Dubai-based global marine terminal operator DP World and the Russian Direct Investment Fund (RDIF) has announced the launch of a new joint venture company, aimed at targeting ports, transportation and logistics infrastructure in Russia.

DP World Russia is expected to potentially invest a total of $2 billion over time in upgrading Russian port facilities, while introducing international best practices in operations to improve trade connectivity for the benefit of Russian businesses, consumers and community.

An agreement was signed in this regard by Sultan Ahmed Bin Sulayem, DP World chairman and Kirill Dmitriev, the chief executive of RDIF, on the sidelines of the World Economic Forum in Davos,

As per the deal, DP World will own an 80 per cent shareholding in the new venture with RDIF holding the remaining stake.

The new company will target marine, dry ports and logistics infrastructure in different parts of Russia, said Bin Sulayem.

"Russia has always been an attractive origin and destination market for us with huge long-term growth prospects. This joint venture allows us to build on each other’s strengths in bringing economic prosperity to Russia. It is also another great example of the strategic partnerships with government stakeholders, a model that has proven very successful for us over the years," stated the top official.

"Ports and logistics infrastructure are long-term investments and this is why, when we invest, we prefer an approach that recognises the benefits of sharing resources for a common purpose," he added.

According to him, RDIF has a proven track record of investing with other global companies. "This JV will enable us to share with Russia our experience as a global port operator and trade enabler and to further enhance the already established strong relations between our countries," he added.

Dmitriev said DP World’s global expertise and its proven and tested ability to drive trade growth and develop efficient infrastructure, make it the ideal choice to support the long-term goals for the development of Russia.

"We are glad to welcome DP World in Russia and look forward to creating an effective partnership which will benefit both Russia and UAE," he added.-TradeArabia News Service