An end to port gloom in sight

Walter Kemmsies, well-respected chief economist at Moffatt & Nichol, USA told delegates: “For ports, we have pretty much hit the bottom but the climb out of here, particularly for the US, will be pretty slow.”

Mr Kemmsies warned of the possibility of a second recession in the US if the upturn is not properly managed, but continued, “once we are past the 2010/2011 period it is smoother sailing. In the near term, the really good news is that we’ve stopped digging a hole, but it is a very deep hole.”

Michael Donner, port & maritime transport specialist, World Bank, projected that private financing in port projects will be less than half in 2009 compared with 2008.

Speakers at the bi-annual event also advised ports to make sure they are ready for the uptick.

Manuel Gomez, deputy director, international affairs, Puertos del Estado, said: “Port managers have to be prepared for the growth in trade. We can’t sit and wait for the recovery to come; ports have to be ready. The big ships will come; our challenge is still to keep pace with port development.”

For the World Bank’s part, Mr Donner said: “We need to make sure that economies will be ready to face the recovery when it comes”, while Paduka Phang, president of the IAPH and former general manager at Malaysia’s Port Klang authority told delegates: “The current economic climate downturn creates an opportunity for ports and governments to ready themselves for the upturn.”