News / Top seven box terminal operators now control 40% of global throughput

Asyaport

The global terminal operator (GTO)  ‘league table’ changed significantly last year, thanks to busy M&A activity by the industry giants.  

Drewry’s latest Global Container Terminal Operators Annual Review and Forecast reports: “While the total number of GTOs featuring in the Drewry league tables remained unchanged at 21, in 2023 the composition has changed significantly.” 

The data shows the seven largest firms having strengthened their position since last year, and together now handle more than 40% of global port throughput, on an equity-adjusted basis.  

They are PSA International, China Merchants Ports, China Cosco Shipping, APM Terminals, DP World, Hutchison Ports and MSC Group – all reporting equity-adjusted throughput of more than 40m teu in 2023.  

PSA International retained top spot, with an equity-adjusted throughput of 62.6m teu, up 4.6% on 2022. 

But Drewry’s senior analyst for ports and terminals, Eleanor Hadland, said: “While several of the smaller GTOs have clearly stated their intention to expand their portfolios, there are very limited opportunities to close the 30m teu gap that exists between this leading pack and the rest of the table.”

They include Adani, AD Ports Group and Hapag-Lloyd. At 13th, Adani is the highest-placed of the newer entrants, with equity-adjusted throughput of 6.5m teu, and Drewry commented: “This position is expected to improve next year with strong growth in the Indian market, boosted by international developments.”

It added: “Similarly, we expect AD Ports and Hapag-Lloyd to improve their rankings in 2024 ,when the full-year impact of their 2023 acquisitions will be seen.” 

Indeed, the acquisition of Bolloré and SAAM Ports removed these two operators from the rankings.  

MSC Group recorded strongest growth among the pack-chasers after its equity teu grew more than 10% following its acquisition of Bolloré Africa Logistics in December 2022, while Hapag Lloyd completed the takeover of SAAM Ports‘ terminals and logistics operations a year ago.

The overall 2023 annual growth in equity-adjusted throughput for all 21 GTOs on the league table was 2.3%, “well above the 0.3% increase in global port handling”, noted Drewry. 

On the earnings side, the normalisation of congestion-related storage income to pre-Covid levels “depressed the additional revenue from inflation-linked tariff increases”, it noted. 

However, Drewry’s Global Container Terminal Revenue Index, which measures quarterly changes in revenue per teu, saw a rise of 0.2% year on year in Q4 23, which Drewry attributed to robust demand from the US.  And the incline accelerated in Q1 24, rising 7.3% YoY, due to the knock-on effect of the Red Sea crisis, which increased 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”, concluded Ms Hadland.