Not only did the Group report a substantially smaller decline in gross volume of 8% against an expected industry decline of 12% but also profits in excess of US$300m. The focus on maintaining and generating incremental revenue, improving efficiencies and cutting costs across all container terminals has mitigated the impact of non-container revenue declines leaving DP World in a stronger position moving through 2010 and into 2011.
“2009 has been a challenging year with global container volumes falling almost 12% across the industry and a substantial decline in non-container cargo. In an industry such as ours, where the average terminal concession is for more than 25 years, we must continue to focus on, and invest for the longer term. The year presented management teams with an opportunity to review all our operations and drive through structural cost improvements and operational efficiencies. Tough decisions were taken, the results of which will ensure we are better placed to deliver profitable growth for the future,” said Sultan Ahmed Bin Sulayem, DP World chairman
Mohammed Sharaf, DP World’s CEO said, “In the first two months of 2010 we have seen 4% volume growth across our portfolio from a very low base last year and an improvement from the final quarter of 2009 as cost cutting initiatives continue to be realised. Although we are seeing positive signs of recovery, it is too early in 2010 to confirm sustainability as the macroeconomic environment and global trade patterns remain unpredictable. However, we are confident about the long term outlook for the container terminal industry and believe the challenges and our initiatives implemented in 2009 will position DP World in a far stronger position as we move into the future.”
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