DP World sure knows how to connect the dots on the world map. And it sure knows all that there is to know when shifting shipping containers from one part of the world to another.

From its modest start in 1972, with just one port, Mina Rashid in Dubai, DP World Ltd has become one of world’s largest port operators today. And it’s not resting on its laurels.

Going forward, it wants to port its success with global logistics to e-commerce deliveries — and in its own unique way. That’s right, DP World wants it all covered — from containers to ecommerce. At present, its starting point for its foray into e-commerce: Africa.

For one of the integral names in global trade, wanting to get into digital is as much a natural progression as it would be to invest in new state-of-the art cranes at its network of ports, both in Dubai and around the world.

From container to e-commerce

In May, DP World — wholly owned by Dubai Government and one of the two visible faces of Dubai worldwide (the other being Emirates airline) — made an audacious entry into the online world through ‘Dubuy.com’. The e-commerce platform is going live in key African markets, where digital commerce is underserved, and then scaled up to other parts of the world.

On the face of it, this might seem a strange sort of diversification for a ports operator to make. But there’s a clear rationale to DP World’s ambitions in the highly complex e-commerce landscape.

“We have focused our efforts on digitising logistics and developed solutions for several verticals,” said Sultan Bin Sulayem, Chairman and CEO of DP World Group, in a recent statement.

Pandemic lessons

At a recent forum, Bin Sulayem said the coronavirus pandemic had forced the Dubai ports operator to accelerate its digital initiatives. “When the pandemic came, we were faced with a problem — we were disrupted,” Sulayem said at the Dubai International PPP (Public-Private Partnership) Conference. “We had to adhere to the pandemic restrictions, so we started to accelerate many digital platforms that we didn’t really need urgently.”

Logistics, trade investments

To further enhance supply chain efficiencies, DP World has made several investments over the last few years to play a bigger role in the global movement of goods. “DP World isn’t what it used to be — we are logistics and trade enablers,” said Sulayem.

On October 12, DP World announced twins investments: $1 billion for its Africa investment platform (with UK’s CDC group), and another involving Germany’s MAN Energy Solutions for a five-year term decarbonsation venture.

Going deep into Africa

The Dubuy launch coincides with a massive expansion of ports and logistics expansion within Africa that DP World has been honing over the last four years. It has picked up significant speed in recent months. Whether it’s Ethiopia, Rwanda or the Congo, the Dubai company is building up scale as a facilitator of continental and global trade through management of key ports and terminals.

These are backed by billions of dollars in new or additional investments to ramp up the available infrastructure, or even build all-new trade corridors if that’s what is needed.

From there to delivering millions of African consumers an ecommerce platform is natural progression in DP World’s scheme of things. “Looking ahead, we will continue to be selective on new investments and focus on the integration of our recent acquisitions to drive synergies,” said Bin Sulayem.

And that’s been DP World’s strategy right from Day 1…
Source: Gulf News