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Troubles and tussles on Spain’s Mediterranean coast
01 Apr 2007
There are problems at the new Prat Dock container terminal under construction in Barcelona where Hutchison has secured terminal operating rights. Around 500m of the new quay line, that will eventually extend for 1,500m, has suffered a major structural problem putting into doubt the ability of the port authority to deliver the terminal to Hutchison on-time. At the time of writing, no statement was forthcoming from the Port of Barcelona on the exact nature of the problems – it is understood detailed investigations are in the process of being implemented – but some observers were suggesting that a severe delay in the terminal’s construction could be expected which could eventually be as much as two years.
If this proves to be the case – and much more will be known in this and other key respects after detailed survey works are undertaken – then it will inevitably mean a narrowing of the gap between Barcelona and its arch rival Valencia in so far as the delivery of new container capacity is concerned.
In both Barcelona and Valencia there is known to be a major requirement for new container terminal capacity from shipping lines, a trend that has been in motion for some years. In Valencia in particular this is being expressed both in terms of common user terminal capacity and dedicated capacity for specific shipping consortia and individual Top 10 container lines.
It presents the port with an interesting question as to which way to “jump” when it comes down to deciding which operator to appoint for a given facility. Particularly as its experiment so far with a dedicated terminal for MSC, opened last November, has not yet yielded the best results.
Like Barcelona, Valencia will also doubtless want to pay more attention to the mix of container cargo received at its new facilities. Barcelona in launching its new Prat Dock container facilities was very careful to seek within its business model the right mix of gateway and transhipment cargo – along the lines of 70% gateway and 30% transhipment and not vice versa.
Having said this, though, if the terminal developments are offered on a build-operate-transfer basis, which they may well be for the first time, then it is natural that the new operator should have the final say on cargo mix. Having put the money down for the new facility it will be up to the operator to decide how to achieve an acceptable rate of return on investment.
MIKE MUNDY
