US$32b loss for global shipping in 2009
Terminal operators with a diversified portfolio, especially those with ports in developing economies, are likely to fare better than their competitors with locations fixed in traditional markets. That’s the assessment of APM Terminals chief operating officer Richard Mitchell, who has delivered the keynote speech at the 11th Annual Global Liner Shipping Conference in London.
Mitchell remarked that recent data showed that the share of global container volumes from the Indian subcontinent, South-East Asia, Latin America and the Middle East would rise by 8.7% this year and by another 10.3% in 2010.
He also drew parallels between the results of DP World and APM Terminals, who both operators with diversified portfolios, as against those of Hutchison Port Holdings, and PSA International, which are both largely based in Asia.
“This is a positive for the terminal operating industry, as it indicates potential growth areas but does not help our liner customers faced with major volume declines in the east-west trades,” Mitchell stated.
The APM Terminals executive went on to explain what his firm had done to lessen the impact of the crisis. It reorganised its structure from seven global regions down to four, and concentrate on building a better, more sustainable business model for the future.
“It is our responsibility to create a sustainable model which emphasizes people along with development projects. It means safety in the work place and health priorities for personnel both within and outside of the organisation. It is a responsibility to instill and pursue an environmental awareness that will be our legacy to the future of the industry,” Mitchell concluded.