Company will review development of port and operations in line with market demand.
DP World Ltd, the port operator whose parent Dubai World is restructuring debt, said it bought Royal Dutch Shell Plc’s remaining stake in its planned London Gateway port project for $220 million.
DP World also decided to proceed with the construction of “essential infrastructure” for the project after its board reviewed options “in light of the current market downturn,” the company said in a regulatory statement today.
The London Gateway project involves redeveloping a former oil refinery on the River Thames at Thurrock and building a deep water port.
DP World, the world’s fourth biggest port operator, bought the remaining 1,000 acres of land for the London Gateway and Logistics Park and Shell’s remaining interest, it said in the statement.
The company said it “will continue to review the development of the port and park operations in line with market demand.”
Dubai World said Dec 1 it would seek to alter terms on $26 billion of debt, including that of its property units Nakheel PJSC and Limitless LLC.
DP World is excluded from the restructuring as it is on a “stable financial footing,” it said.