Even as the financial crisis continues to bite through major global economies, volumes at ports across the Middle East will not be affected given the region's strong and unique economic set up, said a senior DP World official. DP World, which manages a portfolio of more than 40 ports across the world, does not expect any decline in volumes at any of its ports within the region "Our growth for this year will remain as projected and volumes at regional ports will continue to witness double digit growth," said Jamal Majid bin Thaniah, Executive Vice-President for DP World, and Group CEO, Ports and Free Zone World at the Seatrade Middle East Maritime conference yesterday. "The region's economy is solid and capable of withstanding any possible impact from the current global financial crisis."
Jebel Ali Port, one of the largest in the world, is expecting more than 40 per cent increase in cargo container throughput from the last year's 9.9m TEUs (20-foot equivalent units) to 14 million TEUs in February 2009.
Last year, UAE terminals increased container cargo throughput by 19 per cent to 14m TEUs, with Dubai's ports of Jebel Ali and Port Rashid growing at 20 per cent to reach 11m TEUs. The growth in UAE ports matched the 19-per cent average set by the Middle East, Europe and Africa.
Backed by markets in India, Middle East and Africa, DP World hopes to maintain its upward growth curve despite the current financial woes.
"This talk about a possible economic recession in the region is mere speculation. Most ports in the region will easily reach their targets and expansion programmes will go on as scheduled," said Thania. "We will not allow fears of a recession to divert our efforts because we are insulated and any cost cutting being considered by business due to such fears would in fact help recession. We have to fight it by all means."
DP World, recently said that throughput at its consolidated terminals increased by 16 per cent in the first nine months of 2008, compared to the same period last year. The company said its after-tax profits from continuing operations in the first six months of 2008 more than doubled to $287 million (Dh1.05bn) as its 44 marine terminals reported a 21-per cent throughput growth to 13.6 million TEUs.
Thaniah said the GCC would continue to develop steadily despite the current drop in oil prices. He noted that although there would be a slowdown in some of the projects underway, a recovery was expected in the second quarter of 2009 as a result of the stimulus packages announced by global leaders to aid their economies.
He said the current crisis would help to improve efficiency and customer care within the shipping industry as owners shift focus from acquiring more vessels to consolidating business.
He, however, urged the shipping community to help stabilise freight rates in order to protect businesses.
Jebel Ali Port, one of the largest in the world, is expecting more than 40 per cent increase in cargo container throughput from the last year's 9.9m TEUs (20-foot equivalent units) to 14 million TEUs in February 2009.
Last year, UAE terminals increased container cargo throughput by 19 per cent to 14m TEUs, with Dubai's ports of Jebel Ali and Port Rashid growing at 20 per cent to reach 11m TEUs. The growth in UAE ports matched the 19-per cent average set by the Middle East, Europe and Africa.
Backed by markets in India, Middle East and Africa, DP World hopes to maintain its upward growth curve despite the current financial woes.
"This talk about a possible economic recession in the region is mere speculation. Most ports in the region will easily reach their targets and expansion programmes will go on as scheduled," said Thania. "We will not allow fears of a recession to divert our efforts because we are insulated and any cost cutting being considered by business due to such fears would in fact help recession. We have to fight it by all means."
DP World, recently said that throughput at its consolidated terminals increased by 16 per cent in the first nine months of 2008, compared to the same period last year. The company said its after-tax profits from continuing operations in the first six months of 2008 more than doubled to $287 million (Dh1.05bn) as its 44 marine terminals reported a 21-per cent throughput growth to 13.6 million TEUs.
Thaniah said the GCC would continue to develop steadily despite the current drop in oil prices. He noted that although there would be a slowdown in some of the projects underway, a recovery was expected in the second quarter of 2009 as a result of the stimulus packages announced by global leaders to aid their economies.
He said the current crisis would help to improve efficiency and customer care within the shipping industry as owners shift focus from acquiring more vessels to consolidating business.
He, however, urged the shipping community to help stabilise freight rates in order to protect businesses.