Dubai’s DP World reports 7.3% increase in Q1 gross container volumes

Dubai ports operator DP World recorded a 7.3 per cent increase in gross container volumes in the first quarter compared to the same period in 2017, the company said on Thursday.

The firm handled 17.6 million twenty-food equivalent units (TEUs) in the first three months of a year, an 8.4 per cent increase on a like-for-like basis and well ahead of Drewry Maritime’s industry estimate of 4.6 per cent global throughput growth for the first quarter, DP World said.

It attributed the growth to the continued recovery of global trade and particularly strong performance from terminals in Europe, the Middle East, Africa and Australia.

At a consolidated level the company handled 9.2 million TEU during the first quarter, up 6.6 per cent on a reported basis and 6.8 per cent on a like-for-like basis.

In DP World’s home UAE market it handled 3.8 million TEU, up 2.9 per cent year-on-year.

“The robust performance was delivered across all three regions, which once again demonstrates that we have the relevant capacity in the right markets,” said DP World chairman and CEO Sultan Ahmed Bin Sulayem.

“While the trade environment may appear more benign, geopolitical headwinds in some regions continue to pose uncertainty. Nevertheless, we still expect to grow ahead of the market and see increased contributions from our new investments.”

Dp World indicated in a bourse statement last month that it would spend more this year after 2017 profit rose 14.9 per cent to $1.18bn.

It invested $1.09bn across its portfolio in 2017 and expects to invest $1.4bn in 2018, mainly in the UAE, where its home Jebel Ali Port is located, and in Ecuador, Somaliland, South Korea, Mozambique, and Egypt.

Read: Dubai’s DP World to spend more after 14.9% 2017 profit rise

One factor that may not help its investment plans is Somali political opposition to an agreement to establish a port and free zone in Berbera, located in the breakaway region of Somaliland.

Read: Somali official says Dubai’s DP World should rethink port deals