When it comes to container traffic growth the western and central Mediterranean has never had it so good. Compared to the early 1990s, the pace of demand growth in southern European containerports is now much stronger accounting for a much larger share of the total region – a fact underlined by Ocean Shipping Consultants (OSC) in its keynote presentation at the MedTrade Conference held late last month in Venice.<\/p>\n
There are two reasons for this, according to OSC. On the one hand “port modernisation and privatisation has transformed the efficiency of regional ports to the point where lines are now comfortable with the idea of direct calls” and on the other “transhipment has altered the market.<\/p>\n
“Not only, ” says OSC, “has this provided a much larger share of demand, but the use of centrally located hub ports allows the integration of the local markets with the major trades – especially the Asia Europe Trades.”<\/p>\n
And, of course, at a very practical level, there is the “China factor” which is underpinning huge growth in these latter trades.<\/p>\n
According to figures just released by Dynamar B.V. in its much respected weekly Dyna Liners report, the Far East Freight Conference is reporting a 21.3% increase in Far East-Mediterranean box traffic over the first eight months of this year compared to the same period the previous year and a 14.1% increase in Mediterranean-Far East traffic. This compares to a 16.5% growth in Far East North Europe traffic growth and 18.6% growth in North Europe to the Far East Far East Freight Conference movements.<\/p>\n
To all intents and purposes, the western and central sectors of the Mediterranean can be regarded as mature markets but nevertheless markets that are presently faced with strong demand and demand that is likely to continue for some time.<\/p>\n
OSC’s analysis of how container traffic growth is likely to shape up over the period to 2015 in the western and central Mediterranean is highlighted in Tables 1 and 2. Table 1, highlighting the position of the western Mediterranean, shows 2003 import\/export traffic heading for the 6mTEU mark and transhipment traffic a little way off 4mTEU\/yr. By 2010 it is anticipated that import\/export traffic will have increased to above 8mTEU\/yr and transhipment traffic to be around the 5mTEU\/yr mark. By 2015 import\/export volumes are expected to be approximately 10.5mTEU\/yr and transhipment traffic to account for nearly 6mTEU\/yr.<\/p>\n
Table 2, looking at the central Mediterranean, indicates throughout the continuing prominence of transhipment up to 2015.<\/p>\n
2003 sees annual transhipment volume around the 5.5mTEU mark rising to approximately 8.5mTEU in 2010 and nearly 11mTEU in 2015. Import\/export traffic also climbs in a positive manner virtually doubling over the period to a level of just over 10mTEU\/yr in 2015.<\/p>\n
THE NET OUTCOME The net outcome of all this recent and foreseen container traffic growth is massive demand for new container capacity and ongoing refinement of terminal operating systems and working procedures to further streamline terminal operations. The latter trend also promises to be accelerated at a practical level due to recent “logjam” factors experienced in both western and central Mediterranean terminals.<\/p>\n
Only a little while ago Gioia Tauro was under the spotlight due to congestion factors with this situation taking some working out and only really relieved when the Eurogate group, owners and operators of Gioia Tauro, decided to acquire the Cagliari International Container Hub on the island of Sardinia. In Spain, however, there have been progressively severe congestion problems and for the short term at least – until new capacity clicks in – no real end to these is in sight.<\/p>\n
The situation in Italy as a whole compared to that along Spain’s Mediterranean coast – in the ports of Barcleona, Valencia and Algeciras – has been somewhat less severe but with the current importance attached to environmental matters in Italy, and the negative impact of this in port expansion terms, the pressures are building. There will be a price to pay for developments such as the environmental lobby halting dredging works in La Spezia aimed at facilitating access to larger vessels and similarly potentially applying the brake to the planned expansion of the Voltri Terminal Europa (VTE) in Genoa, the port’s major container terminal. Given continuing strong container trade growth, the prospect of congestion looms large, and all the problems that this brings.<\/p>\n
