Tuesday, May 01, 2012

(This story was originally published Monday.)

--1Q container volume traffic rises 9.5% versus year earlier period

--Strong Middle East, Africa markets helped mitigate challenging conditions in Europe

--Global macroeconomic uncertainty has continued into 2012, says Chairman

By Tim Falconer

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Dubai-based DP World (DPW.NDB) said strong Asia Pacific and Indian markets more than offset challenging conditions in Europe during the first three months of the year, as the ports operator posted a 9.5% rise in the amount of cargo it handled during the quarter.

DP World said Monday it processed 13.8 million twenty-foot equivalent container units, or TEUs, in the first three months of the year, up from 12.6 million a year earlier quarter. Excluding the contribution from new capacity, like-for-like growth was 7.4%.

"This growth was driven by an excellent performance in our Asia Pacific and Indian Subcontinent region which reported 14.6% growth in volumes as new capacity across the region supported strong growth across our Asia Pacific portfolio," Chairman Sultan Ahmed Bin Sulayem said in an emailed statement.

"Growth in Europe, Middle East and Africa region was 4.4% with a good performance in the Middle East and Africa mitigating the ongoing challenging operating environment in Europe," bin Sulayem said. "The global macroeconomic uncertainty has continued into 2012."

The company, which operates more than 60 terminals worldwide, has invested heavily in expanding its operations in recent years, adding new capacities in fast-growing emerging markets in Asia and Latin America. It is also spending a total $1.6 billion on the London gateway deep-sea port and logistics park that will enable container vessels to call in close proximity to the British capital from the last quarter of 2013.

DP World said that the Americas and Australia region reported volume growth of 8.7% in the first quarter of the year. The firm's Jebel Ali port in Dubai meanwhile handled 3.2 million TEUs in the first three months of the year, an 8.5% increase on the same period a year earlier.

Last month, Mohammed Al Muallem, DP World's senior vice president and managing director, told Zawya Dow Jones that he expects throughput at its U.A.E. hub to grow by over 12% this year, surpassing 2011 levels, as the gateway port continues to benefit from the strengthening economies of the Middle East, India and Africa regions.

DP World has set aside $850 million to expand its U.A.E. investments in the coming two years, work that will include increasing Jebel Ali's capacity by an additional 5 million TEU by 2014, of which one million TEU is expected to be added in 2012 to the current capacity of 14 million.

DP World shares last traded flat $11.50 on Nasdaq Dubai.

-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

01-05-12 0355GMT