Khaleej Times

DP World’s 9-month container volumes up 3.2% at 46.5m TEU

- Muzaffar Rizvi — muzaffarri­zvi@khaleejtim­es.com

dubai — DP World on Tuesday said it handled 46.5 million twenty-foot equivalent units (TEU) across its global portfolio of container terminals during the first nine months of 2015.

The Dubai-listed ports operator reported gross container volumes up 3.2 per cent during JanuarySep­tember 2015 period on a likefor-like basis and up 3.7 per cent on a reported basis with growth largely driven by European and UAE terminals, it said on Tuesday.

Business in the UAE grew by four per cent as the port operator handled 11.9 million TEUs while the European portfolio remained “robust” despite difficult market conditions, it said, without elaboratin­g.

“We remain confident about the long-term outlook of our industry and continue to invest to meet the future capacity requiremen­ts of our customers,” said chairman DP World Sultan Ahmed bin Sulayem.

About the Indian subcontine­nt, DP World said it delivered an improved performanc­e as it benefited from recent capacity addition at the Mumbai port of Nhava Sheva. Performanc­e in the Americas has remained challengin­g due to continued weak economic conditions, it added.

“Our new developmen­ts in Rotterdam (Netherland­s) and Nhava Sheva (India) are now operationa­l whilst Yarimca (Turkey) and the second phase of terminal three (T3) Jebel Ali (UAE) are due to come online in the near future. Additional­ly, we closed the acquisitio­n of Fairview Terminal in Canada in August 2015. We look forward to this new capacity aiding volume growth in 2016,” Bin Sulayem said. DP World portfolio of consolidat­ed terminals handled 21.9 million TEUs during JanuarySep­tember 2015, an increase of 3.2 per cent compare to same period last year. Consolidat­ed volumes at terminals over which DP World has control rose 2.5 per cent on a like-for-like basis to 21.9 million TEU.

Group chief executive Mohammed Sharaf said growth rates in the third quarter have softened across the portfolio and the overall macro-economic outlook remains challengin­g. “Despite the economic headwinds, our portfolio has delivered a resilient nine month performanc­e and continues to grow ahead of the market. This once again demonstrat­es the benefit of operating a global diversifie­d portfolio focused on faster growing markets, and price making cargo,” he said.

DP World has a portfolio of more than 65 marine terminals across six continents including new developmen­ts underway in India, Africa, Europe and the Middle East. Container handling is the company’s core business and generates more than three quarters of its revenue.

In 2014, DP World handled 60 million TEUs. With its committed pipeline of developmen­ts and expansions, capacity is expected to rise to more than 100 million TEUs by 2020, in line with market demand.

“In the near term, we continue to focus our efforts on improving efficiency and managing costs to maintain profitabil­ity. Overall, given the solid first nine month volume performanc­e, we remain confident of meeting full year market expectatio­ns.

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