Asia growth supports DP World’s global container volumes for Q3
DP World handled 17.7 million twenty-foot equivalent units (TEUs) across its global container terminals in the third quarter of 2019, representing a 1.1 percent year-on-year increase on a like-for-like basis, the company said in a statement.
On a nine-month basis, like-for-like gross container volumes grew by 0.7 percent year-on-year to 53.5 million TEU.
The DP World statement that Jebel Ali handled 3.6 million TEU in Q3, down 1 percent year-on-year as volumes stabilised following a shift of low-margin cargo.
Growth in Asia remains robust, with strong growth in ATI in the Philippines and Qingdao in China, while in India growth has been driven by Cochin, Mundra and Mumbai’s NSIGT.
Declines that have been reported in Asia are due to discontinued operations in Indonesia’s Surabaya and China’s Tianjin.
At a consolidated level, DP World terminals handled 10.3 million TEU during Q3, up 0.8 percent year-on-year on a like-for-like basis.
The strong reported growth of 93.7 percent in Americas and Australia is due to the consolidation of Australia and the acquisition of two terminals in Chile.
Global trade dispute
“Our portfolio continues to deliver a steady volume performance which is encouraging given the challenging macro backdrop caused by a global trade dispute,” said DP World group chairman and CEO Sultan Ahmed bin Sulayem.
“However, despite this uncertainty, it is encouraging to see robust growth in key markets such as Asia Pacific and Indian Subcontinent, while growth in west coast of Americas remains solid.
“In Europe, London Gateway continues to deliver strong growth due to market share gains,” Sulayam added. “While we have seen volumes stabilising in Jebel Ali (UAE), the outlook remains uncertain given the regional geopolitics and we remain focused on profitable origin & destination cargo.''
In the future, Sulayem said that DP World would work to offer its product offering, allowing the company to connect directly with end customers to provide logistics solutions.
“We are seeing positive signs of progress in our new businesses that give us encouragement for the future,” he added. “The near-term focus is on integrating our recent acquisitions, managing costs and disciplined investment to cement DP World's position as the logistics partner of choice.
“Overall, we remain well placed to deliver full year market expectations.”