P&O PORTS CONTINUES RAPID GROWTH

P&O PORTS CONTINUES RAPID GROWTH    P&O Ports, the expansion-driven global port business of Britain’s Peninsular and Oriental Steam Navigation Co. group, reported an increase in container traffic of 17 percent for the third quarter, despite the economic slowdown.
      Global port traffic amounted to 2.6 million TEUs during the latest quarter, up from 2.2 million TEUs in the same quarter last year.
   The Americas region of P&O Ports reported a 22-percent jump in traffic, to 501,000 TEUs. Asian terminals saw volume rise by 12 percent, to 1.1 million TEUs. European activities rose by 22 percent, to 625,000 TEUs. Terminals in the Australia/New Zealand region handled 14 percent more traffic, reaching 339,00 TEUs in the latest quarter.
   Of the 17-percent increase in global port traffic, P&O Ports said that 13 percent came from organic growth and the balance from newly-acquired terminals.
   “The tragic events of Sept. 11 have had only a limited impact on the business,” P&O said. “P&O Ports’ container throughput has been significantly above underlying rates of trade growth, confirming the resilience and inherent competitive strengths of the business,” it added.
   However, the slower rate of growth in world trade is expected to have some impact on 2002, the group cautioned. The impact, though, will be “largely offset by P&O Ports’ value improvement program,” designed to produce savings from 2002 through “synergies, cost reductions and best practice.”
   Commenting on the regional activities of P&O Ports, the group said that it signed in August a concession document for the privatization of the container terminal in Chennai, India.
   Volumes being handled by the group’s terminal in Colombo declined during the quarter as a result of higher insurance premiums after the terrorist attack on the Sri Lankan airport.
   In the Americas, following the events of Sept. 11, all commercial activities have been suspended at the New York Passenger Ship Terminal which is now being used by the authorities. “P&O Ports is unlikely to be able to recommence operations for up to six months,” the group said.
   In July, the Maryland Board of Public Works formally approved new six-year contracts to manage the Seagirt and Dundalk Marine Terminals in Baltimore. In Florida, P&O has been awarded a contract to manage the re-development of the port of Miami container terminal. P&O Ports is a 25-percent shareholder in the company that operates the container terminal.
   P&O Ports reported a difficult market for its container terminal in Buenos Aires, Argentina.
   In Europe, much of the group’s volume growth came from a newly-acquired Antwerp terminal business. P&O Ports also reported significantly more volume at Southampton Container Terminal, despite the overall U.K. market having declined by approximately 4 percent in 2001.
   P&O Ports said that its plan to develop a port and logistics center on the river Thames, called London Gateway, is progressing on schedule.
   In the Australia and New Zealand region, P&O Ports recently acquired the Australian ports logistics service provider Smith Bros Terminal Pty. Ltd.