NOL says European planning process costing 540 million euros
Singapore-based Neptune Orient Lines, parent company of APL, today presented findings of research, commissioned by NOL, of London-based Drewry Shipping Consultants, which shows that the planning process alone for 12 north European terminal developments is costing an estimated 540 million euros($655 million).
The figure includes the cost of public inquiries, official planning submissions and legal fees, representing both commercial and public money.
The research also reported that delays and cancellations have meant a planned extra 11 million TEUs of capacity due to be available this year has not been built.
David Appleton, president of NOL Europe, presented the research findings at the TOC Europe Conference in Antwerp today. “Today we are seeing utilization rates in terminals of as much as 99 percent and an overall average of 87 percent,” Appleton said. “If the projects had gone ahead as planned, we would now be experiencing about 68 percent utilization, and those ports that are operating at 95 percent or above would be in a far more manageable situation.”
Appleton stressed the importance of a thorough planning process involving all stakeholders, with the container industry, including both maritime and land-based carriers, as well as importers, exporters and related service providers, accepting greater responsibility in advocating increased container handling capacity.
“We cannot simply expect the port community to carry this burden alone,” Appleton said. “We must make it clear to all those involved that what we seek is reasonable. And we must demonstrate that these projects are well thought out and critical to economic growth in the local region, throughout Europe and internationally,” he added.
NOL said that demand forecasts based on conservative growth rates call for a 50 percent increase in handling capacity by 2010, or 45 million TEUs rather than the 30 million TEUs available in 2004.
According to Drewry’s research, with the expansion plans approved, and assuming no further delays, there will be 55 million TEUs of capacity available by the end of the decade. This represents an average 83 percent utilization rate, which is only slightly above the 85 percent peak demand Drewry calculated is required to avoid widespread congestion.
“Stakeholders will be impacted directly or indirectly by the congestion problem and the solutions to it,” Appleton said. “By engaging actively and effectively with them, approval may be reached more quickly. We may see European ports start to cope better with the development of globalization: a development which shows no sign of reversing, or even slowing much in the years to come.”