APM Terminals

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APM Terminals
Private
Industry Container terminals
Port management
Founded 2001
Headquarters The Hague, Netherlands
Area served
Worldwide
Key people
Morten Engelstoft (CEO)
Revenue US$4.24 billion (2015)
Owner Maersk Group.
Number of employees
22,000 (2016)
Website APMTerminals.com

APM Terminals is an international container terminal operating company headquartered in The Hague, Netherlands. It is one of the world's largest port and terminal operators as well as providing cargo support and container Inland Services, and is the largest port and terminal operating company in terms of overall geographic scope.[1] It operates a Global Terminal Network with interests in 72 operating port and terminal facilities in 39 countries on five continents, with nine new port projects in development, as well as 140 Inland Services operations providing container transportation, management, maintenance and repair in 39 countries, for an overall global presence of 69 countries.[2]

APM Terminals generated profit of USD $654 million in 2015, with a Return on Invested Capital (ROIC) of 10.9%, which reflected in part lower volumes of containerized traffic in such markets as West Africa, Russia and Brazil. The number of containers handled by APM Terminals (weighted by APM Terminals’ ownership interest) decreased by 6.0% compared with 2014, to 36 million TEUs. The decrease was mainly due to the divestment of operations in Charleston, South Carolina; Jacksonville, Florida; and Houston, Texas, in the USA, and the company’s one third share of the MedCenter Container Terminal, in Gioia Tauro, Italy; (in 2014 APM terminals also trimmed holdings in Portsmouth, Virginia, USA and Le Havre, France). Excluding these divestments, like-for-like volumes decreased by 1.1% for the year, while overall global container throughput grew by 1.3%. The continuing expansion of the APM Terminals Global Terminal Network, however, was accelerated through the several significant acquisitions and new projects won.

APM Terminals agreed to acquire 100% of the shares in Grup Marítim TCB (TCB), the leading Spanish container terminal operator, with terminals located in Spain, Colombia, Brazil, Mexico, Guatemala and Turkey. When the transaction is fully completed, APM Terminals Global Terminal Network will expand to 77 terminals in 38 countries across five continents and with additional eight terminals in development. The 11 acquired TCB terminals (including a facility in Guatemala scheduled to open in early 2016) will add an additional 4.3 million TEUs of capacity and 3.5 million TEUs in estimated annual container volumes (2.6 million TEUs of additional throughput when weighted Equity share). The acquisition has an implied enterprise value of USD $1.1 billion with additional capital investments of USD $400 million over the next five years.

APM Terminals also concluded an agreement in 2015 to invest approximately USD $800 million in a new container terminal associated roadway infrastructure adjacent to our existing facility in Tema, Ghana, representing 3.5 million TEUs in new annual throughput capacity for the creation of a new deep-water hub in West Africa. Other investments finalized in 2015 were a 20% share of a bulk grain terminal in Qingdao, China; a 51% majority share in a multi-purpose terminal in Cartagena, Colombia and a refrigerated cargo terminal in Vado, Italy, along with ongoing expansion and upgrades of existing facilities across the portfolio.

Newly completed projects expected to begin operations in 2016 include the 1.5 million TEU annual capacity deep-water APM Terminals Izmir, in Turkey on the Aegean Sea, and Phase I of the semi-automated Lázaro Cárdenas Terminal 2 (TEC2) deep-water facility on Mexico’s Pacific Coast, with an initial annual throughput capacity of 1.2 million TEUs. In April 2015 the world’s first fully automated container terminal, APM Terminals Rotterdam Maasvlakte II was officially opened. The new terminal was named “Innovation of the Year” by Containerisation International, and APM Terminals was named “Port Operator of the Year” at the 2015 Lloyd’s List Global Awards ceremony.

