Moller-Maersk set for further expansion?

According to Drewry Maritime Research’s latest report, the Group’s container terminal business, APM Terminals (APMT), is likely to receive some of the cash generated by the recent sale.

A spokesperson for AP Moller-Maersk Group told Port Strategy: “This sale was done because the timing was right, and not with any specific transaction in mind. We are always looking into ways to grow our core businesses but for now, the cash will reduce our net debt.”

Maersk Line, which accounts for around half of APMT’s volumes, is also expected to see some of the cash.

The container terminal business already provides a strong profit margin for the Group, according to Drewry research. From January to September 2013, it brought in US$3.2m in revenue, with 13% Return on Invested Capital (ROIC), so re-investing money wouldn’t come as a surprise.

It is understood that AMPT currently has a large number of projects on the go. The company’s business model focuses primarily on higher growth in emerging markets, especially the development of Greenfield, deep-water facilities serving gateway traffic on a multi-user basis, along with the expansion of existing facilities.