Drewry: Container Port Operators Eye Mergers and Acquisitions

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, according to a report released by global shipping consultancy Drewry.

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.

Global container port demand is forecast by Drewry to grow by less than 3% per annum over the next five years with projections softened in particular due to the sharp slowdown in China’s exports.

In response, terminal operators and investors have been reviewing capacity expansion plans. Many projects within the five-year forecast horizon are already too far advanced to change significantly, but those scheduled to appear later in the period are subject to reconsideration in terms of timing and scale.

For terminal operators, the focus is switching from greenfield developments to Merger & Acquisition (M&A) activity, with a number of major deals already in the pipeline and more likely to come.

“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,” Neil Davidson, Drewry’s senior analyst for ports and terminals, said.

Share this article

Follow World Maritime News

Posted on August 1, 2016 with tags .

In Depth>

Events>

<< Jun 2019 >>
MTWTFSS
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

The Smart Ship Exchange

The Exchange will look at the issues involved with increasing autonomy in shipping with an introduction to the concept…

read more >

Electric & Hybrid Marine World Expo Conference 2019

Electric & Hybrid Marine World Expo Conference is the world’s only international conference…

read more >

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >