Mega ships, mega ports make winners, losers of port operators: APMT
THE advent of mega ships has prompted a need for mega ports in strategic locations, resulting in a shake out that will make winners and losers in the terminal business, says APM Terminals CEO Kim Fejfer.
Speaking at the 18th Annual Global Liner Shipping Conference in London, Mr Fejfer said: "Carriers are consolidating port calls to achieve network efficiency and tailor their networks to bigger import/export gateways and super large hub terminals.
"Successful ports will offer strategic locations, ideal navigational access and deep water," said the APMT chief, reported American Shipper.
"In the past we handled 13,000-TEU vessels. Now we handle vessels 50 per cent larger - and you need to be ready to handle these 20,000-TEU ships in all your ports or watch the business move elsewhere," he said. "Trade will always find the most efficient way to flow."
A decade ago, a large terminal with 900 metres of quay could handle three or more vessels simultaneously. Today, with vessels reaching lengths of 400 metres, the same terminal "can only accommodate two ultra-large vessels at once to handle the same number of container moves," Mr Fejfer said.
"Now there is a need for more yard space, larger gates and more manning to handle the volume peaks in the terminal infrastructure. These result in additional costs to the terminal operator, which the shipping lines are not ready to pay for.
"At the individual port complex level, there is a need for a port shake-up," he said. "At the ports of Los Angeles and Long Beach, there are 15 different container terminals with the various alliances wanting to call on their respective terminals, creating cost and waste in intra-terminal transfers.
"If port operators are to contribute to the efficiency of shipping lines we have to drive rationalisation, consolidation and segmentation to serve the larger vessels and smaller vessels, more investment is needed in port infrastructure," he said.
THE advent of mega ships has prompted a need for mega ports in strategic locations, resulting in a shake out that will make winners and losers in the terminal business, says APM Terminals CEO Kim Fejfer.
Speaking at the 18th Annual Global Liner Shipping Conference in London, Mr Fejfer said: "Carriers are consolidating port calls to achieve network efficiency and tailor their networks to bigger import/export gateways and super large hub terminals.
"Successful ports will offer strategic locations, ideal navigational access and deep water," said the APMT chief, reported American Shipper.
"In the past we handled 13,000-TEU vessels. Now we handle vessels 50 per cent larger - and you need to be ready to handle these 20,000-TEU ships in all your ports or watch the business move elsewhere," he said. "Trade will always find the most efficient way to flow."
A decade ago, a large terminal with 900 metres of quay could handle three or more vessels simultaneously. Today, with vessels reaching lengths of 400 metres, the same terminal "can only accommodate two ultra-large vessels at once to handle the same number of container moves," Mr Fejfer said.
"Now there is a need for more yard space, larger gates and more manning to handle the volume peaks in the terminal infrastructure. These result in additional costs to the terminal operator, which the shipping lines are not ready to pay for.
"At the individual port complex level, there is a need for a port shake-up," he said. "At the ports of Los Angeles and Long Beach, there are 15 different container terminals with the various alliances wanting to call on their respective terminals, creating cost and waste in intra-terminal transfers.
"If port operators are to contribute to the efficiency of shipping lines we have to drive rationalisation, consolidation and segmentation to serve the larger vessels and smaller vessels, more investment is needed in port infrastructure," he said.