Container congestion at terminals
Containerization growth is one of the basic tendencies in the development of maritime transportation. According to British consulting agency Drewry Shipping Consultants, in 2007 global container traffic totaled some 143 million TEU, while total volume of containers handled by the terminals amounted to approximately 490 million TEU. The problem, however, is in faster development of throughput as compared with the terminals’ capacity. In future it is to result in the deficit of transshipment capacity. The Eastern Europe and Russia as a part of it is to face it as early as in 2009.
According to the report of Drewry Shipping Consultants “Container Annual 2007/08”, in 2006 container terminals handled some 441 million TEU, equating to a container traffic of 128.3 million TEU. In 2007, the agency reports, the traffic grew by over 10% to 143 million TEU while container handling at terminals to almost 490 million TEU. The growth is to continue in the future as total contracting for new container carriers reached over 1.4 million TEU for the first half of 2007. As of today, the main regions of container transportation are the USA, Western Europe and Japan. The leader of container export is China. As for Russia and Black Sea countries, they are getting more active in global container trading.
According to “Annual Review of Global Container Terminal Operators - 2007” of Drewry Shipping Consultants, the share of 22 container market players grew to over 70% of global throughput. The list is headed by Hutchison Port Holdings (HPH), APM Terminals, PSA, Dubai Port World (DPW), Cosco, Eurogate etc. Russia’s National Container Company is out of the list though its throughput amounting to 1.6 million TEU in 2007 exceeds the results of some companies in the list.
Drewry forecasts that annual average growth of throughput will make 9.3% till 2012. In the Far East, Southern Asia, Africa and Eastern Europe annual growth of container turnover will exceed 10%. By 2012, the terminals’ throughput is to reach 735.5 million TEU (+300 million TEU against 2006) with average capacity increase of 3.9% per year (+153 million TEU). Unbalanced growth rates of throughput and terminals’ capacity will gradually lead to a capacity deficit. By 2012, the terminals will be loaded for 97%. In the Far East, Middle East and Eastern Europe it will exceed 100%. So the demand for new projects is evident. Eastern Europe is to face the 100% loading by 2009. The Far East handles over one third of the global container volume today. Drewry forecasts that container turnover is likely to grow by at least 11% per year in the Far East till 2012. The Chinese market is to play the key role here, so the companies boasting strong positions at the Chinese market will have the best opportunities.
Eastern Europe (including Russia) is also one of the main regions to develop container turnover. In 2007, the region’s total throughput amounted to 7.3 million TEU (+30%, year-on-year). Considerable share of this growth falls on Russia (both St. Petersburg and the Black Sea ports) and Ukraine. High results were also demonstrated by the Baltic states, Poland, Romania and Bulgaria. Drewry forecasts that by 2012 container turnover in this region is to grow by 21.5 % per year. However, the capacity of the above terminals is to grow by only 3.7% per year. By 2009 it is to result in overloading of the terminals. Thus new container terminals are needed extremely.
The share of global operators is to grow at the market of Eastern Europe. HPH and ICTSI have shares in projects of Poland, while HHLA operates in the port of Odessa (Ukraine).
Drewry experts wonder if Russia is ready to open its port industry for foreign investors. The situation with Mobi Dick (set up by Finnish Container Finance) in Kronshtadt is a spectacular example, as the company’s plans failed because of the problems with federal and municipal authorities. The main thing here, however, is not who is right as information distribution outside the country may aggravate the situation with foreign investments into Russian market.
As of today, the market’s key players are Russian. For example, FESCO Group owns shares in the terminals of St. Petersburg, Novorossiysk, Iljichevsk and in the Far East. As for global operators, only DPW works in RussiaKaliningrad. An agreement has been recently signed between National Container Company and German Eurogate under which the companies exchanged a 20% shareholding in Baltic Container Terminal (Ust-Luga port) and JadeWesser terminal (Wilhelmshafen). In September 2007, MSC (Mediterraneran Shipping Company) announced its plan on construction of a container terminal in Lomonosov. The terminal with the capacity of 1 million TEU was estimated at over EUR 300 million. However, no related information appeared from that time.
Appearance of global operators in Russia is inevitable due to the market situation. Cargo turnover has been growing for a number of years already being driven by the interest of foreign investors. However, interest is not enough to solve significant bureaucratic problems. As of today, the perspectives for foreign operators here depend on legislation and cooperation with authorities rather than on the market situation. today. It owns 25% of Vostochnaya Stevedore Company operating in Vostochny port. APM Terminals announced its plans on development of two container terminals in