Paul Berger of The Wall Street Journal reports that the Dubai-based port terminal operator, DP World, has been in talks with the Mexican government about establishing a large industrial complex in the country. Berger writes:
Port terminal operator DP World is talking to Mexico’s government about allowing it to start operations in the country, which would enable the Dubai-based business to handle cargo heading into the U.S. from the south.
DP World hasn’t been able to extend its ambitious global growth plan to the U.S. since hitting political roadblocks some two decades ago. Instead, it has invested in five terminals on Canada’s East and West coasts that feed into the U.S. from the north.
A presence in Mexico, where foreign government-controlled entities are barred from ownership of port facilities, would allow DP World to effectively surround the American market in hopes of gaining a bigger slice of U.S.-bound seaborne trade. […]
Sulayem said he is still interested in U.S. infrastructure. “We haven’t given up on U.S. ports,” he said. A DP World official said the company believes sentiment in Washington is different today than 20 years ago.
Mexican ports and factories are booming as geopolitical tensions and tariffs push more companies, including Chinese companies, to set up manufacturing in Mexico, closer to U.S. consumers. Logistics specialists expect the nearshoring trends to foster larger ecosystems of parts suppliers and bring more cargo volume from abroad to feed parts into factories. […]
Although DP World hasn’t sought a U.S. container terminal since being rebuffed in 2006, it is expanding its U.S. presence through inland logistics businesses.
The company in 2021 paid $1.2 billion for Syncreon, a Michigan-based logistics provider that specializes in technology and autos. The following year it opened a more than 1,300-acre industrial park close to the Port of Charleston, S.C. Last year, it bought Long Beach, Calif,-based auto-transporter CFR Rinkens for an undisclosed sum.
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