Los Angeles, CA (PRWEB) August 11, 2012
Marine port operators worldwide are literally and figuratively in the middle of growth in international trade. "The main factors that have assisted the industry's growth in the past 15 years have been trade liberalization, world GDP growth and ongoing growth of Asian economies," says IBISWorld analyst Caroline Finch. "Through the process of trade liberalization, government incentives for domestic industries have been wound back." Ongoing negotiations, both global and regional, are smoothing trade flows between nations. The Global Marine and Container Terminal Operation industry is estimated to be worth $34.4 billion in 2012, and is growing.
The outcome has been a boom in global trade in the years through 2008. Industries have been transformed as supply chains have grown in complexity. The most significant examples of trade liberalization in the context of the port operation industry have been in Asia and Europe. Says Finch, "Asia has become the global manufacturing hub for countless products and has risen to become the most important geographical region for the industry." Trade flows between Asian countries and the rest of the world are expected to remain the growth engine for global revenue over the next five years.
Geography limits port locations, as can government regulation of the industry. A long-term trend towards privatization of port facilities has meant that the Global Marine and Container Terminal Operation industry is becoming increasingly globalized. A number of companies are growing to dominate the industry, having emerged from this period of privatization with operations that span continents. The industry is becoming increasingly concentrated. The global recession increased the cost of capital, effectively increasing the barriers to new entrants. Existing players are able to use their reputation and experience to gain new port contracts and the finance to set them up. Concentration is expected to increase in the five years through 2017 as a result. Current major companies include APM Terminals International, Hutchinson Port Holdings Limited, PSA International Pte Ltd and DP World.
Over the five years to 2012, industry revenue has grown by an annualized 2.4%; this is almost one-third of the 8.5% annualized growth recorded in the five years through to 2008. Revenue fell in 2009 as global trade volumes, especially merchandise imports and exports fell. Despite the historically low annual growth over the past five years, the rebound from the financial crisis came quickly, with revenue returning to levels similar to 2008 in 2010; however, the aftershocks from the global recession have led to slow revenue growth in the two years through 2012. In the five years through 2017, IBISWorld projects that industry revenue will grow slowly. For more information, visit IBISWorld’s Global Marine and Container Terminal Operation industry report page.
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IBISWorld industry Report Key Topics
This industry is comprised of companies who operate ports and terminals (including docking and pier facilities). Main activities include the loading and unloading of cargo containers from ships, arranging paperwork for incoming shipments to meet customs requirements, operating a computer system to connect cargo with recipients, and transferring cargo onto trucks and trains.
Executive Summary Key External Drivers Current Performance Industry Outlook Industry Life Cycle
Products & Markets
Supply Chain Products & Services Major Markets
Globalization & Trade
Business Locations Competitive Landscape Market Share Concentration Key Success Factors Cost Structure Benchmarks Barriers to Entry
Industry Data Annual Change Key Ratios
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