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Global container terminal operators extend influence

Global container terminal operators extend influence

   Two-thirds of all container traffic in the world is now handled at facilities owned fully or partly by global terminal operators –companies with terminal interests in more than one geographic region.

   A new report from Drewry Shipping Consultants said global terminal operators “are a small, but powerful group within the container shipping industry. In 2005 terminals fully or part-owned by companies in this category accounted for over 58 percent of container port capacity and 67 percent of global throughput.”

   Drewry said the terminals of 24 leading global operators handled 267.4 million TEUs in 2005, a 14 percent increase over 2004. A total of 399 million TEU moved through all container terminals in 2005, an 11.3 percent increase over 2004.

   Drewry noted that not all these terminals are owned fully by global terminal operators. But even when adjusted to reflect their actual equity share, the global terminal operators handled over 44 percent of the world’s containers.

   Operating container terminals is a good business, Drewry said.

   “Continued expansion of the world’s containerized cargo trades helped generate higher revenues for most of the global terminal operators in 2005, Most of those companies that place figures in the public domain showed higher earnings and very healthy profit margins,” the London-based consultant said.

   Global terminal operators are expanding by securing concessions to operate new terminals and building new facilities. Consolidation in the industry was highlighted in 2005 by deals such as DP World’s acquisition of CSX World Terminals, PSA’s purchase of shares in Hong Kong terminals, and APM’s pickup of additional terminal interests through Maersk’s purchase of P&O Nedlloyd.