DP World Reports Flat Gross Volume in First Quarter of 2019
On our wider portfolio, we have made good progress in strengthening our product which offers a greater role in the global supply chain as a solutions provider.
DP World PLC handled 17.5 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in the first quarter of 2019, with gross container volumes declining by 0.6% year-on-year on a reported basis.
Gross like-for-like volumes declined by 0.7% in 1Q2019 due to the higher year-on-year comparables (1Q2018 like-for-like volumes grew 8.4%), and softer volumes in the UAE and Australia.
The UAE handled 3.5 million TEU in 1Q2019, down -8.8% year-on-year, due to the challenging macroenvironment and loss of lower-margin cargo. Growth in Americas, Africa and Indian Subcontinent was robust with strong growth in Callao (Peru), Sokhna (Egypt) and Mumbai (India).
At a consolidated[1] level, our terminals handled 9.2 million TEU during the first quarter of 2019, a decline of 0.8% on a reported basis and down 3.0% year-on-year on a like-for-like[2] basis. Reported consolidated volume in the Americas and Australia region was boosted by the consolidation of Australia from March of 2019.
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem commented:
“As previously flagged, we have seen softer volumes in 1Q2019 due to a strong prior year performance and general caution in some markets given the current uncertainty in the macro-environment. In the UAE, the volume weakness is mainly due to loss of low-margin throughput, where our focus remains on profitable cargo and, while we expect the recent trends to continue into the second quarter, we do expect an improvement in the second half of the year.
On our wider portfolio, we have made good progress in strengthening our product which offers a greater role in the global supply chain as a solutions provider. We continue to focus on delivering operational excellence, managing costs and disciplined investment to remain the trade partner of choice."
Further Information
|
Gross Volume ‘000 TEU |
1Q 2018 |
1Q 2019 |
% Growth (like for like) |
|
Asia Pacific & Indian Subcontinent |
8,034 |
8,314 |
+3.5% (+3.5%) |
|
Europe, Middle East and Africa* |
7,396 |
7,096 |
-4.1% (-3.3%) |
|
Americas & Australia |
2,161 |
2,081 |
-3.7% (-7.2%) |
|
Total Group |
17,591 |
17,491 |
-0.6% (-0.7%) |
|
*UAE Volumes included in Middle East, Africa and Europe region |
3,826 |
3,491 |
-8.8% (-8.8%) |
|
Consolidated ‘000 TEU |
1Q 2018 |
1Q 2019 |
% Growth (like for like) |
|
Asia Pacific & Indian Subcontinent |
2,543 |
2,606 |
+2.5% (+2.5%) |
|
Europe, Middle East and Africa* |
5,708 |
5,381 |
-5.7% (-4.7%) |
|
Americas & Australia |
976 |
1,170 |
+19.9% (-6.6%) |
|
Total Group |
9,226 |
9,157 |
-0.8% (-3.0%) |
[1] Consolidated throughput is throughput from all terminals where the group has control as per IFRS.
[2] Like for like consolidated container volume does not include volumes at Doraleh (Djibouti), Antwerp East (Belgium) and Australia consolidation.
DP World is a leading enabler of global trade and an integral part of the supply chain.
We operate multiple yet related businesses – from marine and inland terminals, maritime services, logistics and ancillary services, to technology-driven trade solutions.
We have a portfolio of over 150 operations in over 45 countries across six continents, with a significant presence in both high-growth and mature markets. We aim to be essential to the bright future of global trade, ensuring that everything we do contributes positively and sustainably to both the economy and society.
Our dedicated team of more than 46,000 employees from 120 countries cultivates long-standing relationships with governments, shipping lines, importers and exporters, communities, and many other important constituents of the global supply chain, providing quality value-added services today and tomorrow.
Container handling is the company’s core business and generates more than 50% of its revenue. In 2018, DP World handled 71.4 million TEU (twenty-foot equivalent units) across our portfolio. With its committed pipeline of developments and expansions, the current gross capacity of 91 million TEU is expected to rise in line with market demand.
By thinking ahead, foreseeing change and innovating, DP World aims to create the most productive, efficient and safe trade solutions globally.