• There are indications that terminal operators are looking to non-traditional locations for investment as mainline ports approach their capacity.  Some analysts believe that especially as the growth in Asian trade is expected to remain strong for some time, shipping lines and terminal operators are looking for locations that until now have been considered outside the main east-west trade routes between North America and Asia.  The Maersk/CMA CGM joint venture to build a US$300 million container terminal in Mobile, Alabama, USA (see below) is seen as interest in this secondary market.
 

4.      AMERICAS & THE CARIBBEAN

• Panama has invited bids for a 6 million TEU megaport at the Pacific end of the Panama Canal.  It is meant to open up competition with Panama Ports Company’s (a subsidiary of Hutchison Port Holdings) Balboa facility, the only terminal operator on Panama’s Pacific coast.  The 15m draught will cater for the latest generation of container vessels.  Almost all the top-10 global terminal operators are reported to have shown some interest including PSA, Cosco, SSA Marine, Evergreen and P&O Ports.

 
• US-based Maher Terminals is reported to be looking for a strategic investment partner.  The potential transaction will be limited to a minority investment.  The company sees the ideal partner as a terminal operating company with no North American presence and hopes for progress within 6 months to a year.

• The Alabama State Port Authority in the USA has signed a 30-year concession agreement with Mobile Container Terminal, a joint venture in which APM Terminals has an 80% stake and CMA CGM’s Terminal link division holds 20%.  APM, which will operate and manage the terminal, is reported to be expanding significantly in North America.

• Maersk recently revealed that it is planning major developments for the Caribbean container network following its takeover of P&O Nedlloyd.  It has named a new transhipment hub in Kingston and announced changes to island services.  The redesigned Caribbean network is due to be launched in February.  

5.  ASIA PACIFIC

• If DPW is successful in its takeover bid for P&O, the merged company would become the undisputed market leader in the Indian sub-continent.  It would manage major terminals at Port Qasim (Karachi, Pakistan); SAGT (Colombo, Sri Lanka); Mundra, Mumbai, Chennai and Cochin in India.  DPW is also developing Vallarpadam International Container Transhipment Terminal and holds a 26% stake in Visakha Container Terminal in the Port of Visakhapatnam.

• The Australian Competition and Consumer Commission (ACCC) is reported to have asserted that the country’s two main stevedores’ return on assets of almost 26% in 2004-05 suggests that the sector needs more competition.  P&O Ports and Patrick both rejected the ACCC’s conclusions arguing they were neither fair nor balanced and deliberately unfavourable.

• DPW has signed a deal to develop a new US$500 million terminal at Qingdao, China.  This is a major development as it is the first time that a foreign company will have a 100% shareholding in a new terminal.  Prior to this deals involving operators such as APM, Hutchison and PSA have only involved majority stakes being taken by the overseas partner.

6.  AFRICA AND MIDDLE EAST

 
• A report by the United Nations Conference on Trade and Development (UNCTAD.  Economic Development in Africa–Rethinking The Role of Foreign Investment) suggests that a focus on attracting foreign direct investment (FDI) may be a poor guide to development policy and in some circumstances, may actually distort long term growth potential.  If Africa is to benefit from its own natural resources and reverse premature de-industrialisation, a more balanced policy approach will be required.  The report argues that FDI carries costs as well as benefits.  Policy makers must fully evaluate the impact of FDI if it is to become a complementary component of a wider package of development needed for growth, job creation and diversification of activities.

• Following 18 months of bidding and referral procedures involving over 100 interested parties, the Nigerian Port Authority has identified the preferred bidders for the country’s port concessioning programme.  The new private terminal operators will be responsible for a certain amount of infrastructure development, depending on the contracts awarded.  They will also be able to employ their own stevedores.  Foreign companies amongst the preferred bidders include the Bolloré Group and the Grimaldi Group (for a new ro-ro port).  APM Terminals has already been awarded the operating concessions for Apapa and Onne.

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