Mixed fortunes for Global Ports
Russia’s Global Ports Investments saw container throughput slump 19% to 1.1m teu in 2016 due to increases competition and low capacity utilisation.
However, a focus on improving bulk cargo volumes resulted in a 66.7% increase in the same year to 2.21m tonnes – a record for the group.
The growth in bulk was not enough to offset the container losses, however, and revenue dropped 18.3% to $331.5m.
Vladislav Baumgertner, chief executive of Global Ports Management, said: “While we began to see some encouraging signs starting in the second half of 2016, the Russian container market remained sluggish for the year as a whole. Within this context, we focused on developing additional revenue streams from other cargoes as well as improving efficiencies within our business.”
He added that there are some “early signs of improvement” in both consumer sentiment and the broader macro-economic environment in Russia, but was realistic that pricing pressures will lead to double digit declines in revenues per teu this year.