Last year alone, it is estimated that more than 698 million TEU (twenty-foot equivalent unit) containers were shipped around the world representing a 6% jump in container shipments from the preceding decade according to World Bank data available on the industry. One company from the Muslim world that is emerging as a key player in the global supply chain sector is DP World. The Dubai based DP World formed in 2005 is emerging as a global leader in the supply chain sector with its current portfolio of 78 marine and inland terminals across the globe. Today the company is managing port facilities in more than 40 countries across 6 continents.
DP World reportedly handled 64 million TEU (twenty-foot equivalent unit) containers in 2016 representing 74% of its current capacity. The company is expected to expand its capacity by a further 18% within the next three years pushing its capacity to around 100 million TEUs per year.
In monetary terms, DP World reported $4.2 Billion (USD) in Revenue in 2016 and its Operating profit was at an impressive $1.7 Billion (USD) for the same year. Crunching the numbers for reported revenue and operating profits for the preceding three years, we’ve realized that the company is enjoying steady growth in both key indicators mentioned.
In what was the Arab world’s largest Initial Public Offering (IPO), DP World raised close to $5 Billion (USD) in late 2007 at the NASDAQ Dubai Exchange. With favorable ratings of its financial status from notable credit rating agencies such as Moody’s and Fitch and as the only port company outside of the United States to be recognized by the US Customs and Border Agency with an ISO 28000 certification for its role in partnering against terrorism; DP World continues to make inroads in many countries in the Middle east, India and China. Lately DP World began operations in Somaliland, making it one of the most prominent companies with presence in the tumultuous pirate infested Somali region.
Challenges In The Global World
The biggest challenge to DP World’s impeccable history came after its acquisition of a US company called P & O in 2006 for $7 Billion (USD). The United States Congress threatened to block the new acquisition on ‘security’ grounds. Observers believe the real reason behind that position was just because DP World originated from a Middle Eastern Muslim country. President G.W Bush who was a staunch supporter of the deal even threatened to veto any bill that Congress passed in its quest to block DP World’s foray into the US port market. DP World itself spun off its new U.S acquisition before Congress voted on the matter so as to avoid the negative press the company was getting in the American and international media.
Where DP World Stands Today
Today with over 36,000 personnel from 103 countries, DP World continues to chart its own mark in the global shipping and logistics industry as a profitable company despite being unceremoniously booted out of the United States.
Written by Mamudou Jallow