In the logistics business, the multi-purpose terminal has been the ugly stepdaughter to the container terminals and their massive cranes. But multi-purpose terminals are on the rise.
In November, APM Terminals said it was building a multipurpose terminal in Qingdao’s Dongjiakou Port. The new terminal is designed for two deep-water berths and set to begin operations by early 2016. What’s interesting about APM’s new terminal project (besides the location) is it is part of a global trend, almost an under current, of new multi-purpose terminals designed to handle bulk, break bulk and ro ro traffic. APM Terminals CEO Kim Fejfer, expressed the trend well while commenting on the new multi purpose port business, “China, as the world’s largest population, and second–largest economy, is a crucial center of global trade and logistics, and we are very pleased to advance our multi-port strategy of growth beyond containers in this exciting and fast-growing market,” In the case of APM, the terminal is being built around China’s increase in imports of grain – similar to an anchor tenant in a mall complex, multi-purpose ports tend to build around an anchor commodity. Grains Grain is also a big part of the APM portfolio with grain handling facilities in Callao, Peru, and Poti, Georgia. In 2013, China imported around 63.4 million metric tons of soybeans, along with 14 million metric tons of corn, wheat and rice. Soybean imports, primarily from the USA and Brazil, represent more than 80% of Chinese annual domestic demand. Francois Delenclos, APM Terminals’ Vice President Business Development, negotiated the deal and stated “Worldwide seaborne grain shipments have increased to over 400 million tons annually according to the World Grain Council, requiring a specialized infrastructure and expertise to keep up with this demand, while helping to improve the quality of life for millions of people around the world. This is a high-growth market where APM Terminals can invest and deploy its operational expertise in key locations.” The terminal is a joint venture between APM Terminals Global Terminal Network and Qingdao Port International. APM will hold a 20% stake in the new business. The Port of Qingdao is one of the world’s busiest ports, ranking seventh globally and handling a total of 468 million metric tons in 2014. Qingdao’s new Dongjiakou Port area is set to become a national hub of Chinese bulk and energy cargos, with a projected volume of more than 300 million metric tons handled annually in this new complex. The Qingdao port handled around 7 million metric tons of grain cargo in 2014, with continued strong growth again in 2015. The Qingdao Port Dongjiakou Multi-Purpose Terminal, operated by Qingdao Port International and APM Terminals, will cater to the rising demand of grain and other general cargo and allow for improved port logistics service into the hinterland markets.