Published on February 7th, 20170
DP World Posts 3.2% Volume Growth in 2016
DP World Limited, the world’s fourth biggest container terminal operator and majority owned by the Dubai government, handled 63.7 million twenty-foot equivalent units or TEUs across its global portfolio of container terminals in the full year of 2016, with gross container volumes growing by 3.2% year-on-year on a reported basis, and 2.2% on a like-for-like basis.
In the fourth quarter, gross reported volumes grew by 6.0% year-on-year driven by strong growth in Asia Pacific and Europe. UAE handled 3.7 million TEUs in 4Q 2016 down marginally by 0.7% year-on-year. The Americas and Australia region delivered a broadly stable volume performance during this period.
At a consolidated level, the terminals handled 29.2 million TEUs during 2016, a 0.4% improvement in performance on a reported basis and down 1.6% year-on-year on a like-for-like basis.
“Despite the challenging market conditions, particularly at our flagship Jebel Ali Port, our portfolio continues to deliver ahead-of-market growth, which once again demonstrates the benefits of operating a globally diversified portfolio,” Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive Officer of D P World, said.
“We are pleased to see volumes stabilising in the UAE and as we look ahead into 2017, we expect our new developments in Rotterdam (Netherlands), Nhava Sheva (India), London Gateway (United Kingdom) and Yarimca (Turkey) to drive growth in our portfolio”, he 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. Given the resilient volume performance of our portfolio, we are well placed to meet full year 2016 market expectations”, he added.
Like-for-like gross container volume and like-for-like consolidated container volumes does not include volumes at Yarimca (Turkey), Stuttgart (Germany), Antwerp Inland (Belgium) and Prince Rupert (Canada).
While gross container volumes refer to volumes handled by terminals where the company has majority and minority ownership, consolidated container volumes only take into account volumes handled by terminals where D P World has operational control with majority ownership.
D P World runs 77 marine and inland terminals in 40 countries across six continents with a significant presence in both high-growth and mature markets. The total quay wall of its marine terminals is over 55 kms globally.
Container handling is the company’s core business and generates more than three quarters of its revenue. In 2015, DP World handled 61.7 million TEUs. With its committed pipeline of developments and expansions, the current gross capacity of 79.6 million TEUs is expected to rise to more than 100 million TEUs by 2020, in line with market demand, the company said.