Alliance.  Many will remember that Maersk Sealand shifted its SE Asian transhipment hub from Singapore to Tanjung Pelepas (Malaysia) in 2000.  It is anticipated that there will eventually be diversion of some cargo to APM Terminals from PSA and P&O Ports. 

The Maersk Sealand-P&O Nedlloyd deal has not only sparked speculation about mergers and acquisitions in shipping but also amongst terminal operators.  Earlier in the year, a Journal of Commerce article suggested that with the acquisition of CSX World Terminals by Dubai Ports Authority, the number of major terminal operators that might be available for acquisition has shrunk to two:  P&O Ports which is an important player in the region, and SSA Marine (whose terminals are mostly in the Western Hemisphere).

• Concerns over security measures remain on the maritime agenda.  Lloyds List reported in mid-July that Australian unions and industry groups in the country had protested at the apparent inclusion of industrial action and political activity as ‘crimes’, which could bar future maritime workers from obtaining a Maritime Security Identity Card.  However, the Department of Transport is reported to have provided an assurance that the specific sections of the Crimes Act dealing with industrial action would not apply.

6.  AFRICA AND MIDDLE EAST

• Port privatisation in Africa is also seen as potentially offering investment opportunities for global operators, though it is viewed as being relatively high risk politically and economically, which deters some players.  Nigeria and Kenya are two high-profile examples of current privatisation initiatives. 
  
  
• In 2004, APM Terminals started to target a greater proportion of investment in Africa and this strategy has continued in 2005.  By July 2005, the company had interests in projects in Angola, Egypt, Nigeria, Morocco, Cameroon, Ghana and Ivory Coast.  Also in 2005, ICTSI signed an agreement to run a container terminal in Madagascar.  The terminal at Dar es Salaam managed by Hutchison under the banner of Tanzania International Container Terminal Services was reported to have succeeded in greatly improving efficiency, and having the ambition of becoming ‘a major logistics gateway to Eastern, Central and Southern Africa’, raising the possibility that competition will intensify between Dar es Salaam and Mombasa (Kenya) to service large parts of Central and Eastern Africa.
  
  
• Some have argued that the APM Terminal being developed in Tangiers (Morocco) would eventually compete with Algeciras (Spain) for transhipment traffic, with cheaper labour costs working to its advantage.  Algeciras, also an APM facility, has responded with the argument that Tangiers would complement its operations.
  
  
• In the Middle East, the Dubai Ports Authority has been dominant, and controls Dubai port and Jeddah’s South Terminal (Saudi Arabia).  It has also secured management deals in Fujairah and Abu Dhabi (UAE) and is reportedly close to a deal for a terminal in Aden, Yemen.  APM Terminals is also making substantial investments that will raise its regional profile.  It has interests in Aqaba (Jordan), Salalah (Oman) and Mina Sulman and the new Hidd development in Bahrain. 

7.  EUROPE

Stop EU Ports Package 2 campaign

On 29 August, the Committee on Transport and Tourism of the European Parliament discussed a draft report prepared by the Rapporteur, G. Jarzembowski, on the proposed Directive to liberalise European port services (the Ports Package 2).  His report proposed the deletion of the right to self-handling by companies, which was a positive development.  However, there was concern over his proposals relating to some other provisions, such as those on the granting of authorisations to companies wanting to provide services.  These included removing the compulsory character of authorisations and the need for social safeguards as a condition for granting them.  There was also uncertainty over what would happen to workers when new employers take over.  The draft Directive is due to be considered in various other Parliamentary Committees over the autumn, and has so far been rejected by the internal market, and the employment and social affairs Committees.  These outcomes are significant as voting in the Committees gives a good idea of MEPs’ positions for the deciding Parliamentary vote expected at the Plenary meeting in November.

If you would like to include an item in the next Port Industry Update, please contact Sharon James, Dockers’ Section by 25 Nov 2005 (james_sharon@itf.org.uk; fax: +44 2079409275).