The statement was made as global trade enabler DP World PLC announced strong financial results today for the six months ending 30 June 2019 with reported adjusted EBITDA and attributable earnings growth of 21.9% and 26.8% respectively.   

“Our half-year financial results have been in line with our expectations,” Mr Bin Sulayem said. He highlighted that DP World continues to be guided by deep market understanding, innovation and operational excellence across 45 countries worldwide. Despite uncertainty from the trade war and challenging regional geopolitical realities, DP World has been able to deliver and excel a broadly impressive performance in the first half of 2019.

Results Highlights

> Revenue of $3,463 million (Revenue growth of 31.9% on reported and 10.8% on a like-for-like basis)

* Revenue growth of 31.9% supported by acquisitions and growth in non-containerised revenue.

* Like-for-like revenue increased by 10.8% driven by growth in non-container revenue. 

> Continued Investment Across the Portfolio 

* Ports & Terminals investments include two new assets in Chile, Fraser Surrey Docks8 (Canada) and consolidation of assets in Australia. 

* Logistics & Maritime investment include acquisition of Pan-European logistics platform of P&O Ferries and marine logistics operator, Topaz Marine & Energy8. 

* Capital expenditure of $636 million invested across the existing portfolio during the first half of the year.

* Capital expenditure guidance for 2019 remains unchanged at up to $1.4 billion with investments planned into UAE, Posorja (Ecuador), Berbera (Somaliland), Sokhna (Egypt) and London Gateway (UK). 

* Posorja8, the only deep-water port in Ecuador with a capacity of 750k TEU opened on time and budget.

> Acquisitions performing in line with expectations and logistics solutions offering now established 

* Unifeeder is delivering in line with expectations and continuing to benefit from structural changes in the market.

* DP World now a significant operator of inland logistics in India, offering end-to-end solutions.

> Global trade continues to grow, but the outlook is uncertain

* The container trade grew by low single digits in the first half of 2019, but concerns around the trade war continue to weigh on the outlook. 

* We continue to focus on delivering operational excellence and maintaining our disciplined approach to investment to ensure we remain the trade partner of choice. 

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, added: “DP World is pleased to report like-for-like earnings growth of 22% in the first half of 2019 and attributable earnings of $753 million. This strong financial performance has been delivered in an uncertain trade environment, once again highlighting the strength of our portfolio. We have continued to make progress on our strategy to become a trade enabler and solutions provider as we look to participate across a wider part of the supply chain. We have invested significantly across our Ports, Logistics & Maritime Services businesses. The aim is to connect directly with customers to offer logistics solutions and remove inefficiencies in the supply chain to accelerate trade. We are seeing positive signs of progress in our new businesses that give us encouragement for the future. While the near-term trade outlook remains uncertain with global trade disputes and regional geopolitics causing uncertainty to the container market, the strong financial performance of the first six months also leaves us well placed to deliver full-year results slightly ahead of market expectations.” 

This has been the position of the previous Government and we understand it remains the preference of the current administration. UK ports have been preparing for a range of scenarios, although it is clear that preparation for a no-deal is about mitigating, not avoiding disruption.

It is critical that in any scenario, the Government prioritises the flow of port traffic so that it remains fluid and does not introduce any additional checks at the frontier. If necessary, any new checks at Ro-Ro ports should be facilitated inland

Richard Ballantyne, Chief Executive of the British Ports Association, said: “British ports have been working closely with the UK Government for the last three years on a range of Brexit scenarios. The industry is as ready as it can be for a ‘no deal’ although it is clear that this is about mitigating disruption at certain ports, not avoiding it. Ports are of course though only one part, albeit an important component, of the logistics chain. We rely on others – freight forwarders, hauliers, agents, Government agencies – to also be ready for what is an unprecedented level of change potentially coming in with little or no notice. Reviewing the leaked Government papers there remain questions for operators using both accompanied and unaccompanied Roll-on Roll-off routes but the Government has designed a number of mitigating measures which will help importers temporarily, in the short term. Operators will need time to plan for any longer term solution so some kind of transitional period will be need for any type of Brexit that deviates from present arrangements. The Government are alive to the issues and we met several Cabinet Ministers recently with other freight industry representatives to express these concerns. A ‘no deal’ would certainly appear to be more of a possibility now and it is prudent to plan for this potential outcome. However we remain firmly of the view that a deal that supports frictionless, free-flowing frontiers is the best outcome and as far as we are aware this is still the Government’s aim. We still hope that the UK and EU can come to a sensible arrangement ahead of the deadline.”