DP World Limited (DP World) recorded a slight increase in freight volumes last year, supported by broad-based growth among its terminals worldwide.
DP World handled 79.0 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in the full year 2022, with gross container volumes increasing by 1.4% year-on-year on a reported basis and up 2.8% on a like-for-like basis.
The Emirati multinational logistics company noted that on a 4Q2022 basis, it handled 19.5 million TEU, up 2.4% on a like-for-like basis.
"2022 gross volume growth was broad-based with Asia Pacific, Middle East & Africa, Australia, and Americas regions all delivering like-for-like growth," it said, adding that at an asset level, Jebel Ali (UAE), Jeddah (Saudi Arabia), Angola (Angola), Sokhna (Egypt), London Gateway (UK), Constanta (Romania), Caucedo (Dominican Republic), Posorja (Ecuador), DP World Santos (Brazil) and all our ports in Australia (Brisbane, Sydney, Fremantle and Melbourne) delivered a "solid performance."
DP World said Jebel Alihandled 14.0 million TEU in 2022, up 1.7% year-on-year.
At a consolidated level, DP World said its terminals handled 46.1 million TEUs during 2022, increasing 1.5% on a reported basis and up 0.7% year-on-year on a like-for-like basis.
2023 outlook "uncertain"
"We are delighted to report another solid volume performance with like-for-like growth of 2.8% in 2022, which is once again ahead of the industry forecast of a marginal decline of -0.5%. This outperformance continues to demonstrate that we are in the right locations and that our strategy to offer integrated supply chain solutions to beneficial cargo owners is bearing fruit," commented Sultan Ahmed Bin Sulayem, group chairman and chief executive officer.
"Growth was driven by the Asia Pacific, Americas and Australia region," he added. "Encouragingly, Jebel Ali’s (UAE) high margin origin & destination cargo grew by 8.6%, with overall volume growth steady at 1.7% for the year."
For 2023, the DP World chief executive pointed out persisting market challenges that will continue to impact industry performance this year.
These are also expected to impact DP World's performance in 2023.
"As expected, growth rates moderated in the final quarter of 2022 due to the more challenging economic environment. Looking ahead to 2023, we expect our portfolio to continue to deliver growth, but the outlook remains somewhat uncertain due to rising inflation, higher interest rates and geopolitical uncertainty," Bin Sulayem said.
"Overall, we are pleased with the business performance in 2022 and remain focused on growing profitability while managing growth capex. The solid volume performance leaves us well-placed to deliver an improved set of full-year results," he added.
