SOME 350 upcoming expansion projects aim to add 270 million TEU of container handling capacity between now and 2023, according to DS Research's 5th Container Terminal Project Pipeline report.
'The purpose of project announcements is to attract interest from investors and potential customers. Therefore, what is announced usually exceeds what is actually built,' said analyst Daniel Schaefer.
'At the same time, we expect that about two-thirds of the expansion projects included in our project pipeline will in fact get completed, with execution rates ranging from 40 per cent for North Africa to about 70 per cent for Southeast Asia and Oceania.'
Container handling capacity has grown at a relatively stable level of 40-50 million TEU annually, largely surpassing demand growth, the research stated. Over the past four years 300 projects have been developed that injected 185 million TEU of new capacity, yet container throughput only rose by 63 million TEU.
As trade tensions mount and terminal utilisation rates are overall low, terminal operators tend to be more hesitant to invest in new terminals, UK's Port Strategy reported.
However, DS Research expects container handling capacity to expand more in line with demand. Container port demand is projected to rise by 210 million TEU (4.3 per cent CARG) until 2023, whereas container-handling capacity is anticipated to increase by 260 million TEU (3.4 per cent CAGR) over the same period.
Most of the listed projects are small or medium sized - 75 per cent of all projects due for completion by 2023 provide a capacity expansion of below one million TEU.
'The purpose of project announcements is to attract interest from investors and potential customers. Therefore, what is announced usually exceeds what is actually built,' said analyst Daniel Schaefer.
'At the same time, we expect that about two-thirds of the expansion projects included in our project pipeline will in fact get completed, with execution rates ranging from 40 per cent for North Africa to about 70 per cent for Southeast Asia and Oceania.'
Container handling capacity has grown at a relatively stable level of 40-50 million TEU annually, largely surpassing demand growth, the research stated. Over the past four years 300 projects have been developed that injected 185 million TEU of new capacity, yet container throughput only rose by 63 million TEU.
As trade tensions mount and terminal utilisation rates are overall low, terminal operators tend to be more hesitant to invest in new terminals, UK's Port Strategy reported.
However, DS Research expects container handling capacity to expand more in line with demand. Container port demand is projected to rise by 210 million TEU (4.3 per cent CARG) until 2023, whereas container-handling capacity is anticipated to increase by 260 million TEU (3.4 per cent CAGR) over the same period.
Most of the listed projects are small or medium sized - 75 per cent of all projects due for completion by 2023 provide a capacity expansion of below one million TEU.