DP World’s con­tainer vol­umes up 3 per­cent in 2015

The Pak Banker - - BUSINESS -

DP World, one of the big­gest port oper­a­tors, on Mon­day an­nounced a three per cent year-on-year growth in con­tainer vol­ume for 2015 de­spite chal­leng­ing con­di­tions and dif­fi­cult se­cond half for global trade oper­a­tors.

All top 20 trad­ing na­tions in the World Trade Or­gan­i­sa­tion re­ported de­cline in 2015. The Baltic Dry Bulk In­dex, con­sid­ered as a proxy for global trade, wit­nessed a se­ries of record lows since the be­gin­ning of 2015. China's slow­down is still af­fect­ing the world in dif­fer­ent ways. China's econ­omy has con­trib­uted to sharp drops in price for oil and other com­modi­ties and that re­sulted in re­duced de­mand for ship­ping.

DP World re­ported that gross con­tainer vol­umes of the com­pany to­talled 61.7 mil­lion twenty-foot equiv­a­lent units (TEU) in 2015, com­pared to 59.9 mil­lion TEUs in 2014. DP World, which op­er­ates around 70 marine ter­mi­nals across six con­ti­nents, re­ported an eight per cent in­crease in con­tainer vol­ume in 2014.

"The se­cond half of 2015 was dif­fi­cult for global trade oper­a­tors, as var­i­ous eco­nomic head­winds in­clud­ing cur­rency weak­ness and lower com­mod­ity prices ad­versely im­pacted trade growth," DP World Group chair­man and chief ex­ec­u­tive of­fi­cer Sul­tan Ahmed bin Su­layem said in a state­ment.

"Against this chal­leng­ing back­drop, all our three re­gions con­tin­ued to de­liver full year vol­ume growth on a like-for-like ba­sis which demon­strates the strength of our port­fo­lio," Bin Su­layem ex­plained. Growth in 2015 was largely driven by Euro­pean and the UAE ter­mi­nals. The port­fo­lio ben­e­fited from the ramp-up in Lon­don Gate­way and the UAE han­dled a record 15.6 mil­lion TEU's, rep­re­sent­ing like-for­like growth of 2.3 per cent for the year.

Util­i­sa­tion at Jebel Ali re­mains high at ap­prox­i­mately 90 per cent de­spite the softer vol­umes in Q42015. Mar­ket con­di­tions in the se­cond half of 2015 were chal­leng­ing, with our like-for-like gross through­put growth flat year-on-year in Q4 2015. "De­spite the un­cer­tain neart­erm macro en­vi­ron­ment, and given the high util­i­sa­tion at our port­fo­lio, we re­main con­fi­dent about the medium to long-term out­look of our in­dus­try and con­tinue to in­vest to meet the fu­ture ca­pac­ity re­quire­ments of our cus­tomers. As we look ahead into 2016, we look for­ward to the new ca­pac­ity at Rot­ter­dam (Nether­lands), Mum­bai (In­dia), Prince Rupert (Canada) and Yarimca (Turkey) to de­liver a full year con­tri­bu­tion to our through­put," the chair­man said.

DP World ex­pects to open its third berth at Lon­don Gate­way in mid-2016, adding 600,000 TEUs of new ca­pac­ity. The ad­di­tional 2 mil­lion TEUs at ter­mi­nal three (T3) Jebel Ali will also be op­er­a­tional in the se­cond half of 2016.

"DP World has once again de­liv­ered ahead of mar­ket through­put growth in 2015 and given this re­silient per­for­mance, we re­main con­fi­dent of meet­ing full year mar­ket ex­pec­ta­tions. While trad­ing con­di­tions in 2016 are ex­pected to re­main chal­leng­ing, we be­lieve a port­fo­lio fo­cused to­wards faster grow­ing mar­kets and ori­gin and desti­na­tion cargo, cou­pled with the ad­di­tion of new ca­pac­ity can con­tinue to out­per­form the mar­ket," he said.

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