DP World, one of the world's largest port operators, said on Thursday it has agreed to buy Canadian marine terminal Fraser Surrey Docks from a Macquarie Group fund.
The purchase consideration is below 2.5 percent of DP World's net asset value as of December 31, 2018, the port operator said, which Reuters calculated to be under $300 million.
The marine terminal, is being acquired through Canadian subsidiary DP World Canada Investment Inc, which is 45 percent owned by Caisse de dépot et placement du Québec (CDPQ).
The deal is expected to close in the first half of 2019, DP World said. The terminal is being acquired from Macquarie Infrastructure Partners a fund managed by the Macquarie Infrastructure and Real Assets (MIRA) division of Macquarie Group.
Dubai government-controlled DP World also operates a container terminal in downtown Vancouver and another terminal in Prince Rupert.
Fraser Surrey Docks is located in greater Vancouver and is one of the city's major steel import terminals, DP World said.
"We are seeing increasing demand from our customers for multi-purpose facilities in the region," said DP World Chairman Sultan Ahmed Bin Sulayem.
"We believe Fraser Surrey Docks has the relevant infrastructure and is in the right location to service this demand."
The terminal has 1,200 metres of berth and 189 acres of yard and in 2018 handled over 1 million tonnes of grain and 250,000 twenty foot equivalent shipping containers.
DP World said last month it handled 0.6 percent less gross container volumes across its global portfolio in 2018 compared to the previous year.
Reporting by Alexander Cornwell