2013: A Year Of Expansion For DP World

BMI View: Although 2012 has been a year of divesting assets for DP World, 2013 is set to be a year of expansion for the company with its latest Brazil and UK container terminal projects to be realised and the firm's Turkey greenfield project expected to get underway.

Construction of DP World Yarimca, which is due to be built in Korfez, Turkey is due to commence soon according to the firm's senior vice-president of Global Operation, Rashid Abdulla. The terminal, which is a greenfield, is to be built on the Asia side of Istanbul and will boast a capacity of 1.3mn twenty-foot equivalent units (TEUs).

The terminal will mark DP World's entrance into the Turkish container market, a market which has been growing rapidly and holds high growth potential over the medium term. Between 2000 and 2010 container volumes via Turkey's ports have increased from 1.59 TEUs to 5.5 TEUs, an annual average increase of 15%.

Strong Growth Outlook To Continue
LHC: Turkey Container Throughput (TEU) and y-o-y % Change. RHC: Port of Ambarli Container Throughput (TEU) and y-o-y % Change.

Medium-term growth forecasts also look robust. BMI is forecasting container throughput volumes at the port of Ambali (the largest container port in Turkey that we cover) to increase by an annual average of 8% per year between 2013 and 2017.

DP World's Yarimca project is just one of ten global container terminal new development projects that the company has in the pipeline. The projects are due to be realised in the next eight years and are projected to increase the company's container capacity from 69.4mn TEUs globally in 2011 to 102mn TEUs.

The projects indicate that DP World is keen to retain Europe, Middle East and Africa (EMEA) as the core base for its operations. In H112 DP World's EMEA handled 9.58mn TEUs. While this was a year-on-year (y-o-y) increase of just 6% and saw the region lag the company's operations in Australia and the Americas, which grew by 28% y-o-y in this period, EMEA accounted for 70.5% of DP World's total global operations.

EMEA To Remain Dominant
LHC: DP World H112 Container Throughput % of Total. RHC: DP World Medium-Term Development Projects

Out of the 10 projects that DP World is set to develop eight are in EMEA, with DP World developing just one (Santos in Brazil) in the Americas and one in Asia Pacific: the port of Kulpi in India.

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