DP World is an Emirati multinational logistics company based in

Dubai Dubai (, ; ar, دبي, translit=Dubayy, , ) is the most populous city in the United Arab Emirates (UAE) and the capital of the Emirate of Dubai, the most populated of the 7 emirates of the United Arab Emirates.The Government and Politics ...

, United Arab Emirates. It specialises in cargo logistics, port terminal operations, maritime services and free trade zones. Formed in 2005 by the merger of Dubai Ports Authority and Dubai Ports International, DP World handles 70 million containers that are brought in by around 70,000 vessels annually. This equates to roughly 10% of global container traffic accounted for by their 82 marine and inland terminals present in over 40 countries. Until 2016, DP World was primarily a global ports operator, and since then it has acquired other companies up and down the

value chain A value chain is a progression of activities that a firm operating in a specific industry performs in order to deliver a valuable product (i.e., good and/or service) to the end customer. The concept comes through business management and was firs ...

History

Early history

Dubai Ports International (DPI) was founded in 1999. Its first project was at Jeddah,

Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the List of Asian countries by area, fifth-largest country in Asia ...

, collaborating with a local partner on the management and operation of the South Container Terminal (SCT). DPI then went on to develop operations at the ports of

Djibouti Djibouti, ar, جيبوتي ', french: link=no, Djibouti, so, Jabuuti officially the Republic of Djibouti, is a country in the Horn of Africa, bordered by Somalia to the south, Ethiopia to the southwest, Eritrea in the north, and the Re ...

in 2000, Vizag, India in 2002 and Constanta, Romania in 2003. In January 2005, DPI acquired CSX World Terminals (CSX WT). It was later, in September 2005 that Dubai Ports International officially merged with the Dubai Ports Authority to form DP World. The rapid expansion through acquisition continued in March 2006 when DP World purchased the fourth largest ports operator in the world, P&O for £3.9 billion.

2006: US Port security controversy

The ownership of various US ports by DP World (which had been acquired as part of the P&O deal) was seen as highly controversial by many in the United States even though it was supported by the US president George W. Bush; the US ports were sold shortly afterwards. P&O operated major US port facilities in

New York New York most commonly refers to: * New York City, the most populous city in the United States, located in the state of New York * New York (state), a state in the northeastern United States New York may also refer to: Film and television * '' ...

New Jersey New Jersey is a U.S. state, state in the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. It is bordered on the north and east by the state of New York (state), New York; on the ea ...

Philadelphia Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Sinc ...

Baltimore Baltimore ( , locally: or ) is the List of municipalities in Maryland, most populous city in the U.S. state of Maryland, fourth most populous city in the Mid-Atlantic (United States), Mid-Atlantic, and List of United States cities by popula ...

New Orleans New Orleans ( , ,New Orleans

Miami Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a coastal metropolis and the county seat of Miami-Dade County in South Florida, United States. With a population of 442,241 at th ...

. Before the deal was secured, the arrangement was reviewed by the Committee on Foreign Investment in the United States headed by the US Treasury Department and including the Departments of

State State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States * '' Our ...

Commerce Commerce is the large-scale organized system of activities, functions, procedures and institutions directly and indirectly related to the exchange (buying and selling) of goods and services among two or more parties within local, regional, natio ...

, and

Homeland Security Homeland security is an American national security term for "the national effort to ensure a homeland that is safe, secure, and resilient against terrorism and other hazards where American interests, aspirations, and ways of life can thrive" t ...

. It was given the green light, but soon after, both

Democratic Democrat, Democrats, or Democratic may refer to: Politics *A proponent of democracy, or democratic government; a form of government involving rule by the people. *A member of a Democratic Party: **Democratic Party (United States) (D) **Democratic ...

and Republican members of

Congress A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of ...

expressed concern over the potential negative impact the deal would have on port security. On 22 February 2006, President George W. Bush threatened to

veto A veto is a legal power to unilaterally stop an official action. In the most typical case, a president or monarch vetoes a bill to stop it from becoming law. In many countries, veto powers are established in the country's constitution. Veto ...

any legislation passed by Congress to block the deal, which would be the first time in his presidency he would exercise the privilege. In a statement to reporters, Bush claimed, "It would send a terrible signal to friends and allies not to let this transaction go through." On 23 February 2006, DP World volunteered to postpone its takeover of significant operations at the seaports and on 9 March 2006, is said that it would transfer its operations of American ports to a " US entity". The

United States House of Representatives The United States House of Representatives, often referred to as the House of Representatives, the U.S. House, or simply the House, is the lower chamber of the United States Congress, with the Senate being the upper chamber. Together the ...

held a vote on 16 March 2006 on legislation that would have blocked the DP World deal, with 348 members voting for blocking the deal, and 71 voting against. DP World later sold P&O's American operations to

American International Group American International Group, Inc. (AIG) is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. , AIG companies employed 49,600 people.https://www.aig.com/content/dam/aig/amer ...

