Tanjung Priok super port - WorldCargo News Online

PORT DEVELOPMENT
quay walls and deep water alongside and
in the channels to accommodate the new
classes of ultra-large container ships. This
is another reason why the GTOs want
closer working relationships with their
ocean carriers and why discussions are
taking place that aim to link tariffs and
handling rates more closely to the investment
that has been made, or is needed, in
the terminals.
In new terminals, unmanned yards are
becoming increasingly common. Gradually
the ship-to-shore interface will go
the same way as the larger cranes being
installed will be controlled by operatives
working the units remotely from computer
work stations rather than physically
working controls in the cab.
But as all of the main GTOs acknowledged,
it is not only about buying new
equipment and installing more sophisticated
planning and terminal operating
systems. “It is also about investing in people
and ensuring that they are properly
trained and fully conversant with all safety
and security issues,” said Sharaf. “It is also
vital that tighter communication links are
put in place and there are better and more
streamlined exchanges of information between
all parties.”
Criticising carriers
DP World’s Sharaf was, however, highly
critical of liner companies’ attitudes when
it came to co-operation. Addressing the
recent Lloyd’s List shipping summit, held
in London, he said he has been trying
for seven years to set up more effective
communications in the interest of driving
efficiencies, but price generally took
precedence.
“The focus right now [again] from the
liner industry is only on price. But we
say: ‘Let’s put the price aside and see how
much you will save through efficiencies
achieved by process and technological
improvements’,” he said.
The need for better communication
also extends in the other direction and
needs to include beneficial cargo owners.
It is noticeable how port authorities and
GTOs have reached out to shippers and
consignees in an effort to better understand
their supply chain needs and also
the inland distribution aspects of their
businesses.
In selected terminals in their portfolios,
Hutchison Port Holdings (HPH), DP
World, APMT and HHLA have all made
moves in this direction. It is a trend that
will continue as ports and operators seek
to process a higher proportion of cargo
off-site.
A clear trend over the past few years
has been that of so-called “portfolio
cleansing”, a process whereby individual
GTOs actively manage their investments/
terminal estate often to a set of specific
strategic, fiscal (including profitability)
and operational criteria.
Disposing of assets
Arguably, APMT and DP World have
been the most active on this front over
the past two years. Both companies have
disposed of terminals no longer considered
to be of core value and/or when
they did not have management control.
They have used the resulting funds to
strengthen their balance sheets, top up
their ‘investment pots’ and/or boost profitability.
It was a process highlighted by Sultan
Ahmed Bin Sulayem, chairman of DP
World, at the company’s annual results
announcement in March. “This year, we
have continued to actively manage our
portfolio to maximum advantage, divesting
of non-core or low return assets. This
has enabled us to move capital into those
markets where we see more profitable
returns whilst strengthening our capital
base,” he said. “It is such actions, whether
investing for growth, actively managing
our portfolio of assets, or strengthening
our balance sheet, that will allow us to
deliver higher returns for our shareholders
over the medium term.”
This year has started off in a similar
vein with DP World in the process
of disposing of its terminal interests in
Hong Kong. These include its 100%
stake in Asia Container Terminal and
its 75% stake in CSX World Terminals,
which operates Berth Three at the Kwai
Chung Container Terminal and the ATL
Logistics Centre – sold, respectively, to
Hutchison Port Holdings Trust and
Goodman Hong Kong Logistics Fund.
The deal with Goodman includes an
ongoing management contract for the
facilities, which gives DP World “an
ongoing and significant toehold in this
important market”, according to a local
analyst.
Future structure
So what about the future organisational
structure of the industry While GTOs
will continue to see their share of the
market rise, it is clear that within this
sector Chinese money and China-based
companies will feature more. Recent
years have seen both Cosco Pacific and
CMHI move into markets outside of
China, with the latter active in Lagos,
Togo and Djibouti and developing facilities
in Sri Lanka.
CMHI also made what some in the industry
call a “transformational deal” when
it acquired 49% of CMA CGM’s terminal
business earlier this year. The €400M deal
to buy Terminal Link expanded CMHI’s
global footprint at a stroke, for the first
time giving the company a presence in
ports such as Dunkirk, Le Havre, Houston,
Miami, Tanger Med, Marsaxlokk
and Busan. In terms of total throughput,
Terminal Link processes in excess of 8M
TEU a year.
CMHI chairman Dr. Fu Yuning described
the deal as being highly strategic
for the group. “The transaction marks a
significant step towards expanding our international
footprint, and Terminal Link’s
strategic relationship with CMA CGM
will help to ensure the long-term sustainability
of its operations,” he said. “Besides,
Terminal Link’s exposure to terminals
Everyday the world seems to become just a little smaller;
bringing people, businesses and economies closer
together, creating new opportunities and possibilities
along the way. You need to be prepared.
You need access to the right infrastructure and the right
operations, with experience and expertise close at hand.
That’s where we come in. APM Terminals brings access
in emerging markets and its potential
pipeline of new projects present another
driver for its volume growth and financial
returns in the future.”
Nonetheless, organic growth remains
important for the GTOs and an active
pipeline of developments is in place at
most companies, whether it be in fulfilling
recent concession awards and/or
expanding facilities held for several years
(see box story, p55).
Acquisitions
Of course, the situation could change
immediately should acquisitions or
mergers occur, something that is difficult
ICTSI will add 4M-5M TEU of new capacity
to its global portfolio in the next three
years, including expansion at its flagship facility
in Manila
Lift your exports
to new heights
to international trade and the global logistics chain to your
shores and to your cities, helping to lift your exports, your
opportunities and your prosperity to new heights.
We are 25,000 dedicated professionals, whom together
with you, can help lift your ambitions and achievements,
from logistics, to safety, to a brighter, sustainable future.
Together we are stronger.
May 2013 61