Many of the innovative systems and technologies applied at APM Terminals Rotterdam Maasvlakte II will also be utilized at APM Terminals Lázaro Cárdenas. The terminal, currently under construction in Mexico’s second-busiest container port, is expected to open late 2016. The TEC2 facility will be the first automated container terminal in Latin America and will feature fully automated electric yard stacking cranes, and shuttle carriers will be used for transport between the yard cranes and the ship to shore (STS) cranes.

Financial Performance

APM Terminals earned a profit of USD $654 million (USD $900 million) and an ROIC of 10.9% (14.7%) with an underlying profit of USD $626 million (USD $849 million) in 2015. Lower global oil prices resulted in a sharp decline in import volumes into oil producing countries in West Africa, Russia and Brazil. Along with divestments in 2014, this caused revenue to decrease by 4.8% and the EBITDA-margin to decrease by 2.7% compared with 2014 (22.7%). Operating business generated a profit of USD $696 million, while projects under implementation represented a deficit of USD $42 million stemming from their upstart costs.

Results in 2014 were was positively impacted by net divestment gains after tax of USD $232 million, and negatively affected by impairments of USD $181 million related to European activities of which USD $154 million was related to joint venture companies. The result for 2015 does not include any impairment, but includes net divestment gains of USD $10 million and positive impact from reversed impairments of USD $14 million.

Global market conditions have had an unfavourable effect upon container volumes and rates in several key terminals. Specifically, major operations in oil-dependent markets have declined significantly compared with 2014 container volumes. Partly mitigating this, performance in APM Terminals’ North American businesses has increased compared to 2014, mainly due to increased volume and storage income; (in 2015, APM Terminals was also named Lloyd’s List North American Maritime Awards’ “Port Operator of the Year”).

APM Terminals’ revenue improvement and cost-saving initiatives continue to be aggressively pursued across the global portfolio, and have delivered approximately USD $200 million to the bottom line, though adverse market conditions were only partly mitigated. The acquisition of the Grup Maritim TCB portfolio will initially produce a negative impact on ROIC of just over one percentage point due to the increased asset base, and the amortisation of terminal rights.

The Grup Maritim TCB acquisition has an implied enterprise value of USD $1.1 billion, with additional capital expenditure investments of USD $400 million over the next five years. Subject to regulatory approvals the transaction is expected to be completed in Q1 2016.

The share of profit in joint ventures and associated companies increased to USD $199 million (USD $79 million), mainly caused by the USD $154 million impairments in Joint Venture companies in 2014. The effective tax rate (excluding profits from JV’s and associates) increased to 26% (23%) as certain tax incentives have expired since last year. Cash flow from operating activities was USD $874 million (USD 925m), and cash flow used for capital expenditure was USD $774 million (positive USD $2 million).

APM Terminals has completed the $1 billion acquisition of Spanish-based Grup Maritim TCB’s port and rail interests. The acquisition will add 8 terminals with a combined 2 million TEU equity-weighted volumes to the APM Terminals Global Terminal Network. The acquisition complements APM Terminals current portfolio, adding 7% throughput capacity in key locations including major Spanish container terminal concessions in Barcelona and Valencia, as well as Castellon, on the Mediterranean coast, and Gijon, on the Bay of Biscay. Outside of Spain, the new terminal operations include Yucatán, Mexico; Quetzal, Guatemala (under construction, opening 2016); Buenaventura, Colombia, on the Pacific Coast; and Paranagua, Brazil. APM Terminals will invest an estimated $400 million over the next five years in upgrades and expansion to these operations. APM Terminals is awaiting the final approvals for the acquisition of Grup Maritim TCB facility in Izmir, Turkey. Because of the corporate structure of Grup Maritim TCB, the Izmir terminal and two terminals in the Canary Islands were not included the initial transaction completed on March 9. The remaining assets constitute less than 5% of the value of the acquisition.[3]

History[edit]

The company's history in terminal operations began a half century ago with the first A.P. Moller facility, which opened in Brooklyn, in the Port of New York in 1958 to handle general cargoes. In 1975 the group established the Port Authority of New York and New Jersey's first dedicated container terminal, at Berth 51 at Port Elizabeth, New Jersey.