's asset management division, Global Investment Group for an undisclosed sum. In August 2006, DP World signed an agreement with the Port Qasim Authority, to invest in a new container terminal at Port Muhammad Qasim near

Karachi Karachi (; ur, ; ; ) is the most populous city in Pakistan and 12th most populous city in the world, with a population of over 20 million. It is situated at the southern tip of the country along the Arabian Sea coast. It is the former ...

and announced that it was in discussions with the Pakistani Government about the development of a container terminal at

Gwadar Gwadar (Balochi/ ur, ) is a port city with located on the southwestern coast of Balochistan, Pakistan. The city is located on the shores of the Arabian Sea opposite Oman. Gwadar is the 100th largest city of Pakistan, according to the 2 ...

in Balochistan. DP World had been favourite to win the Gwadar concession, but withdrew from the bidding. Gwadar Port was subsequently awarded to PSA (Port of Singapore Authority) and opened in March 2007.

2007–2010: NASDAQ Dubai listing

In June 2007 the company raised $3.25 billion in Islamic and conventional bond sales to refinance existing debt and fund expansion and issued 3.818 billion shares, representing 20% of the company on the NASDAQ Dubai

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...

in November 2007 in what was the Middle East's largest

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...

(IPO) which raised 4.96 billion dollars. By 2008 the company was handing 46.8 million TEU worldwide, up 8% on 2007, with expansion and development projects in India, China, the Middle East, and elsewhere. Capacity was expected to rise to around 95 million TEU over the next ten years. In December 2009

Moody's Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides internation ...

downgraded DP World's financial status to junk after the Dubai 2009 debt standstill.

2010–2022: Covid-19 & corporate rebrand

In the second quarter of 2010 DP World gave the go-ahead for construction of the £1.5 billion London Gateway port. Work started in February 2010 with the port due to open in the fourth quarter of 2013. By April 2011,

upgraded DP World's financial status to 'investment grade'. Since December 2010, DP World has undertaken a series of asset disposals, exiting markets where it does not have a significant presence and seeking to redeploy funds in fast-growing markets. On 20 February 2019, DP World announced it had repurchased P&O Ferries from Dubai World in a £322m deal. In March 2021, the company said that, due to the COVID-19 pandemic, it had witnessed a drop of its profits by 29% comparing to 2019. In May 2021, Abdulla Bin Damithan was appointed as CEO and managing director of UAE business. In October 2021, coinciding with the launch of Expo 2020, DP World unveiled its new corporate identity. DP World is an official premier partner of Expo 2020.

2022: UK mass redundancy scandal

On 17 March 2022, P&O Ferries sacked its entire British work force and abruptly suspended its operations, cancelling all sailings and offloading passengers and cargo. Eight hundred UK staff were told in a video call that their employment was "terminated with immediate effect due to redundancy", and that their work would in future be undertaken by staff contracted to a third-party supplier. A spokesman for the

National Union of Rail, Maritime and Transport Workers The National Union of Rail, Maritime and Transport Workers (commonly known as the RMT) is a British trade union covering the transport sector. Its current President is Alex Gordon and its current General Secretary is Mick Lynch. The RMT is on ...

said that there had been no consultation with the staff or

trade union A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits (s ...

s. Staff on some ferries refused to leave their vessels. Some replacement staff, unaware of the circumstances or location of their deployment, declined to work, and a recruitment agency who supplied replacement staff said that they were unaware of the plans. The method of the expulsion, overseen by ex-military security guards, has been criticised by government and business leaders, and Mark Russell, a non-executive director of DP World, resigned afterwards in disagreement. P&O Ferries had recently seen losses during the

COVID-19 pandemic The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identified ...

as well as deficits in its pension fund. Industry sources have also cited its high overheads and competition from

Irish Ferries Irish Ferries is an Irish ferry and transport company that operates passenger and freight services on routes between Ireland, Britain and Continental Europe, including Dublin Port– Holyhead; Rosslare Europort to Pembroke as well as Dublin ...

as contributory factors. Verity Slater, expert in maritime employment law at Stephens Scown, commented that P&O may not have to follow UK employment laws, since some of its ships are not registered in Britain.

Location of DP World's operations

DP World has a portfolio of 78 operating marine and inland terminals supported by over 50 related businesses in 40 countries across six continents. The table below lists current terminals and new developments managed by DP World.

Corporate affairs

Supply chain security

DP World has been certified as a partner in the Customs-Trade Partnership Against Terrorism (C‑TPAT) initiative by US Customs and Border Protection – to date, the only international port operator to have achieved this recognition. This certification is primarily based on DP World's commitment to the independently audited international ISO 28000 security standards. DP World was the first global maritime terminal operator to achieve ISO 28000

supply chain security __NOTOC__ Supply chain security (also "supply-chain security") activities aim to enhance the security of the supply chain or value chain, the transport and logistics systems for the world's cargo and to "facilitate legitimate trade".Government o ...

certification and is rolling out the standard to all its terminals.

