Sheikh Maktoum Bin Mohammed and DP World Unveil Mega Expansion: London Gateway Set to Become UK’s Largest Port!

Why is Dubai investing heavily in the expansion of the London Gateway logistics park?

Last week, I visited our Southampton operations, a key player in our transition from a world-class port operator to a leading end-to-end logistics business. Our commitment to Southampton is steadfast as we continue to invest in its growth, ensuring it remains one of the top three ports in the UK.

During my visit, I was proud to see the progress: four new quay cranes, hybrid straddle carriers and a new gate complex allowing simultaneous access to two 24,000 TEU vessels. These investments not only increase capacity but also position Southampton as a leader in sustainability on our journey to net-zero.

From transitioning to HVO fuel and boosting rail freight through our modal shift pilot to rolling out shore power, we’re building the most sustainable logistics business in the country, alongside our operations in London Gateway.

Thank you to the Southampton team for your dedication in building a more sustainable and resilient future for logistics.

Sultan Ahmed Bin Sulayem

Maktoum Bin Mohammed Al Maktoum, Daniel Van Otterdijk, Jameel Al Matrooshi, Simon Pitout, Rashid Abdulla, Peter Ford, Mahmood Al Bastaki, Nabil Qayed, Anil Wats

Dubai’s ambitious investment of AED 2.1 billion in the London Gateway logistics park signifies a strategic move to bolster its global trade network. The completion of this port will make it the largest in the UK, enhancing its capacity to connect with 130 global ports. This expansion aligns with Dubai’s vision to cement its status as a global logistics hub. By creating the largest logistics park in Europe, spanning 9.5 million square feet, Dubai is solidifying its presence in 30 European countries. The extensive trade and logistics relations between Dubai and the UK underscore their robust partnership. DP World’s operations in the UK, which employ 6,000 individuals, will see this number double to 12,000, emphasizing the economic cooperation and shared growth prospects between the two nations.

Key figures in Dubai and London DP World

1. Sultan Ahmed Bin Sulayem – Group Chairman and CEO of DP World. Known for his visionary leadership, he has significantly expanded DP World’s global footprint.
2. Maktoum Bin Mohammed Al Maktoum – Deputy Ruler of Dubai and significant figure in DP World’s strategic initiatives. He oversees various economic and infrastructural developments in Dubai, including DP World’s expansion efforts.
3. Daniel Van Otterdijk – Chief Communications Officer at DP World. He plays a crucial role in shaping the company’s public image and communication strategies.
4. Jameel Al Matrooshi – Managing Director, UAE Region at DP World. Responsible for overseeing port operations and development projects within the UAE.
5. Simon Pitout – Senior Vice President, Business Development and Integration at DP World Europe & Russia. He focuses on expanding DP World’s presence and partnerships across Europe and Russia.
6. Rashid Abdulla – CEO of DP World, Europe and Russia. He leads the European and Russian divisions, driving strategic growth and operational excellence.
7. Peter Ford – Chief Executive Officer of DP World London Gateway. He is instrumental in overseeing the development and operations of the London Gateway logistics park.
8. Mahmood Al Bastaki – Chief Operating Officer of Dubai Trade World. He manages the integration of trade and logistics services through technological advancements.
9. Nabil Qayed – Director of Administration and Corporate Governance, DP World. He ensures compliance with corporate governance standards and oversees administrative functions.
10. Anil Wats – Chief Operating Officer of DP World. He oversees global operations, ensuring efficiency and innovation in port management and logistics services.

What is DP World’s Annual Revenue and Profit?

In 2023, DP World reported a significant revenue growth of 6.6%, reaching $18.25 billion. The company’s adjusted EBITDA also saw an increase of 1.9%, amounting to $5.108 billion, with an adjusted EBITDA margin of 28.0%. Despite these achievements, the profit for the year experienced a decrease of 17.7%, falling to $1.514 billion, primarily due to higher finance costs.

This financial performance underscores DP World’s robust operations and strategic investments, particularly in high-margin cargo and integrated supply chain solutions. The company continues to invest in key growth markets, with a capital expenditure budget of approximately $2.0 billion for 2024, focusing on expanding facilities in the UAE, UK, India, Senegal, Indonesia, Peru, and Saudi Arabia.

DP World has solidified its position as a leading global container port operator with impressive financial performance. In 2023, DP World’s revenue grew by 6.6%, reaching $18.25 billion, while its adjusted EBITDA rose by 1.9% to $5.108 billion, maintaining a robust adjusted EBITDA margin of 28.0%.

Key figures driving this success include Sultan Ahmed Bin Sulayem, Group Chairman and CEO, who has been pivotal in steering the company through challenging geopolitical and economic landscapes.

Under his leadership, DP World has strategically focused on high-margin cargo and expanding in gateway ports across emerging markets, contributing significantly to its robust financial health.

Compared to other major port operators, DP World’s financial results stand out. The company reported a 5% year-on-year revenue growth, the highest among the eight largest global port operators. This performance is even more notable when juxtaposed with competitors like PSA International and Hutchison Ports, which experienced revenue declines of 11.2% and 7.5%, respectively.

Daniel Van Otterdijk, Chief Communications Officer, and Jameel Al Matrooshi, Managing Director for the UAE Region, have also played crucial roles in communicating the company’s strategic direction and overseeing regional operations, respectively. Their combined efforts have ensured that DP World not only maintains but enhances its competitive edge in the global logistics arena.

Major Suppliers of DP World and Their Key People

DP World collaborates with several major technological and hardware suppliers to enhance its operations and logistics services globally. Here are some of the key suppliers and their leaders:

1. IBM (TradeLens Platform)
   • Leader: Vincent Clerc, CEO of Ocean and Logistics at A.P. Moller – Maersk, a collaborator on the TradeLens project.
   • Contribution: IBM’s TradeLens platform helps DP World digitize its global supply chains using blockchain technology, providing better visibility and efficiency across the entire logistics ecosystem.
2. Maersk (TradeLens Platform)
   • Leader: Vincent Clerc, CEO of Ocean and Logistics at A.P. Moller – Maersk.
   • Contribution: Maersk, along with IBM, co-developed the TradeLens platform, which modernizes manual processes and enhances the digital exchange of information across the supply chain.
3. Syncreon
   • Leader: Brian Enright, CEO.
   • Contribution: Provides supply chain solutions, playing a critical role in DP World’s strategy to offer integrated logistics services from end to end.
4. Imperial Logistics
   • Leader: Mohammed Akoojee, CEO.
   • Contribution: Focused on integrated market access and logistics solutions in Africa, enhancing DP World’s reach and capabilities in this key region.
5. Caisse de dépôt et placement du Québec (CDPQ)
   • Leader: Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure.
   • Contribution: Through a joint investment platform, CDPQ and DP World have invested in multiple port terminals and logistics projects globally, furthering DP World’s infrastructure and operational capabilities.

These suppliers and their leaders are instrumental in supporting DP World’s extensive network of ports, terminals, and logistics services, enabling the company to handle approximately 9% of global trade and maintain its position as a leader in the logistics industry.