The Shanghai Port International Group has laid down the gauntlet to Singapore-we'll pass you by the end of 2009.
So reported the South China Morning Post Tuesday, after news that SIPG plans to bring 30 million TEUs through its container terminals in 2008, a 15 percent rise over the 26.5 million it handled in 2007. Singapore handled more than 27 million TEUs last year and expects healthy growth this year as well, but probably not enough to stave off Shanghai next year. It should also be noted that by some counts, Shanghai has already passed Singapore since Singapore double counts its transshipment traffic. Only 43 percent of Shanghai's volume is transshipment while more than 90 percent of Singapore's is.
Meanwhile, of potentially more significance, SIPG's profit from its terminals, including the new Yangshan deepwater port, may be boosted this year after it slumped noticeably a year ago. Container terminal profitability sank almost 3 percent last year, securities analyst Sun Liping, of Guotai Junan Securities, told the Hong Kong newspaper.
Overall profits for SIPG fell 5 percent, but in October, container handling charges rose 11 percent at SIPG's in-city terminal and 20 percent at Yangshan, which should boost profits for this year, especially if volume grows at an expected 10 percent rate.
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