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Big money is going into the world’s ports as their geopolitical value comes into focus: Governments around the world are investing big into developing their ports, whose importance as geopolitical assets is more obvious now than ever, according to a Bloomberg report. Some EUR 2 tn is expected to be spent on modernizing ports over the next decade to ensure that they adhere to the latest standards in digital technology, automation, and green energy.
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Global dynamics are shifting: “It’s now much clearer that ports are geopolitical assets and that emphasis hasn’t always been there,” Spanish maritime consultancy firm Ports and Logistics Advisory owner Peter de Langen told the business news service. Maritime gateways handle 80% of global merchandise trade, meaning they facilitate the movement of USD 25 tn in trade annually, and as such are being heavily affected by geopolitical events.
China is making big moves: China’s Shenzhen Port is forecasted to become a global vehicle export hub, with plans to expand the port’s automaking capacity in partnership with car manufacturer BYD, according to the report.
Singapore is no slouch either: The Port of Singapore is gearing up to handle significantly more cargo with fewer human workers, employing robots instead. The operation will eventually relocate to a new area on the western side of the island city-state, with an investment of USD 15 bn to develop what Singapore claims will be the world’s largest fully automated terminal. The new port “will be a critical engine driving the Singapore economy,” then-Prime Minister Lee Hsien Loong said in 2022.
India has big plans of its own: India’s under-development Vadhvan Port, which will be the starting port for the India-Middle East-Europe Economic Corridor (IMEC), is set to expand the country’s export capability significantly. The Vadhvan port is set to be a massive facility, featuring nine container terminals each stretching one kilometer in length. It will include specialized berths for wheeled and liquid cargo, as well as one for the coast guard. Expected to be finished by the end of the decade, the USD 9 bn port will be capable of handling around 23 million container units, positioning it among the top 10 largest ports globally, according to the project’s supporters.
Green plans in Antwerp: Brussels’ Antwerp Bruges Port is planned to become Europe’s green energy-powered corridor. DP World plugged a EUR 200 mn into its container yard at the port in 2020, with plans to convert petrol-powered container carriers to automated electric stacking cranes, set to be completed by 2026, according to a statement.
New trade hubs are emerging: Somaliland’s Berbera Port is “becoming more strategic in light of new threats to global maritime trade in the Red Sea and Gulf of Aden,” think tank Sahan Research director Matt Bryden told Bloomberg. UAE-based terminal operator DP World inaugurated its container terminal, with a handling capacity of 500k TEUs annually, at Somliland’s Berbera Port, back in 2021, according to a statement. The firm is investing up to USD 442 mn into developing and expanding the port, looking to leveraging Somaliland’s strategic position in the Gulf of Aden. It aims to boost its access to the key trade bottleneck, which sees passing of nearly 12% of global trade flow.
