2021-06-21

Container race in ports

Each of the ports of key importance for the Polish maritime economy has focused on expanding the container handling capacity, planning the establishment of new external or central ports. Last year, Polish terminals handled 2.8 million TEU, while the capacity they have in handling containers (over 5.2 million TEU) is used in 60%. In Gdynia, it is about 1.66 million TEU, and the port’s capacity is used in 55%. Do these ambitious plans account for the expected increase in containerization in our country? Will they provide new work tools for shipowners, shippers and freight forwarders, creating a competitive market for transshipment services? Will they lead to a fierce and devastating competitive struggle?

- Should the parallel expansion of the handling capacity in Gdańsk, Gdynia and Świnoujście raise concerns of large-scale overinvestment and the so-called “cannibalization effect"? – asks Marek Tarczyński, President of the Polish International Freight Forwarders Association, and leader of this panel. Therefore, plans to build external ports will be one of the leading topics of Maritime Economy Forum Gdynia,  whose 20^th anniversary edition will take place on October 8, 2021.

Discussions are underway in Gdynia with potential investors interested in the construction and subsequent operation of the Deepwater Outer Port with a handling capacity of 2.5 million TEU. Four companies, which have been long-term clients of the Gdynia port, have come forward with their competitive proposals. These are: Meridiam Eastern Europe Investments 4 SAS and Gdynia Terminal Holding SAS (a fund linked to the French container operator CMA CGM), Hutchison Ports Poland and Port of Felixstowe Limited (GCT operator in Gdynia), International Container Terminal Services Inc. (BCT Gdynia operator) and Mota-Engil Central Europe PPP Road. According to the plans, the Outer Port is to launch in 2028. It is to be built on the basis of the existing Śląskie Quay, as a pier, which is a flooded sea area, and which is bound to increase the port's surface area by 151 ha. The aim of the project is to accommodate container ships up to 430 m long (up to 490 m in the long term), up to 60 m wide (up to approx. 70 m in the long term) and with draft of up to 15.5 m in the Port of Gdynia. It is assumed that the new quays will also be able to accommodate passenger ships. The Szczecin and Świnoujście Seaports Authority is also planning to implement its own project. The deepwater terminal located in the latter of these ports, is expected to potentially handle 2 million TEU and allow for the simultaneous service of 2 vessels with a length of 400 m and one up to 200 m. Despite the two attempts made by the port authorities, no binding offer for this investment has yet been received, but the Szczecin and Świnoujście Seaport Authority is not laying down its arms.

Furthermore, the Gdańsk DCT is preparing to expand its capacity, as of 2019, with the participation of the Polish Development Fund. The T3 project is planned, thanks to which the terminal will increase its container handling capacity by another 2 million TEU, reaching a total of over 5 million TEU. At the same time, it is worth noting that, currently, over 70% of container turnover in Poland is concentrated in one place, in the DCT, which ensures its dominant position on the market. Therefore, the TSL sector is eagerly awaiting the construction of an alternative deepwater terminal that would contribute to real competition on the market.

The forecasts for the demand for container handling services in Polish seaports, presented by the Port of Gdynia Authority, indicate an increase to approx. 9.5 million TEU by 2050.

On the other hand, the potential of the planned investments is: Outer Port of Gdynia (commissioning in 2028) – 2.5 million TEU, Container Terminal in Świnoujście (commissioning in 2024) – 1.5 million TEU, T3 Terminal in DCT Gdańsk (commissioning in 2023) – 2 million TEU. Therefore, without taking into account the Central Port in Gdańsk, where 2 container terminals could be located (for the time being, however, there are no concrete plans regarding their potential), by 2028, the handling capacity of Polish terminals will increase to 11 million TEU, i.e. by almost 100% compared to this year.

- We all know that the Baltic is the most developing area in terms of container handling. We are recording the biggest increases here. In addition, the world's container turnover is also steadily increasing, so we will certainly be handling more of them here too. However, the Baltic already has a certain capacity and demand for containers. That is why, in my view, the market will verify the need for port infrastructure. It is obvious that we are dealing with a kind of race in which the first to implement its project will be a Baltic player. Even if several entities have plans to build or expand container infrastructure, after the implementation of the first project, it may turn out that the current potential will be too large and further investors can verify their plans in this regard, "says Łukasz Greinke, the CEO of the Port of Gdańsk.

Article developed with Namiary na Morze i Handel magazine

phot. Namiary na Morze i Handel magazine