News

Bin Sulayem: focusing on delivering operational excellence

Bin Sulayem: focusing on delivering operational excellence



DP World reports 3.7pc gross volume growth

November 2018

DP World Limited handled 53.6 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in the first nine months of 2018, with gross container volumes growing by 2.6 per cent year-on-year on a reported basis and 3.7 per cent on a like-for-like basis.

Gross like-for-like volumes declined by 0.5 per cent in Q3 of this year due to the tougher year-on-year comparables (Q32017 volumes grew 13.5 per cent year-on-year), and softer volumes in the UAE, said a statement.

The UAE handled 11.3 million TEU in nine months 2018, down -2.1 per cent year-on-year, with Q3 of this year volumes down -6.7 per cent year-on-year due to the challenging macro environment and loss of lower-margin cargo, it said.

Growth in Europe remained robust with strong growth in London Gateway (UK) and Rotterdam (Netherlands), it added.

At a consolidated level, our terminals handled 27.7 million TEU during the first nine months of 2018, a 1.6 per cent improvement in performance on a reported basis and up 2.2 per cent year-on-year on a like-for-like basis.

Group chairman and chief executive officer Sultan Ahmed Bin Sulayem said: “As highlighted in our first half throughput announcement, we have seen our volume growth decelerate due to the strong prior year performance and general caution in the market given the current uncertainty in global trade.”

“In the UAE, the volume weakness in Q3 2018 is mainly due to loss of low-margin throughput, where our focus remains on profitable cargo and, while the near-term volume outlook in Jebel Ali remains challenging, we have taken measures to maintain profitability,” he added.

Bin Sulayem continued: “On our wider portfolio, we have made good progress in strengthening our product offering to play a greater role in the global supply chain as a trade enabler.”

Meanwhile, the global marine terminal operator said construction work has started on the development of the multi-purpose Berbera port in Somaliland.

The joint venture project, DP World Berbera, will also serve land locked countries in the Horn of Africa such as Ethiopia which has a 19 per cent stake in the project as a shareholder, said officials while speaking at the ground-breaking ceremony.

The first phase will consist of building a 400-m-long quay and 250,000-sq-m yard extension as well as the development of a free zone to create a new regional trading hub.




More Stories



Tags