Professional Documents
Culture Documents
September 2010
UNIVERSITY OF TURKU
Turku 2010
ISBN 978-951-29-4380-7
CONTENTS
SUMMARY .......................................................................................................................2
COMMENTARY.................................................................................................................3
INTRODUCTION................................................................................................................4
THE RESPONDENTS TO THE SURVEY .................................................................................5
BALTIC PORT INDEX .........................................................................................................6
PORTS’ VIEWS ON DEVELOPMENT FOR 2010 ...................................................................7
Total cargo volumes in 2010 .....................................................................................7
PORTS’ VIEWS ON DEVELOPMENT FOR 2011 ...................................................................8
Baltic Sea region economy in 2011 ............................................................................8
Total cargo volumes in 2011 .....................................................................................9
When back to peak cargo volumes? ........................................................................10
Dry bulk, liquid bulk and other dry cargo volumes in 2011 ......................................11
Container, ro-ro and project cargo volumes in 2011................................................12
Passenger traffic in 2011 .........................................................................................13
Profitability in 2011 .................................................................................................13
Capacity in 2011 ......................................................................................................14
Investments in 2011 ................................................................................................15
Bottlenecks .............................................................................................................16
PORTS AND STRUCTURAL CHANGES...............................................................................17
Cargo structure .......................................................................................................17
Ships calling in ports................................................................................................18
Upcoming sulphur regulation ..................................................................................19
Moderate growth in cargo volumes and in econ- Capacity and investments to increase in many
omy expected for 2011 ports
Respondents of the Barometer are almost unani- More respondents report future capacity in-
mous in their view of the development of econ- creases and port investments compared with the
omy in the Baltic Sea region and of the develop- last year’s Barometer. Over half of the respon-
ment of their own cargo volumes: approximately dents report that the capacity in their port will
nine out of ten are expecting growth for 2011. The increase in 2011. Similarly, over half foresee
short-term outlook has improved notably since higher investments in their port for 2011. The
last year although most respondents foresee only share of the ports expecting higher investments is
moderate growth for 2011. the biggest among ports located in the eastern
coast of the Baltic Sea and in mixed cargo ports.
Most positive views regarding cargo volume de-
velopment are found among big ports’ and mid- Changes in cargo structure and in vessel size
dle-sized ports’ groups, in a group of ports having
mixed cargo structure and in the ports located in Majority of ports have reported changes in their
the eastern coast of the Baltic Sea. On the other cargo structure since the beginning of 2009. There
hand, confidence in positive cargo development has been volatility in certain cargo types during
has strengthened most among the small ports the last two years. Another notable short-term
compared with the last year’s barometer. trend that has been detected is the increase in the
size of vessels visiting ports since the beginning of
Best outlook for non-bulk cargo 2009.
Prospects for all cargo types are good but ‘other Background to the survey
dry cargo’ market (including unitized cargo) is
expected to develop better than bulk cargo mar- A total of 49 seaport authorities around the Baltic
ket in the Baltic Sea in 2011. The rise in expecta- Sea participated in the third Baltic Port Barometer
tions since the previous Barometer has been survey, conducted during two months in June-
greatest in ‘other dry cargo’ segment and in dry August 2010. The survey was conducted by the
bulk segment. Centre for Maritime Studies at the University of
Turku, Finland, in co-operation with the Baltic
Back to peak cargo levels not before 2012 or Ports Organization (BPO).
2013 despite positive outlook for 2011
Market confidence has become notably stronger among the Baltic Sea region (BSR) ports. Some ports are
expecting strong volume growth for the year 2011, mostly in the eastern part of the BSR, yet almost all
ports expect at least some growth. It is likely that the development of ports will be more uneven in the BSR
in the current year than in 2011.
Compared with the last year’s Barometer, the results from the 2010 Barometer indicate stronger confi-
dence in BSR economic development throughout the region. Somewhat polarized growth expectations in
2009 for 2010 have now changed to visibly more widespread positive expectations for 2011. This same
change in confidence applies also to cargo volume development. The change in sentiment is most visible
among the small ports in the BSR. In different cargo segments, confidence in positive market development
has mostly developed in dry bulk, and in other dry cargo (including all unitized cargo) and container seg-
ments when comparing to the year 2009.
