A.P. Moller-Maersk, the parent of the world's largest shipping line, plans to invest its capital in more profitable areas than in Maersk Line in future, its chief executive, Nils Smedegaard Andersen told Denmark’s’ Berlingske Tidende newspaper.
The newspaper quoted Andersen as saying that the heavy investment in Maersk Line over the last two decades means that the company’s fleet simply can’t get any larger.
That, coupled with falling profits, means the Copenhagen-based group will focus its future investments on its oil and terminal activities.
‘We must spread our investments in the areas where we will get the best returns,” Andersen said.
“Maersk Line has given bad yields in the last few years, and it is a complex area to make money in. Where investments are concerned, our main focus in the future will be directed towards oil and terminals, among others,” he said.
In recent years, the Maersk Group has invested up to $11.2 billion in new ships and projects, but now wants better returns from areas of “great potential.”
“Our oil business and terminals, together with other business interests, continue to grow significantly faster than the market,” the Maersk CEO said.
He confirmed that even when global economies stabilize again, the group does not intend to order new ships for Maersk Line, but charter container ships for varying periods to increase flexibility.
Maersk Line has 70 container ships on order with a total capacity of 365,338 TEUs, which equals 17.9 percent of its existing fleet, according to the latest statistics compiled by AXS-Alphaliner.