DP World reins in expenditure

The world’s fourth largest container port operator, with 48 container facilities and 13 new port developments in 31 countries worldwide, has blamed the global downturn in container volumes for the need to impose cost cutting measures that include a freeze on recruitment and tighter controls on expenditure such as travel.

Announcing the preliminary result for 2008, which he described as “another solid year of growth”, chief executive, Mohammed Sharaf, added, “The container terminal industry has reported increasingly challenging conditions during 2008, which have worsened during the fourth quarter.”

Whilst remaining confident of the long-term prospects for the industry and DP World’s strong competitive positioning, Sharaf cautioned, “We expect these conditions to remain for the foreseeable future. With this in mind, we have implemented a strategy to focus on minimising the impact on margins and preserving cash, which includes reducing costs and taking a prudent approach to our working capital position.”