DP World’s Grand Plans for the Americas

Breakbulk Magazine caught up with Morten Johansen, COO of DP World Americas, for an update on the Dubai-based company’s extensive operations in the Americas region. DP World will be exhibiting at Breakbulk Americas 2023 on 26-28 September in Houston. 


Q: DP World already has strong presence in South America, with port, terminal and logistics operations in Brazil (Santos), Argentina (Rio de la Plata), Chile (San Antonio and Lirquén), Suriname (Paramaribo), Peru (Callao and Paita) and Ecuador (Posorja). What plans does the company have to expand further on the continent, either at its existing facilities or new ones?

A: South America continues to play a key role in our mission to become a leading provider of end-to-end supply chain solutions. Recognizing its potential, we are opening new freight forwarding offices in strategic locations such as Panama and Mexico; this not only amplifies our logistics business but illustrates our commitment to broadening our freight forwarding operations throughout the region.

In Peru, DP World Callao is set to undergo a significant expansion with the Muelle Bicentenario Project. This endeavor aims to enhance the terminal capacity by 80 percent, elevating its ability to handle up to 2.7 million twenty-equivalent-units annually, a substantial increase from its present 500,000 twenty-foot-equivalent units. Completion is slated for April 2024.

Over in Brazil, we’re channeling a US$35 million investment towards the enhancement and modernization of our infrastructures at the Port of Santos. In Ecuador, our collaboration with Emergent Cold Latin America at DP World Posorja is poised to pioneer refrigerated warehouse solutions, broadening our scope of temperature-regulated integrated logistics services throughout the region.

Q: Could you give more details on DP World’s overhaul of its facilities at the port of Santos, one of Brazil’s largest private port terminals? How will this investment benefit breakbulk and project cargo throughput?

A: The Port of Santos is a pivotal hub for transportation and logistics in the area. We recently celebrated 10 years in Brazil, having begun operations at the Santos terminal in 2013 with containers and general cargo on a 653-meter quay with a capacity of 1.2 million twenty-equivalent-units. In 2020, we inaugurated the largest and most modern pulp handling complex in the country, expanding the quay to 1,100 meters, and building a 35,000-square-meter warehouse. A multiyear partnership with Suzano, the second largest global producer of eucalyptus pulp, will see us continuing to grow our cellulose pulp operations.

We are currently expanding our terminal to boost capacity from 1.2 million twenty-foot-equivalent units to 1.4 million twentyequivalent- units annually, extending the quay to 1,290 meters and expanding the warehouse to 50,000 square meters to help increase annual capacity of the cellulose export complex from 3.6 tons to 5.4 million tons. The project will be completed in 2024. In August, we also discharged a nine-rail grinding train, marking the first time this equipment was imported to Brazil. This was a huge breakbulk operation.

Q: Could you outline some of the key gains for the Port of Vancouver following the completion of the US$260 million Centerm Expansion Project? How important is the Port of Vancouver for international trade and project cargo movements?

A: The Centerm Expansion Project marked a significant milestone for Canada’s growing trade network. The award-winning project expanded the terminal’s footprint by 15 percent, increasing container capacity 60 percent from 900,000 twenty-foot-equivalent units to a remarkable 1.5 million twenty-equivalent-units.

The project also helps reduce the terminal’s environmental impact by adding capacity for container ships to connect to electrical shore power; converting diesel yard cranes to electric; eliminating wait times for vehicles at train crossings, helping to reduce emissions; and building to LEED and Envision certification sustainability standards.

The Port of Vancouver, Canada’s largest port, plays a vital role in the nation’s supply chain and economic trade by providing a crucial link between Canadian businesses, consumers, and products. The port is a significant source of tax revenue and employment for surrounding communities, facilitating US$240 billion in trade, supporting over 115,000 jobs (equating to US$7 billion in wages), and contributing nearly US$12 billion to the national GDP. The port is also the primary hub for breakbulk cargo like forest products, steel, and machinery in the Pacific Northwest. The port provides flexible cargo handling, efficient vessel services, and connects to extensive road networks and established corridors for overweight and over-dimensional project cargo. Serving as Canada’s entrance to over 170 global trading economies, it accounts for $1 of every $3 in Canada’s non-North American trade.

Q: DP World’s 2021 acquisition of syncreon, a contract logistics provider based in the U.S., hints at new investment in the region. How does the company see the U.S. playing into its Americas strategy?

A: The U.S. is central to DP World’s growth strategy. The Americas represent one of the largest combined markets in the world, housing three of the top 10 largest economies, with strong production of consumer, industrial and agricultural products across the region. In fact, DP World’s Americas regional headquarters are in Charlotte, North Carolina, where we are currently expanding our facilities and opening a brand-new building in early 2024.

In 2021, we acquired a company called syncreon that is based in Auburn Hills, Michigan. A leading provider of supply chain solutions, syncreon provides services to customers in auto, tech, consumer goods, industrial, and healthcare companies. We currently have dozens of legacy syncreon sites across the U.S.

Going forward, the U.S. will be key to our freight forwarding expansion plans. As we continue to grow this business, we plan to open nearly a dozen new offices in key locations across the U.S. These new locations will complement our existing portfolio in Latin America and Vancouver and help expand our U.S. contract logistics capabilities across the region.

Q: How important is DP World’s port facility at the Punta Caucedo peninsula in the Dominican Republic for the redistribution of cargo to the Caribbean, the U.S., Central America and South America? Could you provide an update on the company’s new air cargo logistics center with Punta Cana Free Trade Zone? When is it likely to come online?

A: Leveraging its advantageous geographical position, DP World commenced operations in the Dominican Republic in 2003. This strategic foothold acts as a critical juncture for cargo redistribution across the Caribbean, the U.S., Central America, and South America. Today, the Dominican Republic has emerged as the Caribbean’s premier trade and logistics hub. The added advantage of the nearby Punta Cana International Airport allows the center to provide a wide array of cargo management services to address global logistics needs.

We are thrilled to unveil the forthcoming inauguration of our air cargo logistics hub within the Punta Cana Free Trade Zone, slated for the end of this year. This partnership seeks to further amplify the Dominican Republic’s role as a central freight and logistics hub for international markets. The expansion includes a state-of-the-art logistics center and modern infrastructure platforms to facilitate the seamless integration of air, land, and sea cargo. Moreover, this alliance will propel a dynamic regional commerce strategy, aiming to draw increased re-export and import cargo volumes from global commercial, tech, industrial, and agricultural sectors.

Q: DP World has expanded its support of Breakbulk events from host port at Breakbulk Middle East to Global Port Partner. How has this partnership benefited the company?

A: We are looking forward to serving as a Global Port Partner at Breakbulk Americas. This partnership underlines our commitment to enhancing our presence and influence in the cargo and logistics sector. Breakbulk events are recognized worldwide for offering unique interactions with industry trailblazers and thought leaders, and for providing an invaluable stage to showcase DP World’s expertise in global logistics. We believe that our partnership with Breakbulk and our sponsorship of this conference is not just an investment in an event but an investment in the future of logistics in the Americas.


TOP PHOTO: Port of Dominicana, Dominican Republic. CREDIT: DP World
SECOND PHOTO: Prince Rupert port in province of British Columbia, Canada. CREDIT: DP World