THE Hong Kong Shanghai Banking Corporation's (HSBC) "transport Indicators report shows that global box trade growth of five per cent in 2014 is expected to continue in 2015, with Asian terminals being the big winners on robust transpacific demand.
Most likely to win big, according to HSBC, is Manila's ICTSI, with Argentine and Colombian terminals opening this year as well as operational leverage from its new terminals in Mexico and Honduras starting up in the second half.
Hong Kong-listed China Merchant Holdings International (CMHI) too is cash rich and ready to grow with $2.5 billion war chest to be disposed of over the next two years.
"In terms of profit growth, we forecast double-digit earnings growth for Cosco Pacific during 2014-16 driven by the maiden contribution of Asia Container Terminals [bought last March], the turnaround of Xiamen and higher operating and financial leverage at Piraeus and Guangzhou-Nansha," said HSBC.
"The recent rebound in throughput growth at Shenzhen port suggests a strong momentum for Asia-US trade growth and bodes well for China Merchant Holdings International, Cosco Pacific and Hutchison Port Holdings," said the report.
But profits will be under pressure. "With little increase in handling fees in recent years, we continue to expect a pressure on margins due to increases in labour costs," said HSBC. "Some of the port operators will be looking to increase container handling fees in 2015, although it is interesting to see how shipping lines react given liner profitability in 2015 will still probably be marginal."
HSBC said profitability of major Asian terminal operators would most likely be driven by acquisitions as organic growth slows.
"The latter half of 2014 has suffered from significant port congestion in major ports globally which resulted in delays and cost overruns for shipping lines and may require ports to further invest in existing infrastructure - cranes and yard space - as bigger vessels are deployed and the two newly formed shipping alliances, 2M and Ocean Three, commence operations," the study said.
WORLD SHIPPING
05 January 2015 - 20:46
Asian terminal operators to win big in '15, says HSBC transport study
THE Hong Kong Shanghai Banking Corporation's (HSBC) "transport Indicators report shows that global box trade growth of five per cent in 2014 is expected to continue in 2015, with Asian terminals being the big winners on robust transpacific demand.
WORLD SHIPPING
05 January 2015 - 20:46
Asian terminal operators to win big in '15, says HSBC transport study
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