[191010.EN. SEA] Med Ports Rally, But Growth Slower Than Expected

MEDITERRANEAN ports did well in the first have of the year, but growth is slowing, according to Christine Cabau, senior vice president Asia, Mediterranean, Red Sea, Black Sea and Adriatic Lines for CMA CGM.

While the region did not do nearly so well as it did in its best-ever days in 2008, Ms Cabau pointed out that there were strong regional disparities and double-digit growth of the western Med in the run-up to 2008 was probably a thing of the past.

Speaking to London's Containerisation International's Informa Maritime Event's 3rd Annual Med Freight Conference in Barcelona, Ms Cabau said that volumes handled in the first half of this year were still more than 1.5 million TEU below those of 2008.

Dinesh Sharma, a senior consultant at UK-based Drewry Shipping Consultants. agreed. "I'm not certain the region is fully back on a growth track.

This year has seen massive restocking, a shift in the peak season and a much shorter peak season, which has pushed above average growth into the first half of the year. The third and fourth quarters of 2010 will show growth, but at a much slower pace."

Maersk Iberian sales chief Diego Perdones agreed. "Demand is volatile and extremely difficult to predict. Growth will be slower in 2011 than this year and then we expect it to be in the 7 - 8.5 per cent range up to 2015."

Ms Cabau said conditions will also vary geographically within the Mediterranean basin, with the eastern Mediterranean, Black Sea and North African sectors having the greatest promise, but also having the greatest problems, especially in the lack of infrastructure.

Ms Cabau suggested Mediterranean region's ports, terminals logistics companies and railroads to work together and exploit the intermodal hinterland opportunities as this could offer some cargo volume premiums for the ports.

Source : HKSG, 19.10.10.