APM Terminals was established as an independent terminal operating company within the Copenhagen, Denmark-based Maersk Group in 2001. In 2004, APM Terminals moved its headquarters to The Hague, Netherlands. Today the company provides services to more than 60 shipping lines with an integrated Global Port, Terminal and Inland Services Network with interests in 72 operating port facilities, with nine in development, and 140 cargo support service operations representing a global presence in 69 countries on five continents.

Business Operations[edit]

  • In March 2016 APM Terminals completed the $1 billion acquisition of Spanish-based Grup Maritim TCB’s port and rail interests. The acquisition will add 8 terminals with a combined 2 million TEU equity-weighted volumes to the APM Terminals Global Terminal Network, expanding the portfolio to 72 operating ports, across 69 countries.
  • Meridian Port Services, a joint venture between APM Terminals, Bolloré Africa Logistics, and the Ghana Ports and Harbour Authority, have formalized an agreement invest USD 1.5 billion in new deep-water 3.5 million TEU port and logistics hub in Tema, Ghana.
  • Sogester Namibe, an APM Terminals joint venture, signed a 20-year concession to operate, maintain and develop the Port of Namibe in southern Angola, in May 2014. Sogester Container Terminal has been operating at Luanda, the primary port of Angola, since 2007.
  • Global Ports Investments, Russia's largest terminal operating company, in which APM Terminals holds a co-controlling share, completed the acquisition of NCC, Russia's second-largest terminal operating company in December 2013.
  • In February 2013 APM Terminals and Turkish-based Petkim announced the finalization of plans to develop APM Terminals Izmir near the Port of Izmir, Turkey. The 15.5 meter deep facility is scheduled to open in 2015 under a 28-year concession, with an initial annual throughput capacity of 1.5 million TEUs.

Recent Awards[edit]

2016

  • ICHCA International Safety Innovation Award

APM Terminals Buenos Aires, operator of the Terminal 4 facility in Argentina’s primary port, was named winner of the first annual “Innovation in Safety Award”, by ICHCA International, the independent organization dedicated to improving the safety, productivity and efficiency of cargo handling and transportation.

2015

  • Lloyd’s List North American Maritime “Port Operator Award”

APM Terminals was named winner of the 2015 “Port Operator Award” at the Lloyd’s List North American Maritime Awards, in Houston, Texas.

  • Containerisation International “Innovation of the Year” Award

APM Terminals Rotterdam Maasvlakte II was named winner of the Containerisation International 2015 “Innovation of the Year” Award at the Annual Containerisation International Awards luncheon, in London.

  • All India Maritime & Logistics Awards “Container Terminal of the Year”

APM Terminals Mumbai, was once again named winner of the All India Maritime & Logistics Awards “Container Terminal of the Year” Award”.

  • Lloyd’s List Middle East and Indian Subcontinent Awards “Logistics Award”

APM Terminals Inland Services India was named winner of the Lloyd’s List Middle East and Indian Subcontinent Awards “Logistics Award”.

  • Pacific Maritime Association Safety Awards

APM Terminals Pier 400 Los Angeles won two awards at the 66th Annual Pacific Maritime Association (PMA) Area Accident Prevention Committee Safety Awards for 2014. The first award was the PMA Coast Accident Prevention Awards ceremony in the category of Terminal Operations, Group A, (over one million man-hours worked) for the best Safety Performance achieved in 2014 in all operations at US West Coast ports. This is the sixth year out of the last eight that APM Terminals’ Los Angeles facility has received this award. APM Terminals Pier 400 also won the Southern California Area Container Terminal Safety Award for Group A category terminals.

  • Nigerian Port Authority “Most Environmentally Conscious Port Operator”

APM Terminals Apapa named the “Most Environmentally Conscious Port Operator at the Lagos Port Complex” by the Nigerian Port Authority’s Environment Department of the Health, Safety and Environment Division, in recognition of the company’s achievements in the area of terminal safety culture and operating practices in Nigeria’s primary port city.

