The Hindu Business Line : Container demand to surpass port capacity in 2010: Study

With containerised cargo growing at a faster rate than port capacity the world over, a research report has projected that there will be a gap in the container demand and availability of port capacity around 2010.

Additional port capacity will have to be built if the current trend and port utilisation level is to continue, it said.

In the last four years, world container traffic grew 9.2 per cent per annum while container port capacity has grown an average of 4.5 per cent a year, according to a study by Cygnus Business Consulting and Research.

India's container traffic has increased at a CAGR of 12.5 per cent in the last five years, touching about 4.6 million twenty feet equivalent (TEU) units at all major ports.

Moreover, the share of containerised cargo in the country's total cargo basket is set to move up to 22.66 per cent by 2010-11, against the present 16 per cent, according to estimates by the Indian Ports Association and Cygnus Research.

Pointing out that the robust growth of the manufacturing industry has pushed up containerisation levels, the study says that the box traffic is made up of 70 per cent total exported cargo and 40 per cent of total imports.

In 2000-01, at the major ports, containers accounted for 11 per cent of total cargo, while 39 per cent was accounted for by petroleum products, 17 per cent by coal, 14 per cent by iron ore, with other commodities accounting for the rest.

However, in 2005-06, the share was higher, with containers accounting for an estimated 16 per cent of total cargo, iron ore for 17 per cent, coal 15 per cent, and petroleum products 34 per cent, with other commodities making up the rest.

The study projects that by 2010-11, 22.66 per cent of the cargo at major ports would move in containerised form, while petroleum products would account for 27.96 per cent, iron ore 19.23 per cent, coal 13.85 per cent, and other commodities 16.3 per cent.

At a global level, the container fleet has grown 7.7 per cent, touching 20.8 million TEUs in 2005.

The container fleet ownership is split between container lessors and sea-carriers.

The sea-carriers accounted for around 55 per cent of containers, while lessors owned the remainder, according to Cygnus Research estimates.

The study further points out that while in 2005, the fleet owned by lessors registered a growth rate of 7.1 per cent, that operated by sea carriers grew 8.1 per cent.

Global container traffic will be driven by the East Asian region, which is expected to account for about 40 per cent of the container traffic in 2009, against 36 per cent in 2004.

The increase will be driven mainly by China, Japan, South Korea and Singapore.

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