Global growth in container port throughput (measured in TEUs-twenty-foot equivalent units) increased by 8.7 per cent in 2005. Preliminary figures for 2006 indicate an increase of 13.5 per cent over 2005. In 2005, the container throughput growth rate for developing countries was 10.03 per cent, with 241 million TEUs.
This corresponds to 62 per cent of the total world throughput. The figures for developing countries reveal that their share of world container moves grew by approximately a third more than that of developed countries for the period from 2004 to 2005. (UNCTAD-Review of Maritime Transport - 2007)
Containerization International, a reputed journal on container shipping published in London, carried an assessment of the performance of top 30 container ports in its issue dated March 1, 2008. According to its analysis, Singapore retained its number one position by handling 27.9 million TEUs, registering 12.50 per cent increase on the volume of 2006.
Shanghai upstaged Hong Kong by handling 26.15 million TEUs-20.5 per cent over the throughput in 2006. Hong Kong thus ended up in the third place by handling 23.88 million TEUs in 2007.
The Chinese port of Shenzhen, South Korean port of Busan and the Duch port of Rotterdam are seen to have been placed in fourth, fifth, and sixth positions by handling 21.1, 13.27 and 10.79 million TEUs, respectively. The UAE port of Dubai made an impressive gain by handling 10.65 million TEUs, and got itself placed in the seventh place.
The Taiwanese port of Kaohsiung and the German port of Hamburg handled 10.26 and 9.9 million TEUs and got themselves placed in the 8th and 9th places, respectively. A deeper analysis will show that just five years ago, Shanghai's total throughput was a mere 8.6 million TEUs compared to Hong Kong's vastly superior 18.6 million TEUs. In 2007, not only did Shanghai overtake Hong Kong to capture the number two position but also put Singapore on notice.
If the same trend of growth in container traffic continues in 2008, Shanghai is expected to top the box port traffic league with a total traffic of about 31 million TEUs. Shanghai's developmental plan is now focused on having sufficient capacity in place to handle 35 million TEUs by 2010.
Another significant factor that emerges from closer examination of the league of top 30 world container ports is that China accounts for nine out of 30 top container ports and they account for about one-third of the total throughput handled by the top 30 ports.
The China factor
Latest estimates suggest that China's ports have handled collectively more than 110 million TEUs in 2007-the first country in the world to do so. The throughput of Chinese ports in 2007 represents an increase of 21.7 per cent over that in 2006. In comparison, Indian ports seem to have handled about 7 million TEUs in 2007-an increase of about 15 per cent over 2006. If the argument is that China is a bigger country with 18,000 km of coast line as against that of India's 7,500 km, even on a proportionate basis India does not have that many container ports of the size and commercial significance that China has.
Roping in private sector
Most ports in South and South-East Asian countries seem to have developed their port infrastructure through private investments. The public-private partnership (PPP) model has revolutionised the port infrastructure scene and helped modernise container terminals and also create new terminal infrastructure at a faster pace.
The standardised concession agreements for BOT projects ranging from 20 to 50 years and the emergence of highly specialised agencies as global terminal operators have brought in a new initiative and vibrant dynamism on a global scale to invest, own, operate and transfer container terminals worldwide. Hutchison Port holdings, PSA International, APM Terminals, DP World, Cosco Pacific, Eurogate and SSA Marine, etc, are well established Container Terminal operators with a global reach and multi national character who are operating container terminals in over 40 countries in the world.
An UNCTAD Transport Newsletter suggests that the world container throughput that passed through state owned terminals was down to 19 per cent whereas it was 42 per cent in 1993. It is indeed heartening to learn that the Central and maritime state governments in India have realised the huge potential to create port infrastructure by tapping the private sector's resources through the PPP route.
About 70 per cent of India's container traffic of about 7 million TEUs is seen to have passed through privately managed container terminals and this figure is most likely to increase significantly when container port development in India's major and non-major ports gains faster momentum in the next five years.
(The author is a former Acting Chairman, JN Port, Mumbai, Former Chairman, Mormugao Port Trust, Goa, and Visiting Professor, Manipal University)
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