Transport & Logistics
Global Trends in Shipping and Ports
June 2008
Agenda
Trends in shipping
General trends Tanker sector Dry bulk sector Container sector LNG sector
Trends in ports
Trends in shipping
Trends in shipping general trends
2007 Another strong year in world shipping
Long-term growth trend in tonnage demand has increased from 3 to 4% in the 1990s to 7 to 8% in the current decade. Worldwide tonnage demand for the world merchant fleet up 9% in 2007, compared to 7.6% in 2006, 5.6% in 2005 and 910% in 2003 and 2004. Slight improvement of utilisation rate in 2007. 2007 has been an extremely strong year for the dry bulk market, also other shipping market segments very probably gave owners a satisfactory profitability. 2008 will bring a slowdown of global economic growth. In the first four months of 2008 shipping freight rates have been record-high, despite the global economic problems.
Supply, demand and utilisation rate world merchant fleet (in cgt* million), 1990-2007
cgt million Utilisation rate
Supply Demand Utilisation rate
* cgt = compensated gross tonnes Source: R.S Platou Economic Research, 2008
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Trends in shipping general trends
More pronounced downside risk for shipping sector in 2008
Worldwide seaborne tonnage demand growth versus world economic growth, 1992-2007
Tonnage demand growth world merchant fleet
Market for world shipping still is primarily driven by emerging economies and especially China. Two largest uncertainties for 2008 are the seriousness of the US economic slowdown and the resulting impact on the rest of the world. Therefore more pronounced downside risk for world seaborne trade in 2008. The worldwide fleet is expected to grow by 9% in 2008, compared to 8.4% in 2007, while tonnage demand is expected to increase at a lower rate, leading to a moderate decline in utilisation rates and profitability for ship-owners.
World economic growth
Source: R.S Platou Economic Research, 2008
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Trends in shipping general trends
Record high ordering activity of new vessels in 2007
Healthy freight markets fuelled demand for tonnage in all newbuilding segments in 2007: the demand for new tonnage was 53% higher compared to 2006. New record high ordering of bulk carriers and container vessels in 2007. The demand for new ships by far exceeded the delivery capacity and the shipyards order backlog became even longer. High ordering activity led to an upward pressure on newbuilding prices. Abnormal variation in the price development between different types of tonnage: Huge demand for bulk carriers pushed prices in this segment up by 30 to 40%. Prices for tankers only increased by 6 to 16%. Building costs have risen because of increased wages, steel prices and equipment costs. Orders at the end of 2007 represented 41% of the existing fleet. High ordering activity in 2007 is not expected to continue at the same level in 2008.
Worldwide new orders by vessel type in cgt* (30,000 dwt+**) , 1998-2007
*cgt = compensated gross tonnes ** dwt = deadweight tonnes Source: R.S Platou Economic Research, 2008
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Trends in shipping general trends
Significant increase of fleet on order as a percentage of the worldwide active fleet
Percentage of the worldwide active fleet on order by type (% dwt* of fleet on order)
* dwt = deadweight tonnes Source: BRS, 2008
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Trends in shipping general trends
Favourable global shipping demand dynamics
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Trends in shipping general trends
Slight decrease of foreign-flagged deadweight tonnage in 2007
In general , the motivation to use a foreign flag may include Worldwide share of foreign-flagged deadweight tonnage, 1989 2007* more favourable tax regimes, conditions to finance ships and the possibility of employing foreign seafarers. Further growth in the use of foreign flags is limited by market restrictions in many countries with important cabotage traffic as well as government-controlled trade. At the same time, several countries have reduced the tax burden on nationally flagged vessels, thus achieving in some cases a return of previously foreign-flagged *Cargo-carrying vessels of 1,000 gross tonnes and above ships to the national flag. Source: Compiled by the UNCTAD secretariat on the basis of data
supplied by Lloyds Register Fairplay, 2007
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Trends in shipping general trends
Increasing attention on the issues of climate change and emissions
In terms of ton-miles, emissions from ships are very limited compared with other transport sectors. With the rapid growth in world shipping, the relative contribution of emissions from ships to the total pollutants burden is rising. There is increased pressure from all around the globe to reduce emissions (NOx, SOx and CO2) from ships. EU will not include shipping in its Emission Trading Scheme yet. Broad efforts are being made by the shipping industry to reduce emissions of greenhouse gasses, e.g.: A number of technical improvements for main engines, hull shapes and propulsion systems. A stepwise switch from heavy fuel oil to other fuels. More optimised weather routing systems. These combined efforts could reduce emissions by some 15 to 30% within the next 10 to 15 years. However, the simplest effort is to reduce the speed of ships: A speed reduction of 20%, e.g. down from 25 to 20 knots for container vessels, will almost halve bunker consumption and consequently of emissions of greenhouse gasses. The net effect is a reduction of about 35% since more ships are needed to carry on without changing transportation work.
