Shift of focus for box terminal owners

There is said to be a pressure on profit margins and rates of return due to significant softening of demand growth and higher costs due to bigger ships.

As well as increased business risks from larger liner alliances and loss-making carriers pressuring for lower terminal handling charges.

The Drewry analysis notes 24 companies as global/international terminal operators. With the nature of the list already changing due to major M&A activity, as well as changes such as Cosco and China Shipping merging, CMMA CGM acquiring APL and AMP Terminals buying Grup TCB.

These changes can be seen as terminal operators mirroring the coming together of shipping lines in alliances.

A clear strategic trend from the report is the slowing of activity in greenfield terminal projects by the global/international terminal operators.

The total number of active projects has fallen by almost half in the last ten years, it was 39 now compared with 64 in 2006.

Projects being developed by the carrier category of terminal operators, companies with container shipping as their core business, has fallen to near zero. This is since carriers have re-trenched and becomes more cash-strapped – but are still active in terms of M&A and joint ventures.