Category Archives: Shipping Port Investments

The increasing number of shipping port investments shows steady and increasing growth in the international shipping industry and more interest from investors.

shipping industry invests in proven potential

Shipping Industry Invests in Regions With Proven Potential

A majority of people would agree that the world’s economy has been confronted by challenges which have adversely affected many of the key sectors that have historically encouraged growth, such as the shipping industry for example.

With approximately 90 percent of world’s trade being transported by the global shipping industry, the successes (and failures) of industry leaders – such as Maersk Line make important contributions to international economic growth, or in some instances the lack thereof. Generally speaking, their performance is a strong indication of what the investment community can expect from global GDP, and their returns on investment.

Despite the fact that at this moment the global shipping industry and world trade are struggling along-side a battered world economy, industry and investor confidence is rising and strategic investments are continuing to fuel economic prosperity. Whether it be in developed or emerging markets, investors and industry leaders are identifying and capitalizing on opportunities to invest in global trade and drive growth.

Dubai port/terminal operator DP World is a great example of an industry leader that is investing in economic growth. The company has made a half-a-billion dollar commitment at Berbera port that will deliver the necessary investment needed to return the region to a major African trading hub and ignite the regional economy. Also, DP World has begun a $1.2 billion multi-purpose port project at Posorja in Ecuador, which is expected to increase the country’s competitiveness there as well. Company officials are confident that both are investments in emerging markets that show strong potential for future advancement. These two sizable commitments in Africa and South America demonstrate the importance of establishing a long-term investment plan.

dp world port project posorja ecuador

Choosing a path that may not be popular with critics requires confidence and careful planning. Just as DP World has done in developing markets, look to regions with established patterns of growth, stability, and potential. Albeit there are financial challenges all across the globe, there are a surprising number of economies that are performing very well, particularly when compared to more advanced, developed countries like the United States.

During times of economic turmoil, investors – whether they be private or institutional – must seek-out alternatives to traditional investing strategies, looking closely to identify markets that are enjoying consistent growth and prosperity. It is within these opportunities that shipping industry leaders have demonstrated that consistent performance and profits can be found.

big container ships need big port nvestment

Big Container Ships Mean Big Investment For Shipping Ports

All around the world, people inside and outside of the shipping industry are talking about the arrival of enormous container ships, some of which are capable of transporting a full cargo load of 18,000+ TEU. What the awestruck conversation does not include is the sizable port investment needed to accommodate the (approximately) 400 meter vessels.

Unbeknownst to most, the new gigantic ships – nearly the length of four football fields laid end to end, have created logistic demands that many ports were unprepared for. From dredging channels and harbors, to bigger ship-to-shore cranes, improved roads, railways and infrastructure, port operators are (in many cases) struggling to meet the increasing demands of container shipping lines.

Here is some insight into the port investment needed to accommodate the world's largest container ships: Click To Tweet

Dredging

With a draft of nearly 16 meters (53 feet), the world’s largest container ships need additional room to manoeuvre through shipping channels and into harbors and ports. Using Dredgers to deepening waterways carries with it a sizable investment, that can challenge ports with a multi-million dollar price tag.

U.S. lawmakers are set to agree on a bill to authorize up to $12.5 billion for dredging U.S. harbors and waterways, flood control and environmental restoration. The Lawmakers have already begun negotiations to merge House and Senate water resource bills passed earlier this year with rare bipartisan agreement.

Ship to Shore Cranes

Not only are the new container shipping vessels long, they are also incredibly wide. With a beam of nearly 60 meters (194 feet), many of the world’s ports’ existing cranes are unable to reach all the way across these mammoth ships. At a cost of tens-of-millions-of-dollars, and months of preparation, a new ship to shore crane is a sizable investment in time and money. This is something not many ports are fortunate to have.

Liebherr Maritime Cranes is one of the companies enjoying the increased investment and competition between ports which the shipping industry is witnessing. In Latin America for instance, the company has recently received orders for seven additional mobile harbour cranes following a remarkable success achieved in 2013 in the same region, receiving 12 orders in only 12 months …

Infrastructure

More containers on shipping vessels means more equipment to move them, more space to store them, more railway cars to deliver them and more planning to accommodate them. As you can imagine, the only way to meet these demands is more money.

In Russia, a new study recently released, suggested that Russian ports will see a doubling of their cargo volume by the year 2030; with an expected increase of container volumes of up to 5.5 times in the same time period. This prediction has forced the Russian government to take a focused look at what is going to be required, with regards to port, transportation and infrastructure investments to facilitate the anticipated growth.

Analysts the world over agree that investing in shipping ports is good for regional economies, as well as the global economy. This is supported by governments and officials on every continent, who continue to make strong commitments, in both their actions and investment dollars.