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Trends in shipping tanker sector
The tanker market in 2007 took another step on its declining trend since its peak in 2004
World oil industry has been almost close to its full Supply, demand and utilisation rate worldwide capacity since 2004, oil consumption increased by tanker fleet (10.000 dwt+*), 1998 - 2007 only 1.0% in 2007. The worldwide tanker fleet in 2007 increased by 5%, while tonnage demand grew by 3.5%. The utilisation rate for the total tanker fleet fell by 1.5 percentage point. Worldwide transport distances increased by 2%, mainly driven by a rise in Chinese import distances. OPEC reduced output in 2007 to let the high level of commercial oil stocks from 2006 come down to a more manageable level in 2007. After a relatively strong first half of 2007, tanker freight rates fell to the lowest level in many years during the second half. As of mid-November, rates improved strongly because of a sudden rise in oil production, longer transport distances and a lot of slowsteaming due to * dwt = deadweight tonnes Source: R.S Platou Economic Research, 2008 much higher bunker prices.
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Trends in shipping tanker sector
Tanker freight rates are out of line with owners heavy investments
Another reason for the improving rates as of midNovember 2007 may be the growing number of conversions of single-hull tankers into bulk carriers. The healthy state of the offshore market also continues to attract units for transformation into FPSOs and FSOs*. Tanker freight rates are indisputably out of line with owners heavy investments. Finding qualified officers and crew has added another burden to the tanker operators. For 2008 a tonne-mile growth of 4-6% and a fleet growth of 5% is expected. In the next few years, the trend of conversions will continue to dilute the impact of the massive arrival of new tankers. Constant threat of geopolitical uncertainties, e.g. Middle East and Nigeria. Full implementation of the IMO rules have to eliminate single-hull ships by 2010. Freight rates crude carriers single voyage, 1998 - 2007
300,000 dwt 150,000dwt 105,000 dwt
Source: R.S Platou Economic Research, 2008
* FPSO = Floating Production Storage and Offloading, FSO = Floating Storage and Offloading
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Trends in shipping tanker sector
Zodiac Maritime Agency and Teekay Shipping change places in the worldwide top five tanker fleet ranking
Worldwide tanker fleet ranking, January 2007 and 2008
Kt (dwt*) Jan. 2007 Jan. 2008 18,966 17,156 14,020 13,669 9,083 10,140 8,037 8,971 8,345 8,329 7,326 8,164 7,189 7,509 6,811 7,117 7,544 6,976 5,934 6,339 5,951 6,198 6,164 6,066 5,005 5,317 4,149 4,566 6,289 4,559 Vessels Jan. 2007 83 93 42 70 71 70 29 64 29 21 29 26 42 43 42 Jan. 2008 71 92 47 82 69 74 30 63 29 29 29 24 46 48 30
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Fredriksen Group Mitsui O.S.K. Line NYK Line Teekay Shipping Zodiac Maritime Agency Overseas Shipholding Angelicoussis Group MISC Euronav (U.K.) Bergesen Worldwide Nat. Iranian Oil Vela International Tsakos Group Sovcomflot Dynacom Tankers
*: dwt = deadweight tonnes Source: Clarksons Tanker Register, 2007 and 2008
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Trends in shipping tanker sector
Chemical tanker freight rates in 2007 have been under pressure
Strong start of chemical carrier market in 2007, with a sharp drop in activity as from the summer. Phasing out of single-hull vessels has been quickly compensated for by the massive number of new ships ordered in 2004 and 2005 and some conversions. Freight rates have been under pressure in 2007 but are far from collapsing. Owners costs have risen strongly due to bunker prices, wages, insurance and amortisation. Globally, 2007 was profitable for most owners; this situation could well be reversed in 2008 because of massive arrival of new ships. New trades, such as bio diesel and ethanol, are developing rapidly, which may give owners hope. Switching between markets however is not always easy to manage.
