Industry Analysis & Industry Trends
About 80% of international freight is transported by sea. Marine port operators worldwide are literally and figuratively in the middle of growth in international trade. The main factors that have assisted the industry's growth in recent years have been trade liberalization, world GDP growth, and ongoing growth of Asian economies. Through the process of trade liberalization government incentives for domestic industries have been wound back. Ongoing negotiations, both global and regional, are reducing restrictions on trade between nations. This process has creating more of a level playing field for cross-border trade.
The outcome has been a boom in global trade in the years through to 2009. Industries have been transformed as supply chains have grown in complexity... read more
Industry Investment
Marine port operation has a medium level of capital intensity. A new operator looking to enter the industry will require up-front investments to be made on cranes, lifting equipment, and storage. IBISWorld estimates that in 2012 $3.26 is spent on labor for every dollar spent on capital in the industry. An operator looking to establish a relatively small 200,000 TEU capacity terminal will require hardware such as two new Panamax-size cranes and four rubber-tired gantry cranes. The cost for this equipment is in the area of $20 million - a substantial amount for even the established port operator with existing cashflow. Because of these high costs, access to credit is essential for most operators... read more