Continuing on its growth path, the company turned profitable registering a net profit of INR 571 Million in CY2011. “Port Pipavav has steadily grown since 2009, when we started marketing our facilities,” said Prakash Tulsiani, MD, APM Terminals Pipavav. “Despite the challenging time the industry faces currently, our client base has grown. We have enhanced our infrastructure substantially and will continue to do so to serve the needs of our customers.”
Growing Volumes
Both container and bulk cargo volumes have grown considerably. Container volumes grew 31% over 2010 with a throughput of 610,243 TEUs. Bulk volumes grew 18% in Q4 2011 as compared to Q4 2010 and recorded a growth of 10% in CY 2011. Rail volumes grew significantly, recording 71% increase in the number of rakes and a 78% increase in Metric Tonnes, going from 3.09 million MT to 5.51 million MT.
Revenue Growth
Port Pipavav has recorded an increase of 40% in operating revenue in CY 2011 while operational costs have gone up by 32%. EBITDA margins have grown to 46% in 2011 as compared to 40% in 2010. Growth in cargo volumes and improvement in realizations have helped in positive results during the year.
As compared to Q3 2011, there has been a 104% growth in net results, an 18% increase in revenue, 31% increase in EBITDA and a 11% increase in EBITDA margin. Compared to Q4 2010, in CY 2011, the port has recorded an increase of 33% in revenue, 72% increase in EBITDA and 2.4 times increase in Net Result from INR 111 Million to INR 270 Million
“Our operational margins have increased. Simultaneously, we have reduced the interest costs by 33%,” said Hariharan Iyer, CFO, APM Terminals Pipavav.” The growth in cargo volumes has also helped us to generate economies of scale and reduce operating costs.”
Infrastructure Growth
The port has undertaken several new projects to upgrade infrastructure. New container yards have been built, bringing the capacity to 850,000 TEUs. New rail sidings, sheds for fertilizer cargo with automated bagging and loading in rakes, will be completed by Q3 2012. Three new Rail Mounted gantry cranes for container loading will also be installed and operational by Q4 2012.
“Safety of our people, both employees and contract labour, is very important for us. Our objective is to reduce risks and improve safety by minimising the man-machine interface,” said Tulsiani.
Pipavav Rail Corporation Ltd, a JV between the Indian Railways and APM Terminals that maintains and operates the 269 km railway line for the port, also turned profitable.
APM Terminals Pipavav located in Gujarat is one of India’s fastest growing ports. APM terminals bought a majority stake in the company in 2005 and after modernising the facilities, Port Pipavav began marketing its services to clients based in north west India. In 2010, the port launched its IPO successfully and has steadily improved cargo volumes, number of clients, road and rail connectivity and storage facilities. Port Pipavav is part of an international network of ports and terminals belonging to APM Terminals of the Moller-Maersk goup.