DP World adopts strategic development plans to meet the rising demand for marine terminal services

Mohammed Al Muallem, Senior Vice President and Managing Director of DP World's UAE region, said that the company is adopting strategic development plans to meet the increasing demand for marine terminal services as the shipping industry grows at an intense pace.

Speaking at the Saudi International Ports and Maritime Transport Forum held in Jeddah earlier this week, Al Muallem said that the shipping industry is growing so intensely that by 2015 there will be a demand for moving over one billion containers at marine terminals.

Al Muallem noted that easy accessibility has made the world smaller, allowing goods to be produced and sourced in the most cost-effective manner. "Almost 50% of current throughput and capacity are in the Far East and South East Asia region and capacity utilisation is high across all regions with an average of 80%. However, in the ports sector this reaches a practical maximum at around 85% depending on each port, and the highest capacity utilisation happens to be in those regions where DP World has strong market positions and a majority of its capacity," he added.

He told the forum that as part of its strategic policy, DP World has set out to raise awareness of the implications of capacity crunch directly with its customers and their customers. The aim is to motivate all links of the supply chain to improve their awareness and understand the role of terminals and the implications.

Al Muallem said that DP World is constantly evolving, and proactively moving forward in its mission to develop world-class shipping facilities and ports. "The results are seen in dramatic achievements within a short period of time. Today, DP World is the fourth largest port and terminal operator worldwide, with 43 terminals in 23 countries and future investments in 13 marine terminals," he said.

"We achieved this ranking by expanding our operations across the Indian Subcontinent, Far East, Europe, the Americas, Australia and, of course, the UAE. His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, once said: "The word 'impossible' is not in leaders' dictionaries. No matter how big the challenges, strong faith, determination and resolve will overcome them."

Al Muallem said DP World is continuously updating its strategy and processes. "DP World benchmarks its productivity, reliability and efficiency to the highest international standards. This is essential because it regards itself as something more than a terminal operator; DP World is an important link in the supply chain," he said.

He reminded the forum that this relentless growth will bring with it both opportunities and challenges for shipping lines. "It will offer greater trade volumes leading to better operational economies of scale. With the global container demand forecasted to hit 500 million TEU before 2009, we need to expand significantly to meet the demand," Al Muallem said.

"Volumes of this scale would mean that the number of mega ships would also increase significantly and with your planned developments, we are already able to cater to this market."

Al Muallem stressed that DP World's UAE region is ready "to meet our customers future needs through sizeable investment in infrastructure upgrades. Through meticulous planning and a strategic focus, we will continue to provide a competitive platform for our customers allowing them to maintain their edge and to have the ability to capitalise on the growth opportunities of the Middle East."

He concluded the speech underlining the fact that the efficiency of port logistics is becoming an increasingly essential component in the worldwide flow of goods and services and that port operators must strive to meet the rapidly expanding and changing needs of customers.

Captain Faisal Al Qahtani, Senior Vice President and Managing Director of DP World's Middle East region., said that DP World, Jeddah is one of the participating sponsors of the Saudi International Ports & Maritime Transport forum (SIPMT). "This is a significant event because it provides an ideal platform for industry leaders and decision makers, trade professionals and government agencies to address current issues facing Saudi maritime and ports industry from global and regional perspectives. The participants will discuss applicable solutions to the challenges facing ports and maritime transport on both strategic and operational levels."

"DP World is honoured to be part of the first SIPMT and to share its experience with other participants," Captain Faisal added.