DP World reports gross volume growth of 1.9% in first quarter
- 23 Apr 2022
DP World Limited handled 19.3 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in the first quarter of 2022, with gross container volumes increasing by 1.7% year-on-year on a reported basis and up 1.9% on a like-for-like basis.
The first quarter (Q1 2022) volume growth was driven by Asia Pacific, Middle East, Europe and Africa, and Americas regions. At an asset level, Qingdao (China), Sokhna (Egypt), London Gateway (UK), Yarimca (Turkey), Dakar (Senegal), Caucedo (Dominican Republic), Buenos Aires (Argentina) and Posorja (Ecuador) delivered a strong performance. Jebel Ali (UAE) handled 3.4 million TEU in Q1 of 2022, a decrease of 1.0% year-on-year.
At a consolidated level, our terminals handled 11.3 million TEU during the first quarter of 2022, increasing 1.4 per cent on a reported basis and up 1.1% year-on-year on a like-for-like basis.
Group Chairman and Chief Executive Officer Sultan Ahmed Bin Sulayem commented:”As anticipated, Q1 of 2022 volume growth has softened due to the strong prior-year performance and uncertain macro environment. However, we continue to see robust growth in markets such as Asia Pacific and the Americas, while in Europe, London Gateway’s strong performance has continued into 2022. The softer volumes Jebel Ali (UAE) is due to loss of low margin throughput where we remain focused on more profitable origin & destination cargo.
‘’Looking ahead, the near-term outlook is mixed given the geopolitical environment, but we remain positive on the medium to long term fundamentals of the industry. On our broader portfolio, we continue to make strong progress in strengthening our product offering, allowing us to connect directly with cargo owners to deliver a range of unique logistic solutions. Overall, we remain focused on integrating our recent acquisitions, growing profitability while managing growth capex, delivering on our 2022 leverage targets and disciplined investment to cement DP World’s position as the logistics partner of choice,” he said.
Separately, DP World has received the “Best Logistics Technology & Cold Chain Delivery” award at this year’s Vaccine Industry Excellence Awards, held in Washington DC.
The award recognised DP World’s work over the last two years to address challenges in vaccine delivery and supply chain bottlenecks.
For the past 21 years, the World Vaccine Congress has grown into the leading vaccines congress globally, with an agenda shaped by a global scientific advisory board.
The lack of a unified global response to the pandemic presents a barrier to global health, freedom of movement and economic recovery. Technology and partnerships to pool expertise and resources have been vital in overcoming these obstacles.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, said, “When the first COVID-19 vaccines were announced, DP World was quick to recognise the scale of the challenge involved in distributing this to billions of people worldwide. We are proud that our global staff and facilities have played a part in ensuring the vaccines reach those in most need. We must learn lessons from this pandemic to ensure equal and fair access to critical supplies, regardless of wealth or geography”.
DP World’s cold-chain facilities, such as those in Caucedo port, span warehousing space and moving goods vehicles, ensure that DP World can cover the entire journey from the laboratory right up to the point of injection. In the Dominican Republic, this meant distributing more than eight million COVID-19 vaccines around the country.
DP World’s suite of digital technologies, such as CARGOES Flow, also helped its partners identify bottlenecks in their supply chains and smooth the flow of medical supplies across borders.
Finally, the World Logistics Passport initiative, in which DP World is a partner, removes trade barriers and enhances trade routes to improve and facilitate trade between countries – simplifying the movement of these critical supplies.
At the height of the COVID-19 pandemic, we signed a three-year partnership with UNICEF to support its COVAX mission. DP World provided UNICEF free worldwide access to our logistical services, helping it deliver two billion vaccine doses by 2022 in hard-to-reach nations.
Alongside UNICEF, DP World is a key partner in the Dubai Vaccine Logistics Alliance working with Emirates and Dubai Airports to distribute vaccines by air, land, and sea to address operational challenges in emerging markets hard-hit by the pandemic.
The last mile can be the most challenging part of delivery, with vaccines often damaged by temperature fluctuations. DP World has recently partnered with UK-based Ideabatic to distribute an innovative freeze-free and fail-safe cool box to make sure these life-saving vaccines reach their targets.
WAM
