Ports in Asia need to reassess business models

Analysing the challenges the industry faces, the company found that even though the ports account for eight of the world’s top 10 container ports by volume, leading facilities in the region could see their market share erode if they fail to invest in infrastructure. This is particularly true at a time when their customers’ financial positions are under huge pressures and they begin to drive down the charges made by terminal operators.

The report predicts that there could be a ‘productivity war’ among terminal operators in the region as they strive for competitive differentiation by restructuring their operations and increase their use of analytics, shared services and newer technologies in order to consolidate their leadership positions and fight off more nimble rivals.

The shift in global manufacturing and trade to the region is already building a thriving intra-Asia trade. This trend will force ports to expand infrastructure to ensure they are able to handle increased volumes, particularly from China.