Dubai: Global port operator DP World posted a seven per cent decline in cargo it handled during the first quarter of 2013, amid challenging operating conditions, it said on Thursday.
The operator handled 12.8 million TEU (twenty-foot equivalent units) in the three months, down seven percent from 13.8 million TEU in the same period last year, it said in a statement.
“This decline in gross container volume was as a result of lower volumes in the Asia Pacific and Indian Subcontinent region and the Europe, Middle East and Africa region,” said Sultan Ahmad Bin Sulayem, Chairman of DP World, adding that terminals in the Americas and Australia had better performance.
Consolidated container volumes dropped 6.4 per cent in the first quarter to 6.2 million TEU compared with 6.6 million TEU in the same period last year.
Asked about declining cargo volumes in growing markets such as Middle East and India, Srinath Manda, Program Manager of Transportation and Logistics Practice at Frost and Sullivan said: “Cargo volumes in Middle East are primarily driven by oil & gas and infrastructure industries. However, the former industry’s prospects are dependent on economic prosperity of developed and developing economies across the world, while the latter’s prospects are dependent on the revenues earned through oil & gas exports. Developed economies in the Europe and Americas are facing major crisis, and the developing economies in Asia Pacific and Middle East which are highly dependent on the exports to these developed economies are also affected”
The oil exporting Middle East nations and Africa are highly dependent on the economic growth of Europe, USA, China, India who are experiencing a slow-down in growth, so the cargo volumes in this region are also affected, Manda said.
“Further, the cargo volumes of some African countries which are major exporters of minerals to the above mentioned economies also got affected due to the difficult scenario faced by the economies,” Manda said.
Bin Sulayem said he is confident about the long-term outlook for the industry and DP World’s growth prospects.
“Despite a continuation of subdued markets at the start of 2013 and notwithstanding the challenging macroeconomic conditions, we still expect like for like container throughput in line with 2012 with our portfolio focused on the faster growing emerging markets and more stable origin and destination cargo,” Bin Sulayem said.
