Revealed: The Top Terminal Operators by 2020
Drewry has compiled a table forecasting which terminal operator will be number one by 2020 as measured by capacity as part of its Global Container Terminal Operators Annual Report 2016.
Softening demand growth coupled with larger liner shipping alliances and bigger ships is moving the container ports industry towards a value sector from growth sector, albeit still highly profitable.
With this in mind, Drewry have compiled the table below to see which companies are the movers and shakers in the future terminal operating industry.
The table shows that the merger of China Shipping and Cosco is likely to see it become the clear world leader in capacity terms, albeit most of this is in one country (China).
In the global market, global and international container terminal operators are faced with the dual challenges of weaker demand growth and rising operating and capital costs due to larger vessels and alliances.
On the stock markets, ports are increasingly seen as a mature value sector rather than a growth sector.
Neil Davidson, Drewry’s Senior Analyst for Ports and Terminals said: “It is clear that global and international terminal operators are fundamentally reviewing their strategies, becoming cooler on greenfield projects and more interested in M&A opportunities.
“A natural response to the increasing size of liner alliances is for terminal operators to look to consolidate terminal ownership in parallel.
“However, a dichotomy in approaches is evident. On the one hand many of the established international players have become more cautious because they are concerned that returns may be less than what they are used to.
“But on the other hand there are several expansion minded players like the Chinese operators and Yilport Holdings (a new entrant this year in Drewry’s league tables of global and international terminal operators) whose top strategic priority is to acquire more assets.”