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DP World volumes grow 3.7% in Q1, UAE numbers down

DP World volumes grow 3.7% in Q1, UAE numbers down
DP World recorded a 3.7% increase in global container volumes handled in Q1 2016, to 15.5m teu, however, it saw a 5.9% drop in its home base in the UAE.

Historically a fast-growing region for DP World, volumes in the UAE dropped 5.9% year-on-year to 3.6m teu from 3.8m teu in Q1 2015. DP World chairman Sultan Ahmed Bin Sulayem put this down to a “loss of lower-margin cargo," adding that the company would "continue to focus on driving profitability by targeting higher margin cargo."

“Despite the challenging operating environment, we are pleased to see that our portfolio continues to deliver ahead of market volume growth. First quarter growth was largely driven by a stronger performance from our European and Indian subcontinent terminals,” he said. “Conditions in Latin America remain challenging.”

Taking into account UAE losses, DP World’s Europe, Middle East, North Africa region fell 0.4% year-on-year to 6.4m teu. Americas and Australia grew grew 13.4% in total to 1.9m from 1.6m in Q1 2015 thanks to the newly-acquired Prince Rupert terminal in Canada.

“Our new developments in Rotterdam (Netherlands), 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 2m teu of capacity at Jebel Ali (UAE) and 1m teu of capacity in London Gateway (UK) are on course to be delivered in mid-2016, which will offer further room for growth,” said Sultan Ahmed Bin Sulayem.

“Overall, we remain well positioned to grow volumes ahead of the market,” he continued. “Our encouraging start to the year gives us confidence in meeting full year market expectations.”