A DP World executive said the global financial crisis could convince port authorities in the United States to re-think their current model that limits marine terminal development to shipping lines and domestically-based investor groups.
The credit crunch could force U.S. ports to open up investment opportunities to global, foreign-based terminal operators such as DP World of Dubai, Hong Kong's Hutchison Port Holdings and PSA International of Singapore, said Dave Sanborn, senior vice president and managing director for the Americas at DP World.
Sanborn told the Terminal Operating Conference of the Americas conference Tuesday that DP World, Hutchison and PSA together handle one-third of the world’s container traffic, but they do not move a single container in the U.S.
In 2007 DP World, which is owned by the government of Dubai, caused a political uproar when it attempted to enter the U.S. market with the purchase of the terminal assets of P&O Ports.
Some members of Congress viewed the company as a threat to national security, and forced DP World to sell the P&O terminals to Ports America, owned by U.S.-based AIG Highstar Capital.
Today, with a pressing need to develop marine terminals, and with credit especially tight, U.S. ports should look to global terminal operators as potential partners in port development, Sanborn said.
When U.S. ports seek to lease their facilities, they often turn to terminal operators that are owned by shipping lines, believing that those companies bring a guaranteed base of cargo to the port.
The recent downturn in the global shipping economy has placed ocean carriers in a financial bind as cargo volumes and freight rates are dropping. When shipping lines are suffering in their core liner operations, they sometimes decide to shed assets such as marine terminals, Sanborn said.
The second type of company favored by U.S. ports is the independent, general-user terminal operator such as the former Maher Terminals, SSA Marine and Marine Terminals Corp. In 2006, those companies were bought out by private investor groups that bid up the value of marine terminal assets. But the downturn in the economy and tight credit markets has also put those operators under pressure, Sanborn said.
Since the development of a marine terminal takes five to eight years from conception to completion, port authorities must begin now to attract terminal operators with proven experience and access to capital in order to complete construction of the facilities when the shipping economy improves, Sanborn said.
He added that even port authorities in the Southeast, which operate and own marine terminals, could look to global terminal operators as partners in developing new facilities.
The credit crunch could force U.S. ports to open up investment opportunities to global, foreign-based terminal operators such as DP World of Dubai, Hong Kong's Hutchison Port Holdings and PSA International of Singapore, said Dave Sanborn, senior vice president and managing director for the Americas at DP World.
Sanborn told the Terminal Operating Conference of the Americas conference Tuesday that DP World, Hutchison and PSA together handle one-third of the world’s container traffic, but they do not move a single container in the U.S.
In 2007 DP World, which is owned by the government of Dubai, caused a political uproar when it attempted to enter the U.S. market with the purchase of the terminal assets of P&O Ports.
Some members of Congress viewed the company as a threat to national security, and forced DP World to sell the P&O terminals to Ports America, owned by U.S.-based AIG Highstar Capital.
Today, with a pressing need to develop marine terminals, and with credit especially tight, U.S. ports should look to global terminal operators as potential partners in port development, Sanborn said.
When U.S. ports seek to lease their facilities, they often turn to terminal operators that are owned by shipping lines, believing that those companies bring a guaranteed base of cargo to the port.
The recent downturn in the global shipping economy has placed ocean carriers in a financial bind as cargo volumes and freight rates are dropping. When shipping lines are suffering in their core liner operations, they sometimes decide to shed assets such as marine terminals, Sanborn said.
The second type of company favored by U.S. ports is the independent, general-user terminal operator such as the former Maher Terminals, SSA Marine and Marine Terminals Corp. In 2006, those companies were bought out by private investor groups that bid up the value of marine terminal assets. But the downturn in the economy and tight credit markets has also put those operators under pressure, Sanborn said.
Since the development of a marine terminal takes five to eight years from conception to completion, port authorities must begin now to attract terminal operators with proven experience and access to capital in order to complete construction of the facilities when the shipping economy improves, Sanborn said.
He added that even port authorities in the Southeast, which operate and own marine terminals, could look to global terminal operators as partners in developing new facilities.