Maritime Trade and Transport - HWWI

5. The perspectives for sea-based transport logistics
5.1 Port and terminal operations – The most important projects
in the coming decades
The bottleneck situation at many ports described above, the resulting immense investment volume,
and the high growth rates in container traffic make port-related business extremely lucrative
for everyone involved: for construction companies, for terminal operators, for the
owners, often still the state, and, finally, for the shipping companies.
As a rule, ports are by nature location-specific; shipping companies and shipping fleets are
not. In the era of globalization, this leads to fierce competition among the port and terminal
operators, on the one hand, and among the ports and the ship owners, on the other. In view
of the great macroeconomic significance involved, entire regions or even nations court the favor
of investors. In 2001, for instance, when Maersk and Evergreen relocated their container traffic
from Singapore to Malaysia (Tanjing), the city-state had to (temporarily) forfeit its position
as the world’s number two container port. The following emphases in new port investments
emerged in this context.
5.1.1 India
The country has 187 seaworthy ports, but cargo handling at these ports in 2005 amounted to
only 423 mn t. In comparison, Shanghai alone handled 443 mn t. The largest container port,
Jawaharlal Nehru, had a capacity of nearly 3 mn TEU in 2006. In comparison, Hong Kong
already cleared more than 22 mn TEU in 2005.
The government has therefore announced plans to double the country’s port capacities by
2009. After that, equally high outlays will be required if this part of the subcontinent earnestly
wishes to become an economic superpower by 2050. We anticipate an annual expenditure volume
of $3-5 bn.
Interesting for the investor: Nhava Sheva Interna¬tional, the largest private port operator;
Gammon India Ltd., in the infrastructure and port construction sector; Quipo Infrastructure
Equipment Ltd. and/or cement and construction groups like Grasim Industries or Gujarat
Ambuja Cements (Holcim holding).
5.1.2 People’s Republic of China
Here different dimensions are involved. In 2005, with a handling volume of 48 mn TEU, China
already ranked number one worldwide, even ahead of the USA. By 2010, capacities are to be
expanded to 100 mn TEU, then to be doubled again, reaching 200 mn TEU by 2020.
Parallel to this, disembarkation facilities for general cargo and energy commodities are to
be expanded substantially. The entire concept concentrates on five “port clusters”:
88 Berenberg Bank · HWWI: Strategy 2030 · No. 4