[270716.EN.BIZ] DP World Volume Up 2.5pc To 31.4 Million TEU In First Half

DUBAI's global port operator, DP World has announced that it handled 31.4 million TEU, up 2.5 per cent year on year at all its container terminals during the first half, reported TradeArabia News Service.

Growth in the first half of 2016 was largely driven by a strong performance from our European and Indian subcontinent terminals.

Conditions in Australia and Latin America remain challenging while the UAE handled 7.4 million TEU, down six per cent year on year due to a reduction in lower margin cargo, it said.

At a consolidated level, the company's terminals handled 14.6 million TEU during the first half of 2016, a 1.6 per cent improvement in performance on a reported basis and down 1.4 per cent year-on-year on a like-for-like basis, a statement added.

"Despite challenging market conditions in the first half of the year, our portfolio continues to deliver growth," said DP World chairman and CEO Ahmed Bin Sulayem.

"We expect the second half of 2016 to show an improved performance as our new developments in Rotterdam, Mumbai's Nhava Sheva, London Gateway (UK) and Yarimca (Turkey) deliver an increasing contribution," he said.

"We continue to focus on driving profitability by targeting higher margin cargo, improving efficiencies and managing costs. We are encouraged by the progress we have made in the first half of 2016, and we remain confident in meeting full year market expectations," said Mr Sulayem.

"We continue to focus on driving profitability by targeting higher margin cargo, improving efficiencies and managing costs," said Mr Sulayem. "We are encouraged by the progress we have made in the first half of 2016, and we remain confident in meeting full-year market expectations."

DP World plans to spend between US$1.2 billion and $1.4 billion this year to expand its terminals in Jebel Ali in Dubai, the Economic Zones World free zone in Jebel Ali, London Gateway in the UK and Prince Rupert in British Columbia, Canada.

It expects to have about 86 million units of gross global capacity by the end of this year, up from 79.6 million units at the end of last year, reports the National of Abu Dhabi.

DP World's net profit rose by 30.7 per cent last year, beating analyst expectations, thanks to the port operator's acquisition of a free zone in Dubai in 2014 and growth in throughput.

Source : HKSG.