P&O Maritime, owned by the world’s largest port operator DP World Group, has officially entered the Ukrainian market, acquiring a controlling stake in the towing company LB Shipping. The deal had been in the works since Ukraine’s Minister of Infrastructure, Volodymyr Omelyan, signed a memorandum of understanding with P&O Maritime in 2016.
“It is no secret that Ukraine needs to attract partners who are willing to invest and can implement an effective management system and maintain high social standards. DP World and its subsidiary P&O Maritime are definitely such partners,” said Mr Omelyan.
As part of the agreement Ukrainian investment company SD Capital becomes a co-investor in the project (although the value of the transaction has not been disclosed).
“This is an excellent beginning of the year for the entire Ukrainian investment market, and the private equity market in particular,” reported Andrey Stavnitser, a partner at SD Capital.
“DP World and P&O Maritime’s experience and expertise will definitely contribute to Ukrainian infrastructure,” added Philipp Grushko, another partner at SD Capital. “They will bring new quality standards, high market competition and transparency. I am sure that this deal will be the first step towards further cooperation. We will continue developing logistics and infrastructure, and together will provide world class services for ship-owners in Ukrainian ports,” he said.
According to the Ministry of Infrastructure, the transport and infrastructure industries in Ukraine are spheres of opportunities for both Ukrainian and foreign investors.
“We are creating new conditions for market development, increasing the numbers of companies on the market and expanding their reach. Competition is the only incentive to move forward, a key to quality growth while reducing the cost of services,” concluded Mr Omelyan.