not, we go after opportunities,' Sulayem said.
   Sulayem added that any future acquisitions would likely be financed by bank loans rather than an initial public offering.
   'We talked about (an) IPO, but we do it to meet financial commitment with banks. But we never said that's the only way,' he said. 'We haven’t decided which way. We are evaluating. Whichever is cheaper. We have more appetite for bonds. Banks are willing to lend their money. It's less complicated than (an) IPO.'