Port operator DP World forecasts brighter second half

DP World is projecting a better performance at its container terminals in the second half of this year as it expands its operations in the UAE and internationally.

Volumes edged up 2.5 per cent in the first half on a reported basis, mainly owing to growth in India and Europe.

The port operator handled 31.4 million twenty-foot equivalent units (TEU) in the first six months of 2016, a 1.2 per cent increase on a like-for-like basis, the company said on Tuesday.

Container volumes at a consolidated level – which refers to volumes at terminals DP World controls – rose 1.6 per cent on a reported basis, but fell 1.4 per cent on a like-for-like basis.

Growth in Australia and Latin America languished in the first half, while UAE volumes dipped 6 per cent because of a drop in lower margin cargo.

DP World expects better performance in the second half of this year thanks to expansion plans at terminals in the Netherlands, India, the UK and Turkey, Sultan bin Sulayem, group chairman, said in a statement

 “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 $1.4bn 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.

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.


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