Saturday, August 29, 2009

D P World Reports Freight Port Profits Fall

Low Cargo Volumes Squeeze Container, General and Bulk Cargo Sectors Alike
Shipping News Feature

DUBAI, UAE – The state controlled corporation DP World, owner of DP Ports, has reported a slump in its nett profits of 34.5% compared to last years first half figures. Traffic levels collapsed by 10% in the container sector and spanned all of DP’s 49 worldwide terminals. Profits fell to $188 million for the first reporting period of 2009, down from $287 million.

A company statement said the group expected to meet its expectations for the full year period but that “unpredictable trends” in global trading were ongoing. The company felt that profit margins were good despite the downturn and that some parts of its trade had out performed others. Locally most of the decline was blamed on the fall in profits on general, break-bulk and bulk cargoes.

The group has invested heavily in new developments with estimates of capital expenditure for the year ranging from $800 million to $1 billion whilst jobs and expenditure on non essentials continue to be cut. The previously wholly state owned group ceded a minority interest to private equity investors earlier this year.