Changes in Global Terminal Operator Rankings Amidst M&A Activity

The global terminal operator (GTO) landscape experienced notable changes in 2023, driven by substantial mergers and acquisitions among industry leaders. According to Drewry’s Global Container Terminal Operators Annual Review and Forecast, while the total number of GTOs in the league table remained constant at 21, the composition saw significant changes.

Dominance of the Leading Seven Firms

The seven largest firms have bolstered their positions, collectively handling over 40% of global port throughput on an equity-adjusted basis. These top firms include PSA International, China Merchants Ports, China Cosco Shipping, APM Terminals, DP World, Hutchison Ports, and MSC Group, each with equity-adjusted throughput exceeding 40 million TEU in 2023. PSA International maintained its lead with an equity-adjusted throughput of 62.6 million TEU, marking a 4.6% increase from 2022.

Challenges for Smaller GTOs

Despite aspirations to expand, smaller GTOs face limited opportunities to close the 30 million TEU gap with the leading pack. Notable smaller GTOs include Adani, AD Ports Group, and Hapag-Lloyd. Adani ranks highest among newer entrants at 13th, with an equity-adjusted throughput of 6.5 million TEU, and is expected to improve further with growth in the Indian market and international developments.

Impact of Recent Acquisitions

The acquisition of Bolloré and SAAM Ports led to their removal from the rankings. MSC Group achieved the strongest growth among contenders, with over 10% increase in equity TEU following the acquisition of Bolloré Africa Logistics. Hapag-Lloyd’s acquisition of SAAM Ports’ terminals and logistics operations is anticipated to enhance its future rankings.

Growth in Equity-Adjusted Throughput

The overall annual growth in equity-adjusted throughput for the 21 GTOs was 2.3%, significantly outpacing the 0.3% increase in global port handling. Earnings were affected by the normalization of congestion-related storage income to pre-Covid levels, which offset additional revenue from inflation-linked tariff increases. Drewry’s Global Container Terminal Revenue Index reported a 0.2% year-on-year rise in revenue per TEU in Q4 2023, attributed to strong US demand. The revenue increase accelerated in Q1 2024, rising 7.3% year-on-year due to the Red Sea crisis’s impact on congestion-related storage income.

Future Outlook

While congestion is easing, the recovery of consumer demand in import-heavy markets is expected to sustain average revenue growth for GTOs included in the index.