17 August 2023 (Lloyd's List) - DP WORLD expects to add 3m teu of new container handling capacity by the end of 2023, taking its total capacity to over 90m teu globally.
“We are committed to investing in our infrastructure to meet the growing demand for trade,” said chief executive Sultan Ahmed bin Sulayem.
“These capacity additions will further strengthen our position as a leading global supply chain solutions provider connecting economies, businesses and consumers around the world.”
Key expansions will be completed this year in Caucedo in the Dominican Republic, adding an additional 1.2m teu; Yarimca, Türkiye, which is projected an additional 579,000 teu; Sokhna, Egypt, adding 500,000 teu; and Jeddah, Saudi Arabia, with an additional 200,000 teu.
DP World said its capacity expansion plans come at a vital time, with inflation, increased cost of living and geopolitical uncertainties causing concern about global trade and fuelling demand for faster, more resilient supply chain solutions.
“We have to take a longer-term view of global economics, looking at how demand will change and how we can meet it in the most efficient way,” said DP World ports and terminals chief operating officer Tiemen Meester.
“Our medium-term target is to reach 100m teu a year, subject to demand.”
The statement came as DP World announced a 3.1% like-for-like increase in gross throughput to 39.9m teu in the first half of the year and reported “resilient” financial results for the first two quarters.
Revenues across the group increased 13.9% to $9bn in the period, boosted by the consolidation of Imperial Logistics into its results for the full six months, while net profits rose by just 0.1% to $885m. “We are pleased to share a resilient set of results for the first half of 2023,” Sulayem said.
“Despite facing a softer container market and weakened freight rates amid challenging economic conditions, our focus on high-margin cargo, end-to-end bespoke supply chain solutions and cost optimisation has been crucial in securing these results.”
DP World’s diversification into logistics has helped secure the company’s earnings, with revenues at $3.9bn from its logistics division exceeding the $3.1bn at ports and terminals. Revenue from logistics was up 36%, or 16% on a like-for-like basis.
“Our logistics vertical has demonstrated robustness in this demanding economic landscape, attracting more cargo owners to our platform,” Sulayem said.
“Strategic investments in high-growth sectors enable us to provide value-added solutions, and we remain committed to continuously enhancing our logistics platform. This includes addressing supply chain inefficiencies and enhancing connectivity in crucial trade lanes to service cargo owners better.”
