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 June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

London, Brazil Terminals Boost DP World Container Volumes

DP World , one of the world's biggest port operators, said on Thursday that its gross container volumes rose 10.7 percent from a year earlier in the first half of 2014.

Abu Dhabi Ports Shift Far More Breakbulk Cargo

Abu Dhabi Ports Company (ABPC) says that general cargo moving through Abu Dhabi’s commercial Ports has increased by 37% this year. ADPC’s commercial ports (Musaffah,

U.S. Naval Academy: New Superintendent

The U.S. Naval Academy (USNA) has held a change of command ceremony in Annapolis, Maryland, where Vice Adm. Walter E. "Ted" Carter Jr. relieved Vice Adm. Michael Miller,

Ports

London, Brazil Terminals Boost DP World Container Volumes

DP World , one of the world's biggest port operators, said on Thursday that its gross container volumes rose 10.7 percent from a year earlier in the first half of 2014.

Abu Dhabi Ports Shift Far More Breakbulk Cargo

Abu Dhabi Ports Company (ABPC) says that general cargo moving through Abu Dhabi’s commercial Ports has increased by 37% this year. ADPC’s commercial ports (Musaffah,

Jacksonville Dedicates New PORTS® Real-time Data System

Officials from NOAA, the Jacksonville Marine Transportation Exchange, and the Jacksonville Port Authority officially dedicated a new information system today

Container Ships

London, Brazil Terminals Boost DP World Container Volumes

DP World , one of the world's biggest port operators, said on Thursday that its gross container volumes rose 10.7 percent from a year earlier in the first half of 2014.

CMA CGM MANET in Sydney with Select Burgundy Wines Cargo

CMA CGM Group is pleased to announce that the CMA CGM MANET will arrive in Sydney International Container Terminals in Australia on July, 22nd. The bottles of

Travel Aboard One of the World’s Largest Containerships

CMA CGM Group is now offering genuine cruises aboard its biggest vessels, the new 16,020 TEUs containerships, such as the CMA CGM MARCO POLO or the CMA CGM ALEXANDER VON HUMBOLDT.

Logistics

London, Brazil Terminals Boost DP World Container Volumes

DP World , one of the world's biggest port operators, said on Thursday that its gross container volumes rose 10.7 percent from a year earlier in the first half of 2014.

Abu Dhabi Ports Shift Far More Breakbulk Cargo

Abu Dhabi Ports Company (ABPC) says that general cargo moving through Abu Dhabi’s commercial Ports has increased by 37% this year. ADPC’s commercial ports (Musaffah,

Freeport Says Indonesia Exports Could Resume Soon

Freeport-McMoRan Inc said on Wednesday it expects to "imminently" sign an agreement with Indonesia that would enable it to immediately resume copper concentrate

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.2451 sec (4 req/sec)