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APMT Pipavav profit off 25pc to US$6.8 million as world cargo booms

GUJARAT Pipavav Port, also known as APM Terminals Pipavav, has posted a 25.5 per cent drop in the net profit to INR440.2 million (US$6.8 million) in the second quarter, blaming it on a decline in bulk and container cargo.

During the first half of this fiscal year, the port handled 275,000 TEU, lower than 293,000 TEU handled in the corresponding period of last fiscal, reports Mumbai's DNA.

Dry bulk cargo also witnessed a decline. However, liquefied and roll-on/roll-off have been witnessing growth.

Said APM Terminals Pipavav managing director Keld Peders: "This has been a challenging quarter. However, we continue to focus on growth."

The container cargo business during the quarter stood at 160,000 TEU; bulk business was at 518,000 million tonnes and liquid business was at 276,000 tonnes. Roll-on/roll-off business came to 19,000 units for the second quarter.

According to a recent report by Maersk Line, demonetisation and goods and services tax were among the reasons for the decline in export-import, which has impacted cargo at the ports.

"Closing at seven per cent year-on-year growth, down from 11 per cent last year, India's global Exim climate in the first six months has been affected by slower exports as well as slower imports - eight per cent and six per cent, respectively, compared with 11 per cent in H1 2016," said the report.

Said Maersk subcontinent managing director Steve Felder: "Looking at the way the situation is turning now with the effects of demonetisation and GST wearing off, I am confident that the second half of 2017 will deliver strong trade growth."

Gujarat Pipavav Port is India's first public-private-partnership port, in which Danish firm Maersk has 43.01 per cent stake. The concession period is 30 years.