DP World Volumes Down By 3.9% During First Half Of 2020

DP World Limited handled 33.9 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in the first half of 2020, with gross container volumes decreasing by 5.3% year-on-year on a reported basis and down 3.9% on a like-for-like basis[1].

At a consolidated[2] level, our terminals handled 20 million TEU during the first half of 2020, increasing 2.4% on a reported basis and down 5.4% year-on-year on a like-for-like[3] basis. Reported consolidated volume in the Americas and Australia region was boosted by the consolidation of Australia, Caucedo (Dominican Republic), acquisition of container terminals in Chile and commencement of operations in Posorja (Ecuador).

Jebel Ali (UAE) handled 6.7 million TEU in 1H2020, down 6.8%% year-on-year, due to Covid-19 and loss of lower-margin cargo.

Image Credits: Argaam Plus – Twitter

Group Chairman and Chief Executive Officer Sultan Ahmed Bin Sulayem commented:

Like most industries, the maritime and logistics sector is going through an unprecedented and challenging period due to the COVID-19 outbreak. As a result, our portfolio has seen volumes weaken by -7.9% in 2Q2020 and -3.9% in 1H2020. However, this compares favourably against an estimated industry decline of -15% in 2Q2020 and -10% in 1H2020[4]. This outperformance once again demonstrates that we are in the right locations and a focus on origin and destination cargo will continue to deliver the right balance between growth and resilience.

Also, we are very proud to state that during this difficult period, DP World’s ports across the world remained operational and we aim to continue to provide this access to our clients to ensure essential and critical cargo keeps moving. Our early investment in digital technology and automation ensured we faced minimal disruption at our locations.

Looking ahead, our near-term focus is on the safety of our employees, providing solutions to cargo owners that are facing supply chain issues due to the pandemic, integrating our recent acquisitions to drive synergies, containing costs to protect profitability and managing growth capex to preserve cashflow.

Overall, we are encouraged that our business has performed better than expected and, while the outlook is still uncertain, we remain positive on the medium to long-term fundamentals of the industry. Furthermore, our strategy of providing integrated supply chain solutions to beneficial cargo owners leaves us well placed to benefit early from any sustained recovery in the global economy.

[1] Like for like gross container volume adjusts for volumes at Posorja (Ecuador) Porto Lirquen, Porto Central (Chile), Surabaya (Indonesia), Fraser Surrey Docks (Canada), Swiss Terminal (Germany) and Tianjin (China)

[2] Consolidated throughput is throughput from all terminals where the group has control as per IFRS.

[3] Like for like consolidated container volume adjusts for Posorja (Ecuador) Porto Lirquen, Porto Central (Chile), and Consolidation of Australia and Caucedo (Dominican Republic).

[4] Drewry

Reference: dpworld.com

Source: Maritime Shipping News