DP World posts 3.7% gross volume growth

Dubais economic growth will exceed all expectations, says Sultan Ahmed bin Sulayem, Chairman of Dubai Ports, Customs and Free Zone Corporation.
Dubai's economic growth will exceed all expectations, says Sultan Ahmed bin Sulayem, Chairman of Dubai Ports, Customs and Free Zone Corporation.

Dubai - Company to deliver an increasing contribution in H2



by

Issac John

Published: Fri 29 Apr 2016, 6:59 PM

Last updated: Sat 30 Apr 2016, 10:42 AM

DP World Limited, the Dubai-based global marine terminal operator, said on Thursday that it handled 15.5 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals during the first quarter of 2016.
Sultan Ahmed bin Sulayem , DP World Chairman, said gross container volumes grew by 3.7 per cent on a reported basis, and up 2.4 per cent on a like-for-like basis. In a statement made at the company's  annual general meeting, he said  DP World's  first quarter growth was largely driven by a stronger performance from its European and Indian subcontinent terminals.
"Conditions in Latin America remain challenging while the UAE handled 3.6 million TEU, down 5.9 per cent year-on-year due to loss of lower-margin cargo." He furrher said: "At a consolidated level, our terminals handled 7.2 million TEU during the first quarter of 2016, a 2.3 per cent improvement in performance on a reported basis and down 0.4 per cent year-on-year on a like-for-like basis.
"Despite the challenging operating environment, we are pleased to see that our portfolio continues to deliver ahead of market volume growth," he said.
DP World's new developments in Rotterdam, Nhava Sheva (India) and Yarimca (Turkey) are now operational and are expected to deliver an increasing contribution in the second half of 2016. The additional two million TEU of capacity at Jebel Ali and one million TEU of capacity in London Gateway are on course to be delivered in mid-2016, which will offer further room for growth. "Overall, we remain well positioned to grow volumes ahead of the market, while we continue to focus on driving profitability by targeting higher margin cargo, improving efficiencies and managing costs. Our encouraging start to the year gives us confidence in meeting full year market expectations," Sulayem said.
For 2015, DP World, it generated a cash flow of Dh 5.3 billion as at December 31, 2015, in spite of the global economic slowdown and world trade slump.
The company, which has a portfolio of 70 marine and mainland terminals across six continents, said the strong cash generation was due to the group's ambitious expansion plan and growth of its portfolio of global terminals and business volumes, particularly in Mumbai in India and Yarimca in Turkey.
- issacjohn@khaleejtimes.com

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