November 4, 2011
Building
g Stability
y and Promoting
g
Growth in the Mediterranean
John Trenchard,
Director Port Investments, Europe & Mediterranean,
APM Terminals
Med Freight Conference
2 November 2011
Istanbul
The view from a Port Operator
Importance of the
Mediterranean region
Key Trends for Port
Operators on key Trade
Routes
Future port development
areas and challenges
November 4, 2011
Historically the Mediterranean has been
considered the middle of the Earth
Mediterranean
mediterraneus (Latin)
medius middle"
terra,"earth"
Published in 1624 in the famous historical Atlas Parergon
by Abraham Ortelius
In the early 21st century, the Mediterranean is
the centre of the global economy
1980
2010
2050
Source: Danny Quah, Economics Department, London School of Economics
and Political Science and LSE Global Governance
4
November 4, 2011
The statistical centre of the global economy is
shifting eastwards
1992
1998
2004
2007
2010
Source: Danny Quah, Economics Department, London School of Economics
and Political Science and LSE Global Governance
5
The Strategic geographic position makes the
Mediterranean a key region for container shipping
The Mediterranean.
has 8% of the
Global Population
Has 21% of global
container trade
t
transiting
iti
In addition to cargo
destined or sourced in
th Med,
the
M d the
th region
i
is
i
key to other trades
8%
21%
92%
79%
And many more
Source: APM Terminals Analysis, United
Nations World Population Data
Source: APM Terminals Analysis,
& Drewry
November 4, 2011
Mediterranean Transhipments are concentrated on
the main trade route
5
2
1
6
Port
2010 T/S
teu mlns
Gioia Tauro
2.68
Algeciras
2 63
2.63
Suez Canal CT
2.48
Malta
2.26
Valencia
2.15
Tangier
1.98
Damietta
0.85
Istanbul
0.85
Data Source: Drewry Maritime Research
Transhipments have increased and African terminals are
rapidly increasing share of the T/S in the Mediterranean
T/SasproportionofGlobalPortTeu
Transshipments have been
increasing
35%
30%
25%
20%
15%
10%
Proportion appears to be
leveling out at c. 30%
1980 1985 1990 1995 2000 2005 2010
African T/S terminals
increasing rapidly
Transshipment market is
more competitive than
gateway markets
MillionTe
Teu
T/SvolumegrowthacceleratinginAfrica
25
20
15
10
5
0
1980
1990
2000
2010
Africa
SouthEurope
8
November 4, 2011
New larger vessels will be deployed through the
Mediterranean raising the bar for port operators
World Container Fleet
Development to 2014
Asia
Europe
p
FleetCapaacity MillionTeu Nominal
20
19
18
17
Asia
Europe
16
15
14
13
Cascade
12
11
10
>10,000teu
9
2010
2014
7,500 9,999teu
<7,499teu
Source: Alphaliner Monthly Monitor Oct 2011
Addressing the challenge to provide port
accessibility and reliability to our customers
Our customers continue to
target scale economies.
By 2013 18,000 teu vessels
will be in the market
Capacity:18,000 teu
Length: 400 metres
Beam:
60 metres
10
November 4, 2011
Crane evolution to service increasing vessel size
11
APMT FastNet Concept Design
Enables High Productivity
12
November 4, 2011
Mediterranean market fundamentals
Europe
2010
Turkey
2010
Population
232
Population
79
(millions)
(millions)
MedianAge
39
MedianAge
South Med
2010
Population
210
29
(millions)
MedianAge
Source:WorldPopulationsProspects,the2010
Revision UnitedNations,Departmentof
EconomicandSocialAffairsPopulationDivision.
27
13
Mediterranean market fundamentals:
Changing demographics will change demand
Europe
2010 2050 Trend
Turkey
2010 2050 Trend
Population
232
Population
79
92
29
42
212
9%
(millions)
MedianAge
(millions)
39
49
South Med
2010 2050 Trend
Population
210
280
27
36
(millions)
MedianAge
14
MedianAge
25%
16%
45%
33%
33%
Source:WorldPopulationsProspects,
the2010Revision UnitedNations,
DepartmentofEconomicandSocial
AffairsPopulationDivision.
November 4, 2011
Mediterranean market fundamentals:
Different considerations for Port Operators
SouthEurope LowGrowth
Turkey ExcitingGrowth
Maximize efficienciesfromexisting
Infrastructure.
Expandinghinterlandsthrough
inlandinfrastructure
Develop worldclassportsto
serve expanding, well established
serveexpanding,wellestablished
economy
Serviceincreasingvesselsizes
cascadedintoTurkey
South Med Potentialhighgrowth
15
Newlocations witheffective
capacitytoservicelocalmarkets
Enablingcountriestotapinto
economicgrowthpotential
Significant spill-over risks exist in the near term
from Europe.
Proportion of Exports destined to Euro Area 2010
Source:IMFJuly2011,EuroAreaPolicies:Spillover
Reportforthe2011ArticleIV
16
November 4, 2011
Other key trends for Terminal Operators
Process Excellence
Investing in People
Sustainability
17
Port Operators have a key role to play in
achieving the potential in the Mediterranean
Global Scale and reputation
Core capabilities within design,
engineering and operation
Experience
Ability to work constructively with
various stakeholders
Integrity
Ability to form- and maintain
effective local partnerships
18
November 4, 2011
And finally as APM Terminals is based in Holland would
like to say thank you to our Turkish hosts for the Tulips
Thankyou
Teekkr ederim
Teekkrederim
19
Building Stability and Promoting
G
Growth
th iin th
the Mediterranean
M dit
John Trenchard,
Director Port Investments,
Europe & Mediterranean,
APM Terminals
Med Freight Conference
2 November 2011
Istanbul
10