Like their northern European counterparts, west and central Mediterranean containerports have to some extent been taken by surprise by the recent upsurge in demand for port capacity – Valencia for instance experienced a 57% increase in container traffic in the period 1997-2000 and a 52% increase from 2000-2003 inclusive – and the race is now on to bring on-stream new capacity to match both actual and forecast demand. Who would really have thought for instance that Malaga would emerge as a container handling centre – but the truth is that the Dragados owned and operated facility has got off to a flying start with Maersk Sealand putting in regular calls as it searches for capacity outside its Algeciras base, which has been under pressure capacity wise for some time now, although there has just recently been some small relief with a new berth coming on-stream.<\/p>\n
A sample of who is doing what in terms of adding new container handling capacity in the western and central Med is highlighted in Table 3.<\/p>\n
NOT ALL ABOUT CAPACITY As indicated above, however, the seemingly mammoth task of keeping pace with demand for container capacity in the western and central Mediterranean is not just about adding new capacity. The following can all be added to the “shopping list” too:<\/p>\n
Getting more out of existing facilities.<\/p>\n
Further tapping into the expertise of the global container terminal operators.<\/p>\n
Having the courage and resolve to either follow though on comparatively new legislation governing labour and which facilitates more effective working practices\/procedures, or to put this legislation in place.<\/p>\n
Taking more seriously the idea of employing automated container handling systems.<\/p>\n
Working harder at integrating import\/export terminals into a “cargo pipeline.”<\/p>\n
And for transhipment terminals, dealing with issues such as attaching more importance to meeting the requirements of feeder and regional operators, the liner operators that provide the connectivity to the mother vessels and the diverse markets around the Mediterranean.<\/p>\n
Running briefly through each of these points, on the first one few would deny that Mediterranean container terminals have yet to achieve the high standards of terminal organisation at an operational level that are being deployed in many north European container terminals.<\/p>\n
On the second point, it has just been announced that P&O Ports will manage the provision of container handling services at Malta Freeport following CMA-CGM’s acquisition of the business from the Maltese Government. Their worldwide experience will obviously have a positive impact and more of this can be seen as desirable in other locations, particularly perhaps along Spain’s Mediterranean coast.<\/p>\n
Thirdly, this is really about getting the labour situation onto a realistic footing – Italy, for example, has the necessary legislative framework to do this but no-one as yet has had the courage to “push the envelope” to achieve it. Conversely, Spain’s labour laws are somewhat “woolly” as yet and need to be re-engineered to get the best for both employers and labour out of the current and foreseeable operating climate, not just in terms of financial gain but investment and job\/business security and so on.<\/p>\n
In a cargo pipeline context, the planned liberalisation of rail service provision in the near future in Spain should help – but really it is adopting the mentality of functioning within a cargo pipeline that will provide the major catalyst. And, it has to be said that progressively there are positive developments and signs on this front. Look, for example, at the work in progress in Gioia Tauro to open up quite distant hinterland markets through efficient rail access.<\/p>\n
The last factor referenced is also one that has much to do with culture and education. It is a fundamental reality that feeder\/regional lines provide the connectivity that bring large volumes of cargo to the major transhipment hubs. The hubs therefore have, almost out of necessity, an obligation not to look at these operators as poor relations to the major lines and to wrestle with the problem of giving them an improved status when it comes to matters such as berthing priority. It is a difficult area in which to come up with solutions acceptable to all but clearly the prize is worth the pain!<\/p>\n
The December issue of PS will continue our examination of the key trade trends and strategic issues facing Mediterranean containerports and terminals, focusing in-depth on the eastern Mediterranean and the Black Sea as a major market tributary to the Mediterranean. This will include reflecting the latest views of analysts, lines, port interests and others presented at the MedTrade Conference held in Venice in October 2004.<\/p>\n
Western Mediterranean<\/p>\n
SPAIN Barcelona: The Port Authority of Barcelona will add a new container terminal as part of the massive expansion of the port area now taking place. It is moving ahead with this development on a fast-track basis.<\/p>\n
