Maersk expects to play bigger role in emerging markets
Source:cargonewsasia 2014-4-15 9:52:00
The exodus of foreign money from emerging markets gives more room for Danish oil and shipping group A P Moller-Maersk to invest there, the company said in an internal publication on Friday.
"The exit of short-term financial investors means less competition for major projects, and could signal a new opportunity for us to play an even greater role," chief executive Nils Smedegaard Andersen wrote in the Maersk Post, reported Reuters.
While mature markets struggled through the financial crisis, emerging economies surged. But the trend has turned, sending emerging currencies lower and investors pulling billions of dollars from funds specialising in those markets.
The current turmoil led to questions over whether A P Moller-Maersk should cut its exposure to emerging economies but Andersen made it clear the firm would continue to invest.
"This year our (overall) investment plans exceed US$10 billion, and our commitment to emerging markets remains – in fact they will be become an even more important part of our business," Andersen wrote.
Last year, the group invested $8 billion globally, with the majority in emerging countries and among its plans are six container port projects in Africa that will be expanded or upgraded.
Irrespective of the short-term turmoil, A P Moller-Maersk expects emerging market growth rates to significantly exceed the levels in mature markets over time.
"And importantly, transport services and transport infrastructure are in strong demand to eliminate bottlenecks and support growth," Andersen said.