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Globalization has led to increased emphasis on international trade activities that has in turn led to substantial increase in spending for the development of transport facilities that include roads, railways, waterways, and airports. Among these, port infrastructure market is projected to witness highest gains through the forecast period (2019-2027), primarily owing to increasing proliferation of sea trade and major investments in infrastructural development in emerging economies of Asia Pacific and Middle East.

Energy and container ports construction are expected to attract large demands though the forecast period

International trade was largely influenced by exponential rise in demand for container shipping, over the last 50 years, specifically owing to the streamlining of processes and reduction in costs achieved through standardized container shipments. This has led to unprecedented investment in construction of container hubs and upgrading of containerized cargo. Moreover, large scale projects for fuel handling, such as Saldanha Bay (South Africa) and new oil terminals in Mombasa (Kenya), are expected to find large demands with focus on specific fuel handling that includes oil, gas or coal.  According to International Energy Outlook, by U.S. Department of Energy, global consumption of natural gas is projected to reach 203 trillion cubic feet (tcf) by 2040, an increase of around 70% in comparison to 2012 stats. Growing requirement for fuels, prominently in emerging economies such as China, India, Mexico and Indonesia, will provide solid growth platform through the forecast period.

Effective waste management is a major challenge for players in the port infrastructure market

Vibrations and noise generated by cargo operations has an adverse effect on the people and the flora and fauna in the vicinity. Moreover, large volumes of waste are generated that include dredged materials, oily mixtures and garbage discharged from ships, and other solid and liquid wastes. These usually end up disposed of in the nearby area or sea, in turn polluting the environment. Requirement to reduce the environment impacts have led to several initiatives such as Clean Air Act Advisory Committee in the U.S. and Port of the Future agenda by European Commission. Growing concerns regarding the environmental impacts and requirement to set up efficient waste management is expected to present major growth challenge.

Construction of these facilities requires large space and workforce to build and manage smooth operations. This in turn leads to Socio cultural impacts that include village relocation and formation of slums in the vicinity that can negatively impact the growth prospects. However, owing to these factors, Greenfield project development will draw considerable attraction for port infrastructure market owing to lack of imposed constraints prior to projects. The concept elucidates construction on unused lands, to reduce the expenses on remodeling and demolishing of an existing structure.

Global Port Infrastructure Market Taxonomy

On the basis of infrastructure project, the global port infrastructure market is classified into:

  • Container
  • Energy
  • Break-bulk
  • Roll-on/roll-off ports (ro-ro ports)

On the basis of facility type, the global port infrastructure market is classified into:

  • Deep-water seaport
  • Seaport
  • River port
  • Harbor
  • Pier, Jetty or wharf
  • Port terminal
  • Off shore terminal
  • Canal

On the basis of regions, the global port infrastructure market is classified into:

  •   North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East
  • Africa

Geopolitical issues existing in South Asia is projected to drive the port infrastructure market

Major economies in South Asia such as China, Japan, and India are increasingly investing in facilities to increase their influence in the Indian Ocean and gain access to resources and potential high growth markets in Middle East and Central Asia. For instance, development program of Sagarmala project in India and deep sea Angola port in China will present potential growth platform for port infrastructure market in the region. However, presence of outdated and frequently congested docks in countries such as India, Pakistan, Myanmar, and Bangladesh has in turn led to increased trade activities in advanced shipping facilities of China and Japan. Increasing competition among countries with large coastlines, especially in Asia Pacific, to establish regional superiority is expected to create a highly lucrative growth environment for the global port infrastructure market.

Improving economic conditions in Latin America will help the participants gain strong foothold in the industry

According to Port Technology International journal in November 2014, an estimated total of US$ 28.7 billion investment were to be made in Brazil, Peru, Chile, and Colombia for port infrastructure market. Growing investments in Latin America to improve transportation, strengthen the commodity exports and fulfill the local consumer demands will present significant growth opportunity over the forecast period. The region is characterized by the presence of 92 anchorages and 15 terminals, a significant number of which need to be upgraded. This creates a high growth prospect for the port infrastructure market in the region.

Majority of the big-budget construction projects are lined up by the Gulf Cooperation Council (GCC) for annexation of shipping activities in the region. For instance, Fujairah Oil Terminal, Khalifa Port and Industrial Zone (Abu Dhabi), Boubyan Island (Kuwait), and Sohar Industrial Port (Oman) are few of the major projects. GCC is likely to remain the key focus of global port infrastructure market.

Global Port Infrastructure Market: Key Players

Some of contracting companies in global port infrastructure market includes, ACS Group, Hyundai Engineering, Consolidated Engineering Construction Co, Bechtel, and Danube Ports Network Company. Along with the large number contracting players, industry competition is also characterized by the equipment manufacturers. Some of them include OAO Baltkran, Cargotech, C.V.S. SpA, Demag Cranes, Fantuzzi and Liebherr.

 Global Port Infrastructure Market: Key Developments

  • In April 2016, Government of India has released the “Sagarmala National Perspective Plan” at the maiden Maritime India Summit 2016, with details on Project Plan and Implementation. Sagarmala National Perspective Plan is the Indian government’s flagship program to promote port infrastructure development in the India country.
  • In June 2019, The U.S. Department of Transportation (DOT) has announced a Notice of Funding Opportunity (NOFO) for $292.7 million in discretionary grant funding through the new “Port Infrastructure Development Program”. This new program aims to support public coastal ports by improving the safety, efficiency or reliability of goods movements.
  • In May 2019, GT USA Wilmington has received a 50-year concession to operate the port infrastructure and to invest $600 million to upgrade and expand the port terminal. The port is working on upgrading cargo throughput capacity from 350,000 TEUs to 600,000 TEUs (Twenty Foot Equivalent Unit), along with new capacity for roll-on/roll-off cargo.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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