Chemical tanker spot freight rates, 2,000 tonnes easy chemical, 2003 - 2007
Source: BRS, 2008
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Trends in shipping tanker sector
Strong growth of basis chemicals and plastics production expected for the next few years
Worldwide basis chemicals and plastics index versus GDP growth, 1985 - 2012 Market shares chemical tanker* owners, 2007 Total fleet 21.3 million dwt**, 773 ships
Odfjell; 10,6% Stolt-Nielsen; 10,1% JO Tankers; 3,6% Tokyo Marine; 3,9%
Other; 48,6%
Other majors; 23,4%
* Only deep sea ships of 13.000 dwt (deadweight tonnes) and above ** dwt = deadweight tonnes Source: Odfjell, 2008
Source: Odfjell, 2008
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Trends in shipping dry bulk sector
2007 strongest year ever for seaborne dry bulk transport
Growth of seaborne transport of dry bulk commodities in 2007 estimated at around 7%. Supply, demand and utilisation rate worldwide A significant increase was noticed in sailing distances bulk carrier fleet (10.000 dwt+*), 1998 - 2007 in 2007: Asian sourcing in iron ore from Brazil and longer trades in steel and cement because of Chinas increase in exports to Europe and the Middle East. Iron ore transports increased by 10%, China accounted for 85% of the total increase. Seaborne coal transport in 2007 climbed 7%, strongest relative growth in coal imports came from China and India. As sourcing countries Brazil for iron ore and Indonesia for coal held the key to increases in 2006 and 2007. Australian ports were saturated, leading to record delays. The active dry bulk fleet increased by 6.6% from 2006 to 2007. * dwt = deadweight tonnes Source: R.S Platou Economic Research, 2008 Fleet utilisation rate in 2007 increased by 6 percentage points.
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Trends in shipping dry bulk sector
Firm growth of worldwide seaborne coal and iron ore trade in 2007
Worldwide seaborne dry bulk trade, 1998 - 2007
Source: R.S Platou Economic Research, 2008
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Trends in shipping dry bulk sector
Yearly average bulk freight rates more than doubled in 2007
Yearly average bulk freight rates in 2007 more than doubled compared to the previous year; in some cases freight costs per tonne were higher than the price of the cargo. Record high ordering of bulk carriers in 2007 which pushed prices for new vessels up by 30 to 40%. Conversion of VLCCs and subsequently Suezmax, Aframax and even Panamax tankers into bulkers: 148 converted tankers set to enter the dry cargo markets during 2008 and 2009. With the subprime credit crisis that broke during the summer of 2007, will all the newbuilding projects secure financing? Supply and demand parameters for 2008 seem relatively balanced; it will prove much more challenging to obtain the kind of returns that 2007 offered. Critical factor is a possibly more significant setback in the world economy.
Timecharter rates bulk carriers (12 months), 1998 - 2007
Source: R.S Platou Economic Research, 2008
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Trends in shipping dry bulk sector
NYK Line has taken over the second position in the worldwide bulk carrier fleet ranking from Mitsui O.S.K. Lines
Worldwide bulk carrier fleet ranking, January 2007 and 2008
Kt (dwt*) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 COSCO NYK Line Mitsui O.S.K Lines K Line Zodiac Maritime Agency Cardiff Marine Inc. China Shipping K.G. Jebsen Shoei Kisen Enterprises Shipping Hanjin Shipping Nissen Kaiun Marmaras Nav. Ltd. Angelicoussis Group Bergesen Worldwide Jan. 2007 19,471 9,870 11,408 9,515 7,304 4,150 4,454 4,227 3,468 4,034 3,643 3,645 2,932 3,279 3,020 Jan. 2008 19,354 12,914 11,808 10,069 6,068 4,636 4,446 4,265 4,067 4,028 3,587 3,227 3,130 3,057 3,020 Jan. 2007 324 119 145 92 62 42 121 85 35 52 34 35 37 25 12 Vessels Jan. 2008 327 152 149 97 49 46 120 88 40 49 32 30 39 21 12
*: dwt = deadweight tonnes Source: Clarksons Bulkcarrier Register, 2008
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Trends in shipping container sector
Fall of the dollar continued to have a positive effect on ship occupancy ratios in the container shipping sector
Worldwide container ship demand in 2007 increased by 14-15%, while the increase in world container ship capacity amounted to 14.5%. The strongest increase in demand was noted on the trade lane from Asia to Europe. Fall of the dollar continued to have a positive effect on ship occupancy ratios. Container trade from Asia to the US in 2007 grew by only 2%, while trade in the other direction jumped 15%. European volumes to the US were basically unchanged while US exports to Europe rose 30%. Container ship fleet productivity in 2007 was reduced by increased port congestion, especially in Europe. This forced some operators to reschedule and expand their capacities by adding extra ships in order to better maintain schedules and save fuel costs. Freight rates in 2007 were slightly higher compared with the prior year, with wide variations between the different trade lanes. Container freight rates (quarterly) in $ / teu*, 1998 - 2007
* teu = twenty foot equivalent unit Source: R.S Platou Economic Research, 2008
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Trends in shipping container sector
The worldwide container fleet productivity is expected to decrease further in 2008
The container fleet is expected to expand around 13% in 2008, at about the same rate as container ship demand. Critical factors for container ship demand in 2008 are the performance of the world economy, a continued strong growth in European container imports from Asia and exchange rate developments (i.e. a strong Euro). The worldwide container fleet productivity is expected to decrease further in 2008: Many container operators plan to continue rescheduling services by including extra ships, especially in the trade from Asia to Europe. This is related to port congestion in most European ports, high bunker costs and environmental issues. According to ocean carriers, fuel consumption will be reduced drastically by operating their vessels at an economic speed of e.g. 20 knots instead of 25 knots, and overall operating costs will drop significantly.
