can be reinforced by strategic alliances between a number of companies (creating the ‘liner alliances’).  This collective power is then used to play off one port, or group of ports, against another.  Huge shippers such as Wal-Mart also wield enormous power and can dictate which ports should be used.  These clients are increasingly treating ports as just one element of the supply chain.

• It is thought that one of the biggest impacts of the recent takeover of P&O Nedlloyd by Maersk Sealand will be felt in the ports industry.  The full consequences of the deal are still unknown but there will be significant consequences for the ‘Grand Alliance’, one of the major shipping liner alliances which provides weekly services on key routes, using various sets of ports.  Some ports are expected to lose business to those run by APM Terminals (See section on Asia Pacific).  The Maersk Sealand-P&O Nedlloyd deal has also sparked off new merger and acquisition activity in container shipping e.g. the recent CMA CGM purchase of Delmas, making it Bolloré’s partner for inland logistics in West Africa.  The other major deal is the bid for CP Ships by Tui, the parent company of Hapag-Lloyd.  Again, these deals could have consequences for the shipping liner alliances, and for the ports they use.

Port reform

The World Bank and IMF, and governments pursuing neo-liberal policies remain key drivers of port ‘reform’ and privatisation.  However, regional economic organisations, and development and poverty reduction initiatives (including the granting of donor aid) can also play a role in promoting the liberalisation agenda. 

Port reform doesn’t necessarily involve a private company.  The commercialisation of port services does not involve transferring ownership or operational responsibility to the private sector, but the port authority is required to behave like a private company.  This is sometimes promoted either as a first step in preparation for privatisation or where the market is not considered sufficient to attract private interest.  Commercialisation also has a significant impact for jobs. 

Security

Maritime security remains on the agenda with the latest concerns arising in Australia.  Please see the section on Asia Pacific. 

4.   AMERICAS & THE CARIBBEAN

• The proposed expansion of the Panama Canal is set to reshape some of the world’s most important trade routes.   Terminal operating companies and port authorities in the region, particularly in the Caribbean are apparently gearing up to take advantage of the expected boom in traffic flows and the potential to act as regional transhipment centres.  The importance of the Panama Canal in linking China with major population centres in the east of the USA, which accounts for more than 70% of the country’s spending power, has been growing in the past 3 years. 
  
  
• Marine Terminals Corp, a California based holding company owned by Evergreen, Yang Ming, Hanjin and China Shipping, has unveiled plans for a $1bn container port to be built at Punta Colonet on Mexico’s west coast.  The aim is to create an alternative to the southern California ports of LA and Long Beach.  Congestion was cited as a reason.
  
  
•  South America has not been much of a magnet for the leading global terminal operators, with Hutchison and SSA Marine being the highest ranked through their minority holdings.  However, APM Terminals’ acquisition of a 50% stake in the Teconvi terminal (Itajai, Brazil) this year is seen as a potentially significant first step.  Port privatisation schemes being developed are potentially attractive to global operators but analysts point to high levels of political risk as a possible deterrent.

5.  ASIA PACIFIC

• The ongoing boom in Chinese container traffic continues to be an important feature in the region.  China’s top 10 container ports showed a 24.9% increase in overall volume for the first 6 months of 2005.  Hong Kong, Taiwan, Singapore and Malaysia have all been reported to be working on becoming more competitive as China’s rise has led many ports in the region to consider their strategies.  Infrastructure expansion e.g. in Kaohsiung (Taiwan) and increasing throughput capacity e.g. in Singapore are among the responses reported.
  
  
• The recent takeover of P&O Nedlloyd by Maersk Sealand mentioned above is expected to have a significant impact on the region.  According to Lloyds List, P&O Nedlloyd was believed to have put about 1.5m TEU annually through PSA’s terminals in Singapore.  It was seen by PSA as one of its key customers and was pivotal in PSA’s relationship with the Grand

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