DUBAI-based port operator DP World, the largest shareholder of Manila South Harbor operator Asian Terminals Inc. (ATI), is planning to spend up to $1 billion in investments in India’s ports, after winning concessions for two facilities at India’s largest port and posting successful first-half financial figures for this year, the company said.
The company actually announced the planned India investment in a video statement circulated in February this year, but issued an updated version of the statement this week after announcing its first half financial results, which showed profits increase by more than 50 percent and revenue by 10 percent.
DP World last week reported that its profits for the six months ending June 30 had increased by 50.2 percent year-on-year to $608 million, while revenue grew by 10.2 percent from the same period a year earlier to reach $2 billion. The strong profit and revenue performance was supported by DP World’s acquisitions of the massive Jebel Ali Free Zone in Dubai, and the port facilities of Prince Rupert, British Columbia, on Canada’s west coast. This drove its containerized revenue higher by 5.4 percent, the company said.
With its earnings report, DP World said that its capital expenditure guidance for 2016 remains unchanged at $1.2 billion to $1.4 billion, of which about $586 million has already been spent, with investment planned at Jebel Ali, Prince Rupert, Jawaharlal Nehru Port Trust—India’s largest container port, located at Maharasthra/Mumbai, London Gateway (UK), and Yarimca, Turkey.
Just a day after its August 18 financial report, however, DP World was sounding a note of caution on the planned expansion of the already-vast Jebel Ali complex, saying that it would postpone work on its Terminal 3 and Terminal 4—the latter to be located on a new reclaimed island—into 2017 due to softer container market conditions.
Instead, the company—in a somewhat roundabout way—indicated that expansion would be focused in India in a follow-up statement, saying, “CRRS is continuously exploring opportunities of opening up new routes and has firm plans to grow rapidly in the near future, through capacity enhancement with commencement of every such route.”
CRRS (Container Rail Road Services Pvt Ltd) is DP World’s intermodal rail service, headquartered in Mumbai.
DP World is the largest shareholder of Manila-based Asian Terminals Inc. (ATI), with a 17.32-percent stake in the company as of the end of 2015.