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MALAYSIAN NEWS UPDATE

OCEAN Network Express' (ONE) EC5 service has started calling at the Port of Colombo. The service called at the South Asia Gateway Terminal (SAGT) in which APM Terminals holds a 33 per cent share. Singapore-based ONE was established in July 2017 following the integration of the container shipping operations of "K" Line, MOL and NYK, Dubai's Maritime Standard reported. ONE's EC5 service links Asia to the east coast of North America and calls at Laem Chabang, Thailand; Cai Mep, Vietnam; Singapore and Colombo before getting to the Atlantic via Suez and then calling at Halifax, New York, Savannah, Jacksonville and Norfolk. The eastbound leg stops at Halifax, Jebel Ali and Singapore. Opened in 1999 SGAT was Sri Lanka's first private terminal. It has seen almost continuous year-on-year volume growth ever since and achieved a container throughput of 1.8 million TEU in 2017. Ocean Network Express calls at Colombo on Asia-North America EC5 service The fourth quarter, said the carrier, saw revenues rise S$55 million as freight carriage grew 4.6 per cent and cargo yield improved 8.5 per cent, while "expenditure increased by S$22 million, which was blamed on higher depreciation. SIA Cargo, which was re-integrated into the parent company from April this year, will "continue to pursue charter opportunities and deploy capacity to match demand". Currently, SIA Cargo's freighter network covers 19 cities in 13 countries and territories, including Singapore. Said SIA: "The overall demand outlook for cargo remains moderately positive, but is subject to geopolitical uncertainties which may have implications on global trade." KOREA's Hyundai Merchant Marine (HMM) posted a first quarter net loss of KRW175.8 billion (US$162.3 million), increasing the deficit from the KRW735.2 billion loss in the same quarter a year ago. Quarterly revenue also fell 14.6 per cent year on year to KRW1.11 trillion, which was blamed on excess supply, low freight rates and high fuel costs, reported Yonhap new agency. Despite widening losses Korea's biggest carrier confirmed an order for 20 new containerships, 12 of more than 20,000 TEU and eight 14,000-TEUers, as part of the company's plan to grow the fleet to one million TEU. HMM said that its massive ship building programme will allow it to take advantage of increased economies of scale, as well as to meet looming environmental regulations set to come into effect in 2020. According to a separate regulatory filing, HMM also plans to purchase the remaining stake it does not already own in a container terminal at the Port of Busan along with Singapore-based terminal operator PSA International. Hyundai Merchant Marine widens loss to US$162 million, sales fall 14.6pc Profit turnaround for SIA Cargo as earnings and revenues soar in FY2017/18 SINGAPORE Airlines (SIA) cargo division reported a 4,833 per cent increase of operating profit to S$148.1 million (US$110 million) in the 2017/18 financial year, drawn on revenues of S$2.2 billion, up 111.5 per cent. Cargo yield was up 8.9 per cent and freight carriage improved 5.3 per cent "on the back of strong air cargo demand," reported the carrier in its annual results statement. "Expenditure was up S$119 million, partly due to higher handling costs on increased freight carriage, staff costs, and aircraft maintenance and overhaul costs. Cargo load factor rose by 2.1 percentage points to 65.3 per cent." The fourth quarter of the 2017/18 financial year saw SIA Cargo report an operating profit of S$28 million, a S$33 million year-on-year improvement from a S$5 million loss.

Dnata profit rises 8.3pc to US$353m as sales increase 7pc DUBAI-BASED ground handler dnata's 2017-18 net profit increased 8.3 per cent year on year to AED1.3 billion (US$353 million), drawn on revenues of AED13.5 billion, up seven per cent, reported TradeArabia. Dnata, part of the Emirates Group, noted that its international business now accounts for 68 per cent of its revenue. The strong performance was achieved through organic growth with key contract wins coupled with solid customer retention across its four business divisions, as well as the impact of acquisitions from previous year, said the report. Dnata continued to lay the foundations for future growth by investing AED600 million in new facilities and equipment, acquisitions, leading-edge technologies and people development. In 2017-18, dnata's operating costs increased eight per cent to AED11.9 billion, reflecting the impact of organic growth across all lines of business coupled with integrating the newly acquired companies mainly across its international airport operations. Revenue from dnata's UAE Airport Operations, including ground and cargo handling, increased by four per cent to reach AED3.2 billion. The number of aircraft movements handled by dnata in the UAE declined two per cent to 211,000, impacted by the geopolitical situation in the region, whereas cargo handling increased two per cent to 731,000 tonnes, supported by the strong overall air cargo market. Dnata's international airport operations division grew revenue 14 per cent to AED3.8 billion on account of increasing business volumes, opening of new locations and winning new contracts. International airport operations continue to represent the largest business segment in dnata by revenue contribution. The number of aircraft handled by the division further increased substantially by 10 per cent to 449,000, and cargo noted a substantial growth of 10 per cent to 2.4 million tonnes of handled goods. Dnata's catering business accounted for AED2.1 billion of its total revenue, up seven per cent. The inflight catering business uplifted more than 55 million meals to airline customers. Revenue from dnata's Travel Services division has seen a turnaround after last year's decline with an increase of eight per cent to AED3.4 billion. The underlying total transaction value (TTV) of travel services sold increased six per cent to AED11.3 billion.