PSA Singapore

PSA International has announced that group profit fell 46.2 per cent during 2008, down to US$1.04bn from US$1.9bn in 2007, a result of lower yields, higher operating costs, impairment provisions and lower divestment gains.

Group revenue for the year-long period increased by 5.8 per cent, to US$4.3bn from US$4.1bn the previous year, while group volumes jumped 7.3 per cent to reach 63.2m TEUs (twenty-foot equivalents).

PSA's flagship Singapore terminal handled 29m TEUs through 2008, up 7 per cent, helping Singapore maintain its position as the world's busiest container port for the fourth consecutive year. Terminals outside Singapore recorded a throughput of 34.2m TEUs, up 7.7 per cent on 2007.

'2008 was shaping up to be another record-breaking year for the PSA Group with the first seven months bringing some strong volume surge and record volumes handled,' said PSA chairman Fock Siew Wah. 'Unexpectedly, the group experienced a sharp and abrupt business decline in the latter part of 2008 as the global financial crisis rapidly deteriorated into a major global slump and recession.

'Against a bleak and gloomy backdrop PSA was fortunate to have had a strong first seven months that provided a cushion and enabled us to end up with reasonably credible financial results as a group,' he added.

Group CEO Eddie Teh described the past year as one with a 'Dr Jekyll and Mr Hyde' feel, with terminals handling record volumes but the financial crisis taking hold towards the end of the year.

'I see an extremely tough and increasingly challenging year in 2009, with more and more economies falling prey to the collapse of the financial systems and global trade almost grinding to a halt,' he said. 'All eyes are on the rescue and stimulus efforts of governments around the world to prevent further shrinkage to their economies, and to mitigate the severity of the global recession, the success of which will determine the extent of the contraction of global trade flows, and its long term impact on our industry.'