DP World Container Volumes Rise in Tough Trading Conditions
By Nikhil Lohade Oct.
25, 2016 2:34 a.m. ET
DUBAI–Dubai-based port operator DP World handled more containers in the first nine months of the year compared with the same period last year, helped by higher volumes in Europe and India, though its home terminal processed less cargo. The company said on Tuesday that it handled the equivalent of 47.5 million twenty-foot containers, up 2.2% from same period last year.
On a like-for-like basis, gross container volumes grew 1%. DP World, which manages 77 marine and inland terminals across six continents, said the diversification of its operations helped offset generally tough trading conditions, notably in commodity-exporting economies hard hit by weak raw-material prices.
“While the near-term global trade growth outlook appears soft, we expect our new developments in Rotterdam [Netherlands], Nhava Sheva [India], London Gateway [U.K. and Yarimca [Turkey] to drive growth in our portfolio,” said Sultan Ahmed Bin Sulayem, the group’s chairman and chief executive.
A slowdown at the company’s flagship port in the United Arab Emirates also weighed on the company’s performance. The port handled 11.1 million standard-sized containers, down 6.7% year-over-year on a decline in lower-margin cargo, DP World said.
“We will continue to maintain capital expenditure discipline by bringing on capacity in line with demand, while focusing on targeting higher-margin cargo, improving efficiencies and managing costs to drive profitability,” Mr.
“Given the performance in the first nine months, we are well placed to meet full year market expectations,” he added.
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- ^ commodity-exporting economies (www.wsj.com)
- ^ remain challenging (www.wsj.com)
- ^ Nikhil.Lohade@wsj.com (www.wsj.com)