APM Terminals Sees Inland Opportunities Ahead
London, England – Addressing the 13th Annual Global Liner Shipping Conference on April 4th, APM Terminals’ Europe Regional Manager of Inland Services Martijn van Dongen cited greener transport, expanding populations in high growth markets, urbanization trends and mega-ships of the future as the primary drivers shaping what the conference organizers described as the “next era in liner shipping” in a keynote presentation representing the perspective of terminal operators.
“Green operations are a key driver in the industry now; every company and country wants to see continuous improvements, in their own CO2 emissions and in their business partners’ practices” noted Mr. van Dongen.
Population growth will lead to increased demand for housing, commercial and industrial construction materials, and increased discretionary income among expanding middle class households in high growth markets will increase demand for consumer goods all of which will require access to seaborne cargo, and containerized shipping capabilities.
“Much of the forecasted global population growth of the next two decades will change current sea-borne centered transportation conventions as urbanization and manufacturing spreads in interior locations away from coastal areas, intensifying the need for inland cargo transportation and other support services” observed Mr. van Dongen.
Referencing a recent study by the McKinsey Global Institute (MGI), Mr. van Dongen pointed out that it has been predicted that within the next 15 years 250 million new households will be created, with half of these in China alone, and that there will be a projected 235 million households in emerging markets earning $20,000 or more by 2025, a figure exceeding the 210 million households which will be found at that time among the populations of the developed nations.
In terms of consumer spending, in 2025 it has been forecast that there will be more than 30 million households in China, South Asia, and Latin America with incomes of more than $70,000. Given current and projected utilization rates, providing sufficient logistics capacity for cargo services at ports and inland locations will be one of the greatest challenges for terminal operators in the years ahead. According to the MRI projections, there will be 13 additional “mega cities” world-wide with populations in excess of 10 million people by 2025. Of this group, 12 will be in emerging markets, and seven of these will be located in China.
APM Terminals is preparing to meet the anticipated demands of port and inland service operations through aggressive yet selective investment in high growth markets in Asia, Latin America, Africa, India, Eastern Europe and the Middle East in both marine facilities and complementary inland services networks designed to handle container and cargo volumes dictated by the requirements of accommodating the newest 18,000 TEU capacity containerships scheduled to enter into service.
“Having a clear Inland strategy, and a strong terminal operations partner who can offer a Global Port, Terminal and Inland Services Network with the scale and experience – will help our customers better cope with the changes expected in the high growth markets of the next 15 years”.
About APM Terminals
– providing the port and inland infrastructure to drive global commerce
APM Terminals is taking a leading role in addressing the critical issues facing the transportation industry. With our customers and business partners, we’ve designed the world’s leading port and inland network to meet the shipping community’s needs today, tomorrow and in the future.
With more than 50 ports and 131 inland facilities in 65 countries – our goal is to offer the market more solutions than ever before to help companies and countries achieve their ambitions. Media can download high resolution photos and more information at www.apmterminals.com