The big five international container carriers are expected to control almost 60% of the world’s container ship fleet by 2021. This is a trend that will put pressure on African ports to up their performance and infrastructure development to accommodate larger vessels and fewer calls or face possible exclusion from the main shipping routes. This warning was highlighted in Pricewaterhouse Coopers’ 2018 report, ‘Strengthening Africa’s Gateways’, which noted research by Drewry Research, that financial duress in the shipping industry had brought
about a trend of carrier consolidations that would impact not only shippers but consignees, ports and terminals. “It is not only large carriers that are consolidating into larger entities. It is also expected that medium size carriers will follow the wave of mergers and acquisitions. The trend has also led to large container carriers acquiring their own terminal operating companies or buying shares in global terminal operators. “Container carriers are therefore starting to reshape their network strategy around their own assets, which include everlarger ships and their own ports infrastructure. The consolidation wave results
in fewer customers for ports and terminals.” PWC said the trend meant that carriers would increasingly put pressure on African ports and terminals to invest in new equipment and to accept larger ships, while driving down port charges. “Should African ports fail to meet these challenges, they may be excluded from main shipping routes and be avoided by large efficient lines, driving up import and export costs,” the report said. However, PWC noted that most ports were too shallow to accommodate even the ships that were currently being phased out on the busiest sea routes
and that deepening ports to accommodate large ships should be a priority. “Shipping lines can use their balance sheets to finance port expansion and improve their efficiencies, provided it is in their interests. Attracting investment from lines and other major ports should therefore be a priority,” PWC said. PWC manager and economist Christie Viljoen added that port ownership
and service models were now gravitating towards greater private sector involvement. According to the report hub ports, which have developed in most parts of the world in response to greater maritime freight consolidation, are another trend in African port development. “PwC’s analysis shows that, based on the degree of port centrality – shipping liner connectivity – the
amount of trade passing through a port, and the size of the hinterland, Durban (South Africa), Abidjan (Cote d’Ivoire) and Mombasa (Kenya) are most likely to ultimately emerge as the major hubs in southern Africa, West Africa and East Africa, respectively,” PWC said.
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Port ownership and service models are now gravitating towards greater private sector involvement. – Christie Viljoen
