Dubai-based port operations major DP World said on Wednesday that it had bought three units of India-headquartered Transworld Group promoted by local businessman Ramesh Ramakrishnan.
These include Transworld Feeders FZCO and Transworld Feeders Pvt Ltd (the containerised Indian coastal and export-import feeder operations of Shreyas Shipping and Logistics Ltd, excluding vessels and bulk operations).
DP World will pay a total of $48.7 million (Rs 364 crore) for the deal, of which Shreyas Shipping will get $27.7 million (Rs 207 crore).
Transworld Feeders FZCO and Avana Global FZCO are independent feeder and NVOCC (non-vessel operating common carriers) operators, offering container feedering services and regional trade solutions connecting a wide range of ports in West Asia, subcontinent and Far East, Shreyas Shipping said.
“The central hub port at Jebel Ali (UAE) plays a pivotal role for a large part of the services,” the company release further added.
The companies have a capacity of 1.2 million teu or twenty-foot equivalent units.
DP World had acquired the Danish feeder operator Unifeeder two years back in August 2018 for $764 million from Nordic Capital Fund VIII and some other minority shareholders.
In December last year, Unifeeder had acquired a 77% stake in Singapore based Feedertech for an unspecified amount.
Just three weeks back, a joint venture between DP World and India’s National Investment and Infrastructure Fund announced a Rs 1,000 crore investment in a free trade zone of the Jawaharlal Nehru Port Trust.
The latest acquisition comes even as DP World’s first-half profit for the year has fallen 56% due to a slump in container volumes. Interestingly, the fall in profit came despite an 18% surge in revenue during the period.