Still, it is evident that the expected rapid recovery of cargo flows is now changing into expectations of slow-
er recovery. Coming back to peak cargo levels of 2008 is further away than anticipated in 2009. It takes
time to reach the level of 2008 since the drop in cargo volumes was massive in many ports in 2009. Mod-
erate growth that most ports are forecasting for 2010 and 2011 is probably not enough to raise the vo-
lumes back to the pre-recession levels in the Baltic Sea in 2011. Most ports are expecting the level to be
achieved in 2012-2013.
At the same time as many ports are still tackling with issues of inadequate demand, in other ports capacity
related issues, like inadequate storage and berth capacities, are hindering the growth and development of
ports. Among other things, this may indicate that volume growth is speeding up in some ports and cargo
segments more than anticipated in 2009. In addition, it is possible that imbalances are found inside ports:
the existing capacity might no longer fully match the changed cargo structure.
Many institutions, banks and governments have recently revised upwards their forecasts for national eco-
nomic growth for this and upcoming year in the BSR. Cautious optimism is spreading at the same time as
double dip is still feared for. It seems that ports in the BSR believe that we are heading into moderate
growth path instead of plunging back into recession. If ports are right, growth tendency in the Baltic Sea
will continue and it is indeed time for optimism.
There are several signs indicating that the Baltic Most survey questions concern ports’ expecta-
Sea region (BSR) is slowly exiting the recession tions for the year 2011 but also the expectations
that started in the autumn of 2008. It is still un- for this year’s total cargo volume development
clear what the world will look like after the cri- have been covered. This year’s survey was im-
sis, how long the recovery will take and if there plemented between 15 June and 10 August
are any long-term structural changes in the 2010. The Barometer was carried out by the
transport sector due to the recession. In the Centre for Maritime Studies (CMS) at the Uni-
Baltic Port Barometer survey ports of the Baltic versity of Turku, Finland, in co-operation with
Sea have been asked to consider these and the Baltic Ports Organization (BPO).
other issues in regard to port sector.
The Centre for Maritime Studies and the Baltic
Views of ports give us valuable information Ports Organization wish to express their warm-
about the future prospects of the economic est thanks to the port authorities for contribut-
development in the region since port and cargo ing to the analysis and sharing their views.
flow development can be considered important
indicators of confidence in future market devel- The Baltic Port Barometer 2011 is due for publi-
opment in trade and in economy. cation in August-September 2011.
Seaports invited to take part in the survey in- The ports are classified into three classes accord-
cluded ports in each country in the BSR. A total of ing to the size of the port:
49 seaports participated in this third Baltic Port Small ports: handling less than 2 million
Barometer survey. The largest numbers of re- tonnes of cargo annually
spondents were again from Sweden, Finland and Middle-sized ports: handling 2-10 million
Denmark which also have the largest numbers of tonnes of cargo annually
ports in the Baltic Sea Region. Ports from each Big ports: handling over 10 million tonnes
country were represented. of cargo annually
Hereafter, when ports are referred to as small,
middle-sized or big, it is according to their annual
Sweden 17 cargo volumes. In the Barometer, each port has
Finland 9
an equal weighting regardless of its size.
Denmark 9
Estonia 5
Germany 3
11 below 2 million tonnes
Poland 2 22 2-10 million tonnes
Latvia 2 16 over 10 million tonnes
Russia 1
Baltic Port Index (BPI) that gives a general over- This means that ports’ expectations for the year
view of ports’ expectations for the upcoming year 2011 are now notably higher than they were for
in the Baltic Sea has more than doubled since the year 2010 last autumn. Baltic Port Index is at
previous Barometer. 50 now, which is relatively high.
50 18
Baltic Port Index 2011 Baltic Port Index 2010
Fig 5. Outlook of the Baltic Sea ports for the year 2011 Fig 6. Outlook of the Baltic Sea ports for the year 2010
based on current survey (n=49) based on previous Barometer published in 2009 (n=51).
