LONDON: DP World gross container volumes jumped in the second quarter as its regional operations shrugged off the impact of disruption to cargo shipments to Qatar.
The Dubai state-owned ports operator said second-quarter gross container volumes gained 10.7 percent year-on-year on a reported basis and 10.4 percent on a like-for-like basis.
Improving global trade boosted performance in all three regions and volumes also increased in Jebel Ali despite the disruption to container traffic following the start of a boycott of Qatar by the UAE, Saudi, Bahrain and Egypt who accuse the country of supporting terror groups.
It meant that ships sailing to and from Doha were stopped from calling at other major ports in Saudi, Bahrain and the UAE — home to Jebel Ali, the region’s largest port.
Last month international shipping companies including Maersk said they would no longer be able to transport goods bound for or originating from Qatar through Jebel Ali Port.
A DP World spokesman said the boycott did not have “a material impact” on volumes over the period as it impacted mainly small transhipments.
The ports operator did not say whether the ongoing boycott was expected to have an impact on its regional cargo volumes in the third quarter.
Still, despite having a major impact on the regional transhipment of goods, freight volumes between Qatar and other regional ports only represent a small fraction of DP World’s global operations which have been spurred by rebounding trade.
“Our portfolio has delivered ahead-of-market growth benefitting from the improved trading environment in 2017 and market share gains from the new shipping alliances, driving volumes in the second quarter,” said Sultan Ahmed Bin Sulayem, group chairman and chief executive of DP World.
The IMF this week left its 2017 forecast for global growth of 3.5 percent unchanged as better growth in China, the euro zone and Japan compensated for faltering growth in the UK and US.
It expects the global economy to expand by 3.6 percent next year — also unchanged from its previous forecast in April.
DP World operates 78 marine and inland terminals worldwide and has a 36,500-strong workforce.
Its core business is container handling which generates more than three quarters of its revenues. The company handled around 64 million TEU (twenty-foot equivalent units) last year.
Dubai’s DP World sees no ‘material impact’ from Qatar boycott
Dubai’s DP World sees no ‘material impact’ from Qatar boycott
Free trade negotiations between GCC, India mark new phase of partnership, says sec-gen
RIYADH: The Gulf Cooperation Council’s secretary-general affirmed that the negotiations for a free trade agreement between the GCC and India, and the signing of the joint statement, represents a new phase of strategic partnership.
Jasem Mohamed Al-Budaiwi said that this contributes to enhancing close cooperation and strengthening economic and trade ties, according to the Saudi Press Agency.
This came during the signing ceremony of the joint statement on launching the free trade agreement negotiations between the Al-Budaiwi and India’s Minister of Commerce and Industry, Piyush Goyal, which took place in New Delhi, on Tuesday.
During the signing ceremony, Al-Budaiwi said that the Terms of Reference, signed on Feb. 5, provide a comprehensive and clear framework for these negotiations. The two nations agreed to discuss enhancing cooperation in vital strategic areas, including trade in goods, customs procedures, and services.
Additionally, the framework covers Sanitary and Phytosanitary measures, intellectual property rights, cooperation on Micro, Small, and Medium Enterprises, along with other topics of mutual interest. This reflects the comprehensive nature of the agreement and its ability to keep pace with the future economy.
Al-Budaiwi expressed hope that these negotiations would lead to a comprehensive and ambitious free trade agreement that works to remove customs and non-customs barriers, enhance the flow of quality investments in both directions, and achieve further liberalization in trade and investment cooperation between the GCC and India for mutual benefit.
This would provide a stimulating economic environment and an investment climate that opens broad horizons for the business sector, supports supply chains, and accelerates the pace of economic growth in line with the ambitious developmental visions of the GCC states.
The top official affirmed the full readiness of the General Secretariat to host the first round of negotiations at its headquarters in Riyadh during the second half of this year.
The two sides held a meeting during which they reviewed the existing cooperation relations between the GCC and India and discussed ways to develop and elevate them to broader horizons, serving mutual interests and enhancing opportunities for strategic partnership between the two sides, particularly in the economic, investment, and trade fields.
They praised the role undertaken by the negotiating teams from both sides, appreciating the efforts contributing to reaching a comprehensive agreement that enhances economic integration and supports the smooth flow of trade between the two nations.
