Light at the end of the tunnel?

Walter Kemmsies, chief economist at Moffatt & Nichol, told TOC Americas in Miami that “most of the malaise is over”, but added that the industry probably has “another year to a year and a half before things start to feel ‘normal’”.

And even that timeline is dependent on the level, scope and speed of investment made, he added.

“There are possibilities for things to could turn out really well if the right investment is made at the right time and the right place, but we are not getting those investments fast enough – it’s very hard to uncork the bottle.”

He explained that while there is capital out there looking for good investments, the lag in getting port projects through bureaucratic hurdles could stump a recovery.

“If it takes up to 12, 13 or 14 years to get through the first phases of planning development, geological and environmental studies to completion then that money really can’t be deployed.”

Port Americas vice president strategic marketing, Marlene DaCosta was just as downbeat: “Our industry has faced several challenges over the past few years and will continue to in the short to medium term,” she told delegates.

Ms DaCosta added that it will take “quite a while” to reach a supply/demand equilibrium again.