APM Terminals cranes moving 8 pct. faster
One year into its new Global Transformation program APM Terminals has reached an important milestone in the global port operator’s quest for efficiency gains:
The crane lift per hour – a key indicator for performance in a marine terminal – improved no less than 8 pct. across APM Terminals’ portfolio during 2012, the company reports.
At the start of 2012 the independent port operator set out on an ambitious journey to identify local best practices and develop them into global standards – or to quote CEO Kim Fejfer “to learn from the McDonalds and Burger Kings of this world when it comes to standardizing and finding that one best way to produce any port operation.”
Since then a traveling “black belt force” of operational experts has been visiting facilities, analyzing operations and finding waste and unnecessary procedures to take out of the system.
According to the APM Terminals CEO the results are extremely encouraging. The original objective was to improve efficiency 15 pct. within the first two years. Given the first year improvements APM Terminals CE O is set on the targets that seem to be within reach.
“When larger and larger vessels are being deployed, the customers will have an increased appreciation of the value of having the fastest possible turnaround time in port. So we are well on our way to develop a true pitstop mentality – similar to what you see in a good race car team - in all our facilities,” says Kim Fejfer.
Volumes handled by APM Terminals on an equity weighted basis grew 6 pct., ahead of market growth at 4 pct. APM Terminals over all result for 2012 has been positively affected by portfolio changes and one offs, creating a revenue of USD 4,780 million, an EBITDA of USD 1,093 mhe illion, and net operating profit after tax was USD 723 million. Excluding the impact of extraordinary items, underlying ROIC was 12.5%, in essence on par with previous year’s performance.
“I am pleased that we can present a stable financial performance in a year heavily influenced by global economic downturn, challenged shipping sector and softening of Asia/Europe trade. In my view, we have been successful in two aspects: Developing attractive propositions to our more than 60 global shipping line customers – and developing the right port facilities with a strategic focus on growth markets,” says Kim Fejfer.
APM Terminals has frequently been highlighted by independent industry analysts as the #1 global port operator in terms of expansion and investments.
2012 was no exception to that trend with the USD 900 million acquisition of a co-controlling stake in the Russian/Baltic port operating company Global Ports, along with new projects in Mexico, China and Kenya. 38 out of 62 container terminals operate in growth markets and 78% of EBITDA was generated in these markets.
Highlights:
• Profit of USD 723 million (USD 648 million), impacted by pre-tax divestment gains of USD123 million (USD128 million).
• ROIC was 13.6% (13.1%). Excluding the impact of portfolio changes, underlying ROIC was 12.5% (12.4%).
• Cash flow from operating activities was USD 975 million (USD 912 million).
• Number of containers handled increased by 6% to 35.4 million TEU (33.5 million TEU), ahead of the market growth of 4%.
• APM Terminals acquired a 37.5% co-controlling stake in Global Ports Investments PLC with a portfolio of very attractive port assets in Russia and neighbouring countries.
• New terminal projects were secured in Lazaro Cardenas, Mexico, and Ningbo, China, and a new inland project secured in Mombasa, Kenya.
• APM Terminals commenced operations in Gothenburg, Sweden, and the terminal in Wilhelmshaven, Germany, opened.
APM Terminals – providing the port and inland infrastructure to lift global trade APM Terminals’ Global Terminal Network of ports and inland services provide the infrastructure for the growth of international trade, 90% of which travels by sea.
International commerce is an economic growth engine, creating jobs, lifting economies and improving people’s lives around the world.
With world headquarters in The Hague, Netherlands, the company’s core expertise is the design, construction, management and operation of ports, te
rminals and inland services with 23,000 employees in 68 countries including 70 port facilities and over 170 Inland Services operations.
The company was named “Port Operator of the Year” at the Lloyd’s List 2012 Global Awards and “International Terminal Operator of the Year” for 2012 by
Containerisation International.