Report: Middle East, South Asia set for sustained box growth

Report: Middle East, South Asia set for sustained box growth The Middle East and South Asia are set for continued strong container growth through 2020, according to research by Ocean Shipping Consultants Ltd. based in the United Kingdom.
   OSC's study, Containerport Markets in the Middle East and South Asia to 2020, shows demand in the regions has accelerated in recent years due to strong oil prices, a measure of deregulation and investment in the Indian subcontinent, and the integration of the regions into the major east/west trades.
   The Surrey-based consultants said that Middle East throughput increased to 22 million TEUs in 2006, up 291 percent compared to 5.6 million TEUs in 1995, while South Asian throughput jumped 260 percent over the same period to 11.8 million TEUs.
   Using different economic growth scenarios, OSC gave the following forecasts for total combined container port demand in the Middle East and South Asia:
   ' Case I: 169 percent to 84.76 million TEUs during 2005-15, and 46 percent to 123.37 million TEUs during 2015-2020.
   ' Case II: 134 percent to 74.31 million TEUs during 2005-15, and 34 percent to 99.61 million TEUs during 2015-2020.
   ' Increased-Risk Case: 99 percent to 63.66 million TEUs during 2005-2015, and 36 percent to 86.42 million TEUs during 2015-2020.
   'Whilst demand is very strong in India, the capabilities of its ports and terminals remain limited, and the connectivity of these facilities with major hinterland markets is under mounting pressure,' OSC said.
   'Planned major investment will need to be realized to accommodate anticipated growth, and coping with congestion will require a transformation of terminal productivity.
   'In the Gulf, by contrast, investment in new container facilities is running at very high levels, with oil wealth being directed into intense infrastructure programs. Here, the danger may be of overcapacity,' OSC said.