The world's largest port operator DP World has delayed the development of its $1.5 billion third terminal in Jebel Ali due to the global economic meltdown, a company official has said.
''In response to the current market, we are deferring expansion plans on the third terminal in Jebel Ali until such time as market demand returns,'' a DP World spokesperson was reported saying.
''We successfully completed the expansion of Terminal 2 in Jebel Ali as scheduled in the first quarter of this year, taking capacity there to around 11 million TEUs,'' the spokesperson added.
DP World's profits are forecast to plunge by 54% during 2009 to $265 million from $572 million in 2008, and to see a 24% fall in its revenues this year.
''The unpredictable trends in global trade have continued into 2009 resulting in a volume decline across our business of 10% for the first four months of the year,'' the company spokesperson said.
Despite DP World's plans to defer new capacity this year, the estimated utilisation rate is expected to decline close to 80% this year from 86% in 2008, it was reported.
''To overcome the current challenging markets, we have undertaken cost-containment and cash generation. We have deferred about 50% of our capacity expansion plans until market demand returns,'' the spokesperson said.
''As for lowering ports charges, this decision differs from terminal to terminal.''
''In response to the current market, we are deferring expansion plans on the third terminal in Jebel Ali until such time as market demand returns,'' a DP World spokesperson was reported saying.
''We successfully completed the expansion of Terminal 2 in Jebel Ali as scheduled in the first quarter of this year, taking capacity there to around 11 million TEUs,'' the spokesperson added.
DP World's profits are forecast to plunge by 54% during 2009 to $265 million from $572 million in 2008, and to see a 24% fall in its revenues this year.
''The unpredictable trends in global trade have continued into 2009 resulting in a volume decline across our business of 10% for the first four months of the year,'' the company spokesperson said.
Despite DP World's plans to defer new capacity this year, the estimated utilisation rate is expected to decline close to 80% this year from 86% in 2008, it was reported.
''To overcome the current challenging markets, we have undertaken cost-containment and cash generation. We have deferred about 50% of our capacity expansion plans until market demand returns,'' the spokesperson said.
''As for lowering ports charges, this decision differs from terminal to terminal.''