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DP World is confident of growth prospects

DP World is confident of growth prospects



DP World container volume dips in Q1

Challenging conditions in some regions brought the Q1 volume down but the company is strategising for a better performance

01 May 2013

DP World, one of the world’s largest port operators, handled 12.8 million teu across its global portfolio in the first quarter, 7 per cent lower than the same period last year mainly due to lower volumes in several key regions.

But the operator is confident of growth prospects saying it will develop significant new capacity which will be operational this year.

“As we indicated at the time of our preliminary results, operating conditions in the first quarter of 2013 have remained challenging and have been broadly similar to those experienced in the fourth quarter of last year,” said DP World chairman Sultan Ahmed Bin Sulayem.

“DP World handled 12.8 million teu across its global portfolio in the first quarter of 2013. Whilst this was 7 per cent lower than last year, when adjusted for the divestments and monetisation across our portfolio, the decline was 3.5 per cent on a like for like basis,” stated Bin Sulayem. 

He pointed out that the decline in gross container volume was mainly due to the lower volumes in the Asia Pacific and Indian Subcontinent region and the Europe, Middle East and Africa (EMEA) region.

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“In the Asia Pacific and Indian Subcontinent region we continue to focus on handling a smaller number of higher margin containers, while our European and Middle East businesses continue to operate in a challenging macro environment,” explained Bin Sulayem.

“Within this region, our UAE facilities handled 3.1 million teu. These volume declines were mitigated by a better performance from our terminals in the Americas and Australia region,” he added.

According to him, DP World’s portfolio of consolidated terminals handled 6.2 million teu during the first quarter, down 6.4 per cent when compared with the same period last year. “On a like for like basis, consolidated volumes plunged 5.1 per cent.

“Despite a continuation of subdued markets at the start of 2013 and notwithstanding the challenging macroeconomic conditions, we still expect like for like container throughput to be  in line with 2012 with our portfolio focused on the faster growing emerging markets and more stable origin and destination cargo,” stated the chairman.

On the 2013 outlook, the DP World chief said, “We are confident of our growth prospects. With this in mind, we remain focused on developing the significant new capacity which is due to be operational later this year.”

A major player in the maritime industry, DP World has a portfolio of more than 65 marine terminals across six continents, including new developments underway in India, Africa, Europe, South America and the Middle East.




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