KGL will set up $500m fund for port projects

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jan 2008

KGL Investment Company, a private equity unit of Kuwaiti logistics group KGL, said it is looking to invest in port projects in emerging markets through a $500 million special fund.The company has already raised $250 million and hopes to collect the entire fund amount in summer this year, managing director Marsha Lazareva said."We are looking for projects that can be developed operationally and financially," she told Gulf News.The company is keen to acquire stakes in ports and related businesses the Middle East, Asia, Africa, Eastern Europe and Latin America."The common factors in these markets are strong GDP growth and growing demand for logistics," Lazareva said. Potential projects are being considered in Saudi Arabia, Syria, the UAE, Algeria, Egypt, Mozambique, Thailand, Kenya, Gabon, China, the Philippines and India. Lazareva declined to give further details.She said ports are a "hot business" these days and attracting a lot of attention from private equity companies and banks keen to offer them financing.ExpertiseShe said the company benefits from the KGL Group's logistics expertise and has built up a team of 15 industry experts to handle investment projects.So far KGL Investment Company has committed $104 million in four projects in Egypt, Jordan, Singapore and one business in Africa.The five-year fund is targeting an annual return of 30 per cent on investments.Investors are keen to get into the port business, which is growing on the back of rising international trade. An estimated 90 per cent of world trade is by sea.