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The world’s leading port operator DP World bought the majority stake of TIS, the largest private container terminal in Ukraine

24 Mar, 2020
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The world’s leading port operator DP World bought the majority stake of TIS, the largest private container terminal in Ukraine

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A controlling stake (51% stake) of TIS Group located in Yuzhny port, near Odessa, was bought by one of the world's leading port operators, DP World. This was announced on his Facebook page, the 13th of February 2020, by Andrey Stavnitser, co-owner of TIS and a partner of SD Capital.

“Today“ DP World ”enters Ukraine! One of the leaders in the global port industry announced the acquisition of control in TIS Container Terminal Ukraine. Thus, Ukraine will become the 51st country where DP World operates, ”wrote Andrey Stavnitser. He noted that the company “DP World” is one of the TOP-3 port operators in the world. In 2019, the company processed 71 million TEUs (an international unit for measuring container cargo flow equivalent to a 20-foot container), i.e. 71 times more than all Ukrainian ports combined. The company operates 78 marine terminals and the largest industrial park in the world, the Jebel Ali Free Zone (JAFZA).

“And from today, the TIS Container Terminal is part of the DP World global system, which guarantees the highest level of service,” concluded Andrey Stavnitser.

DP World is headquartered in Dubai (United Arab Emirates). The company operates in the following business areas: ports and terminals (mainly containerized), technology parks and economic zones; Logistic and marine services. The main business of the company, which brings it more than half of the revenues, is container shipping. In total, DP World now operates 150 businesses in 50 countries.

Sultan Ahmed Bin Sulayem, the head of the board and CEO of DP World, noted that the company “highly appreciates the growth potential of the TIS Container Terminal”.

Philipp Grushko, SD Capital founding partner, adds that this acquisition will significantly contribute into Ukrainian logistics. “A country, where DP World operates, is an important player for the global market. The benefits of this deal will be felt not only by its immediate parties, but by the whole industry. It’s a quality seal for the country’s investor climate and a promise for further growth”.

As for the TIS Container Terminal company, according to Andrey Stavnitser, the idea of its construction appeared in 2003. It was completed in August 2008. Stavnitser considers the purchase of the terminal by DP World to be one of the five largest investment projects in the Ukrainian infrastructure industry.

The DP World company plans in the near future innovations in the work of the TIS Container terminal: this is the introduction of the latest IT solutions and the global expertise of the group. She plans to focus on the intermodal segment of cargo transportation, strengthening the team of the terminal, development on its own already acquired TIS lands of the industrial park, following the example of the largest free economic zone “Jebel Ali Free Zone”.

On the website of the Antimonopoly Committee it is indicated that today, February 13, 2020, he will consider the issue of permission of DP World Ukraine B.V. (Rotterdam, Netherlands), together with Star Span Holdings LTD (Nicosia, Cyprus), acquire control of Container Terminal Yuzhny B.V. (Amstelveen, The Netherlands).

Currently, Star Span Holdings owns a share in the authorized capital of TIS-KT in the amount of 218.493 million hryvnias (81.6%). Another 17.76% (47.534 million hryvnias) is owned by a businessman of Russian origin Alexei Fedorychev, 0.62% (UAH 1.652 million) is owned by Fedkominvest Monaco SAM (Monaco), controlled by Fedorychev.

In total, TIS has five specialized terminals at the Pivdenny port near Odessa. These are “TIS-Grain”, “TIS-Mineral Fertilizers”, “TIS-Ore”, “TIS-Coal” and “TIS-Container Terminal”. Since 2013 TIS Company has been a leader among Ukrainian stevedores in cargo flow. In 2018, TIS handled 25.7 million tons of cargo, and in 2019 - 33 million tons of cargo, i.e. 28.4% more than in 2018. In 2019, the TIS container terminal handled 220 thousand TEU containers and thus increased cargo traffic by 75% compared to 2018. The TIS container terminal develops rail transportation and, together with Ukrzaliznytsia, launched 15 regular container trains per week. They ply to Kiev, Kharkov, Ternopil, Dnipro and Chernihiv.


The Odessa Journal

The Odessa Journal

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