DP World chairman says trade tensions will make 2019 challenging
DUBAI, Nov 18 (Reuters) - Global ports operator DP World
believes international trade tensions such as those
between the United States and China will make 2019 challenging
but not unmanageable, its chairman said on Sunday.
The Dubai government-controlled ports operator cautioned in
August about geopolitical risks and changes in trade policies as
first-half profit fell 2.1 percent.
DP World Chairman Sultan Ahmed bin Sulayem told Reuters he
believed the psychological impact of trade tensions involving
the United States were starting to translate into reality.
Financial institutions were becoming increasingly cautious
and taking measures such as tightening lending in reaction to
trade tensions, he said in an interview at the DP World Tour
Championship golf tournament in Dubai.
That is likely to negatively impact growth in emerging
markets, he said.
Trade tensions were evident in Papua New Guinea on Sunday
when Asia-Pacific leaders failed to agree on a communique at a
summit for the first time in their history as deep divisions
between the United States and China over trade and investment
DP World, one of the world's largest port operators, was
taking measures to reduce costs, and is addressing how it will
manage a challenging 2019, said bin Sulayem.
"We are finding ways to make sure that we do good in 2019,"
he said. He declined to comment when asked if the company would
report a higher profit this year.
"Historically, we have managed worse scenarios than this,"
he said of global market conditions, adding that DP World had
reached its goals in 2018.
DP World is in a dispute with the government of Djibouti
which in February seized a port in the country operated by the
Dubai company under a 50-year concession.
Bin Sulayem repeated a denial that the government of
Djibouti has offered to buy DP World's stake in the concession.
He said he asked them to make an offer in January.
They have not taken "any measures to contact us," he said.
DP World has also launched legal proceedings in Hong Kong
against China Merchants over allegations they have infringed on
their concession rights in Djibouti, he said.
(Reporting by Alexander Cornwell, editing by David Evans)
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.