Ship Port Infrastructure Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Ship Port Infrastructure Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Ship Port Infrastructure market was valued at USD 153.20 Billion in 2021 and is projected to grow to USD 205.30 Billion by 2027, registering a CAGR of 5% in terms of revenue during the forecast period.

The COVID-19 pandemic impacted global trade flows at a rapid pace and scale. During the pandemic, access to essential goods and medical items has been secured largely by the ability of the maritime supply chain to quickly adapt. The United Nations Conference on Trade and Development (UNCTAD) estimates global merchandise trade witnessed a 5 percent drop in the first quarter of 2020 and expects a deeper contraction of 27 percent in the second quarter. However, the global economy is recovering from the pandemic and the global trade witnessing significant growth during the forecast period.

Over the medium term, growing trade relations between countries. Primary factor for all trade is the mode of transport and distance, cost effective transport enhances trade activities with lesser time, low traffic and congestion with the ability to carry heavier loads. With this advantage over other modes Marine trade activities are gaining popularity on a global scale.

With the growing trade relations with other countries and increase in trade volumes developing countries are touted to be regions for developing new ports to support the maritime traffic. Countries like China and India are creating new ports on a very rapid pace, for instance, India has increased their number of ports from 199 in 2008, to 217 in 2018 and as of FY2021, India has a total of 224 ports.

Key Market TrendsGovernment Initiatives for Development of Ports are Driving Growth

Various governments across the globe are investing in ports are they are among the primary drivers of trade in the country. For instance,

• In July 2022, Government of India is committed to reduce the emissions from shipping sector and promote the development of net zero and low-emission solutions.
• In February 2022, the U.S. General Services Administration (GSA) announced major land port modernization and construction projects. The project is funded through the Bipartisan Infrastructure Law. The investment help to improve the commerce and trade activities across the country.
• In November 2021, US President Biden's Bipartisan Infrastructure Deal includes an unprecedented USD 17 billion to improve infrastructure at coastal ports, inland ports and waterways, and land ports of entry along the border, recognizing the significance of American ports to the global economy.Supply chain resilience will be strengthened through long-term investments and short-term assistance provided by these resources.
• In March 2021, the Indian government said to invest in ports under the Sagarmala Programme. The government has envisioned a total of 189 projects for the modernization of ports involving an investment of USD billion by the year 2035.
• In January 2021, an ambitious ten-year plan to invest more than USD 6 billion in the redevelopment of ports across the country was announced by the Ministry of Oceans and Fisheries of South Korea.The objective is to revitalize the ports and the surrounding areas by promoting tourism, culture, and commerce, as well as better integrating the ports into the cities.

Additionally, to aid the logistics sector, many countries are inaugurating new ports to increase the inbound flow of ships and containers. For instance,

• In September 2021, Israel opened its new shipping port along its Mediterranean coast, which will strengthen the nation's position as a regional economic hub and introduce much-needed competition to a sector beset by delays. The Shanghai International Port Group (SIPG), which will run the 5.5 billion shekel ($1.7 billion) Bay Port in Haifa, will allow larger classes of cargo ships carrying 18,000 containers or more to dock in Israel.

These initiatives and investments will increase the volume capacity of the docks and to handle the ships in turn aid to construct better infrastructure will be required. Hence this is expected to aid the ship port infrastructure market grow in the forecast period.

Asia Pacific is Expected to be the Fastest Growing Market

The Asia pacific region consists of some of the fastest growing economies in the world like China, India etc. This growth in the economy is supported by the trade these countries do and the majority of international trade takes place with marine transport.

For instance, the marine trade of India comprises of around 95% of total trade by volume and 75% by value. With other Asian and South-East Asian countries also expected to increase trade, this growth will be supported by marine transport and subsequently, more port Infrastructure will be required for these nations.

For instance, The Sri Lanka Port Authority (SLPA) is progressing the development of facilities at Colombo Port to improve the value of Colombo Port to global shipping lines and to increase its share of the trans-shipment market.

Additionally, many countries in the Asia-Pacific rely heavily on sea trade. Hence many of these countries are investing in technologies and infrastructure to boost the economy and use new technologies in their benefit.For instance,

• in June 2022, Singapore exclaimed to construct the world biggest automated port by 2040. As of now the cost of the entire project is USD 14 billion. The automated port claims to have drones and driverless vehicles.

Hence owing to the above mentioned factors, the ship port market is expected to grow significantly in the upcoming years.

Competitive Landscape

The Ship Port Infrastructure market is dominated by several players Man Infrastructure Ltd., Essar Ports Ltd., Adani Ports, Larsen and Toubro and others. Several mergers and acquisitions between the key players are likely to witness major growth during the forecast period. For instance,

• In April 2022, Adani Ports and Special Economic Zone Ltd through its subsidiary, The Adani Harbour Services Ltd, entered into a definitive agreement for the acquisition of a 100% stake in Ocean Sparkle Ltd (‘OSL’), India’s leading third-party marine services provider.

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