2014

  • CII 2013 Environment, Health, and Safety Excellence Award

APM Terminals India’s Chennai CFS facility was named winner of the 2013 Environment, Health, and Safety (EHS) Excellence Award by the Confederation of Indian Industry (CII) for the implementation of EHS Best Practices.

*Excellence in Inland Container Logistics" Award APM Terminals Inland Services South Asia was named winner of the “Excellence in Inland Container Logistics for Manufacturing Sector” award at the 3rd Annual Asia Manufacturing and Supply Chain Awards, presented at the Asia Manufacturing Supply Chain Summit in Mumbai.

2013

  • Lloyd’s List Asia Awards 2013 “Port Operator Award”

APM Terminals was named winner of the Lloyd’s List Asia Awards 2013 “Port Operator Award” in recognition of maintaining “the highest standards of operational efficiency and customer service throughout the year” among port and terminal operators in the Far East.

  • Containerisation International 2013 “International Terminal Operator of the Year”

APM Terminals was once again named “International Terminal Operator of the Year” at the Containerisation International 2013 Awards, for the second consecutive year. APM Terminals’ “ongoing investment programs at its terminals and its ability to implement and adapt very effectively global safety, security and environmental guidelines at the local level” were cited by the judging panel in the win, as well as APM Terminals’ Global Terminal Network’s “success in combining development with continuous improvements in its CSR and environmental policies”.

  • “Best Inland Services Provider” (APM Terminals India)

APM Terminals India Pvt. Ltd. was named “Best Inland Services Provider” for 2013 at the 7th Annual Express, Logistics & Supply Chain Leadership Awards in Mumbai, India in September, in the “Service Excellence” category of the program.

  • Container Terminal Operator of the Year” (APM Terminals Mumbai)

APM Terminals Mumbai was named “Container Terminal Operator of the Year (Specific)” for 2013 at the 4th Annual All-India Maritime and Logistics Awards (MALA) on September 6, in Mumbai. The award was presented on the basis of operational performance, year-on-year volume growth, IT efficiency, the use of advanced technology, and customer satisfaction.

  • Container Terminal Operator of the Year- Health, Safety and Quality Award” (APM Terminals Pipavav)

APM Terminals Pipavav was named winner of the “Port/Terminal Operator of the Year- Health, Safety and Quality Award” for 2013 at the 4th Annual All-India Maritime and Logistics Awards (MALA). The criteria for the award include facility investment in health and safety measures, and external industry certification.

  • Container Freight Station of the Year-Private” (Chennai CFS)

APM Terminals India’s Chennai CFS was named co-winner of the 2013 Container Freight Station of the Year Award-(Private) at the 5th Annual Exim India South East Cargo & Logistics Awards, held in Chennai, India on July 19. The award recognizes APM Terminals Chennai’s efforts in promoting trade through creation of modern facilities and infrastructure, and the achievement of high standards of efficiency and productivity during 2012.

  • Container Freight Station of the Year-Private” (Chennai CFS)

APM Terminals India’s Chennai CFS was named co-winner of the 2013 Container Freight Station of the Year Award-(Private) at the 5th Annual Exim India South East Cargo & Logistics Awards, held in Chennai, India on July 19. The award recognizes APM Terminals Chennai’s efforts in promoting trade through creation of modern facilities and infrastructure, and the achievement of high standards of efficiency and productivity during 2012.

  • Supplier Appreciation Award (APM Terminals Mumbai CFS)

APM Terminals Inland Services Mumbai Container Freight Station (CFS) was selected by Volkswagen India to receive its annual “Supplier Appreciation Award” for excellent performance during 2011-2012. The award is in recognition of the Inland Services operation’s help in achieving Volkswagen’s targeted logistics chain performance levels for the 110,000 vehicle capacity Chakan auto manufacturing facility near Pune, in the State of Maharashtra.

