The global port infrastructure construction market will see significant activity over the next ten years, according to BMI Research, despite slowdowns in the economies of major trading nations and continued weakness in key metrics, such as the Baltic Dry Index.
“We are forecasting a continued increase in the value of global trade volumes, which will support demand for increased port capacity,” said BMI Research, part of Fitch Group. Construction activity will be driven by greenfield port projects in emerging markets, as well as major port upgrades in developed markets to accommodate larger vessels.
Latin America and Asia account for the majority of projects with 322 of the 522 port projects tracked by the BMI Infrastructure Key Projects Database, which logs port projects valued at UAS$50 million or more, located in these two regions.
“In India and Indonesia, governments are prioritising the development of port infrastructure as a means of boosting economic growth and relieving bottlenecks at existing ports through the Sagar Mala project and MP3EI blueprint, respectively,” BMI Research said.
“Furthermore, China's One Belt One Road initiative, as well as benefitting ports across Europe, Middle East and Africa, will see those countries on the maritime route benefit from port investment, boosting ports infrastructure in countries such as Sri Lanka, Bangladesh and Vietnam.”
In Latin America, BMI Research expects Brazilian port project pipeline to more forward on pressure from significant bottlenecks at existing infrastructure, despite weak economic conditions in the country. Mexico, as well as smaller markets, such as Colombia, Peru and Panama, are also investing in their port infrastructure.
Beyond Asia and Latin America, Sub-Saharan Africa and MENA account for a further 107 projects, with Emerging Europe hosting another 50. ‘Developed states’ only account for less than 10% of the total, with just 43 projects.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/07062016/asia-and-latin-america-to-drive-port-investment-2016-914/