Uae Container Terminal Operations Market- Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Uae Container Terminal Operations Market- Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The UAE container terminal operations market is anticipated to register a CAGR of over 7% during the forecast period. The supply chain in the maritime industry faced a series of challenges with the onset of the COVID-19 pandemic. Port closures due to coronavirus outbreaks, port congestions, rising prices of bunker fuel, and problems with capacity utilization were plaguing the global marine port services industry for most of 2020 and 2021. Due to the pandemic, the volume of containers transported shrank by about 0.3 percent in 2020. On the other hand, the recent spike in container freight rates turned out extremely profitable for marine port services operators, who reported record high-profit margins in 2021.

• Container terminal services are complex and mainly depend upon the nature of shipment and cargo. The cargo can comprise cars, merchandise, crude oil, minerals, etc.
• A different set of machinery, expertise, and manpower is required to handle and manage various types of cargo. For instance, ferry services require different types of ports for their handling. The lack of efficiency in operations at the container terminal is not desirable and can also lead to accidents. Therefore, container terminal operations should be highly efficient and flawless. Container terminal operations are the core of the maritime industry.
• The growing complexity of port operations in the United Arab Emirates has led to extensive diversification and enhancement of port infrastructure and technology. To improve productivity, the UAE ports are integrating more technological and automated solutions, such as robotics, artificial intelligence, and IoT.
• With the advent of digital technology, ports have become more automated, with interconnected supply chains and limited manpower to perform operations. As a result, various investments are being made in port automation to increase port efficiency.
• For example, in 2021, Abu Dhabi Ports Group and France-based CMA CGM Group invested approximately USD 153.9 million in the new Khalifa Port Terminal, intending to create a semi-automated container port throughout the construction of the GCC region.
• In 2022, Middle East ports occupied four of the top five spots in the second edition of the Global Container Port Performance Index (CPPI), developed by the World Bank and S&P Global Market Intelligence.

Maritime trade accounts for nearly 90% of world trade. This is because it is the cheapest and most efficient means of transport, especially for large goods. Ports of the United Arab Emirates facilitate maritime trade. Thus, maritime trade is an important sector driving the region's economic growth and development.

The UAE has several ports, such as Jebel Ali, Mina Rashid, Zayed Port, Fujairah Port, and Khalifa Port. At least two of these ports are included in the world's top 50 container ports by the World Shipping Council.

The UAE ports account for nearly 61% of cargo destined for the GCC countries of Oman, Bahrain, Qatar, Kuwait, and Saudi Arabia (and the UAE). Apart from oil ports, the United Arab Emirates has 12 commercial and trading ports with 310 berths and 80 million tons of cargo tonnage.

Sea freight shipping from the UAE is generally economical, with prices ranging from USD 600 to USD 2,000, depending on destination and container size. Although exports have declined over the years, the country still holds its position as the 32nd-largest export economy in the world. Exports include crude and refined oils, petroleum gas, diamonds, and gold. Imports include automobiles, jewelry, refined petroleum, diamonds, and gold.

The United Arab Emirates is on track to dominate global maritime trade as a slew of new port infrastructure is delivered. The country has built world-class infrastructure in ports and logistics. By increasing port capacity, the UAE can now meet surging trade volumes in emerging markets.

By 2050, four of the five largest economies will comprise developing countries. These countries are China, India, Brazil, and Russia. The IMF estimates that these markets will account for 45% of global production by 2025.

Due to its strategic geographical position between East and West, the UAE is a global trading hub and an essential gateway to these emerging markets. Port investments make the UAE the third-largest re-export market in the world.

It has nine operating ports, and its flagship, Jebel Ali, is the largest container terminal between Rotterdam and Singapore. The annual container throughput of Jebel Ali Port in 2021 was about 13.7 million units.

According to the World Bank's Doing Business Report 2022, the country is the largest shipping and port player in the Middle East and North Africa and the fifth largest in the world.

The United Arab Emirates is home to several large shipowners, including branches of international shipowners. The UAE's offshore industry has weathered the storm relatively better than other parts of the world, and the region's vessel utilization rate is higher than the global average. The United Arab Emirates continues to be an essential hub for many offshore shipowners.

The UAE container terminal operations market is relatively fragmented, with a large number of local and international players, such as Al Yasat Petroleum Operation Company Limited LLC, DP World SUnited KingdomUnited Kingdom Limited, Aztec Facilities Management, Abu Dhabi Terminal (ADT), and CSP Abu Dhabi Terminal. The market is expected to show positive growth in the forecast period since many companies are jumping into the market.

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