THE AP Moller-Maersk Group has unveiled plans to reduce Maersk Line`s share of the group`s total invested capital from 38 per cent to below 30 per cent, to lessen dependence on its container shipping line, reports Alphaliner.
The group said it will now shift focus away from Maersk Line, Safmarine, MCC Transport and Seago over the next five years to APM Terminals, Damco, Maersk Oil and Maersk Drilling, whose combined share of invested capital will be increased from 34 per cent to more than 45 per cent.
"The move reflects growing dissatisfaction with the poor returns on invested capital (ROIC) from the group`s container shipping operations that have lagged behind the other business segments," the report observed.
By comparison, the other two shipping related business units in the group, the terminal operating arm APM T and its logistics unit Damco, have consistently outperformed Maersk Line`s operating performance in recent years.
The company has also identified Damco as one of its four opportunistic core businesses, along with Svitzer, Maersk Tankers and Maersk Supply Service.
In future Maersk Line will be funded by its own cash flow, without being subsidised by the more profitable business units within the group.