Port Wings News Network:
DP World PLC has announced a partnership with Zhejiang China Commodity City Group Company LTD (CCC) to develop the ‘Traders Market’ in Jebel Ali Freezone (JAFZA).
DP World will hold a majority share in the 70/30 joint venture. The Traders Market project will span approximately 800,000 square metres, with Phase 1 development covering about 220,000 square metres. Phase 1 Capex is estimated at $150 million, with construction expected to start in 4Q2019 and take 24 months to complete.
The Traders Market will create the first smart Freezone market place in the Middle-East for the retail and wholesale industries and aims to serve the wider region with a population base of over 2 billion. The market will allow traders to benefit from lower supply chain costs by using the world-class multi-modal infrastructure available in Jebel Ali and Dubai. International traders will be able to procure bulk products in Dubai at wholesale prices with the shortest delivery times and will be able to service demand more efficiently.
Established in 1993, Zhejiang China Commodity City Group, based in Yiwu, in the Zhejiang district of China, is a leading developer and operator of merchandise trading platforms. CCC’s operations include the Yiwu Permanent Fair, China Yiwu International Commodities Fair and Yiwu Imported Commodities Fair. These marketplaces span an area of some 5 miles with approximately 75,000 traders and tenants. The footfall to the markets exceeds 200,000 visitors per day and attracts over 500,000 international traders annually.
Commenting on the development, Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are excited to announce this partnership with China Commodity City to develop the Traders Market. This investment showcases our trade-enabling strategy as we look to catalyse trade and the movement of goods through removing inefficiencies and lowering supply chain costs.”
Bin Sulayem stated: “We are delighted that CCC has chosen Jebel Ali Freezone as its exclusive investment in the region, highlighting DP World’s ability to attract trade through its best-in-class infrastructure and emphasising Dubai’s position as the regions premier trading hub.
“When we acquired Jebel Ali Freezone in 2015, our vision was to attract clients that will not only provide lease income but also bring significant origin and destination cargo, promoting Dubai as a trading hub. This transaction helps us achieves this vision. We believe we have found the right partner in CCC, with the relevant expertise and experience to make this project a success. We look forward to a strong and enduring partnership,” Bin Sulayem added.
Mr. Zhao Wenge, Group Chairman, CCC Group, said: “The Middle-East/Africa region is critical for the Belt and Road Initiative (BRI), and we aim to serve this high-growth market through the Traders Market in Jebel Ali, Dubai. We have chosen Jebel Ali for its efficient infrastructure, business-friendly environment and significant trade with China. The CCC group has a wealth of experience and a strong reputation for developing and operating efficient large-scale trading marketplaces. Together with DP World we are confident this venture will be a success.”