In most survey questions respondents are pre- Based on the individual balance figures, an ag-
sented with a choice of five alternative re- gregated index number, Baltic Port Index (BPI), is
sponses (++, +, 0, -, --). An index number is de- calculated. This is done by calculating an average
rived from the percentage distribution of the of two balance figures: the one describing ports’
responses. This balance figure describing re- expectations regarding general economic devel-
spondents' average opinion is calculated by opment in the Baltic Sea region and the one de-
weighting the percentage shares of the different scribing ports’ expectations in respect to the total
responses by +1, +0.5, 0, -0.5 and -1, accord- cargo development in their port in 2011.
ingly. The highest possible balance figure is +100
and the lowest -100. Balance figure +100 will be
reached when all respondents choose the most
positive alternative (++) in the survey question.
Cargo volumes are expected to develop positively Most positive views are found among big ports,
this year. Majority (73%) of the respondents ex- other dry cargo ports and ports located in the
pect either some or strong growth in their port’s eastern and northern coast of the Baltic Sea. The
cargo volumes. The expectations for the year biggest differences between port groups can be
2010 are now more positive than a year ago; in found when comparing ports by size.
last year’s Barometer 63% of the respondents
forecasted higher volumes for 2010.
5%
strong growth 14 % 13 %
36 %
some growth 59 %
no change 18 % 59 %
69 % strong growth
some fall 6%
45 % some growth
strong fall 2% no change
23 %
some fall
9% 13 % 18 %
Fig 7. Expected development of total cargo volumes in 5% 6% strong fall
respondents’ ports for 2010 (n=49)
small middle- big
ports sized ports
ports
18 % 9% 11 %
18 % 15 % 14 %
50 %
41 % 43 %
73 % strong growth 62 % strong growth
71 % 78 %
some growth some growth
24 % no change 21 % no change
50 %
9% some fall some fall
12 % 19 % 14 %
6% 12 % 9% strong fall 11 % strong fall
4% 7%
dry liquid other dry mixed east north south
bulk bulk cargo cargo coast coast coast
ports ports ports ports ports ports ports
Fig 8. Expected development of total cargo volumes in Fig 10. Expected development of total cargo volumes in
respondents’ ports for 2010, ports by type (n=49) respondents’ ports for 2010, ports by location (n=49)
The respondents are almost unanimous in their The most confident on the future growth of the
view of the development of economy in the Baltic Baltic Sea region economy are middle-sized ports,
Sea region in 2011: 84% expects moderate eco- ports having mixed cargo structure and ports
nomic growth. The short-term forecast for the located in the northern and in the southern Baltic
economic development is much better than in Sea.
last year’s Barometer.
Fig 11. Expected economic development in the BSR for 2011 (n=49)
11 % 12 % 7%
Fig 12. Expected economic development in the BSR for 2011, ports by location (n=49)
2011 has the potential to be the first year after The most positive views regarding cargo volume
the recession when growth in cargo volumes will development are found in big ports’ and middle-
be reported all over Baltic Sea region. Nearly 90% sized ports’ groups, in a group of ports having
of the respondents of the Barometer survey be- mixed cargo structure and ports located in the
lieve that cargo volumes in their ports will grow eastern coast of the Baltic Sea.
in 2011. The rest expect the volumes to stay in
the level 2010.