Counter piracy

In June 2012, in partnership with the UAE Ministry of Foreign Affairs, DP World convened the second high-level, public-private counterpiracy conference, in Dubai. The ''Washington Post'' reported "Diplomats and business leaders...are pushing for stronger partnerships between the public and private sectors in combating

piracy off the coast of Somalia Piracy off the coast of Somalia occurs in the Gulf of Aden, Guardafui Channel and Somali Sea, in Somali territorial waters and other surrounding areas and has a long and troubled history with different perspectives from different communities. ...

". The April 2011 conference was the first time companies rather than governments had contributed financial support to the UN counter-piracy trust fund. The inaugural conference was attended by more than 65 governments and representatives of international organisations, including the United Nations and more than 120 leaders from maritime industry related companies.

Berbera operations

New DP World Berbera Container Terminal Port

In 2016 a US$442 million agreement was reached between DP World and the government of Somaliland. The deal involves enhancing and operating the regional trade and logistics hub at the Port of Berbera. The project, which will be phased in, will also involve the setting up of a free zone. On 1 March 2018,

Ethiopia Ethiopia, , om, Itiyoophiyaa, so, Itoobiya, ti, ኢትዮጵያ, Ítiyop'iya, aa, Itiyoppiya officially the Federal Democratic Republic of Ethiopia, is a landlocked country in the Horn of Africa. It shares borders with Eritrea to the Er ...

became a major shareholder following an agreement with DP World and the Somaliland Port Authority. DP World holds a 51% stake in the project, Somaliland 30% and Ethiopia the remaining 19%. As part of the agreement, the government of Ethiopia will invest in infrastructure to develop the Berbera Corridor as a trade gateway for the inland country, which is one of the fastest growing countries in the world. There are also plans to construct an additional berth at the Port of Berbera, in line with the Berbera master plan, which DP World has started implementing, while adding new equipment to further improve efficiencies and productivity of the port. The agreement comes as part of a larger government-to-government Memorandum of understanding between Government of the

United Arab Emirates The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia ( The Middle East). It is located at ...

and the Government of Somaliland to further strengthen their strategic ties.

Somalia Somalia, , Osmanya script: 𐒈𐒝𐒑𐒛𐒐𐒘𐒕𐒖; ar, الصومال, aṣ-Ṣūmāl officially the Federal Republic of SomaliaThe ''Federal Republic of Somalia'' is the country's name per Article 1 of thProvisional Constitut ...

's attempts to obstruct and block the deal were frustrated and failed to stop the project from commencing.

DP World Dakar

On 3 January 2022, construction began on the US$1.13 billion deep-water port at Ndayane, around 50 km (31 miles) south of the Senegalese capital

Dakar Dakar ( ; ; wo, Ndakaaru) (from daqaar ''tamarind''), is the capital and largest city of Senegal. The city of Dakar proper has a population of 1,030,594, whereas the population of the Dakar metropolitan area is estimated at 3.94 million in ...

, when President Macky Sall laid the foundation stone. DP World Dakar is a joint venture between DP World and the Port Authority of Dakar. The first phase of the project will include 840 metres of quay and a 5 kilometres marine channel designed to handle 366-metre vessels. The second phase will add 410 metres of container quay and further dredging to handle 400-metre vessels.

Sport sponsorship

DP World sponsor the European Tour's season ending

DP World Tour Championship, Dubai The DP World Tour Championship is a golf tournament on the European Tour and is the climax of the DP World Tour Rankings. It is contested on the Greg Norman-designed Earth course at the Jumeirah Golf Estates in Dubai, United Arab Emirates. The t ...

, played at

Jumeirah Golf Estates Jumeirah Golf Estates is a luxury residential golf community that is located along E 311 road (United Arab Emirates), in Dubai, United Arab Emirates. It is rated among the top 10 lifestyle estates in the world. Jumeirah Golf Estates consists of o ...

. DP World also support the Hong Kong Open and the BMW PGA Championship at Wentworth Club. In November 2021, DP World invested US$400 million in the European Tour to become the tour's new title sponsor, the tour being renamed as the DP World Tour. For the Formula One 2020 Season, DP World and Renault F1 Team, have signed an agreement making DP World the Global Logistics Partner of the team, which will become the Renault DP World F1 Team as from the 2020 Season. In the 2020 season of the Indian Premier League, DP World is the Global Logistics Partner for the Royal Challengers Bangalore team. DP World sponsor the yacht '' Maiden'' on her world tour 2021–24. Dubai Turf is also sponsored by DP world in 2022. DP World was also the title sponsor for

2022 Asia Cup The 2022 Asia Cup (also known as DP World Asia Cup for sponsorship reasons) was the 15th edition of the Asia Cup cricket tournament, with the matches played as Twenty20 Internationals (T20Is) during August and September 2022 in the United Arab Em ...

References

External links

DP World – GlobalBBC story on takeover of P&OSourceWatch article on DP World
{{authority control Dubai World Transport companies established in 1999 Companies based in Dubai Port companies of the United Arab Emirates Transport operators of the United Kingdom Multinational companies headquartered in the United Arab Emirates Emirati companies established in 1999 Companies listed on Nasdaq Dubai