New trends in the Mediterranean Ports Industry

1. NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
9th
MEDA Ports Summit
9th MEDA Ports Summit – Barcelona, 8th June 2016
Speaker: Gianfranco Fancello
CIREM, University of Cagliari, Italy
10 ISSUES FOR THE FUTURE
OF THE MEDITERRANEAN
PORT INDUSTRY

2. 9h MEDA Ports Summit – Barcelona, 8 June 2016 Gianfranco Fancello, CIREM 2
NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
10 ISSUES FOR THE MEDITERRANEAN PORT INDUSTRY
• The Mediterranean port industry is
constantly evolving and striving for
increased innovation
• During the last decades
globalisation and containerisation
have reshaped the maritime and
port industry and still continue to
present challenging changes
• Looking at the Mediterranean port
industry, 10 main issues can be
identified:

3. 9h MEDA Ports Summit – Barcelona, 8 June 2016 Gianfranco Fancello, CIREM 3
NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
1. BIGGER AND BIGGER VESSELS
 Ships have been getting bigger and bigger over the past
decades
 A continuing trend: every year new plans are created to
increase the current fleet available.
2015 - MSC OSCAR: 19.224 TEUs
2007 – EDITH MAERSK: 15.500 TEUs
1997 – SOVEREIGN MAERSK: 8.100 TEUs
FAST GROWTH DRIVEN TO VERY LARGE CONTAINER VESSELS (VLCV)

4. 9h MEDA Ports Summit – Barcelona, 8 June 2016 Gianfranco Fancello, CIREM 4
NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
2. NEW NETWORK LAYOUTS
IMPACTS ON THE SHIPPING NETWORK OF
THE USE OF VLCS:
• longer roundtrips;
•reduction in the number of ports called
in a roundtrip service;
•need to use additional vessels to
maintain service frequency.
•optimized network respect to final
destinations

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NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
3. NEW ALLIANCES AND MERGES
• During 2016 Drewry has assessed losses for 10 billion of US $ for container market, caused by
increase of oil cost, low freight rates for ships and high capital investments
• 2M (Maersk and MSC), Ocean Alliance (CMA CGM, COSCO Container Lines, Evergreen Line and
OOCL ) Grand Alliance (Hapag-Lloyd, Nippon Yusen Kaisha and Orient Overseas Container Line) and
New World Alliance (APL, Hyundai Merchant Marine, and Mitsui O.S.K Lines).
1. APM-Maersk 2,931,661 TEU (15.5%)
2. Mediterranean Shg Co 2,555,444 TEU (13.5%)
3. CMA CGM Group 1,657,053 TEU (8.8%)
4. Hapag-Lloyd 974,602 TEU (5.2%)
5. Evergreen Line 955,174 TEU (5.1%)
6. COSCO Container L. 824,702 TEU (4.4%)
7. CSCL 676,564 TEU (3.6%)
8. MOL 609,708 TEU (3.2%)
9. Hanjin Shipping 608,459 TEU (3.2%)
10. APL 562,346 TEU (3.0%)
IN 2015 THE 10 TOP CONTAINER
OPERATORS CONTROL MORE THAN
65% OF THE MARKET
In the Asia-Europe lane, Maersk, MSC
and CMA-CGM control around 60% of
the capacity

6. 9h MEDA Ports Summit – Barcelona, 8 June 2016 Gianfranco Fancello, CIREM 6
NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
4. MORE SPECIALISED VESSELS
 Until a few years ago, container seemed to be
the only way of transporting cargo
 Today several shipping companies are investing
in specialised ship types, mostly in the heavy
lifting industry and transportation of chemicals.
 Extremely specialised ships have been
constructed, pushing the crew to new levels of
specialised knowledge about their ships and trade.
NOT ONLY CONTAINER
SPECIALISED SHIP ABLE TO ONLY TRANSPORT PARTS OF
OFFSHORE WIND-MILLS

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NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
5. INNOVATIVE PORTS
INNOVATIVE AND EFFICIENT CONTAINER TERMINALS
• Automation of port operations • High-speed operations
• Space-efficient terminals • Maintenance as strategy to improve productivity
• Safety, training and simulation
BEST TERMINAL – BARCELONA
SEMI-AUTOMATED TERMINAL

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NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
6. PORT COMMUNITY SYSTEMS
FLEXIBLE AND FAST EXCHANGE OF INFORMATION AS
A KEY FACTOR TO IMPROVE EFFICIENCY OF PORT
OPERATION
 Port Community System widespread in Med Area (not only big ports)
 ICT and network relations are increase between transport operators
 Port Gate automation
 Smart Port

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NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
7. EVOLUTION OF THE PORT CONCEPT
PORTS ARE CHANGING
From interface between maritime transport and land transport to LOGISTICS INDUSTRIAL ZONES
able to provide:
• Integrated logistics services
• Value-added logistics services
• IT infrastructures
ADVANTAGES OF LOGISTICS INDUSTRIAL ZONES
• New opportunities of economic growth for territories
• Greater attractiveness and bargaining power of the port
[IAPH – International Association of Ports and Harbors]

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NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
8. INCREASING FOCUS ON A GREEN IMAGE
ENVIRONMENTAL AWARENESS
Innovations are made in order to reduce the environmental footprint of port operations.
 On-shore power supply
Innovative system to provide electricity from the local grid
to ships to meet their power demand: ships’ operations
can proceed uninterrupted, while eliminating negative
side-effects.
 LNG (Liquefied Natural Gas)
Some seagoing vessels are already fueled by LNG and new
engines are being developed.

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NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
9. PORT PRIVATISATION
WITH THE EXPANSION OF THE PORT INDUSTRY, THE STRUCTURE OF THE PORT SECTOR HAS CHANGED
Three main typologies of container terminal operators:
1.Port authorities that directly operate their terminals;
2.Private port terminal operating companies. The main operators have expanded their activities
outside of their ports of origin, associating themselves with large stevedoring groups (e.g. PSA
Corporation, Hutchinson, ECT, P&O Ports, and SSA);
3. Shipping lines that decide to directly control and manage their own terminals for economic and
strategic reason (direct control of port operations).

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NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
10. NEW EMERGING ROUTES
 THE EXPANSION OF THE PANAMA CANAL
 THE AFRICAN ROUTE
 THE NORTHERN SEA ROUTE
EXTERNAL FACTORS AT MED AREA (THREATS)
New maritime transportation routes will open up in the Arctic due
to the melting of sea ice.
Potential benefits: ship routes between North Europe and Far East
would be about 30% shorter. Sea routes between North America
and Far East would also become shorter.

13. NEW TRENDS IN THE MEDITERRANEAN PORT INDUSTRY
9th
MEDA Ports Summit
9th MEDA Ports Summit – Barcelona, 8th June 2016
THANK YOU
FOR YOUR ATTENTION
Gianfranco Fancello
University of Cagliari (Italy)
fancello@unica.it