A senior shipping, cargo and logistics specialist has advised the region’s developers not to expand port capacities at this stage as the shipping industry is yet to recover from the global economic slowdown, Gulf Times reports.
He also urged governments in the Middle East, especially those in the GCC, to do a realistic assessment of their requirements in the shipping sector when new projects are conceived and developed.
Shailesh Garg, director of Drewry Maritime Services, made the statements during a presentation on the Middle East container market at Qatar Transport 2013. The conference, organised by MEED Events, concluded yesterday. Drewry is a leading research and advisory organisation in the maritime sector.
According to Garg, marginal growth is possible in the region’s container market over the next few years, but one needs to take a realistic look at the potential of ports in the Middle East while chalking out expansion and development plans.
“The last four years have been disappointing for the shipping industry and there has been a massive fall in the number of containers handled by every port in the region,” said Garg, adding that the container market is “oversupplied” at this point.
The consultant stressed that the global market recorded slight improvement last year, as compared to the previous three years, primarily due to China and its exports to the US and Europe.
“However, industry figures and relevant statistics showed that the Asian giant’s exports have reached stagnation point, which is not encouraging news for the global industry,” he said, appealing to the GCC countries, including Qatar, to look at their actual requirements before rushing in with major projects.
Source:Gulf Times
