DP World has entered into a partnership with Zhejiang China Commodity City Group Company (CCC) to develop a new Traders Market in Jebel Ali Freezone (JAFZA). DP World will hold a majority share in the 70/30 joint venture. Construction of the Traders Market is expected to start later this year and will take around 24 months to complete. The first phase, which will occupy around 220,000m2, will cost around US$ 150 million to develop.
The facility will allow traders to benefit from lower supply chain costs by using the multi-modal infrastructure available in Jebel Ali and Dubai. International traders will be able to procure bulk products in Dubai at wholesale prices with short delivery times and will be able to service demand more efficiently, DP World suggests.
Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive, DP World, commented: “When we acquired Jebel Ali Freezone in 2015, our vision was to attract clients that will not only provide lease income but also bring significant origin and destination cargo, promoting Dubai as a trading hub. This transaction helps us achieves this vision and we believe we have found the right partner in CCC, with the relevant expertise and experience to make this project a success.”
DP World recently also announced strong financial results for the six months ending 30 June 2019, with reported adjusted EBITDA and attributable earnings growth of 21.9% and 26.8% respectively.
Sultan Ahmed Bin Sulayem pointed out that this positive financial performance had been delivered despite an uncertain trade environment, a fact that underlines the strength of the group’s portfolio. He added, “While the near-term trade outlook remains uncertain with global trade disputes and regional geopolitics causing uncertainty to the container market, the strong financial performance of the first six months also leaves us well placed to deliver full-year results slightly ahead of market expectations.”