Financial constraints to cause shake-up in terminal ownership

Given the ongoing financial pressures in the liner industry, there are sure to be changes in seafreight carriers’ terminal portfolio ownership. However, it may not necessarily be a case of “simply selling off the family silver”, according to Drewry Maritime Research.

The maritime analyst’s ‘Global Container Terminal Operators Annual Report 2015’, released earlier this week, commented that the strategies of the major shipping lines regarding terminal ownership were surprisingly varied, with carriers facing a dilemma with their container terminal ownership strategy: whether to sell, to buy, to do both – or retain the status quo.

While a number of major shipping lines have been selling some of their container terminal assets in order to raise cash, it is tempting to assume that this is a common strategy for all carriers but it is not, said Drewry.

Five carriers have so far followed the predicted route and engaged purely in the disposal of some of their terminal assets, or stakes in those assets: Hanjin, Yang Ming, K Line, Hyundai and MOL.

Three have sold stakes in terminal assets but at the same time are also still making terminal acquisitions: TIL/MSC, CMA CGM and NYK. In the case of TIL/MSC and CMA CGM, minority stakes in their existing portfolios have been sold, but, said Drewry, the overall strategy remains to continue investment in the terminal sector – using terminal companies that have separate identities to their shipping line parents and a degree of independence.

Two carriers have only indulged in buying more terminal assets: the Cosco Group and China Shipping.

There are five remaining carriers with no recent change with regard to terminal assets. These vary widely in their positions:

• OOCL sold its terminals in Vancouver and New York nearly 10 years ago at the height of the terminal buying frenzy, but since then has held onto its remaining terminals in the Far East and North America;
• APL has a portfolio of eight terminals in Asia and North America and has made no moves as yet, although with the parent shipping line reportedly up for sale, the terminal assets are coming under close scrutiny;
• Evergreen has 13 terminals across the globe and has adopted a no change strategy so far;
• Hapag-Lloyd only has a minority stake in one terminal in Hamburg, although has been reported to be interested in acquiring more terminal assets;
• UASC has no terminals and has not as yet chosen to invest in any, although it has been linked to at least one greenfield project (in Egypt).