APM Terminals Reaches Milestone in Its New Global Transformation Program
Just one year into its new Global Transformation program APM Terminals has reached an important milestone in the global port operator’s quest for efficiency gains:
The crane lift per hour – a key indicator for performance in a marine terminal – improved no less than 8 pct. across APM Terminals’ portfolio during 2012.
At the start of 2012 the independent port operator set out on an ambitious journey to identify local best practices and develop them into global standards – or to quote CEO Kim Fejfer “to learn from the McDonalds and Burger Kings of this world when it comes to standardizing and finding that one best way to produce any port operation.”
Since then a traveling “black belt force” of operational experts has been visiting facilities, analyzing operations and finding waste and unnecessary procedures to take out of the system. According to the APM Terminals CEO the results are extremely encouraging. The original objective was to improve efficiency 15 pct. within the first two years. Given the first year improvements APM Terminals CEO is set on the targets that seem to be within reach.
“When larger and larger vessels are being deployed, the customers will have an increased appreciation of the value of having the fastest possible turnaround time in port. So we are well on our way to develop a true pitstop mentality – similar to what you see in a good race car team – in all our facilities,” says Kim Fejfer.
Volumes handled by APM Terminals on an equity weighted basis grew 6 pct., ahead of market growth at 4 pct. APM Terminals overall result for 2012 has been positively affected by portfolio changes and one offs, creating a revenue of USD 4,780 million, an EBITDA of USD 1,093 mhe illion, and net operating profit after tax was USD 723 million. Excluding the impact of extraordinary items, underlying ROIC was 12.5%, in essence on par with previous year’s performance.
“I am pleased that we can present a stable financial performance in a year heavily influenced by global economic downturn, challenged shipping sector and softening of Asia/Europe trade. In my view, we have been successful in two aspects: Developing attractive propositions to our more than 60 global shipping line customers – and developing the right port facilities with a strategic focus on growth markets,” says Kim Fejfer.
APM Terminals, February 25, 2013