Furnace oil consumption versus speed container vessels
Source: BRS, 2008
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Trends in shipping container sector
Firm growth of worldwide cellular container fleet in 2007
Worldwide fully cellular container fleet by year of built, 1998 - 2007
Source: R.S Platou Economic Research, 2008
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Trends in shipping container sector
Several other factors have an effect on the container shipping sector
The hike in bulk carrier charter rates has driven conbulkers and large multipurpose ships out of the container trades into the bulk trades; the shift of cargoes from bulkers to boxes remains modest, however. The increase in bulk carrier rates also provides an incentive to shift containerisable cargoes, like agro products, forest products, steel products and other minor bulks as commodities, from bulk carriers to containers. Further increase in container ship sizes. Persisting trade imbalance in container trades on east west routes, e.g. transpacific and Europe - Asia. Introduction of the Authorised Economic Operator status by the EU in January 2008. Because of the abolition of European conferences in October 2008, container carriers will have to compete without cartel arrangements. Controlling terminals increasingly is a key to success for carriers in the seaborne container trade market: Controlling terminals helps operators avoid the disruptions in schedules caused by the first come, first served principle or fixed berthing windows, with other carriers seeking the same window. A number of carriers set up terminal operating subsidiaries a while ago, others try their best to either enter or develop their existing activities in this sector. Trend was reinforced in 2007 with further initiatives in this direction in the years to come.
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Trends in shipping container sector
Leading trio controls one-third of the container liner market
The combined market share of Maersk line, MSC and CMA CGM group grew from 33.1% to 34.1% in terms of teu capacity during 2007. Maersks market share went down from 16.8% to 16.1%, MSC went up from 9.8% to 10.4% and CMA CGM went up from 6.6% to 7.6%. MSC and CMA CGM are further boosting their positions as they continue to take the ships that other lines are discharging or subletting. Several M&A deals in 2007, e.g.: CMA CGM bought niche carriers Cheng Lie Navigation, US Lines and Compagnie Marocaine de Navigation. Hamburg Sd acquired Costa Container Lines. Samskip acquired Team Lines from Delphis NV. Holland Maas Shipping was taken over by undisclosed buyers. Lemissoler Shipping company acquired Baltic Container Lines (BLC). Unifeeder was acquired by P/E investor Montagu.
