DP World Signs 40-Year Lease In Port Of Brisbane

July 29, 2008 12:22 a.m. EST

Brisbane, Australia (AHN) - United Arab Emirates-based DP World is ready to invest A$259 million (US$239 million) for the development of its existing and newly acquired terminals in the Port of Brisbane after it signed a new 40-year lease agreement with the Australian port authority.

The agreement, which has an initial 20-year term and a 20-year option to extend, involves container handling facilities at Terminals 4, 5 and 6, which DP World currently leases.

DP World will take over Terminal 7 after rival port operator Patrick vacates the facility to transfer to the newly completed Berth 10, the seventh dedicated container terminal in the port.

This brings DP World's Brisbane operations to 86.5 acres of terminal area and 984.2 square yards of quay at three berthing positions.

The investment concerns the terminals' capacity to cope with increasing vessel sizes and market demand. Under its contract with the port, DP World will re-engineer the terminal with the aim to step up productivity and handling of increasing volumes for Australian trade without impacting the environment. A highlight in the new agreement is the inclusion of "good environmental practice" clauses.

DP World also noted the Port of Brisbane's significant growth especially its role as a trading gateway of Australia for Asian markets.

DP World, one of the largest marine terminal operators in the world, has 45 terminals and 13 port-related projects in 29 countries.