APM Terminals not taking one for the team

2014-06-11

APM Terminals' (APMT) low operating margin compared to its competitors is not due to lower port tariffs for Maersk Line, the terminal operator has told Alphaliner.

Alphaliner's survey of port operator EBITDA margins shows APMT with the lowest global average margin at 20.6%, lagging behind competitors including ICTSI with 44.3%, DP World with 46% and HPH Trust with 54.4%.

The container terminal arm of Maersk Group attributed its lower margins to its geographic spread and lack of a flagship terminal. Of AMPT's 66 terminals, 24 are located in the lower margin US and Europe regions. Eurogate and HHLA, both operators with Europe-heavy portfolios, do fall within the lowest four of the 17 operators surveyed, but still outperform APMT's global average with 23.9% and 31.7% margins, respectively.

The operator also stated that it operates more transhipment hubs than its competitors in the Asia-Europe trade, which exclusively serve low-margin transhipment boxes.

Hutchison Port Holdings (HPH), APMT's competitor with the most similar global footprint, achieved an EBITDA margin of 32.1% globally, out performing APMT's 20.6% margin. HPH's European terminals, with their inherent lower margins due to increased staffing and equipment costs, reported a 25% EBITDA margin, still higher than APMT's global result.

Source from : Seatrade Global

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