CHANGES IN CONTAINER SHIPPING AND PORT ENVIRONMENTS

1
CHANGES IN CONTAINER SHIPPING AND PORT
ENVIRONMENTS

• April 2003
• Chin Soo Lim, Ph.D.

2
Changes in Global Economy

• Globalization
• WTO Regime (Economic Liberalism)
• Economic Bloc (Free Trade Zone)

Trade Volume Increase
3
Trade Growth vs. Eco. Growth
Source WTO, Intl Trade Statistics, 2001
4
Seaborne Trade Volume
5
Container Port Throughput
6
Growth of Maritime Trade
7
Geographical Balance
8
Changes in Container Shipping

• Main Line / Feeder Service
• Changing Client Demands
• Alliance, MA
• Increasing Concentration
• Emergence of BIG SHIP

9
Main Line / Feeder Service
Traditional Route
Hub and Spoke System
10
Changing client demands

• Diversification/enhancement of services
• Intermodal services
• Warehousing and Distribution
• Tailored pricing packages
• Global service agreements
• Advanced cargo care technologies
• Container tracking facilities
• E-commerce initiatives

11
Global Alliance
Mergers and acquisitions Late 1990s/2000
12
Increasing Concentration
13
Vessel Size
14
Changes in Container Port

• Transshipment
• Port Throughput Increase
• Carrier-driven Port Development
• Privatization
• Mega Hub Port
• Big One becomes bigger
• Huge Capital Investment
• International Port Operator
• Environmental Pressure

15
Main Line / Feeder Service
16
Transshipment

• Port Throughput w/o Transshipment
• (Traditional Route)

C
A
D
B
40
40
40
40
40
Total Port Throughput 80
17
Transshipment

• Port Throughput with Transshipment
• (Hub and Spoke System)

B
40
C
A
40
D
Total Port Throughput 200
18
Carrier-driven port development
Traditional Paradigm
Emerging Paradigm
19
Private Sector Participation

• Whole-of-Port Sale
• Concessions
• BOO and BOOT
• Leases
• Joint Ventures
• Management Contracts
• Liberalisation

20
Big One Becomes Bigger
21
Increased Capital Commitment

• Deeper channels
• Post-panamax cranes
• Larger terminals
• More sophisticated IT
• Better intermodal links

22
International Terminal Operator
(M teu / share of world)
Source Drewry, Global Container Terminals, 2002
23
Environmental Pressures

• Natural Environment
• Dredging
• Reclamation
• Operating Hazards
• Built Environment
• Risk
• Traffic
• Operating Nuisance

24
Maritime Policy Planning Model

• Developed by the ESCAP secretariat
• To provide a planning context for the development
  of shipping and port investment strategies in the
  region
• Through
• Projection of trade flows and future shipping
  requirements
• Projection of port cargo throughputs and port
  infrastructure requirements

25
Trade Volume Forecast
1999/2006/2011
World Total 69 m TEU
112 m TEU 154 m TEU
Asia
3,847 6,569 9,451
5,968 9,603 13,435
America Pacific
North Europe
15,283 26,975 39,406
5,629 8,998 12,542
4,308 7,439 10,333
Asia
Unit Thousand TEU, Oceania Pac. Isl.
Excluded Source UN ESCAP, Regional Shipping and
Port Development Strategies, 2001
26
Throughput at Asian Ports
(million TEU)
Asian Total
58.6 94.9
155.4 216.2
Source UN ESCAP, Regional Shipping and Port
Development Strategies, 2001
27
Transhipment Ports
Tokyo/Yokohama
Busan
Kobe/Osaka
Kwangyang
Shanghai
Taichung
Hong Kong
Kaohsiung
Port Klang
Colombo
Tanjung Pelepas
Singapore
28
Throughput at T/S Ports - 2011
(thousand TEU)
Source UN ESCAP, Regional Shipping and Port
Development Strategies, 2001