PSA’s net income up 14% in 2006

PSA’s net income up 14% in 2006 Singapore-based PSA International, the world’s second-largest container terminal operator, reported higher revenues for 2006 and a 14.3 percent jump in net income to S$1.2 billion ($790 million).
   PSA’s annual operating income improved 6.2 percent to S$1.3 billion ($852 million) while revenue rose 1.6 percent to S$3.74 billion ($2.44 billion).
   PSA said its global throughput in 2006 rose 18.6 percent to 51.3 million TEUs despite what it described as a “highly competitive” business environment and slower global economic growth.
   For the first time, throughput at PSA’s overseas terminals in Europe, China and other parts of Asia (up 30.2 percent to 27.31 million TEUs) exceeded that of its Singapore terminals (up 7.6 percent to 23.98 million TEUs).
   In April, PSA made its single-largest overseas investment with the purchase of a 20 percent stake in the world’s number one terminal operator, Hong Kong-based Hutchison Whampoa Ltd.’s global portfolio of ports, which increased the group’s asset base to S$17 billion ($11.1 billion).
   “PSA continually strengthened its leadership position in 2006 both through capacity expansion at its existing terminals and by investing in new port projects around the world,” said Eddie Teh, group chief executive officer of PSA International.
   “Moving forward, our main challenge as we expand is to manage the upward trending cost arising from escalating fuel and material prices, an increasingly tight labor market, and a need to customize our services to meet shipping lines’ rigorous demands.”