WSP: Expect more port portfolio deals

Speaking at TOC Europe, Johan-Paul Verschuure, technical director of global maritime at WSP, said he anticipated that multiple port portfolios will come up for sale on the back of further consolidation and low interest rates.

“This could help the sector realise new investments … with additional cash,” he said.

WSP has tracked some 200+ port transactions over the last five years, examining who has invested, when and where. Its research noted that activity has increased over the last two years, although with fewer players dominating the port investment scene. Over half of deals in the last five years were completed by a major player from Asia, he added.

In other trends, Mr Verschuure noted an increased differentiation in investment strategies between types of operators. Also, Mr Verschuure said that a focus on cost reduction could be a threat for the industry, leading to postponed investments, which may result in reduced service levels in the future.

Port investments have focused more on peripheral markets in terms of commodities and regions, with greenfield port investments proving relatively scarce in the last few years, particularly in Europe.

“The few opportunities around are mainly in Africa and Asia,” said Mr Verschuure, adding that WSP has noted increased interest in South America.