APM Terminals delivered an increased profit of USD 223m (USD 179m) and a return on invested capital of 14.2% (12.8%). Terminals becoming fully operational and new terminals added to the portfolio supported the 8% growth in volume.
More than 80% of EBITDA was generated in growth markets, 41 out of 66 container terminals are located and operated in these markets.
Revenue increased 6%, representing the growth in volume and tariff increases in port activities, partly offset by a decrease in Inland Services due to divestment of activities in North America and Asia. The EBITDA margin improved to 23.0% (20.4%) supported to a large extent by the increase in volume and increased tariffs.
The invested capital increased to USD 6.4bn (USD 5.6bn) reflecting the continued high investment level in APM Terminals, developing 7 terminals and expansions in 16 terminals.
Operational cash flow was negatively impacted by VAT receivables accumulating in connection with construction activities, primarily in Latin America.
“APM Terminals had a good performance in the second quarter and in the first half of 2014. The rise in our first half results came despite challenging conditions,” said Kim Fejfer, APM Terminals CEO. “It is crucial for our Global Terminal Network to provide stable operations and constantly improve our efficiency and portfolio offerings to our customers. This November, we are excited to introduce the world’s first fully automated container terminal which produces zero emissions from container handling equipment, launching a new era in container handling productivity and safety.”
APM Terminals efforts to improve port productivity are ongoing with a structured approach to continuously improve processes in each location.
The scope of these improvements considers everything from initial planning to the introduction of new technology. The goal is to lead the industry in productivity and reliability while proactively managing the changes that larger container vessels and the rise of mega alliances are bringing to markets.
The Journal of Commerce 2013 study of port productivity data recognized APM Terminals Yokohama as the world’s leading container terminal in productivity. Eleven facilities which are part of the APM Terminals Global Terminal Network were cited in the study, out of a total of 32 terminals named as the global, and three regional designations’ productivity leaders.