DP World reported a 7% year-on-year drop in its UAE gross container volumes in the first nine months of 2016 due to reduced lower-margin transhipment cargo.
Throughput at the port operator’s terminals in the UAE fell from 11.9m teu in the first nine months of 2015 to 11.1m teu in the same period this year.
Overall consolidated volumes, handled at terminals where DP World has control, went up by a negligible 0.3% year-on-year to 22m teu, boosted by a 16.8% growth in the Americas & Australia region.
However, on a like-for-like basis, which does not include volumes handled at its new facilities in Turkey’s Yarimca, Germany’s Stuttgart, Belgium’s Antwerp Inland and Canada’s Prince Rupert, volumes fell by 2.3%, particularly affected by an 8.3% drop in volumes handled in the Americas & Australia region.
Consolidated volumes handled at DP World’s Asia Pacific & India Subcontinent terminals went up by 2.8% year-on-year to 3.7m teu in the first nine months of the year, while volumes in the Europe, Middle East and Africa region fell by 2.2% to 16m teu, a 2.8% drop on a like-for-like basis.
A company statement read: “Our European and Indian subcontinent terminals continue to deliver a robust performance, while conditions in Australia and Latin America remain challenging.”
Ahmed bin Sulayem, DP World’s CEO, said that the company expects its new developments in Rotterdam (Netherlands), Nhava Sheva (India), London Gateway (United Kingdom) and Yarimca (Turkey) to drive growth in its portfolio despite the near-term global trade growth outlook looking “soft”.
He added: “We will continue to maintain capital expenditure discipline by bringing on capacity in line with demand, while focusing on targeting higher margin cargo, improving efficiencies and managing costs to drive profitability. Given the performance in the first nine months, we are well placed to meet full year market expectations.”