- Despite the several impacts caused by COVID-19 outbreak, DP World managed to keep its volume stable during the first quarter of 2020.
- In total its revenue reached $7.6 billion, which included a like-for-like increase of 2.3% in its non-container operations.
- Purchase of Continental Warehousing Corporation, Cosmos Agencia Maritime and Unifeeder and the consolidation of the Australia region impacted the revenue.
- The next 12 months will be affected by DP World’s decision to delist from the Dubai stock exchange.
DP World’s revenue grew 36.1% in 2019 with acquisitions of P&O Ferries, Topaz Energy and Marine and the Puerto Central and Puerto Lirquen terminals in Chile, reports Port Technology.
DP World has also managed to keep its volume stable during the first quarter of 2020.
Drop in container volumes
DP World handled 17.2 million TEU from its global container terminals, while gross container volumes decreased by 1.7% year-on-year on a reported basis and up 0.3% on a like-for-like basis.
Volumes in Asia Pacific and India Region noted a drop, following the expiry of concession in Surabaya, Indonesia, and disposal in Tianjin, China.
Commenting about the results, Group Chairman and Chief Executive Officer Sultan Ahmed Bin Sulayem said, “Global trade and container volumes are forecast to decline in 2020 and the wide range of estimates by industry specialists (Drewry -3%, Sea-Intel -10%) further emphasizes the short-term uncertainty faced by our sector.”
“Similarly, the timing of any recovery is uncertain with trade expected to pick up as and when global economic activity normalizes,” he added.
Low margin cargo
In light of the coronavirus situation, Jebel Ali Port managed 3.4 million TEU during the 2020 first quarter, meaning 3.4% down from the year as a result of lower-margin cargo.
“Furthermore, our strategy of providing integrated supply chain solutions to beneficial cargo owners leaves us well placed to benefit early from any sustained recovery in the global economy,” the DP World Group Chairman added.
The next 12 months will be affected by DP World’s decision to delist from the Dubai stock exchange, a decision it made in February 2020, a story Port Technology International (PTI) reported on.
Digital logistics tools
Given the challenging environment amid crisis, DP World recently launched a digital online logistics tools and services platform which covers sea, land and air shipping around the global.
Through this initiative the company goals to boost freight forwarders and any business to book cargo shipments from and to anywhere in the world.
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Source: Port Technology
