Global container port capacity is projected to increase by just over 2% yearly, a rate that is far below projected demand and that is seen to push utilization levels significantly higher by 2022, according to a new report from Drewry.
Projected container terminal capacity expansion in the next five years has declined to “not much more than 10% of existing capacity,” the lowest proportion on record and this could present problems in the coming years if not addressed, according to the latest edition of the global shipping consultancy’s “Ports & Terminals Insight.” The quarterly port sector report analyzes plans for container terminal capacity expansion through to 2022.
Prospects are relatively subdued following several years of under investment, particularly in greenfield projects, said the report.
Bottom-up capacity projections on a terminal-by-terminal basis present a conservative picture, with global container port capacity projected to increase by around 125 million twenty-foot equivalent units (TEUs) by 2022, a growth rate of just over 2% each year.
“This is well below projected demand and reflects the cautious investor sentiment towards greenfield projects over the last few years. As a result, average utilization levels are expected to rise markedly across almost all regions of the world by 2022,” said Drewry.
Back in 2003 and in 2009, there were around 125 million TEUs of new port capacity in the pipeline—the same amount as there is now, but the market was much smaller then, it noted.
In 2009 the global financial crisis had hit hard and many projects were put on ice. By 2013, there were over 180 million TEUs of capacity scheduled to be brought on stream within a five-year horizon, this increase reflecting the recovery of growth and greater optimism about the future.
“By 2013, the forecast had improved slightly to 20% of existing capacity but the 2018 forecast shows that this has fallen to not much more than 10% of existing capacity, the lowest proportion ever,” said Drewry.
Photo: gregor rom
