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DP World container volume soars 21% on Mideast and Asia growth
Merrill Lynch expects port operator to consolidate market share
- By Babu Das Augustine, Banking Editor
- Published: 00:08 July 22, 2008
Dubai: DP World Ltd, the fourth-biggest port operator in the world, said container volume jumped 21 per cent in the first half, helped by growth in Asia and the Middle East.
Total throughput of the port operator rose 21 per cent to 13.6 million TEUs. The strong growth was seen in Middle East, Europe and Africa where the throughput grew 26 per cent. In Jebel Ali and Port Rashid the volumes increased 17 per cent. While the throughput for Asia Pacific and Indian Subcontinent rose 15 per cent, it was up 12 per cent for Americas and Australia together.
The increase was driven by the faster-growing emerging markets along the Asia-Europe trade routes' and added capacity in some markets, Chief Executive Officer Mohammad Sharaf said in the statement.
"Our consolidated terminals have made a very pleasing start to the year with 21 per cent volume growth driven by our focus on the faster growing emerging markets along the Asia-Europe trade routes and our success in rolling out capacity in those markets which are capacity constrained and where our customers are focused," Sharaf said.
According to Merrill Lynch the current share price of DP World is implying only modest long-term growth. "We think this is too low and expect DP World to continue to gain market share in this growth industry," said Samantha Gleave, a research analyst with Merrill Lynch.
Merrill Lynch said DP World warrants a premium, given its global expansion and rising marketshare. "We think DP World warrants a premium rating given its global diversification and strong positioning in faster growth emerging markets. We believe the global operators such as DP World will continue to win market share. We think this could give the larger operators more pricing leverage," said Gleave.
We think DP World warrants a premium rating given its global diversification and strong positioning in faster growth emerging markets.
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