Full steam ahead for P&O Nedlloyd in third quarter

P&O Nedlloyd Container Line achieved an operating profit of $56 million in third-quarter 2003 before restructuring costs, compared with a loss of $46 million in the same quarter a year ago. The shipping company's average revenue per TEU improved by 18% over 2002's third quarter.

The Cold Logistics division of P&O Nedlloyd continued to experience competitive pressures in the United States, although its Australasian business achieved another quarter of steady trading.

In the United States, integration of sites acquired from ProLogis was completed successfully and ahead of schedule. Other sites, however, continued to experience competitive pressure. Low fish and strawberry volumes impacted facilities in California, although they were partly offset by strong import/export meat volumes in the Texas region.

Several small contracts were won in Australasia in the third quarter from both retailers and food manufacturers. A small expansion of a facility was completed in Queensland at a cost of £3.1 million. The facility increases capacity of Australasian operations by 4%. Retail volumes and demand for storage of meat and dairy product were strong in New Zealand.