APM Terminals’ profit for the Q2 period was affected by a varied regional performance, with West Africa region and some terminals in Asia demonstrating double digit growth rates, whereas volumes in most European terminals were below Q2 2011.
As mentioned in the 2011 annual report, the increased presence in these growth areas also increases the exposure to geopolitical events. Operations in some terminals in North Africa, Europe and the Middle East affected by local political unrest or labour issues improved during Q2.
The inland activities continued to contribute positively to the financial performance. The global container terminal market measured in TEU increased by 5% in the first half of 2012, where APM Terminals volume increased by 9%, compared to the first half of 2012.
The number of containers handled by APM Terminals (measured in crane lifts weighted with APM Terminals’ ownership interest) increased by 7% compared to Q2 2011. Excluding the impact of portfolio changes, volumes increased by 5%.
APM Terminals has started to implement a long term global transformation program in Q2, to identify local best practices and develop these into global standards.
The objective is to improve productivity while at the same time securing process efficiencies and thereby achieving significant cost savings of an estimated USD 200m in total over a five year period across the portfolio.
APM Terminals announced the following developments with portfolio implications in Q2:
• The company signed a cooperation agreement to enlarge the Meishan box facility at Ningbo, China, intending to take a 25% stake in the development of three new berths at the container terminal.
• APM Terminals submitted an unsolicited proposal to operate all Port of Virginia facilities in Hampton Roads, United States.
• Orders of USD 545m for the construction of Rotterdam’s Maasvlakte II facility were entered into during Q2. The Dutch terminal is scheduled to start operations in 2014.
• A 32 year concession contract was signed with the Port Authority of the Port of Lazaro Cardenas (APILAC), Mexico for the design, financing, construction, operation, and maintenance of a new specialized container terminal at the port.
The LTIF for the last four quarters was 3.23 per million working hours (4.53 per million working hours). APM Terminals has continued focus on eliminating accidents and advancing the safety management culture.
This is most recently reflected in the establishment of a new initiative, the appointment of a senior executive to the role of internal “Safety Activist”, focusing solely on mobilising the global organisation to address the constant safety challenges in the port operations.
Source: APM Terminals, August 14, 2012