Russia’s Global Ports to Boost Domestic CapacityCreated by HButler on 12/19/2012 12:57:55 AM
Russia’s Global Ports said it will boost its domestic container-handling capacity by 20 percent as it unveiled a $139 million capital investment program for 2013.
The London-listed company will spend $120 million on its ports division, including expansion of container, roll-on, roll-off, and car-handling operations in Saint Petersburg and upgrading rail links at the port of Vostochny in Russia’s Far East.
Global Ports said it will soon commission additional capacity at the Petrolesport terminal in St.Petersburg which will increase its container capacity in Russia by 20 percent.
Significant investment in container capacity in recent years “has allowed the company not only to strengthen its leading position in the fast-growing Russian container market but also to create sufficient reserve capacity to accommodate expected new container volumes without the need for significant additional investment in 2013,” said Global Port chairman Nikita Mishin.
Global Ports handles about 30 percent of Russia’s deep-sea container traffic and 23 percent of fuel exports from the former Soviet republics.
Global Ports also plans a special dividend of $79.9 million in February, subject to shareholder approval.
“Our high profitability and healthy cash flow generation, along with our moves toward a more efficient capital structure, enable us to pay higher dividends to our shareholders without compromising our ability to pursue growth for the future,” Mishin said.
Global Ports’ first-half operating profit declined 12 percent to $111.2 million on revenue of $255.7 million against $259.7 million in the same period in 2011.
APM Terminals acquired a 37.5 percent stake in Global Ports for $860 million in September.
- The Journal of Commerce.