DP World becomes third-largest port operator
Published: Sep 2, 2010 23:50 Updated: Sep 2, 2010 23:50
DUBAI: New terminals and smaller declines in container handlings on the existing ones have made the Dubai Ports World, also known as DP World, the third-largest port operator in the world, according to a new report released on Thursday.
DP World handled 31.5 million containers last year, outperforming its global rivals such as Holland-based APM Terminals that handled 31.1 million containers, said a report by the London-based Drewry Shipping Consultants.
The Dubai firm, which holds 6.7 percent of the global market share, came after Hutchison Port Holdings, which controls 6.8 percent, and Singapore's PSA International, which rules 9.5 percent of the sector.
DP World, which recorded an eight percent drop in total volume at consolidated ports, posted $580 million in earnings before interest, depreciation and taxes in the first half this year.
The company, which opened new terminals in Algeria, Djibouti and Vietnam last year and expanded capacity at Jebel Ali port, has 50 terminals and 11 new developments across 31 countries, and a staff of nearly 30,000.
Last year, sea freight traffic dropped for the first time since the advent of containers in the 1960s. Ports worldwide handled 473 million TEUs, a 10 percent decline over 2008. But while volumes in North America and Europe declined by about 15 percent, the crisis was "hardly felt" in the Middle East and Africa, Drewry said.
"2009 was a year the like of which has never been seen before. Historically, for global terminal operators, it has always been about expanding and adding capacity as quickly as possible. Then, suddenly, they were all faced with changing their mindset toward drastic cost control and halting of projects," said Neil Davidson, Senior Advisor for Drewry.
According to the London-based consultancy, the ports industry had recovered well from the global downturn and a lack of spare capacity was now a concern over the decade.
