DP World Postpones Jebel Ali Expansion Project
- Business & Finance
Dubai-based port and terminal operator DP World has delayed the planned expansion of of its flagship port of Jebel Ali due to softer market conditions, the company said in its latest financial report.
Namely, the company postponed 1.5 million TEU of Terminal 3 capacity expansion into 2017, while it also slowed the expansion of Terminal 4.
So far this year, Jebel Ali port’s Terminal 3 delivered new capacity of 0.5 million.
The port “continues to operate at high levels of utilisation and we believe the medium term outlook remains positive,” DP World said, adding that the global trade environment remains challenging including for Jebel Ali port.
The company invested USD 586 million capex in projects in India, Turkey, Canada, UK and UAE during the first half of 2016, and the capital expenditure guidance for 2016 remains unchanged at between USD 1.2-1.4 billion with investments planned into Jebel Ali and Jebel Ali Free Zone, among others.
The port and terminal operator saw a 50.2 percent surge in its year-on-year earnings from USD 405 million reported in the first half of 2015 to USD 608 million in the first half of 2016.
The company’s revenue for the period grew by 10.2 percent to USD 2 billion from a revenue of USD 1.9 billion reported in the first half of 2015.
World Maritime News Staff