Bond and credit rating business Moody’s Investors Service has conducted an analysis which shows that Chinese ports will need to invest around US$10bn in two years in its landslide infrastructure if it is to remain competitive.
According to the Journal of Commerce, a changing cargo mix will add further complexity to the servicing of mega-ships, requiring ports to have more sophisticated facilities, such as large cranes, delicate cargo handling, and peripheral services.
The Port of Shanghai will continue to expand its Yangshan Deepwater Port and upgrade the city-based Wai Gao Qiao terminals.
The improvements will increase Shanghai International Port Group’s throughput by 6 million TEU a year at a cost of $2.7 billion.
Analysis from Moody’s reads: “We expect increased cooperation and co-ordination among adjacent ports (especially those under the same provincial government), increased alignment of large transhipment ports with their feeder ports through equity investments, and continuous network expansion through the establishment of land ports in the hinterland.”
The company concluded by saying that the dominant players in the market will be those that are either directly or indirectly controlled by local municipal government, given those ports’ strategic importance as gateways to trade.
(Source: Daily Mail)