CapEx or Capsize: International Port Analysis

Press Release
Tuesday, April 09, 2013

New report examines evolving trade patterns resulting from the upcoming 2015 Panama Canal expansion

The Colliers International report, "CapEx or Capsize," underscores the idea that cities need to spend the capital to upgrade their ports, or risk "capsizing" their economies. Report author, KC Conway, notes that America needs $3.6 trillion in funding for infrastructure by 2020 to remain competitive in light of the upcoming Panama Canal expansion.

"This is 'make-it-or-break-it' time for North America's port cities," said KC Conway, chief economist for Colliers International in the U.S. "Changing trade patterns and evolving e-commerce trends will present great economic opportunities for the cities that that invest CapEx in their transportation infrastructure. And for those cities that don't invest, they put their economies at serious risk."

The report also looks at emerging inland ports and intermodal facilities in markets such as Charleston, Indianapolis, Philadelphia and the Great Lakes, and the impact that the Panama Canal expansion and changing global trade patterns are having on industrial commercial real estate.

Key Findings
Colliers identifies a number of key takeaways, including:

    •    Poor Infrastructure. The American Society of Civil Engineers (ASCE) recently gave America's overall infrastructure a D+ grade. Although ports and rails earned a C, America's infrastructure is only as healthy as its weakest link: inland waterways, roads and airports. Further developing and capitalizing on some of these more basic, traditional modes of transportation would be beneficial to U.S. economies.
    •    Shift in Trade Powers. The balance of influence in trade is shifting from Asia to Latin America, and from West Coast to Gulf/East Coast ports. Expanding U.S. trade with Latin America, Russia and India offset the impact of Eurozone recession and China's slowing GDP.
    •    Growth in the Great Lakes. The Great Lakes region is an often overlooked "Fourth Coast." But this region is the undisputed leader in bulk cargo trade, processing roughly 240 million tons of cargo annually, and its ports accounted for 28 percent of the U.S. GDP in 2012.
    •    The Future of Air Cargo. Air cargo is expanding primarily in the Middle East, Africa, and Asia Pacific, where underdeveloped infrastructure makes air freight the primary option. In North America, however, only a handful of air cargo centers will survive, as overall volume declines and e-commerce becomes the primary business driver. Air cargo's role in the future of global trade will be defined by the tug-of-war between energy/infrastructure costs and e-commerce growth in the first post-Panamax decade (2015-2025).
    •    Intermodal on the Move. Intermodal transportation activity was at an all-time high in 2012, and is the next transportation growth segment in the post-Panamax era. Industrial real estate development in 2013 is directionally pointed toward port markets, inland distribution markets with dominant intermodal facilities, and a handful of dominant air cargo markets. Several differentiating trends will dictate where industrial real estate will be most in demand, including port markets that are post-Panamax ready, occupy a commodity or product niche, and are aligned with the national intermodal rail system.
    •    Rise of the Rail. More container cargo will migrate to rail due to new hours-worked rules and other regulations affecting the trucking industry. Rail speed, reliability, and cost now rival movement of goods by truck. And, environmental and traffic congestion challenges will enhance the movement of cargo traffic to rail.

A complete PDF version of the 13-page report is available here.
 

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

OTC Names Technology Award Winners

The Offshore Technology Conference (OTC), which takes place May 4-7 in Houston, has announced 17 technologies that will receive the Spotlight on New Technology SM Award.

Jack W. Fisher Passes Away at 73

Jack W Fisher, president of JW Fishers Mfg. passed away at home after a brief illness on February 20, 2015. He was 73 years old.   The JW Fishers business was started because Fisher,

Piracy Still a Big Threat in the Indian Ocean

Underestimating the security risk in the Indian Ocean could put ships in danger once again, says maritime security company MAST Ltd.   “Whilst recent reports

Ports

Scandlines Concludes Sale of Freight Routes

First State Investments is taking over the ferry route Helsingør-Helsingborg including the five vessels operating the line. The contract with First State Investments

Toyota Kirloskar, Kamarajar Port Ink Deal for Expansion

Toyota Kirloskar Motor Pvt. Ltd. (TKM)  signed an MoU with Kamarajar Port Ltd. (KPL) in order to help facilitate the expansion of its export business. The MoU

Houston Ship Channel Reopens After Ships Collide

The Houston Ship Channel has reopened after a collision between a container ship and a chemical tanker, according to a spokesman with the United States Coast Guard.

Container Ships

IACS Comments on MOL Comfort Report

The International Association of Classifications Societies (IACS) informs it will study the final report issued in Japan by the Committee on Large Container Ship Safety (CLCSS),

Are Megaships Game Changers?

Bragging rights for the world’s largest container ship have changed hands four times in as many months and keep on shifting again, says a report in the Bloomberg.

Port of San Pedro Seeks to Fund Upgrades with European Roadshow

Ivory Coast's second largest port of San Pedro will hold a roadshow in France and Britain next month as it seeks to raise 180 billion CFA francs ($300 million) to fund upgrades,

Logistics

St. Lawrence Seaway Opening Date Pushed Back

Tthe opening date for the St. Lawrence Seaway 2015 navigation season has been delayed following review and consideration of factors and conditions affecting safe

Drop in Cocoa Bean Size Worries Ivorian Exporters

Dry weather in top cocoa grower Ivory Coast has caused a sharp drop in bean size and will delay the start of the April-to-September mid-crop by nearly two months,

Tor Svensen: Europe Must Drive Maritime Sector

Europe has a major role to play in driving the maritime industry forward, said Tor Svensen, CEO of DNV GL – Maritime, in his keynote speech on innovation at the European Shipping Week in Brussels.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2708 sec (4 req/sec)