2015 Shipping Investment Review By Continent: Europe
According to BIMCO’s chief shipping analyst, rising household spending in the USA and European Union will cause a sharp increase in the demand for container shipping services for the remainder of 2015 and throughout 2016.
Well aware of the rising need for container shipping to promote and support economic growth, ports, terminals, and shipping facilities across Europe are making significant investment into much-needed improvements.
Belgium
According to officials, the port of Antwerp will handle more than 200 million tonnes of freight by the end of 2015, marking an increase of 4.2 percent over 2013; and setting a new record for the port and demonstrating that the EU economy is heading in the right direction.
The container trade in particular demonstrated impressive growth (up 5.6 percent), both in total tonnes and in the number of boxes moved. In fact, official figures report that the number of standard containers (TEU) rose by 4.5 percent to 8.96 TEU. At this rate, the port of Antwerp is likely to pass the 9 million TEU mark by early 2016.
For the port of Antwerp, the second-largest port in Europe, being able to accommodate the long-term growth of shipping companies is essential. To achieve success the port has a development area of more than 1,000 hectares that it expects to make operational in phases. The Port Authority plans for the first phase to provide an additional 1,400 meters of quay and a minimum capacity of 5.1 million TEU. It is expected to be fully operational by 2021.
France
In January of 2015, the French port of Marseille announced its plan to invest EUR360 million (US$424 million) over the next five years, to increasing its annual shipping container traffic throughput by 11 percent — to 86.5 million tonnes; by 2018.
Greece
Even though Greece’s new left-wing government caused some concern in Beijing when it halted the privatisation of the port of Piraeus in late January 2015, Greek government officials have asked a group of shortlisted bidders to submit revised offers for a 51 percent stake in Greece’s biggest shipping port. This figure is down from 67 percent. To make up the shortfall, Athens plans to offer the winning bidder an additional 16 percent stake in Piraeus port, to be dispersed over the next five years.
Netherlands
With the arrival of the world’s biggest container ship (MSC Oscar) in January 2015, the Port of Rotterdam’s Maasvlakte 2 demonstrated its readiness to accommodate the world’s largest container ships and rising container shipping demand across Europe.
Based on how the port of Rotterdam has continued to experience steady expansion, industry analysts are forecasting a sharp increase in shipping container traffic on the Rhine. To accommodate this rise in demand, terminal operator Swissterminal and shipping companies Danser Switzerland and Ultra-Brag have made a €15 million to €20 million commitment to building a container terminal at the port of Weil, that will boast an annual capacity of 100,000 TEU.
Poland
At the end of January 2015 Gdansk’s Northern Port announce that it would begin construction on Poland’s largest container terminal. The PLN 1.2 billion (EUR 290 million) project is expected to be completed within 19 months, allowing for the first container ships to use the new berth by the end of 2016. The expansion is expected to increase the port’s capacity from 1.5 million TEU to 3 million TEU, after the first phase of investment.
According to research by Ocean Shipping Consultants, demand for container shipping to and from Poland will rise by 160 percent, over the next decade.
United Kingdom
According to analysts, China has invested $18 billion in European countries — divided across 153 projects, making it one of the most popular destinations for Chinese investors. A Baker & McKenzie study shows that much of the investments made in 2014 funded projects in the United Kingdom ($5.1 billion). Following closely behind the UK were Italy ($3.5 billion), and the Netherlands ($2.3 billion).
Following an official study entitled “Keeping the UK Competitive in a Global Market — Moving Britain Ahead,” the UK Department for Transport has pledged to “do whatever it takes” to maintain London’s position as a leading maritime shipping center and trading hub.
Processing the increasing volumes of direct shipping from Asia to the northern part of UK has been difficult to accommodate because of limited port capacity. At a cost of more than US$510 million, Peel Ports’ Liverpool 2 facilities at the port of Liverpool are an example of a new deep water, semi-automated container port that has been constructed to accommodate the enormous container ships being introduced to the Asia-Europe trade routes.
As part of Peel Ports’ investment program aimed at expanding, improving, and developing the Port of Liverpool, a total of eight ship to shore cranes, 22 cantilever rail-mounted gantry cranes, and ten straddle carriers are being delivered to the facility.
Liverpool is not the only port with plans for improvements to meet the rising demand. With more than £6 billion worth of cargo passing through Grangemouth each year, Forth Ports has invested millions of pounds to upgrade Grangemouth Docks, and introduce new equipment that will increase capacity and improve efficiency.
Shipping is Vitally Important to Europe’s GDP
The total direct gross value added contribution to the GDP of the European shipping industry has reached approximately €60 billion.
This means that the direct contribution of shipping to GDP is greater than that of postal and courier services, the manufacture of transport equipment (excluding motor vehicles), and the air transport industry. For this reason, government officials and institutional/private investors will continue to fund shipping equipment and infrastructure improvements in Europe’s maritime shipping sector, in a constant effort to meet the rising demand and contribute to economic growth in the European Union.
