DP World, a major player in global trade facilitation, is poised to enhance the global supply chain’s resilience by adding around 3 million Twenty-Foot Equivalent Units (TEUs) of new container handling capacity by the close of the year. This expansion is a crucial step towards bolstering the capacity and infrastructure required to fortify the global supply chain against disruptions.
With a current management of approximately 9% of the world’s container handling capacity, DP World ranks among the top five global port operators. The upcoming expansions will raise its total gross capacity to 93.6 million TEUs, catering to the escalating demand in key trade markets.
Noteworthy expansions scheduled for this year encompass locations such as Caucedo (Dominican Republic), expected to gain an additional 1.2 million TEUs; Yarimca (Turkey), projecting an added 579,000 TEUs; Sokhna (Egypt), introducing 500,000 TEUs; and Jeddah (Saudi Arabia), increasing by an extra 200,000 TEUs, among other significant markets.
As predicted by supply chain advisors Drewry, global container throughput is anticipated to rise to 932 million TEUs by 2025, up from 858 million TEUs in 2021. DP World’s capacity expansion initiatives come at a crucial juncture, as concerns surrounding inflation, increased cost of living, and geopolitical uncertainties underscore the need for more robust and agile supply chain solutions.
According to DP World’s recent “Trade in Transition 2023” report, businesses remain focused on growth through market expansion, identifying growing demand and expansion into new markets as key drivers for export growth in 2023. The report also highlights technology utilization as a primary reason for executives’ optimism about global trade.
Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, emphasized the commitment to invest in infrastructure to meet burgeoning trade demands. These capacity enhancements are expected to further solidify DP World’s position as a leading global provider of supply chain solutions, facilitating connections between economies, businesses, and consumers worldwide.
Tiemen Meester, COO Ports & Terminals at DP World, stressed the importance of a long-term perspective on global economics to efficiently address evolving demand. DP World’s medium-term goal is to reach an annual handling capacity of 100 million TEUs, contingent on demand.
Beyond the physical expansions, these projects emphasize digitalization, implementing new technologies and modern Terminal Operating Systems to automate and streamline operations within each port. This digitization is set to amplify capacity by facilitating smoother trade flows and more efficient customer processes.
By introducing automation and smarter operational methods, DP World anticipates a significant increase in handling capacity within the same physical footprint. Additionally, the integration of automated equipment powered by electricity will contribute to a substantial reduction in CO2 emissions for DP World and its clients.
In a groundbreaking move, DP World recently initiated the commercial use of its revolutionary BOXBAY high-bay storage system at the Pusan Newport Corporation (PNC) terminal in South Korea. This technology, combined with DP World’s stake in PNC, a high-performing container terminal in Asia, will further enhance operational efficiency.
Furthermore, DP World is set to launch operations at Indonesia’s Belawan New Container Terminal (BNCT) with a capacity of 600,000 TEUs, with plans to increase its capacity to 1.4 million TEUs. This move aims to reduce reliance on regional hub ports, reinforcing DP World’s role as a pivotal trade and logistics gateway in the Malacca Strait.
DP World’s extensive initiatives extend to India, where they secured a major concession to develop, operate, and maintain the Tuna-Tekra mega-container terminal at Deendayal port on the western coast. This terminal, projected to handle 2.19 million TEUs per year, will substantially enhance container traffic growth in India, optimizing logistics, and bolstering supply chain efficiencies across Northern, Western, and Central India.