ONE's predicts total revenue to rise to US$14b in 2020

OCEAN Network Express (ONE), which started operations in April, has published its three-year business plan and is predicting total revenue in the first year of US$13.2 billion, rising to $13.9 billion in 2019 and $14.2 billion in 2020.

It forecasts that 47 per cent of its revenue will come from its transpacific trades, 24 per cent from Asia-Europe and 13 per cent from intra-Asia services. The ONE portfolio target is for weekly liftings of 345,000 TEU - 39 per cent on the transpacific, 24 per cent Asia-Europe and 22 per cent intra-Asia.

It said: "Steady demand growth is expected against a background of a relatively favourable global economic situation, so the demand-supply will be stabilised on a mid-term basis."

ONE is forecasting a net profit for this year of $110 million, with the majority of that ($107 million) expected to be earned in the second six months. For 2019, it expects to turn a profit of $313 million and to more than double that the year after, to reach $648 million.

The synergy savings from the merger are targeted at $1.05 billion a year, 60 per cent coming through in the first 12 months, 80 per cent in the second year and the full 100 per cent by year three.

According to ONE, $430 million will come from savings on operational costs, such as feeders, trucking and terminal charges, where it will not only use the lowest tariff of the three carriers, but also negotiate reduced rates for higher volumes.

A further $370 million is expected to be saved in IT costs and "rationalisation of the organisation", with the final $250 million annual savings gained from a reduction in bunker consumption and "product rationalisation".

ONE said it had seven newbuild vessels of 14,000 TEU planned for delivery this year and expected its total fleet at the end of its 2018 fiscal year to consist of 224 ships, amounting to 1.55 million TEU, reports The Loadstar of London