Global Bulk Terminals Market Volume to Surpass over 20,000 Mn Tonnes
Passive economic growth in China coupled with recent economic slowdowns in North America and Europe have impacted overall bulk commodity exchanges at a global level. While the economy is on the verge of recovering steadily, seaborne trade volume has already surpassed 10 billion tonnes globally in 2015. The global bulk terminals market is expected to register a 3.2% CAGR through 2026 and exceed 20 billion tonnes in volume by 2026.
Operators in U.S., Europe and Japan are increasingly switching to natural gas as an efficient alternative to conventional fuel. Furthermore, Qatar, Norway and Australia have significantly amplified their natural gas exports. Preferred usage of LNG is likely to have an impact on demand for liquid bulk terminals, serving vitally for oil and natural gas storage and trade activities. Several terminals in the Americas, APAC, and Europe are expected to start full-scale operations in the coming years. Adding to rising trade of grain and minor bulks, will shape up the global market for bulk terminals in the next decade.
Automation and preference for floating terminals over on-shore terminals are key trends influencing the global bulk terminals market. As development, operation and management of terminals involve huge initial capital, a majority of developing regions are progressively adopting PPP (public-private partnership) module, wherein respective governments handle land and assets, while terminal operations and responsibilities are tackled by private entities. This trend will sway the global bulk terminals market in a number of developing as well as developed regions.
Dry Bulk Will Continue to Outsell Liquid Bulk
Among various types of bulk types, dry bulk will be relatively more adopted than liquid bulk. Furthermore, iron ore and coal have relatively high demand in the dry bulk segment. However, its market volume share is expected to see a decline from 62.7% to 62.3% over the following decades. Coal consuming countries are increasingly adopting cleaner energy approach, limiting rate of coal consumption. Declining import of coal will stymie the market growth in the coming years. However, liquid bulk will witness consistent growth, accounting for almost 38% market value share.
Among various regions, APEJ accounts for major bulk volume share. China will stay at forefront of adoption in APEJ, accounting for a significant revenue share of the market. The market in APEJ is projected to exhibit 4% CAGR through 2026. In North America and Latin America, grain and minor types of bulk are likely to gain traction. Panama Canal’s expansion is likely to elevate the market in Latin America, whereas developments in Suez Canal can trigger multiple growth opportunities for port operators based in and around Europe and MEA.
Key players are competing for a maritime hub position, leading to frenzied M&A activity. Investments in high-capacity equipment remain a pervasive business strategy to gain competitive edge in stevedoring operation. China-based market players account for a significant revenue share of the overall market, with China Merchants Port Holdings Co. Ltd. and DaLian Port (PDA) Company Limited posting US$ 1.41 Bn and US$ 1.06 Bn in revenues in 2015. Other notable market players include Thessaloniki Port Authority SA., Global Ports Investments PLC., Ports America, Inc. APM Terminals, Euroports Holdings S.à.r.l., Puerto Ventanas S.A., HES International B.V., Yilport Holding Inc, DP World Ltd., Noatum Ports, S.L.U. and Ultramar Group.