Capacity growth threat

Drewry’s latest Quarterly Port Sector Briefing found recovery has accelerated global port capacity expansion ahead of pre-pandemic levels. But terminal utilisation levels are rising with congestion and accelerating port capacity expansion projects are being outpaced by forecast demand.

Eleanor Hadland, senior analyst in Drewry’s Ports and Terminals practice, said the sector saw a strong recovery in the second half of 2020, with global port throughput down just 1.2% in 2020. The US has seen a strong throughout recovery, with Europe trailing.

“Port handling is forecast to grow by an average 5% between 2020 and 2025,” she said. The rolling four quarter average growth in global port handling accelerated to 7.5% in Q2 21. Global port capacity is expected to reach 1.34bn TEU in 2025.

Digitalisation growing

The pandemic has also accelerated the adoption of digitalisation. Operators have increasingly signed up to neutral platforms that enable information sharing and transparency. Digitalisation can save time and achieve increased capacity in terminals.

“This will increase productivity gains across the sector,” said Hadland.

Greenfield projects are also back on the table with improving market conditions and privatisation a focus as governments look to offset the costs of the pandemic.