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Vital priorities

25 Jan 2011

"I am frustrated by the number of governments that can’t see the vital importance of investing and improving in port infrastructure," Nigel Nixon, Consultant

The right port facilities in the right place can be key to ensuring that a country’s raw material exports are viable in the world market, says ports consultant Nigel Nixon.

“For many countries looking to move iron ore, coal and other raw materials, there is a lot to be desired in their ports of exit,” he says. “I am frustrated by the number of governments that can’t see the vital importance of investing and improving in port infrastructure.

“Coal is coal and ore is ore and it costs the same, more or less, to get it out of the ground; but what really changes the price is the logistics of moving that material to the vessel and on to the consumer. You can add so much logistics costs that you render your raw materials unviable.

“So for me, an investment hotspot would be those countries that need to compete more in terms of selling their raw materials globally. South America is a classic case.”

In complete contrast, he highlights mega yachts as a major opportunity. “Look at the orders and those being built; where are they going to go? There is a real shortage of berths for these very large vessels, of 100-plus metres, in the type of environment they want to be. Sometimes they end up almost being berthed next to a container vessel in a commercial port.

“I would say a hotspot of opportunity would be in key ports on favoured cruise routes – there is a need for facilities with perhaps 60-70 berths, with all the value-added services these vessels need in terms of supplies, crew resting, etc. In today’s market, this could yield a better return than the sea freight sector.”

Vital priorities

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