5% 13 % 18 %
strong growth 10 %
some growth 78 % 77 % strong growth
no change 12 % 81 % 73 % some growth
some fall 0% no change
strong fall 0% some fall
18 % strong fall
6% 9%
Fig 13. Expected development of total cargo volumes in small middle- big
respondents’ ports for 2011 (n=49) ports sized ports
ports
12 % 8%
27 % 33 %
59 % 75 %
strong growth 86 % strong growth
100 % 85 %
some growth 44 % some growth
73 %
no change no change
29 % 25 % some fall some fall
22 % 14 %
strong fall 8% strong fall
dry liquid other dry mixed east north south
bulk bulk cargo cargo coast coast coast
ports ports ports ports ports ports ports
Fig 15. Expected development of total cargo volumes in Fig 16. Expected development of total cargo volumes in
respondents’ ports for 2011, ports by type (n=49) respondents’ ports for 2011, ports by location (n=49)
The respondents were asked to evaluate in the This year most respondents believe that the re-
survey when the cargo volumes in the Baltic Sea turn to peak cargo volumes will happen either in
will reach the peak cargo volumes of 2007/2008. 2012 or 2013. In previous Barometer, the return
This same question was included also in the pre- was dated to 2011 or 2012.
vious Barometer (Figure 17).
Views of ports in current Barometer (2010) Views of ports in the previous Barometer (2009)
2010 2% 2009 2%
2011 10 % 2010 14 %
2012 43 % 2011 35 %
2013 31 % 2012 27 %
later 14 % later 22 %
Fig 17. Expected time of the maritime transport volumes to reach the levels of peak years 2007/2008 in the BSR. Views of the
ports in 2010 (left, n=49) and in 2009 (right, n=51)
Most positive outlook on non-bulk cargo Fig 19. Expected development of dry bulk volumes for 2011
(n=43)
In the survey, ports were asked to forecast the change in their cargo volumes by type of cargo. Since not all of the
categories are relevant to all ports, the number of respondents in each category is mentioned under the figures.
Confidence in project cargo development Fig 22. Expected development of ro-ro volumes for 2011
(n=33)
In the survey, containers, ro-ro and project cargo form part of the segment called other dry cargo (non-bulk).
Of the 49 respondents, 22 have passenger traffic The outlook is better than in previous Barometer
in their port. Moderate growth is expected in in a sense that none of the respondents foresee
most respondents’ ports but 41% expect the fall in passenger traffic volumes. However, on
market to stagnate in 2011. average the respondents are cautious in their
expectations.
strong growth 0%
some growth 59 %
no change 41 %
some fall 0%
strong fall 0%
Fig 24. Expected development of passenger traffic in respondents’ ports for 2011 (n=22)
Profitability in 2011
Growth tendency to support profitability in ports
As a whole, the year 2011 should be better than the profitability of their port to improve and one
2010 in terms of ports’ profitability in the Baltic fourth to stay at the level of 2010. None of the
Sea. Majority (70%) of the respondents expect respondents foresee a fall.
much higher 10 %
slightly higher 63 %
no change 27 %
slightly lower 0%
much lower 0%
Fig 25. Expected development of profitability in respondents’ ports for 2011 (n=49)
increase considerably 10 %
increase 43 %
remain at the same level 47 %
decrease 0%
6%
36 %
35 % 47 %
75 %
36 %
increase considerably
59 % 53 % increase
25 % 27 % remain at the same level
decrease
dry liquid other dry mixed
bulk bulk cargo cargo
ports ports ports ports
Fig 27. Expected changes in port capacity for 2011, ports by type (n=49)
Over half of the respondents foresees increase in The share of the ports expecting higher invest-
the investments in their own port. This is more ments is greatest among ports located in the
than in previous Barometer. Nevertheless, one eastern coast of the Baltic Sea and in mixed cargo
third expects the investments to stay at the same ports. In the northern and in the southern coast
level, and the rest foresee even declining port of the Baltic Sea, the situation is more varied:
investments. some of the respondents are expecting even con-
siderable increase in port investments while
some expect decrease.
considerably higher 10 % 12 % 14 %
higher 45 %
at the same level 35 % 67 % 42 % 36 %
lower 8% considerably higher
higher
considerably lower 2%
35 % 36 % at the same level
33 % lower
Fig 28. Expected changes in port investments for 2011 8% 14 % considerably lower
(n=49) 4%
east north south
coast coast coast
ports ports ports
6% 6%
25 % 27 %
41 %
53 % considerably higher
50 % 45 % increase
35 % at the same level
41 % 18 % lower
25 % 12 %
6% 9% considerably lower
Fig 30. Expected changes in port investments for 2011, ports by type (n=49)
Despite the general growth tendency, inadequate lack of expanding areas as major concerns. This
demand is mentioned most often (37%) as one of implies that in some ports growth in cargo vol-
the most important bottlenecks, like in the previ- umes has already started causing capacity prob-
ous Barometer. In relation to inadequate de- lems.