Evolution of container operator market shares, 2000 - 2008
Source: Alphaliner, 2008
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Trends in shipping container sector
Orderbook of 13 actual global container carriers is 50% of their current operated fleet
Orderbook versus operated fleet of 13 actual global container carriers as of February 2008
Rank 1 2 3 4 5 6 7 8 9 11 12 13 14 Parent / main company Maersk Line MSC CMA CGM Evergreen Hapag-Lloyd China Shipping COSCO APL NYK Hanjin MOL K Line ZIM 13 actual global carriers Operated fleet Ships TEU Ships 535 1,932,000 84 373 1,234,000 62 377 895,000 76 177 625,000 11 139 497,000 11 140 434,000 40 141 431,000 60 125 403,000 39 118 386,000 41 84 350,000 41 111 347,000 34 93 308,000 35 113 290,000 41 2,526 8,132,000 575 Orderbook TEU 405,000 636,000 605,000 110,000 96,000 249,000 391,000 261,000 222,000 398,000 184,000 169,000 290,000 3,926,000
Share 21% 52% 68% 18% 19% 57% 91% 65% 58% 88% 53% 55% 100% 50%
Source: Dynamar, 2008
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Trends in shipping container sector
Orderbook of container vessels with a capacity of more than 7,500 TEU is twice as large as current operated fleet
Operated container fleet and orderbook by size category as of February 2008
Size (TEU) category > 7,500 > 5,000 > 4,000 > 3,000 > 2,000 > 1,000 > 100 Total Operated fleet Ships TEU 190 1,671,000 413 2,415,000 401 1,780,000 315 1,072,000 693 1,749,000 1,190 1,647,000 1,150 696,000 4,352 11,057,000 Orderbook Orderbook share (TEU)
Average TEU Ships TEU Average TEU 8,800 330 3,530,000 10,700 5,800 177 1,084,000 6,100 4,400 256 1,121,000 4,400 3,400 72 248,000 3,400 2,500 155 401,000 2,600 1,400 305 439,000 1,400 600 144 119,000 800 2,500 1,439 6,942,000 4,800
211% 45% 63% 23% 23% 26% 17% 63%
Source: Dynamar, 2008
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Trends in shipping LNG sector
Export capacity of LNG in 2007 was limited by utilisation rates of the liquefaction plants
The worldwide demand for LNG carriers in 2007 increased by an estimated 13%. Important drivers: increase in traded volumes and increased transport distances. Higher prices in the Far East in 2007 attracted a number of cargoes from the Atlantic basin twice as much as in 2006. Bottleneck in the LNG market was the export capacity which is limited by the utilisation rates of the liquefaction plants. The worldwide LNG fleet in 2007 grew by 17% (34 vessels), resulting in drop in the utilisation rate. Only 25 new vessels were ordered in 2007: due to significant cost increases for new liquefaction plants, many projects experienced delays and thus delayed the ordering of new ships. The LNG fleet is set to grow by 22% in 2008, while demand volumes may grow by only half this amount, leading to a further decline in the utilisation rate of LNG vessels.
Worldwide LNG liquefaction capacity versus shipping transportation capacity (below 35 years), 2007 - 2020
Source: BRS, 2008
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Trends in shipping LNG sector
Utilisation rate of LNG carrier fleet declined in 2007
Supply, demand and utilisation rate LNG carrier fleet 10,000+ cubic metre, 1998-2007
Source: R.S. Platou Economic Research, 2008
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Trends in shipping LNG sector
The United States will likely be one of the main areas of LNG import growth in the coming years
For now, Asia remains the biggest buyer of LNG: Japanese imports comprised more than half of Asias imports in 2007. US will likely be one of the main areas of import growth in the coming years: North America may likely offer some 50% of the future world demand growth. Enormous future needs because of new LNG projects. Planned an possible future projects by Qatar, Iran, in the Gulf of Guinea and by Russia in the Arctic. New LNG ship concepts will be developed in the next few years, fulfilling or even creating new niche businesses, e.g.: Ships with an onboard liquefaction capacity and an LNG storage capacity. Floating factories similar to FPSO.
Implementation of LNG projects until 2020
Source: BRS, 2008
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Trends in ports
Trends in ports
Continuing strong traffic growth at Chinese ports
Goods transshipments at the worlds largest ports (million metric tonnes), 2004 - 2007
0 Shanghai 1 Singapore Rotterdam Ningbo Guangzhou Tianjin Qingdao Hong Kong 1 Dalian Nagoya 2 Antwerp Hamburg
1: Including inland navigation 2: Freight tonnes Source: Port authorities, 2008
100
200
300
400
500
600
2004 2005 2006 2007
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Trends in ports
Shanghai to overtake Singapore as the largest container port in the world in 2008?
Top 10 container ports and their throughput (thousand TEU), 2004-2006
0 Singapore Shanghai 1 Hong Kong 1 Shenzhen Busan Rotterdam Dubai Ports Kaohsiung Hamburg Los Angeles Antwerp
1: Including inland navigation Source: Port authorities, 2008
5.000
10.000
15.000
20.000
25.000
30.000
2004 2005 2006 2007
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Trends in ports
Global container port capacity is reaching critical levels
Global container port capacity is reaching critical levels. Development of new port capacity in countries like China is fast, but in other regions (like US and Europe) much slower, due to many procedures (i.e. public inquires, Environmental Investigation Agencies, inefficient hinterland connects, etc.). As from 2006 there is increasing interest of investment banks and other financial institutions to invest in the container terminal business, e.g.: Goldman Sachs purchased a 49% stake in operator SSA Marine. Insurance conglomerate American International Group (AIG) bought the US terminals of DP World. A unit of Deutsche Bank bought Maher Terminals. Terminal valuations have doubled in 2005 and 2006 and have increased even further in 2007.
