Dubai-based port operator DP World is eyeing three sites in Russia as part of a $2 billion joint venture it signed in January, as per their group chairman.
The three sites are in Vladivostok in the east of Russia, the Baltic Sea and the Black Sea. Sultan Bin Ahmed bin Sulayem did not provide more specific details during a press conference in Dubai.
In January, DP World signed a JV agreement with the Russian Direct Investment Fund (RDIF) to develop ports, transportation and logistics infrastructure in Russia.
At the time, Vladivostok was one of the regions to be targeted by the Joint Venture – Bin Sulayem had met Russian president Vladimir Putin there several months earlier to discuss possible investments.
The eastern port of Vladivostok is considered crucial to boosting trade with China, as the Far East superpower increasingly looks to transport products more cheaply by land to Russia and Europe, rather than by sea.
Bin Sulayem told journalists on Sunday that the JV would seek to invest the planned $2 billion among the three areas over the next 20-30 years.
He said no financial commitments had yet been made, but explained that the RDIF Joint Venture “would be the vehicle through which will be invest”.
DP World is in various stages of negotiations for investments in 15 other markets, but Bin Sulayem declined to reveal full details while talks are still on going.
Among the targeted markets are, Senegal, where DP World is hoping to ink an agreement to operate the port to anchor a new free zone being planned by the Senegalese government.
There are also plans to invest circa $1.9 billion in China – it has several investments there already – Georgia, Somalia, Madagascar and Albania.
Bin Sulayem added that the lifting of sanctions in Iran presented new opportunities, particularly as DP World looks to tap into nearby markets such as Kazakhstan to open up inland transport gateways to China.