ABB for MVII
NewsAPM Terminals has chosen to continue with the ABB crane automation system for its MVII expansion.
Maersk’s terminals business arm boasts strong performance in Q2 as the company targets more acquisitions.
Maersk’s terminal business arm APM Terminals had “excellent performance” in the second quarter of 2024, the company said in its Q2 report, with one of the highest EBITDA levels ever reported standing at US$408 million (US$331 million) and an EBITDA margin of 37.5%.
Revenue increased by 15% to US$ 1.1bn (US$ 950m), driven by higher volumes, improved tariffs and higher storage revenue from localised congestion. APM Terminals’ Q2 volume increased by 6.8% (7.8% like-for-like excluding exits), driven by strong growth in North America. Volumes were particularly strong on the US East Coast with 30% growth, in part due to volumes being redirected from external facilities in Baltimore to APM Terminal’s facilities in Port Elizabeth, US. Utilisation increased by 3.5 percentage points to 76% with the increase in volumes being partly offset by a 3.7% like-for-like capacity increase, primarily in North America.
In Africa, volume decreased by 13% due to the divestment of two terminals in Mauritania and lower volume in Onne, Nigeria. The company said that its share of profits in joint ventures and associated companies increased by 11% to US$ 82m (US$ 74m), primarily driven by strong transhipment volume in West Africa.
For the first six months of the year, revenue increased by 14% to US$ 2.1bn (US$ 1.8bn), driven by a 7.8% increase in volume (8.9% like-for-like), higher tariffs and higher storage revenue.
During Q2, APM Terminals reported an increase in CAPEX to US$ 135m (US$ 97m) driven by automation of the terminals in Spain and the US as well as growth projects in Lazaro Cardenas (Mexico), Rijeka (Croatia) and Suape (Brazil).
The first pieces of electrical terminal equipment are being shipped to Rijeka, Croatia, where the terminal is scheduled to go live in 2024. In Suape, Brazil, purchase agreements have been signed for fully electric and remote-controlled STS and RTG cranes, with the terminal scheduled to go live in 2026.
That being said, Maersk CEO Vincent Clerc said that the return on invested capital (ROIC) (LTM) in the business was ‘remarkable’ standing at 12.2%, exceeding the expectation of above 9% towards 2025.
Moving forward, Maersk plans to resume its expansion plans for its terminals business targeting new locations and investment in existing terminals including automation initiatives.
“Terminals (business) is also obviously growing,” Maersk CFO Patrick Jany said during an earnings call on Wednesday. “It’s a very good business, in which any port addition is not totally inconsequential in terms of cash. And obviously, we will continue to do acquisitions.”
Maersk remains committed to launching its Gemini Cooperation network with Hapag-Lloyd in February 2025. During Q2, the company intensified its efforts to “test and fine-tune the network of the future”.
A key development is the strategic selection of key port terminals to serve as hubs connecting the network’s 58 services and more than 6,000 port-to-port combinations. Clerc explained that the company will continue to invest in preparing its hub ports for Gemini, with the final three of the seven hubs scheduled for infrastructural upgrades set to be completed by the end of the year.