Investor Presentaiton
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Ponce - Transshipment Hub (cont'd)
Increased Vessel Sizes
Side effects of increased vessel sizes transiting through the Panama Canal
Knock-on or cascade effect: This effect is basically the knock-on
effect that the introduction of Ultra Large Container Ships (ULCS)
elicits on the type of vessels deployed in other trades around the
world. The deployment of ULCS on the North Europe/Far East trade
is pushing current smaller classes into the Far East/South America
trades and the Trans Pacific trades. Thereafter those trades are
also affected and their vessels move on to other trades.
Growing importance for transshipment: With the increased vessel
size and the corresponding increased call sizes, these vessels put a
lot of pressure on port infrastructure and handling equipment.
Transshipment is used to serve the smaller spoke ports from the
main hubs (hub & spoke) and the feeder vessels are used to fill the
main liner vessels.
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Shipping Consolidation
The trend for the consolidation of Shipping lines leads to a higher
concentration of container handling. The container shipping industry has
seen a large number of mergers and alliances forming over the past
decades. The recent economic downturn drove another consolidation
wave as shipping lines were forced to reduce costs and to further optimize
the deployment of ships and the services offered to their customers.
Consolidation amongst shipping lines affects the services offered in their
destinations. In an alliance, shipping lines reassess their services and the
ports they serve, in an attempt to optimize the combined market
coverage.
Combined with the trend of increasing vessel sizes, this is likely to lead to
concentration of transshipment activity, as alliances aim to optimize
utilization to/from the transshipment hub ports.
Snapshot of Regional Transshipment Trade
"Deep Sea Trade
Small Island Service
Regional Transshipment
Continental Service
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The Opportunity
Increasing vessel sizes and the continued consolidation of shipping will
lead to a greater use of transshipment in the Caribbean basin.
The Opportunity:
Review the changes in transshipment trends as a result of larger
vessel transits and increased capacity control by ocean carriers
Further review Ponce's strength in its ability to attract Deep Sea
Liner Trade as Primary Transshipment Hub as compared to its
neighboring ports
Come to a long-term agreement with the shipping lines, or even
better, have the shipping lines co-invest in the facility. As such, a
level of guarantee is created on future volumes.
Embrace technology to accommodate hub and spoke operations
that accommodate both Main liner and Feeder operations.
SEABURY
MARITIME
Source: Caribbean Development Bank - 2018 Transforming the Caribbean Port Services Industry towards the efficiency frontier
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