Valencia: The port is progressing container capacity expansion plans on several fronts including the ongoing expansion of the Maritima Valenciana container terminal, the construction of a new dedicated container terminal for MSC, the improvement of access arrangements to the container terminals and several performance related initiatives through its new Container Observatory body.<\/p>\n
With the longer term in mind, it is planning the construction of an entirely new port area and by 2015 it expects to be handling 4mTEUs, 30% of which will be transhipment traffic (2003: 2mTEU).<\/p>\n
Algeciras: In 2005 Algeciras will start work on the $240m third phase of its Isla Verde Exterior expansion which holds the key to the expansion of container capacity to meet the requirements of Maersk Sealand in the port. Maersk Sealand presently routes around 2.6mTEUs\/year through Algeciras.<\/p>\n
The Isla Verde expansion will also to some extent form part of Algeciras’ competitive response to the new container terminal to be built at the Moroccan port of Tangier, located just 35km away.<\/p>\n
Other Spanish Mediterranean Coast Developments: Such is the scale of demand for container port capacity along the Spanish Mediterranean coastline that entirely new container terminal projects are being developed as has recently been the case in Malaga and is on the drawing board in Cartagena, for example.<\/p>\n
FRANCE Marseilles: The total quay length of Marseilles Fos’ 2XL container terminal project will be raised to 1,300 metres thereby making available two 350 metre berths each to the two recently appointed concession holders, CMA CGM in conjunction with P&O Ports under the Port Synergy banner, and MSC.<\/p>\n
Central Mediterranean<\/p>\n
ITALY La Spezia: Two new super post-Panamax gantries ordered for La Spezia were recently resold, without having been used, for service in Durban. Effectively this is as a result of environmental lobbyists halting the planned dredging\/expansion works related to the La Spezia Container Terminal.<\/p>\n
Genoa: The Port Authority of Genoa has recently undertaken market studies to evaluate the feasibility of the further expansion of the Voltri Europa Terminal. The studies give the thumbs-up to the project but now the challenge is to get approvals for it past the very active environmentalist lobby.<\/p>\n
Also in line for major expansion in Genoa is the Southern European Container Hub terminal, with this set to see a significant increase in quay line and yard area as well as new quayside container gantries. The expansion will take place over the period to 2007 and to a large extent is a response to the increased interest of MSC in the terminal.<\/p>\n
Trieste: T.O. Delta, the logistics company, has purchased the remaining 70% of the equity of the Trieste International Container Terminal thereby opening yet another new chapter in the ownership saga of this facility. The former majority shareholder, Luka Koper, the operator of container handling facilities in nearby Koper, experienced a significant drop in throughput at the terminal and complained bitterly of lack of support from the Trieste authorities.<\/p>\n
The new owners appear to have a bit more “pull” with T.O. Delta and Lloyd Triestino sharing the same Chairman, Pierluigi Maneschi.<\/p>\n
Gioia Tauro: Gioia Tauro has a 380 metre berth extension under construction that will be equipped with four new super-postPanamax container gantries. In conjunction with this development, the yard area is being raised by 470,000 square metres and overall, when these works are complete, Gioia Tauro will be able to offer an annual throughput capacity of around 5mTEUs.<\/p>\n
Taranto Container Terminal: Developed by Evergreen container line as a common user facility but mainly used exclusively by Evergreen since it opened, it appears Taranto may soon move closer to its planned common-user status. Local media reports suggest that Zim Line is considering relocating its transhipment activities here from its current Haifa hub which has been the scene of some significant industrial unrest as the government attempts to push through port privatisation plans.<\/p>\n
MALTA Malta Freeport: Now under the ownership of CMA CGM and with P&O Ports operating the facility under a management contract, an initial new investment of around $14m has been scheduled for Malta Freeport which has seen a 7% growth in container volumes over the first six months of 2004 up to more than 680,000TEUs.<\/p>\n
Table 3: Sample containerport expansion projects being implemented and\/or planned in the western and central Mediterranean<\/p>\n","protected":false},"excerpt":{"rendered":"
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