Global ports operator DP World said on Tuesday that it handled 31.4 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals during the first half of 2016.

In a statement, the Dubai-based company said gross container volumes increased by 2.5 per cent on a reported basis, and rose by 1.2 per cent on a like-for-like basis.

DP World, which recently won a 50-year concession to develop a greenfield multi-purpose port project in Ecuador involving a total investment of $1 billion, said its growth in the first half of 2016 was largely driven by a strong performance from European and Indian subcontinent terminals.

"Conditions in Australia and Latin America remain challenging while the UAE handled 7.4 million TEU, down six per cent year on year due to a reduction in lower-margin cargo. At a consolidated level, our terminals handled 14.6 million TEU during the first half of 2016, a 1.6 per cent improvement in performance on a reported basis and down 1.4 per cent year on year on a like-for-like basis," it said.

Sultan Ahmed bin Sulayem, DP World Group chairman and CEO, said he expected the second half of 2016 to show an improved performance as its new developments in Rotterdam, Nhava Sheva (India), London Gateway and Yarimca (Turkey) deliver an increasing contribution.

"We continue to focus on driving profitability by targeting higher margin cargo, improving efficiencies and managing costs. We are encouraged by the progress we have made in the first half of 2016, and we remain confident in meeting full-year market expectations," said bin Sulayem.

DP World, which is on an expansion mode, recently announced that it was planning to boost its port and cruise business out of Terminales Rio de la Plata in Buenos Aires.

In May, the ports operator said it was "bullish" about growth plans in Africa following the signing of a $442 million agreement to develop and operate a trade and logistics hub in Somaliland. Also in May, DP World expanded its reach to Turkey by opening its first terminal in the country.

The Ecuador project will have an initial investment of $500 million for the first phase that includes the purchase of land, dredging a new access channel, a 20km access road and a 400-metre berth equipped to handle containers and other cargo, said the company, which has a portfolio of 77 operating marine and inland terminals across six continents.

Construction is expected to start within the next six to nine months and take around 24 months to complete, resulting in 750,000 TEU of capacity.
Total investment will be over $1 billion for the entire project that will provide thousands of jobs during construction and close to 1,000 jobs during operations. The project also includes plans to develop a logistics zone to create a regional trading hub.

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Issac John Associate Business Editor of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.