The top 7 global port operators (GTOs) in the world now handle over 40% of global port throughput on an equity-adjusted basis, according to the latest league tables included in Drewry’s Global Container Terminal Operators Annual Review and Forecast.
Drewry writes that in the last year, these top 7 largest global terminal operators (PSA International, China Merchants Ports, China Cosco Shipping, APM Terminals, DP World, Hutchison Ports, MSC Group) have all strengthened their positions.
Commenting on the findings, Eleanor Hadland, author of the report and Drewry’s senior analyst for ports and terminals, said:
New report from Drewry highlights the growing influence of the world’s top 7 global port operators.
The top 7 global port operators (GTOs) in the world now handle over 40% of global port throughput on an equity-adjusted basis, according to the latest league tables included in Drewry’s Global Container Terminal Operators Annual Review and Forecast.
Drewry writes that in the last year, these top 7 largest global terminal operators (PSA International, China Merchants Ports, China Cosco Shipping, APM Terminals, DP World, Hutchison Ports, MSC Group) have all strengthened their positions.
Commenting on the findings, Eleanor Hadland, author of the report and Drewry’s senior analyst for ports and terminals, said:
“The seven largest GTOs all reported equity-adjusted throughput of more than 40 mteu in 2023. While several of the smaller GTOs have clearly stated their intention to expand their portfolios, there are very limited opportunities to close the 30 mteu wide gap that exists between this leading pack and the rest of the table.”
Throughput and market share
The league table shows that PSA International retained top spot in 2023, with an equity-adjusted throughput of 62.6 mteu, up 4.6% over 2022.
In second place comes China Merchants, whose equity-adjusted throughput of 55 mteu saw them rise up a position in the rankings.
As the chart above illustrates, MSC Group recorded the strongest year-on-year growth, with equity teu up over 10% thanks to takeover of Bolloré Africa Logistics in late 2022.
Among those outside the top 7, but in the top 21, Adani was the highest placed entrant, coming in 13th position with equity-adjusted throughput of 6.5 mteu. Drewry notes that it expects Adani to move up the rankings next year courtesy of strong growth in India.
In addition to this, Drewry also expects AD Ports and Hapag-Lloyd to better their rankings in 2024 when the full-year impact of their 2023 acquisitions will be visible.
The maritime and research company adds that 2023 annual growth in equity-adjusted throughput for the 21 GTOs was 2.3%, well above the 0.3% increase in global port handling.
Revenue and expenditure
In terms of revenue, Drewry observes mixed fortunes for the port operators.
The advisory company states that the normalisation of congestion-related storage income to pre-Covid levels has depressed the additional revenue from inflation-linked tariff increases. However, revenue boosts have also come in the form of robust demand from the US, as well as the Red Sea crisis increasing congestion-related storage income.
“While congestion is starting to ease, the recovery of consumer demand in import-dominant markets will provide continued support to the average revenues reported by the GTOs that are included in the Index”, added Hadland.
When it comes to spending, Drewry’s sampled terminal operators’ total capital expenditure (capex) was $5.5 billion in 2023. This was up 9% year-on-year, and represented the third consecutive annual increase since 2020.
Moreover, Drewey states that significant organic capacity expansion projects and terminal equipment modernisation efforts caused as many as 5 global port operators to spend over $500 million, with DP World and PSA International both investing over $1 billion in capex.
Sustainability goals
Finally, as regards sustainability, Drewry writes that 20 out of the 21 global port operators in its league table have published a commitment to achieve net zero.
Most of those aim to reach the target by 2050, with Adani and A.P. Moller-Maersk (owner of APM Terminals) seeking to reach the feat by 2040, with Hapag-Lloyd aiming to do the same 5 years later.
The notable exception among the 21 is China’s Cosco Shipping and China Merchants Port Holdings, who have set a target of 2060 in line with the Chinese Government’s goal.
Photo by Wolfgang Weiser