Freight News, Sea

Global Container Demand Equates Terminal Investment

[ August 26, 2015   //   ]

Rising global container port demand and ever larger vessels are driving terminal operators to make significant investments in additional capacity, according to the Global Container Terminal Operators Annual Report 2015 published by global shipping consultancy Drewry.

Drewry predicts average global container port demand growth of 4.5% per annum through to 2019. This equates to an additional 168 million teu of port traffic, bringing the global total to nearly 850 million teu. Asia accounts for over 60% of the forecast global demand growth. At the same time, the deployment of ultra large container ships and the formation of new mega alliances are adding to capacity pressures on global/international terminal operators.

In response to this, a number of the 23 companies that are considered by Drewry to be global/international terminal operators are making significant investments in additional capacity over the next five years, as shown in Figure 1.

APM Terminals and DP World are the most active in terms of the number of new projects in the pipeline but PSA International is adding the most capacity in absolute terms, particularly in its home port of Singapore. Hutchison, CMA CGM, TIL and ICTSI also have significant plans, with the latter’s expansion representing a 40% increase over the current capacity of its portfolio. The primary expansion focus of the global/international terminal operators is greenfield developments in emerging market locations, with acquisition and divestment activity having reduced from last year. (See upcoming issue of FBJ-NA for further details.)