DP World Reports First Half Growth

by Lorys Charalambous, Tax-News.com, Cyprus

04 August 2010

Global marine terminal operator DP World has announced that it handled 23.7 million TEU (twenty-foot equivalent container units) across its portfolio of 50 operating terminals in the first six months of 2010, an increase of 16% against the same period last year and ahead of 2008.

Although 2009 was a good year, DP World's consolidated terminals have continued to build on the growth reported in the first quarter of the year. Volumes in the first half grew 7% to 13.2 million TEU or, on a like for like basis, by 10%.

Volume growth across the DP World portfolio was largely driven by terminals in Asia, which are primarily reported as joint ventures and associates, but in Australia, volumes were well ahead of 2008 levels, and there was some recovery across European ports too.

The encouraging start to the year in the UAE region has continued into the second quarter, with volumes of 5.5 million TEU handled in the first six months, 3% ahead of the same period last year.

DP World has continued to invest in new capacity in line with market demand and its development in Callao, Peru opened towards the end of the second quarter of the year. Vallarpadam, India and Karachi, Pakistan are both scheduled to open later this year.

Chief Executive Officer, Mohammed Sharaf commented:

“The return to container volume growth we reported in the first quarter of this year has continued strongly through the second quarter, delivering a better than expected performance for the first half of 2010, particularly for our portfolio of joint venture and associate terminals.

“These first half volumes, along with the continuation of cost management will lead to an improvement in first half profit after tax against the same period last year despite the weaker contribution from non container revenue.

“Whilst uncertainty remains over the sustainability of trade volumes reported in the first half of the year we currently expect to deliver full year results in line with expectations.”

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