Tuesday, Jul 26, 2016

Dubai: The amount of shipping cargo handled at Dubai’s ports, which includes flagship terminal Jebel Ali, has declined for the third consecutive quarter, according to the latest DP World figures.

The Dubai-owned terminal operator said on Tuesday its ports in the United Arab Emirates, all located in Dubai, handled 3.75 million twenty-foot equivalent units (TEUs) in the three months to June 30. That is 6.2 per cent lower than the 4 million TEUs it reported for the second quarter of 2015 and follows a 5.9 per cent decline in the first quarter of 2016. Cargo volumes at its Dubai ports fell by 2.89 per cent in the fourth quarter of 2015.

DP World operates Dubai’s Jebel Ali, Mina Al Hamriya and Mina Rashid in the UAE, according to its website.

The company said it had faced “challenging market conditions in the first half of the year” and that a “reduction in lower-margin cargo” contributed to a 6 per cent first-half decline in cargo volumes in Dubai.

It was generally a better story across its portfolio that includes ports from Europe to South America. Overall, gross container volumes were up 2.5 per cent in the first half to 31.4 million TEUs but flat in the second quarter with 1.47 per cent growth.

DP World group chairman and chief executive Sultan Ahmad Bin Sulayem said the company remains confident in meeting its full-year target with larger contributions in the second half expected from terminals in India, Netherlands, Turkey and the United Kingdom.

“We continue to focus on driving profitability by targeting higher margin cargo, improving efficiencies and managing costs. We are encouraged by the progress we have made in the first half of 2016.

“We expect the second half of 2016 to show an improved performance.”

In the first half, DP World’s strongest percentage growth was in the Americas and Australia, up 8.3 per cent, though that region makes up nearly 12 per cent of total company volumes.

Europe, Middle East and Africa, which accounts for 42 per cent of container volumes, grew by 0.6 per cent in the first half compared to 7.1 per cent a year earlier. Asia Pacific and Indian Subcontinent, which accounts for 46 per cent of container volumes, recorded a flat year-on-year first half growth rate of 2.9 per cent.

DP World shares closed down 0.59 per cent to $16.99 on the Nasdaq Dubai on Tuesday.

By Alexander Cornwell Staff Reporter

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