DP World stretches across region, teaming up with JP Morgan

DP World, one of the top five global operators of shipping terminals, is expanding its business in Saudi Arabia, while teaming up with JP Morgan to provide companies across Africa with greater access to working capital.

The Dubai government-owned conglomerate said on Monday that it is moving forward with an $800 million expansion of the South Container Terminal at Jeddah Islamic Port on Saudi Arabia’s west coast.

The three-year project, carried out in cooperation with the Saudi Ports Authority, aims to strengthen the kingdom’s position as a shipping hub connecting trade routes across Asia, Africa and Europe, DP World told the Emirates News Agency.

“With this modernized terminal, we are enhancing efficiency, improving supply chain resilience and creating new trade opportunities for the Kingdom and beyond for decades to come,” DP World Chairman and CEO Sultan Ahmed bin Sulayem said.

JP Morgan, meanwhile, is teaming up with DP World Trade Finance to provide financing for companies in Africa and other emerging markets where supply chain disruptions and limited credit continue to hinder trade.

Among the first products of the collaboration was a deal to buy cocoa from Ivory Coast that DP World said in a statement had “unlocked over $70 million in annual procurement opportunities” for an unidentified client described as a leading global food company.

“By leveraging risk-sharing mechanisms and combining them with logistics in one ecosystem, we reduce the overall credit risk profile and enhance liquidity in emerging markets,” said Raj Jit Singh Wallia, a board member of the DP World finance unit.