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DP World reports 2.5% global container volume growth in H1

DP World reports 2.5% global container volume growth in H1
DP World’s gross container volumes grew 2.5% to 31.4m teu in the first half of the year, driven by the robust performance its European and Indian subcontinent terminals.

However, the global terminal operator has said conditions in Australia and Latin America remain “challenging” while the H1 throughput at its four UAE terminals, headlined by its flagship Jebel Ali operation, dipped 6% year-on-year to 7.4m teu due to a reduction of lower-margin cargo.

A DP World spokesperson this was dues to “transhipment cargo that usually goes to other parts of the Middle East [and a] slowdown due to weaker GDP growth on lower commodity prices.”

The gross volume growth to 31.4m teu at its 77 marine and inland terminals in 40 countries across six continents is a 1.2% increase on a like-for-like basis. New volume that has come on-stream at its terminals in Prince Rupert (Canada), Yarimca (Turkey), Stuttgart (Germany) and Antwerp Inland (Belgium) contributed to the 2.5% uptick on a reported basis.

While specific throughput figures were not released, DP said its London Gateway terminal had experienced a “strong start to the year and general market conditions in India are positive“. A third berth at London Gateway is due on line this year, delivering 600,000 teu of extra capacity.

Gross volumes for its Europe, Middle East and Africa portfolio climbed 0.6% period-on-period but were dragged down by the soft UAE volumes.

DP World operates seven terminals - Qasim (Pakistan), Mundra, Nhava Sheva, Cochin, Chennai, Visakhapatnam, Kulpi (India) – in the Indian subcontinent. The region, grouped with Asia Pacific for reporting purposes, showed 2.9% reported growth, mirrored by its like-for-like performance.

Sultan Ahmed Bin Sulayem, DP World’s group chairman and ceo, is buoyed by the continued growth despite the “challenging market conditions”.

“We expect the second half of 2016 to show an improved performance as our new developments in Rotterdam (The Netherlands), Nhava Sheva (India), London Gateway and Yarimca (Turkey) deliver an increasing contribution,” Sulayem said.

“We continue to focus on driving profitability by targeting higher margin cargo, improving efficiencies and managing costs. 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.”