On the afternoon of April 29th, 2020, the Shanghai International Shipping Institute (SISI) held a video conference to launch the "Global Port Development Report (2019)" and a special lecture on port development as part of the SISI Expert Forum Series. Professor Zhen Hong, Secretary-General of SISI and professor at Shanghai Maritime University, led the report compilation team and gave the main presentation. Zhao Nan, Assistant Secretary-General of SISI and Director of the Port Development Research Institute, presided over the conference and released the report.
In interpreting the report, Xie Wenqing, Assistant Director of the Port Development Research Institute at SISI, provided a detailed analysis of the report's content in eight areas, including the global port development environment, production conditions, global terminal operator development, terminal investment and construction, the impact of India's shipping sector policy on port development, port supply chain and cross-border e-commerce cooperation models, global terminal operator risk resistance and investment, and global cruise port development trends.
Regarding the global port development trends for 2020, Xie Wenqing believed that due to the impact of the COVID-19 pandemic and the sharp increase in shipping costs caused by low-sulfur fuel, the global economic and trade growth rate would drop significantly and global port throughput growth would decline. Specifically, Asian ports may face negative growth, while ports in the Americas and Europe would continue to decline, and Australian port growth rates would stagnate. At the same time, the port investment market would be in a short-term slump, with Asian port construction relatively stable, a new round of construction in the US East Coast ports being put on hold, and China's port construction pace gradually slowing down. The demand for automated terminal construction may increase.
Regarding global terminal operators, the report believed that there would be another wave of integration, mainly because terminal operators would sell assets to promote integration. Judging from the changes in production capacity and management of major global terminal operators such as COSCO Shipping Ports, China Merchants Port, DP World, Maersk Ports, PSA International, and Hutchison Ports, the overall growth rate of global terminal operators was positive.
In predicting the development trend of the port supply chain, Xie Wenqing stated that there would be greater emphasis on comprehensive customized services for customers in the future. For customers, the integration of relevant services provides significant benefits, which can lead to a seamless logistics experience.
For service providers, the broader the scope of services, the higher the service fees they can earn. The extension of supply chain services upstream and downstream also means more customized service solutions and a wider customer base.
At the same time, the port supply chain is also showing a trend towards online development. This not only provides convenience for coordinated development but also puts higher demands on the response speed of logistics supply chains themselves.
How can the port supply chain collaborate with cross-border e-commerce? Xie Wenqing summarized that the essence of the coordinated development of the port logistics supply chain and cross-border e-commerce is the deep integration of the port industry into the global logistics supply chain market.
Specifically, facing decentralization, fragmented orders, and flattened supply chains, the port supply chain must seize the opportunity of the era of "everything connected". In the future, cross-border trade can be integrated into "end-to-end" logistics services through third-party cross-border e-commerce platforms.
Utilizing the agglomeration effect of e-commerce platforms, port supply chain service providers need to develop a cross-border-centered supply chain ecosystem by expanding insurance, banking, and other service providers on the basis of joint ports, shipping companies, terminals, freight forwarders, warehousing, customs clearance, and fleets.
At the meeting, Professor Zhen Hong also exchanged and shared views on hot topics with online guests.
First, the development of port enterprises presents a trend of networked layouts towards the sea and land. Global terminal operators strengthen their control over sea-oriented port networks and the layout of inland dry ports, extending the port service functions inland.
Second, build "process-to-process" docking, construct a logistics supply chain centered on the port, and provide "flexible service" ports that can respond to changes in market demand more strongly.
Third, enhance the coordinated development of the port and city. For example, the current Lingang area has become an important support for port development and can create a development model of "port area + logistics park + Lingang industrial park" integration.
Fourth, the sustainable development model of the port can develop towards "resource-saving + environmentally friendly".
Fifth, a smart port with full-coverage information and data collection capabilities and advanced digital technology application capabilities will be the only way for future port development.
It is understood that this series of reports has won the second prize of the China Ports Association Science and Technology Progress Award. The relevant data of the "2018 Global Port Development Report" was also cited in the "2019 Global Shipping Report" recently released by the United Nations Conference on Trade and Development.