DP World Limited handled 18.3 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in 3Q2020, with gross container volumes increasing by 3.1% year-on-year on a reported basis and up 1.9% on a like-for-like basis[1]. On a nine-month basis, DP World handled 52.2 million TEU, decreasing 2.5% on a reported basis and down 2.0% on a like-for-like basis.

Like-for-like gross volume growth was mainly driven by Europe, Middle East & Africa and Americas with a strong performance from London Gateway (UK), Jeddah (Saudi Arabia), Sokhna (Egypt), Rotterdam (Netherlands) and Antwerp Gateway (Belgium). In Americas, growth was driven by Buenos Aires (Argentina), Santiago (Chile) and Vancouver (Canada). Jebel Ali (UAE) handled 3.4 million TEU in 3Q2020, down 4.2% year-on-year.

At a consolidated[2] level, our terminals handled 10.6 million TEU during 3Q2020, increasing 3.0% on a reported basis and down 1.7% year-on-year on a like-for-like[3] basis. The reported growth of +22.1% in Americas and Australia region is mainly due to the consolidation of Caucedo (Dominican Republic).

Group Chairman and Chief Executive Officer Sultan Ahmed Bin Sulayem commented:

We are delighted to report that third quarter volumes turned positive across our three regions with DP World throughput growing by 1.9% year-on-year compared to a 2.2%[4] decline for the industry. This performance is ahead of expectations and once again illustrates the resilience of the global container industry, and DP World’s continued ability to outperform the market.

The recovery in volumes was broad based with quarter-on-quarter throughput increasing by almost 10% as world economies began to ease lockdown restrictions. India, which witnessed a sharp slowdown in 2Q 2020, saw a significant volume improvement versus the second quarter, while Jebel Ali (UAE) delivered 3.4% growth against the previous quarter as trade in the region began to stabilise.

During this challenging period, we have focused on maintaining efficient supply chains to sustain the delivery of critical and essential cargo. Our strategy to provide solutions to cargo owners has served us well, and our aim is to continue to build on this momentum.

Looking ahead, we remain focused on containing costs to protect profitability and managing growth capex to preserve cashflow.

Overall, while we are encouraged by the recent volume trends, the outlook remains uncertain given the possibility of new lockdowns due to Covid-19 second wave, geopolitical uncertainty with US elections and lack of progress made on trade wars. However, the nine-month solid volume performance leaves us well placed to deliver a relatively stable financial performance in 2020 and we remain confident of meeting our 2022 targets.

[1] Like for like gross container volume adjusts for volumes at Posorja (Ecuador) Porto Lirquen, Porto Central (Chile), Surabaya (Indonesia), Fraser Surrey Docks (Canada), Swiss Terminal (Germany) and Tianjin (China)

[2] Consolidated throughput is throughput from all terminals where the group has control as per IFRS.

[3] Like for like consolidated container volume adjusts for Posorja (Ecuador) Porto Lirquen, Porto Central (Chile), and Consolidation of Australia and Caucedo (Dominican Republic).

[4] Drewry estimates