DP World Romania: going for growth

DP World has boosted trade with a US$141M investment in Romania that will see the country become a major European freight forwarding hub and position it strongly to capture more market share from the Adriatic Sea.

DP World’s Constanta, the largest container port on the Black Sea, is now home to two new facilities: a 5-hectare project cargo terminal for heavy, large and complex cargo, and a new roro terminal that will handle up to 80,000 vehicles per year at its peak. DP World’s third new facility is opening in Aiud, in the industrial heartland of Romania, which is now home to a new 8-hectare intermodal logistics hub connecting rail and road.

A further US$54M will be invested in a multi-transport platform in Constanta that will open in 2025.

The new facilities will improve the connectivity between DP World’s existing sea, rail, barge and truck services across Romania and will enhance the movement of goods between mainland Europe through to the Black, North and Adriatic Seas.

DP World Europe chief executive and managing director Rashid Abdulla started his career as a manager for Constanta in 2004. Speaking about the investments, he says, “First, we want to improve our capabilities and products within the port. This will be complemented by the increase in our capability for freight forwarding.”

DP World is focused on expanding its end-to-end supply chain solutions, and this is also a large part of its strategy in Romania. Mr Abdulla explains, “End-to-end, freight, transport and warehousing  - we are currently doing this, connecting traders in Romania with new markets and allowing them to expand and grow.”

He adds, “Currently, main markets in Romania are served by small players scattered everywhere, we want to come in with a consolidated area that can be served by road and rail and consolidate to add efficiencies to the logistics.”

The company’s new logistics hub in Aiud, Transylvania, is key to DP World’s plans for Romania.

“The west part of Romania is a major area for export production and by establishing facilities there it will encourage more business for Constanta port.”

Some 60-70% of Romanian exports originate in that region. “Having a facility close to customers will provide a good product for them and additional coverage of southeast Romania.”

DP World is also identifying land where it can build more logistics hubs and warehouses. “We have identified several cities including Bucharest and those in the north part of Romania where we can serve local markets but extend the offering to use Constanta as a gateway to reach Hungary and the rest of central Europe," says Mr Abdulla.

Indeed, DP World’s Romanian business is targeting central and east Europe, and to this end, it is planning to expand its freight forwarding to eight countries, where Romania will act as a “main hub and control tower” and act as a sub region for the Balkans and neighbouring countries. Locations and resources have been identified.

Crucial to DP World’s developments in Romania is a port community system that pulls together all customers, users and stakeholders into a one stop shop which can expand to cover different features including security, safety and port transactions. The company is currently in discussions about establishing such a platform.

Summing up the ripeness of Romania for investment, Mr Abdulla says, “In terms of location on the Black Sea, and within east and central Europe, Romania is a very strong candidate to play a major role, and Hungary will complement Romania to serve certain markets. We are looking at neighbouring countries and what role we want to play in the years ahead.”