Global port giant DP World is delaying the expansion of Jebel Ali port after cargo volumes passing through the terminal fell during the first half of the year, the company said on Thursday as it announced its first half results.
In a sign that faltering oil prices are affecting Dubais diversified economy, DP World said it would hold off on plans to add 1.5 million TEU of annual capacity to Terminal 3 until next year while expansion of Terminal 4 will also be slowed.
(The) global trade environment remains challenging including for Jebel Ali port, DP World said in its earnings statement.
Jebel Ali is by far the biggest port in the region and the only one capable of accommodating the worlds largest containerships, which has established the port as a transshipment hub for the Gulf.
But cargo volumes handled during the first half of the year fell by six percent to 7.4 million TEUs as growth in the oil-rich economies of the Gulf has been hit by lower oil prices.
DP World reported a 50 percent jump in net profit attributable to shareholders during the first half to $608m, thanks to acquisitions of Dubais Jebel Ali Free Zone and Canadas Fairview Terminal. Revenue for the first half was $2.09bn, up from $1.9bn a year earlier.