National Quality Award (Morocco) APM Terminals Tangier was named winner of the 2012 National Quality Award organized by Morocco’s Ministry of Industry, Trade and New Technologies. This 15th annual Quality Award ceremony was held in the Moroccan capital of Rabat, with the participation of the Moroccan Union for Quality (UMAQ). The mission of the UMAQ includes the responsibility to “promote the quality of goods and services in all sectors of the national economy”.

  • “Best Employer” Award (Morocco)

APM Terminals Tangier was named “Best Employer in Morocco” on January 21 at the second annual Best Employer Award sponsored by business consultant Lycom in collaboration with Morocco’s Ministry of Education and Professional Training, the Global Confederation of Moroccan Companies (CGEM), and the American Chamber of Commerce in Morocco, and the Best Companies Group.

Current New Terminal Development or Existing Facility Expansion Projects Include[edit]

New Developments

Expansions and Upgrades of Existing Facilities

Sustainability[edit]

APM Terminals’ sustainability initiatives and performance are divided into four core areas: Health, Safety and Security; Environment; Responsible Business; and Social Responsibility. Significant gains or new major initiatives have been achieved or implemented in each performance category.

The combined Lost-Time Injury Frequency (LTIF) rate for terminal and inland services operations declined by 22% in 2014 to 1.41 per million man-hours worked. APM Terminals Pier 400 Los Angeles won two awards at the 66th Annual Pacific Maritime Association (PMA) Area Accident Prevention Committee Safety Awards banquet at the Port of Long Beach on March 5, 2015. The first award was the PMA Coast Accident Prevention Awards ceremony in the category of Terminal Operations, Group A, for the best Safety Performance achieved in 2014 in all operations at US West Coast ports. This is the sixth year out of the last eight that APM Terminals’ Los Angeles facility has received this award. APM Terminals Pier 400 also won the Southern California Area Container Terminal Safety Award for Group A.

In 2015, we continue to work to improve our environmental performance specifically and to develop global environmental standards and guidelines. In the area of greenhouse gases and other emissions, APM Terminals has set a goal of a 25% reduction in CO2 output, as measured from the base year of 2010. APM Terminals signed a two-year, €5 million (US$6.23 million) contract with Amsterdam-based NV Nuon Energy for the supply of environmentally sustainable wind-generated electricity to power the new APM Terminals Maasvlakte II cranes and container handling equipment. The new deep-water terminal, which was officially inaugurated in April 2015, is the world’s first container terminal to generate zero greenhouse gases and particulate emissions as compared with diesel-powered terminal machinery. The contract term began on January 1, 2015.

APM Terminals has embarked on a program to convert and retrofit more than 400 Rubber-Tire Gantry Cranes (RTGs) in use throughout the APM Terminals global port, terminal and inland services network to a combination electric and diesel power as a measure to reduce both costs and emission of carbon dioxide (CO2) from the current diesel-powered RTG fleet. RTGs, which are used to move loaded and unloaded containers at the terminals, are usually powered by diesel engines. The new power supply will be a combination of electricity and diesel, utilizing a busbar- a rail providing access to electrical power. Recent technological advances have made such a hybrid power option possible for RTGs. The use of E-RTGs will reduce CO2 emissions by between 60-80% compared with conventional diesel-powered RTGs, which will result in overall terminal CO2 emissions decreasing by 20% per TEU handled. The retro-fitting of the majority of the existing 400 unit APM Terminals RTG fleet will eliminate 70,000 tons of CO2 emissions annually.[4]

See also[edit]

References[edit]

  1. ^ "Annual Review of Global Container Terminal Operators 2015", Drewry Shipping Consultants Ltd.
  2. ^ name="ReferenceA"
  3. ^ http://www.apmterminals.com/en/about-us/financials
  4. ^ http://www.apmterminals.com/about-us/sustainability/download-report

External links[edit]