Global container terminal capacity / utilisation, 2002- 2011
Global terminal capacity in TEU millions Global terminal utilisation in %
Source: APM Terminals, 2007
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Trends in ports
Container port industry growth is expected to continue as a result of globalisation and higher global wealth
Global container port market growth, 1996 - 2011
Source: APM Terminals, 2007
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Trends in ports
Considerable delays in the planned opening of terminals and the actual opening of the container handling facilities
Delays in the planning process some cases in Northwest Europe
Development of initial plans 1994 1995 2000 1991 1998 n.a. n.a. n.a. n.a. n.a. n.a. n.a. Proposed date for Actual or earliest date start of operations for start of terminal (first phase) operations 2003 2006 2001 2005 2004 2008 2002 2013 / 2014 2003 2008? 2006 2010 2006 Never 2000 Never 2006 2009 2004 2008 2006 2007 2000 2007
Le Havre 'Port 2000' - France Antwerp - Deurganck Dock - Belgium Rotterdam - Euromax Terminal - the Netherlands Rotterdam - Maasvlakte II - the Netherlands Deepening Westerscheldt* - the Netherlands / Belgium Wilhelmshaven / JadeWeserPort - Germany Cuxhaven - Germany Dibden Bay - UK London Gateway - UK Bathside Bay - UK Felixstowe South - UK Hull Quay 2000/ 2005
* Nautical access to the port of Antwerp Source: T. Notteboom and J.-P. Rodrigue, 2006
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Trends in ports
Growing involvement of private investors in port projects leading to increasing EV / EBITDA multiples
Enterprise Value / EBITDA of terminal transactions, November 1999 June 2006
Source: HSBC and various publicly available information, 2007
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Trends in ports
Policy decisions can have a substantial impact on the business agreement and valuation of terminal transactions
Policy decision Term of concession Description Length of time that a concession partner will be allowed to lease and operate the asset Considerations What is political sensitivity to term of concession? What is value of incremental term length? Public appetite for future increases What is the elasticity of demand? What enhancements are necessary? Future expansion if capacity is constrained Is this good public policy? What are future capital plans that could have an impact if any? Allowance for phasing could enhance feasibility What construction factors are important? What are operating and maintenance conditions that are most important?
Will the concessionaire be held to the
Rates Expansion / enhancements
Rate increases and limits will be mandated Will the port allow or mandate future expansion /
enhancements to the asset?
Non-compete
Potential commitment of the port to limit
competitive development
Construction requirements
Capacity constraints, if any and other
requirements Materials and methods
Operating and maintenance standards Labour
Manual of specific operation conditions and rules
to which a concession partner must adhere
Status of existing employees Conditions for new concession company
port's employment standards?
Environmental
employees Responsibility for existing potential environmental liabilities, if any
Source: Goldman Sachs, 2007
Are the any known environmental
liabilities?
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Trends in ports
Major port holdings are extending their network of dedicated maritime container terminals
Dedicated maritime container terminals controlled by major port holdings, 2007
South America / Caribbean 3 3 8 South Asia / Middle East 5 12 2 1 14 20
Holding APM Terminals Dubai Ports World Hutchison Port Holdings Port of Singapore Authority Total
Source: Hofstra University, 2007
Australia
Europe 7
North America 13 1
Pacific Asia 7 10 21 18
Total 35 40 39 29 143
9 7 10
33
14
56
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Trends in ports
Most container terminal operators have expanded internationally from a clearly identifiable home port
Container volumes handled by global terminal operators - 2006
Source: Drewry Shipping Consultants, 2007
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Trends in ports
A range of companies from historically distinct industries all see their future in the provision of value added logistics services
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Trends in ports
The main rationale behind the emergence of large port holdings covers five key areas
Financial assets Managerial expertise Gateway access
Large financial assets and the capacity to tap global financial markets. Terminals as equity generating returns. Experience in the management of containerised operations. IT and compliance with a variety of procedures. Establishing hinterland access. Creation of a stronghold. Provides a stable flow of containerised shipments. Development of related inland logistics activities. Negotiate with maritime shippers and inland freight transport companies favourable conditions. Some are subsidiaries of maritime shipping companies. Capture and maintain traffic for their terminals. Comprehensive view of the state of the industry. Anticipate developments and opportunities.
Leverage
Traffic capture Global perspective
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