Cosco Ports Sees Big Drop in Operating Profit
The world’s largest terminal operator, COSCO Shipping Ports (CSP), has seen a big drop in operating profit in the Q1 of 2019, according to its financial results.
CSP saw a Q1 year-on-year drop of 27.9%.
The drop may well reflect the ongoing impact of the China-US Trade War.
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Greater China remains CSP’s its most profitable region, as its ports and terminals in that region increased by 3.6% and accounted for 76.9% of the total throughput.
Within Greater China, throughput increased in the Bohai Rim, Yangtze River Delta, Peral River Delta Southwest Coast regions.
The Southeast Coast and Others was the only Chinese region to see its throughput region drop, which it did by 0.8%.
Throughput in CSP’s non-Chinese regions increased by 13% and accounted for 32.1% of its total numbers.
The COSCO-PSA Terminal in Singapore increased its throughput by 54.2%, which was credited to the addition of two new berths.
In a statement, CSP said it remains committed to building a global terminal network and is strategically exploring investment opportunities through China’s Belt and Road Initiative.
Furthermore, while it said that the outlook for the rest of 2019 is uncertain, it hopes for a resolution to the US-China trade war and that Beijing will increase its trade cooperation with Europe.
