ICC Calls for Investment in Ports

In a statement issued to coincide with the recent International Association of Ports and Harbours (IAPH) conference in Shanghai, which took place 21-27 May, the ICC Committee on Maritime Transport warned that freight transport infrastructure serving many ports is ‘incapable of adequately handling current container volumes.’

The committee spelt out the consequences of delays caused by bottlenecks, which include missed berthing slots, missed feeder and train connections, and higher fuel costs to adjust schedules.

‘Delays seriously affect just-in-time distribution methods.

Problems in one region affect the performance of facilities along the entire supply chain, incurring additional costs, ‘ said the Committee, noting that the number of international containerised cargo movements is rising dramatically.

Transpacific cargo will grow by an anticipated 10-12 per cent in 2006, and Russia’s container traffic is rising by 15-20 per cent a year. Container traffic between China and its trading partners will continue to expand.

The committee emphasised that action is needed urgently to cope with the surge in container traffic, and owners and operators of ports and terminals need to plan now for the future, and public authorities should ensure that the necessary planning and investment tools are in place.

Summarising, the ICC Committee emphasised the following points: capacity shortage harms world trade;

demand for capacity is rising;

freight industry stakeholders and public authorities must work together to expand capacity and provide the necessary funding;

and action is needed now.