DP World volumes down 3.9% in first half of 2020

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DP World handled 33.9 million TEU across its global portfolio of container terminals in the first half of 2020, the company said in a statement.

This resulted in gross container volumes decreasing by 5.3% year-on-year (YoY) on a reported basis and down 3.9% on a like-for-like basis.

One of its flagship terminals, Jebel Ali, UAE, saw a 6.8% decrease YoY for the period due to COVID-19 and loss of lower-margin cargo.

At a consolidated level, DP World 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 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).

As a result of the COVID-19’s impact on the supply chain and the global economy the second quarter 2020 saw a drop in volumes of 7.9%.

However, it is noted by Group Chairman and Chief Executive Officer Sultan Ahmed Bin Sulayem, that “this compares favourably against an estimated industry decline of -15% in 2Q2020 and -10% in 1H2020.”

He commented that overall the organization is encouraged that the business has performed better than expected. He said while the outlook is still uncertain positivity remains on the medium to long-term fundamentals of the industry.

“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,” Bin Sulaymen said.

Source: porttechnology.org

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