Stock - DP World
DP World reported gains from its Asia-Pacific and Europe operations, and from Africa too. Image Credit: Supplied

Dubai: The ports operator DP World scored an incremental 1.7 per cent growth in first quarter 2022 volumes to 19.3 million TEUs. The growth was driven by the Dubai-based company’s network of assets in Asia-Pacific, Europe and Africa, apart from the Middle East. There were also gains coming in from the Americas.

Jebel Ali, its flagship terminal, saw a 1 per cent drop to 3.4 million TEU in Q1-2022. “The softer volumes Jebel Ali (UAE) is due to loss of low margin throughput, where we remain focused on more profitable origin and destination cargo,” said Sultan Bin Sulayem, Group Chairman and CEO of DP World.

The onset of the Russia-Ukraine conflict added further complexities to global trade flows, which was just trying to come to grips after the pandemic disruptions. “The near-term outlook is mixed given the geopolitical environment, but we remain positive on the medium- to long-term fundamentals of the industry,” said Bin Sulayem. “On our broader portfolio, we continue to make strong progress in strengthening our product offering, allowing us to connect directly with cargo owners to deliver a range of unique logistic solutions.

In line with expectations

"As anticipated, Q1-2022 volume growth has softened due to the strong prior-year performance and uncertain macro environment. However, we continue to see robust growth in markets such as Asia-Pacific and the Americas, while in Europe, London Gateway’s strong performance has continued into 2022.”

At a consolidated level, DP World terminals handled 11.3 million TEU during the first quarter, increasing 1.4 per cent on a reported basis and up 1.1 per cent year-on-year on a like-for-like basis.

“Overall, we remain focused on integrating our recent acquisitions, growing profitability while managing growth capex, delivering on our 2022 leverage targets and disciplined investment to cement DP World’s position as the logistics partner of choice."