Russian operator Global Ports delivers strong growth
Global Ports handled 1.44m teu across its marine container terminal portfolio last year, outperforming the Russian container market which produced a 4.5% increase.
The Russian market’s growth was driven by 6.0 % growth of full container exports a 3.9% rise in full container imports, giving the country a total throughput of 5.1m teu.
Full export container numbers were boosted by the rise of containerisation in Russia’s supply chain, shifting the market towards an import – export balance.
Global Ports, in which Delo Group and APM Terminals each own 30.75% stakes, recorded a profit of US$67.7m compared to a loss of US$58.3m the previous year.
This was largely driven by the depreciation of the Russian rouble in 2018, which resulted in a loss on revaluation of US dollar-denominated borrowings.
Despite a 4% fall in revenue per teu to US$178.4, revenue increased by 5.3% to US$361.9m.
Vladimir Bychkov, CEO of Global Ports Management, commented: “In 2019 Global Ports strengthened its leadership position in the growing Russian container market delivering market outperformance for the second year in a row, notably in the Baltic Basin where our consolidated container throughput grew 12% against 5.1% growth of the Russian market.
“This success was driven by our ongoing efforts to deliver leadership – not only in size – but also in the quality of our services across every aspect of our activity: from berth productivity for shipping lines to the efficiency of railway and customs operations at our terminals and to advanced and innovative IT solutions.
The group ’s capital expenditure in 2019 was US$26.6m, focused on planned maintenance projects, scheduled upgrade s of existing container handling equipment and customer service improvement initiatives.
Bychkov added: “Our journey to become a more efficient logistics hub with a wide range of value-added services is an ongoing process and there is still much to be done, especially in the Far East.
Financially we performed very well over the year, achieving 4.4% Adjusted EBITDA growth and an 18.9% increase in Free Cash Flow.”
Global Ports operates five container terminals in Russia (Petrolesport, First Container Terminal, Ust – Luga Container Terminal 5 and Moby Dik 6 in the Russian Baltics, and Vostochnaya Stevedoring Company in the Russian Far East) and two container terminals in Finland 7 (Multi – Link Terminals in Helsinki and Kotka).
Moby Dik will be used as a bulk handling facility from now on since it “no longer meets the market requirements of a modern container terminal , such as absence of a railway access and insufficient vessel handling equipment,” noted a statement from the operator.