Demand for port capacity to outpace expansion: Drewry Maritime Research

"The current indications are that in the next five years demand growth will significantly outstrip capacity expansion, leading to rapidly rising utilisation levels in many ports and regions of the world," Drewry Maritime Research has warned in its Global Container Terminals Operators, 2011 annual report.

Average utilisation levels could exceed 90% by 2016 at Far East and South-East Asian terminals unless more capacity expansion projects are launched soon, it said.

It said Latin America and the Middle East will also face capacity pressures, along with Africa to a lesser extent. But in mature markets of North America and North Europe, Drewry expects the pressure will be less because demand growth is not expected to be as strong.

The rapid growth in terminal volumes in China caused a shake-up in Drewry's rankings of world's top 10 terminal operators as ranked by their throughput in 2010.

While PSA, Hutchison Port Holdings, DP World and APM Terminals maintained their top four positions. Shanghai International Port Group joined the list at fifth place, China Merchants Holdings at eighth place, Ports America at ninth place and Modern Terminals in 10th position.

The report also said that the appetite for investing in container terminals has returned. According to Drewry's senior port advisor, Mr Neil Davidson, there is renewed interest in greenfield developments. Companies are mounting challenges to enter the big league based on strong cash positions. Incumbent operators need to be ready to face competition.