Global port expansion expected in 2014

Making the statement in its Global Port Development Report (2013), SISI predicted a port throughput growth rate in excess 6% for 2014, based on IMF forecasts of rising trade volumes, rising enterprise purchasing demand fuelled by economic recovery and expanding domestic demand driven by government investment.

SISI also pointed to the further development of multilateral/bilateral trade agreements which will in turn pull up world container throughput. It pegged growth in global container throughput at above 4% in 2014.

However, in a caveat to the positive expectations, the Institute warned that larger ships and changes in regional trade patterns pose challenges to ports, while liner alliances could “undermine the negotiating power of ports”.

Other blips on the horizon include the large-scale construction of container terminals in Indonesia and Vietnam which has led to an emerging risk of “structural overcapacity”.
“In such a background, competition among ports will further intensify, and market status of ports within a given region will also face adjustment. Only through transformation and development can global ports have their share in the market in 2014,” said the report.