Melbourne, Australia (PRWEB) September 07, 2012
Strong growth in the value of total merchandise trade has been the primary driver behind the Port Operators industry's solid performance over the past five years. The value of merchandise trade exports has grown faster than the value of merchandise trade imports because of high demand for commodity exports. As more cargo moved through Australia's ports, the industry gained more opportunities to charge for its port services. Therefore, bustling activity in trade to and from Australia led solid growth in port operator revenue over the past five years. According to IBISWorld industry analyst Caroline Finch, “IBISWorld forecasts compound annual revenue growth of 2.3% over the five years through 2012-13”. In the current year, the industry is expected to grow 7.0% to reach $3.39 billion.
The Port Operators industry has a medium level of industry concentration, and the major players in the industry are North Queensland Bulk Ports Corporation Limited, Gladstone Ports Corporation Limited, Port of Melbourne Corporation, Sydney Ports Corporation and Fremantle Port Authority. In the past five years, industry operators have expanded facilities and sacrificed the profit margins that come with full capacity utilisation to do so. Purchase costs and depreciation have also increased due to this expansion. “Construction is ongoing at the nation's ports, which positions the industry well to grow in the five years through 2017-18,” Finch adds.
In the five years to 2017-18, robust Port Operators industry revenue growth will stem from continued rapid growth in total merchandise imports and exports. The increase in import and export cargo moving through Australia's ports will enable port operators to charge for more port services. Continued rapid development in emerging economies and ongoing expansion in the Mining division will drive the increased trade volumes at Australia's ports. Reform and investigations into waterfront activity and competition policy reforms are anticipated to improve productivity. Worldwide trends towards market liberalisation and the establishment of free trade agreements will bolster industry growth. However, increasing oil prices and their impact on the costs and potentially volumes of international trade will remain a concern for port operators.
For more information, visit IBISWorld’s Port Operators report in Australia industry page.
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IBISWorld industry Report Key Topics
Operators in this industry maintain and lease port facilities used in the land-sea transition of goods and passengers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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