DP World reports stable volumes in Q1

DUBAI / WAM

DP World announced on Thursday that it handled 17.2 million twenty-foot equivalent units, TEU, across its global portfolio of container terminals in the first quarter of 2020.
It noted that gross container volumes decreased by 1.7 percent year-on-year on a reported basis and up 0.3 percent on a like-for-like basis.
Reported volumes declined in Asia Pacific and India Region due to the expiry of concession in Surabaya, Indonesia, and disposal in Tianjin, China, the marine cargo handling company added.
According to DP World, Jebel Ali Port handled 3.4 million TEU in Q1 2020, down 3.4 percent year-on-year, due to loss of lower-margin cargo. Like-for-like growth in Asia, Middle East and Africa was offset by weakness in India, Europe and Australia, it explained.
At a consolidated level, DP World terminals handled 10.3 million TEU during the first quarter of 2020, increasing 12.9 percent on a reported basis and up 0.9 percent year-on-year on a like-for-like basis. Reported consolidated volume in the Americas and Australia region was boosted by the consolidation of Australia, Caucedo in the Dominican Republic, acquisition of container terminals in Chile and commencement of operations in Posorja, Ecuador.
Commenting on the results, Group Chairman and Chief Executive Officer Sultan Ahmed bin Sulayem, said that despite DP World delivering a “resilient performance” in the first quarter, with like-for-like throughput broadly flat year-on-year, the real impacts of current global developments will be seen from the second quarter onwards.
“Global trade and container volumes are forecast to decline in 2020 and the wide range of estimates by industry specialists – like Drewry at -3% and Sea-Intel at -10% – further emphasises the short-term uncertainty faced by our sector. Similarly, the timing of any recovery is uncertain with trade expected to pick-up as and when global economic activity normalises,” he explained.
Bin Sulayem noted, “Given the more challenging environment, our near-term focus is on integrating our recent acquisitions to drive synergies, containing costs to protect profitability, managing growth capex to preserve cashflow and maintaining our investment grade rating.
“On a more positive note,” he added, “DP World’s investment in digital technology and automation has allowed us to minimise the disruption faced at our ports and we remain operational. Importantly, we continue to work with our customers and various governments to ensure supply chains remain open for the movement of essential and critical cargo across the world.”
The DP World Group Chairman concluded, “Overall, the outlook is a cause for concern, but we remain positive on the long-term fundamentals of the industry. Furthermore, our strategy of providing integrated supply chain solutions to beneficial cargo owners leaves us well placed to benefit early from any sustained recovery in the global economy.”

DP World gets first transition of OHSM System certification
DUBAI / WAM

DP World, UAE region became first Port and Free Zone operator in Middle East to attain the updated transition of Occupational Health and Safety Management System certification (ISO 45001: 2018) for international best practices and standards from Lloyd’s Register.
In a statement by DP World, the certification was awarded for excellence in operating functions of ports and terminals, parks & zones and security services, with a particular focus on the prevention of injuries and ill health among its people at the workplace.
The achievement follows an independent audit of Jebel Ali Port, Jebel Ali Free Zone, Jafza, and World Security operations conducted by assessors from Lloyd’s Register an independent provider of accredited certification and a maritime classification society to verify compliance practices.
Mohammed Al Muallem, CEO and Managing Director, DP World, UAE region and CEO of Jafza, said, “The current global challenges and the unprecedented situation underscore the importance of achieving highest standards, resilience in our processes in order to keep trade flowing. The Occupational Health and Safety Management System certification is a recognition that we are going in the right direction in ensuring the safety and health of our employees, customers and partners.”
“As the premier maritime gateway and hub to a region of more than 3.5 billion consumers, the wellbeing of every stakeholder interacting with our business is important to us. For DP World, UAE Region, the ISO 45001:2018 certificate stands as an encouragement and reminder to always follow safety protocols and report unsafe conditions immediately.”
The certification process includes evaluation of the performance of the existing health and safety system at the workplace and then provide practical solutions to improve it.
The ISO 45001:2018 is a new standard that will replace the OHSAS 18001:2007 certification. It provides an outline to help organisations develop and implement an Occupational Health and Safety Management System.