DUBAI's global port operator DP World has predicted that falling oil prices will help boost global shipping as it plans to double investments this year.
"The fall in oil price may stimulate particular economies such as India and China who are among the most energy-dependent countries, relying on overseas producers for much of their oil needs," said chairman Sultan Ahmed bin Sulayem.
"When these engines of growth begin to rise so does the rest of the world. As a barometer of world trade our operations can benefit should there be an increase in trading activity," he said, according to Vancouver's Ship & Bunker.
As a result DP World is said to be planning investment of up to US$1.9 billion in 2015 as part of a move to raise capacity by 14 per cent. The move could see DP World's capacity rise to 80 million TEU across terminals in Dubai, Turkey, Rotterdam and India in 2015, and 100 million TEU by 2020.
The overall economic impact on the shipping industry of the unexpected recent fall in oil prices is varied, with carriers such as Maersk Line saying they expect not to benefit from lower bunker prices while other sectors say they're getting a boost.
Crude oil prices are currently about half their level six months ago.
PORTS
12 January 2015 - 20:46
DP World doubles investments to US$2 billion because oil prices fall
DUBAI's global port operator DP World has predicted that falling oil prices will help boost global shipping as it plans to double investments this year.
PORTS
12 January 2015 - 20:46
DP World doubles investments to US$2 billion because oil prices fall
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