Friday , 23 March 2018
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Bin Sulayem: DP World has no plans to invest in America

DP World CEO Sultan Ahmed bin Sulayem said the operator has ruled out investing in American ports for the time being.

Bin Sulayem said operational costs in America were too high but refused to rule out future investments in a wide-ranging interview with CNBC.

Bin Sulayem said: “The problem is the port operation in the States is more expensive than what we are used to.

“We don’t believe that the tariff that we charge or would charge in the State for 100 containers is going to cover to the rising cost of the operation.

“There is nothing to stop us going to the US, we can always go, we just haven’t found the right opportunity.”

Bin Sulayem also discussed DP World’s new initiative with the Indian government to invest US$3bn into India, and said he expects India’s ports and shipping sector to record more growth than any other country in the near future.

He said: “There are many initiatives planned by the Indian Prime Minister to basically increase production; the ‘Made in India’ scheme, ways of doing business, the financial system. All that means there’s going to be growth.”

In terms of DP World’s investment into the country, bin Sulayem said it was looking at a number of areas, including waterways, rivers and improving logistical operations.

Bin Sulayem also reaffirmed DP World’s commitment to developing a blockchain platform for the operator’s customers, which he said would ease the sharing of shipment information while also reducing costs.

He said: “This is something that will basically utilise the information that’s already there, but it will help the customs officials at ports and the consignee who is receiving that cargo.

“We are very serious about putting together a very interesting blockchain system for our customers that would help us to achieve record time in delivering cargo while also identifying where there are bottlenecks and why.”