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DP World sees marginal growth in container volumes

Dubai-based port operator says UAE business slumps 6.7% in first nine months of 2016; European, Indian terminals deliver robust growth.
The UAE handled 11.1 million TEU, down 6.7 percent year-on-year due to a reduction in lower-margin transhipment cargo.
The UAE handled 11.1 million TEU, down 6.7 percent year-on-year due to a reduction in lower-margin transhipment cargo.

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DP World, one of the world's largest port operators, said on Tuesday it handled 47.5 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals during the first nine months of 2016.

The company said in a statement that gross container volumes grew by 2.2 percent on a reported basis, and up 1 percent on a like-for-like basis.

Its European and Indian subcontinent terminals continued to deliver a robust performance, while conditions in Australia and Latin America remained challenging, the statement said.

It added that the UAE handled 11.1 million TEU, down 6.7 percent year-on-year due to a reduction in lower-margin transhipment cargo.

DP World Group chairman and CEO, Sultan Ahmed Bin Sulayem, said: “Despite the challenging market conditions, particularly in natural resource dependent economies, our portfolio continues to deliver growth, which once again demonstrates the benefits of operating a globally diversified portfolio.

“While the near-term global trade growth outlook appears soft, we expect our new developments in Rotterdam (Netherlands), Nhava Sheva (India), London Gateway (United Kingdom) and Yarimca (Turkey) to drive growth in our portfolio.

“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 performance in the first nine months, we are well placed to meet full year market expectations.”

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