Trade between Asian economies and the rest of the world will continue to support growth
Los Angeles, CA (PRWEB) March 28, 2013
Marine port operators worldwide are literally and figuratively in the middle of growth in international trade. The main factors that have assisted the Global Marine and Container Terminal Operation industry's growth in the past 15 years have been trade liberalization, world economic activity and ongoing growth of Asian economies. Prior to the recession, global trade boomed and industries were transformed as supply chains grew in complexity. Asia has become the global manufacturing hub for countless products and has risen to become the most important geographical region for the industry. However, in 2009 when trade volumes fell, industry revenue contracted 4.4%. “Luckily, the industry recovered due to trends like just-in-time inventory systems and ongoing growth in emerging economies,” says IBISWorld industry analyst Lauren Setar. As a result, industry revenue is expected to grow at an average annual rate of 1.8% to $36.1 billion in the five years to 2013, including an increase of 3.3% from 2012 to 2013.
The industry's port locations are limited by geography in addition to government regulation. 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. As a result, profitability for companies in the industry varies greatly depending on ownership structure and scale. Over the next five years, the industry is set to benefit from improved trade levels with greater demand stemming from the Global Containerized Shipping and Logistics industry. Trade between Asian countries and the rest of the world is expected to remain the growth engine for global revenue during this time. Additionally, the trend of port privatization will continue and increase concentration and profit margins in the industry. As a result, in the five years to 2018, IBISWorld estimates that industry revenue will grow.
The Global Marine and Container Terminal Operation industry has a moderate level of market share concentration. The four largest players in the industry together account for an estimated 47.2% of total industry revenue. Over the past five years, the privatization of ports has been a global trend that has allowed industry players to grow out of their country of origin. As a result, privatization has increased market share concentration for the industry. Additionally, the global recession increased the cost of capital, effectively increasing the barriers to new entrants. According to Setar, because existing players are able to use their reputation and experience to gain new port contracts and the finances to set them up, they are able to generate more revenue than a potential new entrant. Due to these trends, market share concentration has increased overall in the past five years. For more information, visit IBISWorld’s Global Marine and Container Terminal Operation industry report page.
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IBISWorld industry Report Key Topics
Companies in the industry 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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