An updated IBISWorld market research report reveals opportunities for growth in Australian port trades.
According to IBISWorld industry analyst Caroline Finch, “IBISWorld forecasts compound annual revenue growth of 2.3% over the five years through 2012-13”. In the current year, the industry is expected to grow 7.0% to reach $3.39 billion.
The report indicates that atrong growth in the value of total merchandise trade has been the primary driver behind the Port Operators industry's solid performance over the past five years. The value of merchandise trade exports has grown faster than the value of merchandise trade imports because of high demand for commodity exports.
As more cargo moved through Australia's ports, the industry gained more opportunities to charge for its port services. Therefore, bustling activity in trade to and from Australia led solid growth in port operator revenue over the past five years.
The Port Operators industry has a medium level of industry concentration, and the major players in the industry are North Queensland Bulk Ports Corporation Limited, Gladstone Ports Corporation Limited, Port of Melbourne Corporation, Sydney Ports Corporation and Fremantle Port Authority.
In the past five years, industry operators have expanded facilities and sacrificed the profit margins that come with full capacity utilisation to do so. Purchase costs and depreciation have also increased due to this expansion. “Construction is ongoing at the nation's ports, which positions the industry well to grow in the five years through 2017-18,” Finch adds.
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