Terminals must expand to avoid congestion
Terminals must re-start expansion projects that were axed during the recession or terminal congestion could return
Container terminal operators will be faced with “the spectre of congestion” if expansion projects aren’t reactivated in the next five years, according to Drewry Shipping Consultant’s latest report.
In its Annual Review of Global Container Terminal Operators 2010, Drewry warned that investment in new terminals must return in order to avoid congestion at ports.
It projected container throughput would increase by an average of 7.2% a year between 2009 and 2015.
“As a result, global container port volumes are forecast to rise by 245 million teu, from 473 million teu to 718 million teu, an increase of just 50% in this period,” said Drewry.
The report forecasts the capacity of the world’s container terminals will grow by 143 million teu between 2009 and 2015, an increase of almost 20%.
“The much slower rate of container terminal capacity growth relative to throughput will inevitable increase global container terminal utilisation rates unless more projects are brought back to life.
“Several parts of the world could see the spectre of congestion returning by 2015 if some of the originally planned expansion projects cannot be reactivated within the next three to five years,” warned Drewry.
Drewry predicts that by 2015 average global terminal utilisation levels will have reached just over 80%. However, it said while this prediction may not appear to give much cause for concern on a global level, terminals in prime locations are usually more highly utilised than the average.
“By 2015 average utilisation levels could be around 95% in the Far East and Middle East regions,” it said.
Neil Davidson, Senior Advisor, Ports for Drewry, said: “The recovery of volumes is quite marked in many locations and it raises the question as to whether capacity plans can be reactivated quickly enough.
“This is especially so given that obtaining finance for investments is a much slower and more demanding process than it was.”
Global container throughput fell for the first time last year; from 524 million teu in 2008 to 473 million teu in 2009, a fall of nearly 10%.
Davidson said: “Last year was a year the like of which has never been seen before. Historically, for global terminal operators, it has always been about expanding and adding capacity as quickly as possible.
“Then, suddenly, they were all faced with changing their mindset towards drastic cost control and halting of projects.”
However, despite the downturn and reduction of throughput volumes, terminal operators largely maintained their percentage ebitda margins.
There are already reports of congestion returning to Rotterdam and Indian ports.
In its Annual Review of Global Container Terminal Operators 2010, Drewry warned that investment in new terminals must return in order to avoid congestion at ports.
It projected container throughput would increase by an average of 7.2% a year between 2009 and 2015.
“As a result, global container port volumes are forecast to rise by 245 million teu, from 473 million teu to 718 million teu, an increase of just 50% in this period,” said Drewry.
The report forecasts the capacity of the world’s container terminals will grow by 143 million teu between 2009 and 2015, an increase of almost 20%.
“The much slower rate of container terminal capacity growth relative to throughput will inevitable increase global container terminal utilisation rates unless more projects are brought back to life.
“Several parts of the world could see the spectre of congestion returning by 2015 if some of the originally planned expansion projects cannot be reactivated within the next three to five years,” warned Drewry.
Drewry predicts that by 2015 average global terminal utilisation levels will have reached just over 80%. However, it said while this prediction may not appear to give much cause for concern on a global level, terminals in prime locations are usually more highly utilised than the average.
“By 2015 average utilisation levels could be around 95% in the Far East and Middle East regions,” it said.
Neil Davidson, Senior Advisor, Ports for Drewry, said: “The recovery of volumes is quite marked in many locations and it raises the question as to whether capacity plans can be reactivated quickly enough.
“This is especially so given that obtaining finance for investments is a much slower and more demanding process than it was.”
Global container throughput fell for the first time last year; from 524 million teu in 2008 to 473 million teu in 2009, a fall of nearly 10%.
Davidson said: “Last year was a year the like of which has never been seen before. Historically, for global terminal operators, it has always been about expanding and adding capacity as quickly as possible.
“Then, suddenly, they were all faced with changing their mindset towards drastic cost control and halting of projects.”
However, despite the downturn and reduction of throughput volumes, terminal operators largely maintained their percentage ebitda margins.
There are already reports of congestion returning to Rotterdam and Indian ports.
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