Change afoot

While Drewry’s Annual Review of Global Container Terminals Operators pegs PSA International, Hutchison Ports, APM Terminals and DP World as the clear forerunners in equity teu and portfolio terms, different strategies and jostling in the middle pack could fundamentally change the medal count in this race.

DP World and APM Terminals are going all out, buying, selling and developing with aplomb. Hutchison is following a similar tactic, but at a much more reserved level; PSA’s strategy appears positively passive in comparison.

Which of the strategies will prove to be the model of excellence and which will be consigned to the ‘how not to do it’ file remains to be seen.

Ankle biters

Added to this is the threat of teu-hungry players that are waiting in the wings. ICTSI doesn’t feature in Drewry’s top ten, but it’s not completely out of the running to make an appearance soon. It too has followed a strategy of portfolio expansion, especially in emerging markets, which could prove to be its defining moment.

Haemorrhaging shipping lines have also been pushing partial sell-offs of terminal assets in a bid to return to core strengths. On the face of it this is good news for those willing to spend, however the shipping lines like to keep hold of a majority share, so this hasn’t as yet offered the rich pickings hoped for.

And to add to pressure on the front pack, there are some rising stars, which Drewry describes as “aggressive new players” with “a strong appetite for international expansion”. Some more familiar names include China Merchants, Gulftainer and Bolloré. Other movers include South America’s SAAM Ports and Ports America, who are also firmly putting themselves in the acquisition market.

The differing strategies, distressed shipping line terminal sell-offs and the wannabes waiting in the wings all combine to put pressure on the normal pecking order. The impact may not be felt immediately and it will take a lot to really rattle the leaders, but rest assured change is afoot. Which way it plays out is anyone’s guess.