Container terminal industry to remain ‘solid and profitable’
11 Jan 2019 - by
The global container terminal industry is expected to remain a “very solid, profitable business” with the 2019 industry throughput of over 800 million TEUs expected to generate earnings before incentives, tax and amortisation (edbitda) in excess of US$25 billion.
This according to Neil Davidson, senior analyst: ports and terminals for maritime analyst, Drewry, who said this was possible despite anticipated challenges such as a “softening” of the global container port demand growth rate. Drewry projects a decrease from an estimated 4.7% in 2018 to just over 4% in 2019.
“However, the projection for 2019 is highly uncertain due to the US-China tariff wars, Brexit etc,” said Davidson.
He added that there were expectations of “continued caution” by investors and operators in terms of investment in new capacity because returns were not what they used to be. “Nevertheless, a global capacity addition of over 25 million TEUs can be expected in 2019, representing a spend of US$ 7.5 billion,” Davidson said.