DPW: Tensions 'challenging, not unmanageable'
International trade tensions involving the US will make 2019 challenging but not unmanageable, the chairman of DP World has said.
Sultan Ahmed bin Sulayem stated financial institutions were becoming increasingly cautious and taking measures such as tightening lending in reaction to trade tensions, which are starting to have a real impact, Reuters reported.
The actions of these financial institutions is likely to negatively impact growth in emerging markets, he said.
DP World is taking measures to reduce costs and is “finding ways to make sure that we do good in 2019,” said Mr bin Sulayem.
He declined to comment when asked if the company would report a higher profit this year, according to Reuters.
“Historically, we have managed worse scenarios than this,” he said of global market conditions, adding that DP World had reached its goals in 2018.
DP World has previously alluded to recent US and China tariffs as an ongoing concern for the maritime container market in its H1 2018 financial results, released in August. It warned of “geopolitical headwinds”, changes to “trade policies” and an “uncertain” near-term trade outlook.
In September, DP World warned investors to “think twice” about investing in Djibouti following the enactment of a decree which transferred the shareholding of Port de Djibouti SA (PDSA) in Doraleh Container Terminal SA (DCT) to the Government of Djibouti.
DP World remains committed to a court battle with the Government of Djibouti, which seized control of DCT from DP World in February, arguing the terms of the agreement had been broken and that DP World had underperformed. However, in August, the London Court of International Arbitration (LCIA) ruled that the seizure was illegal because DP World’s concession agreement remains valid.
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