DP World: Low Bunker Prices to Fuel Economic Growth
Falling ship operating costs and low bunker prices will translate into higher profitability fueling economic growth, says Dubai-headquartered DP World.
As bunker fuel prices drop, so too could shipping costs. Dubai-headquartered DP World says falling oil prices are good news for global shipping. It plans to double investments this year, local media reports.
The Chairman of DP World Sultan Ahmed bin Sulayem has stated that the fall in oil price may stimulate particular economies such as India and China who are among the most energy-dependent countries, relying on overseas producers for much of their oil needs. Crude oil prices are currently about half their level six months ago.
And world shipping is expected to be a key benefactor of such developments. In anticipation of such growth DP World is said to be planning investment of up to $1.9 billion in 2015 as part of a move to increase capacity by 14 percent.
The move could see DP World's capacity rise to 80 million twenty-foot equivalent units (TEU) throughput across terminals in Dubai, Turkey, Rotterdam, and India in 2015 and 100 million TEU by 2020.
