Drewry study finds more investment in terminals needed

Drewry study finds more investment in terminals needed Despite huge amounts of money being spent on mergers and acquisitions in the port sector, a new report from Drewry Shipping Consultants said additional container capacity is needed.
   “The last 18 months have seen an unprecedented and extraordinary level of M&A activity in the sector. Never before have so many major deals been seen in such a short space of time, and never at such high valuations. In North America alone, 10 major deals with a total value of over $8 billion were transacted,” said Neil Davidson, research director for the London-based consultant.
   But Drewry said its report “suggests strongly that a substantial amount of additional capacity enhancements need to be confirmed very soon if a serious terminal capacity shortage is to be avoided. Congestion and delays to shipping are likely to increase in severity, unless further capacity can be brought on stream within the next five years, over and above that already confirmed.”
   “The situation facing the container shipping industry remains serious, with a deteriorating balance between supply and demand in the container terminal sector in prospect unless more new capacity enhancement projects are rapidly brought on stream” Davidson said. “The report demonstrates that the substantial known and confirmed investment programs being undertaken by the leading global terminal operators and other industry players aren’t enough to prevent an increase in utilization levels to a critical point.”