Wednesday 28 January 2009

Slowdown takes toll on DP World

DP World, the Dubai-based container port operator, on Monday became the first major company in the sector to outline how the last few months' economic slowdown has hit trade through its ports.

The company, which is controlled by Dubai's royal family but listed on the Dubai International Financial Exchange, said that, excluding the effect of new terminals, growth at ports where it is the largest shareholder was just 6 per cent in 2008 compared with 2007.

Throughput at all ports where it had a shareholding was only 8 per cent over the previous year, down from 18 per cent in 2007 over 2006. Growth slowed particularly dramatically at the ports in Dubai - the heart of DP World's operation - which accounted for more than a quarter of 2008 throughput.

Growth slowed from 20 per cent in 2007 to 11 per cent in 2008. The company is expected to trim costs and re-examine its extensive port expansion programme.

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