Keep investing in ports – Deutsche Bank

Port operators and governments have been urged to continue investing in container handling infrastructure, despite the downturn. Erich Heymann of Deutsche Bank Research says that, despite the current economic slowdown, container shipping will continue to grow. The forecast is seven to eight per cent a year to 2015. Deutsche Bank expects the degree of containerisation to continue to rise, particularly in Eastern Europe, Latin America and Asia. Short sea shipping is also on the rise in Europe. Heymann points out that “container ports and terminals have been one bottleneck for the expansion of the industry.” The current downturn will see capacity utilisation come down to “normal” levels, with the current crisis affecting shipping companies more than harbours. Heymann says there needs to be investment in both port and inland container-handling facilities to prepare for the next upturn in the world economy. South Africa is continuing with its major infrastructural investment in the country’s ports. Transnet Port Terminals announced last year that it would be investing R10.3-billion in port infrastructure over a period of five years. Some expenditure – such as that at the port of Ngqura – has been delayed, but the port is still due to open in October this year.