DP World says Europe, India expected to drive growth in 2017

The chairman of UAE-based ports operator DP World has forecast steady portfolio growth for 2017, driven mainly by its interests outside the Middle East.

Group chairman and CEO Sultan Ahmed Bin Sulayem said in a statement on Tuesday that DP World’s operations in the Netherlands, India, Turkey and the UK are expected to boost portfolio growth over the coming 12 months.

He added that the company is on track to meet full-year targets for its 2016 annual results, as it unveiled a 2.2 percent rise in gross container volumes over the period.

Bin Sulayem said: “Despite the challenging market conditions, particularly at our flagship Jebel Ali Port, our portfolio continues to deliver ahead-of-market growth, which once again demonstrates the benefits of operating a globally diversified portfolio.

“We are pleased to see volumes stabilising in the UAE and as we look ahead into 2017, we expect our new developments in Rotterdam (Netherlands), Nhava Sheva (India), London Gateway (United Kingdom) and Yarimca (Turkey) to drive growth in our portfolio.

“We will continue to maintain capital expenditure discipline by bringing on capacity in line with demand, while focusing on targeting higher margin cargo, improving efficiencies and managing costs to drive profitability.

“Given the resilient volume performance of our portfolio, we are well placed to meet full year 2016 market expectations.”

DP World reported full-year 2016 gross container volumes up 2.2 percent on a like-for-like basis and 3.2 percent higher on a reported basis.

The company handled 63.7 million twenty-foot equivalent units (TEU), largely driven by strong growth in the Asia-Pacific and Europe, it added.