DP World handles 10% more volume in 2017, has bullish outlook for 2018
The port operator handled 70.1 million TEUs last year
DP World, the world's fourth-biggest port operator, handled 10.1 per cent more in gross container volumes on a reported basis last year due to an uptick in global trade. The company is also bullish on overall performance.
“Benefitting from the improved trading environment and market share gains, our global portfolio once again delivered ahead-of-market growth in 2017 and has seen strong performance across all three regions,” said DP World chairman and chief executive Sultan bin Sulayem.
The company handled 70.1 million twenty-foot equivalent units (TEUs) last year amid broad-based growth across all regions, it said in a statement. Growth on a reported basis includes new terminals. In the UAE, DP World handled 15.4 million TEUs in 2017, up by 4 per cent year-on-year.
In the fourth quarter, volumes grew 10.3 per cent year-on-year on a reported basis.
“Given the strong volume performance of our portfolio, we are well placed to meet full year 2017 market expectations,” Mr Sulayem said.
DP World expects to spend about $1 billion every year for the next three years as it ramps up investments, adds capacity and acquires new assets to strengthen its global footprint, Mr Sulayem told The National in January. It has spent about the same amount on capital expenditure in 2017.
“As we look ahead into 2018, we expect to continue to grow ahead of the market and see increased contributions from our new developments,” said Mr Sulayem. “We continue to seek opportunities in complementary sectors in the global supply chain and will maintain capital expenditure discipline by bringing on capacity in line with demand.”
DP World is expanding its reach with new investments and terminals.
The port operator and India’s National Investment and Infrastructure Fund (NIIF) said in January they have set up a $3bn fund that will invest in India by acquiring and developing ports, terminals, transportation and logistics assets in Asia’s third largest economy.
The port operator is benefitting from an uptick in global trade, which was forecast to have increased by 3.6 per cent in 2017 from 1.3 per cent in 2016, thanks to Asian trade flows and a pick up in import demand in North Africa, the World Trade Organisation said in September.
Updated: February 6, 2018 02:46 PM