mand, every fourth respondent mentions fierce
competition as a bottleneck. Compared with the previous Barometer, the fol-
lowing bottlenecks are mentioned more often:
At the same time as some ports are faced by in- inadequate storage capacity, fierce competition,
sufficient demand, many ports raise capacity inadequate berth capacity and inadequate fair-
issues, such as inadequate storage capacity or ways.
inadequate demand 37 %
inadequate storage capacity 29 %
inadequate hinterland connections 29 %
lack of expanding areas 27 %
fierce competition 24 %
environmental and/or other legislation 22 %
inadequate fairways 18 %
inadequate berth capacity 16 %
difficulties in obtaining funding 16 %
high operating costs 10 %
inadequate field capacity 8%
inadequate cargo handling capacity 6%
other 4%
difficulties in hiring skilled labour 2%
Fig 31. Major bottlenecks in the development and growth of ports (n=49). The ports were asked to list 1-3 factors that they
regard as the most important bottlenecks impeding their development and growth. These factors are listed according to the
percentage of ports that mention the bottleneck in question. The category “other” includes this year, for example, high piloting
cost.
Cargo structure
Majority of respondents report changes in the
cargo structure of their port
In the survey, the respondents were asked to the responses, changes in many individual ports
consider if there has been a decrease or an in- have taken place. Approximately one third of the
crease in the share of certain types of cargo since respondents report no change in their port’s
the beginning of 2009. The aim was to examine if cargo structure. The percentage of ports report-
the cargo structure has changed in the ports be- ing changes was highest in the eastern coast and
cause of the recession. lowest in the northern coast of the Baltic Sea.
Among dry bulk ports only half report changes in
Overall, no general trend can be positively de- the cargo structure.
tected in the Baltic Sea, although, according to
Percentage of ports reporting decrease in the share Percentage of ports reporting increase in the share of…
of…
coal and coke 6 % 10 % coal and coke
other dry bulk 24 % 20 % other dry bulk
oil and oil products 22 % 10 % oil and oil products
other liquid bulk 4% 6% other liquid bulk
containers 16 % 20 % containers
ro-ro 22 % 16 % ro-ro
project cargo 8% 6% project cargo
other 18 % 12 % other
no changes 29 % 37 % no changes
Fig 32. Percentage of respondents who reported decrease / increase in the share of given cargo types since the beginning of
2009 (n=49).
The respondents were asked to consider if there increase in the size of vessels visiting a port which
have been any changes in the liner traffic in their is mentioned by one third of the respondents. A
port since the beginning of 2009. Over one third decrease in number of vessels visiting a port is
of the respondents report no structural changes also reported by one third.
but at least one short-term trend can be identi-
fied:
Liner traffic
no change 37 %
bigger vessels visit your port 32 %
number of vessels visiting your port has decreased 32 %
number of vessels visiting your port has increased 21 %
traffic with other Baltic Sea ports has decreased 13 %
traffic with other Baltic Sea ports has increased 13 %
traffic with ports outside Baltic Sea has decreased 11 %
traffic with ports outside Baltic Sea has increased 11 %
vessels visit more ports on their route 5%
smaller vessels visit your port 3%
vessels visit fewer ports on their route 3%
other 0%
Fig 33. Changes in liner traffic since the beginning of 2009: percentages of respondents who chose the given option (n=38)
In addition to liner traffic, the respondents were Decrease in the number of vessels is the second
asked to consider if there have been any changes most commonly mentioned change, in the same
in the non-liner traffic (tramp shipping) since the way as in liner traffic segment. Only one fourth of
beginning of 2009. The trend of bigger ships visit- the respondents state that no changes have
ing a port is more clearly detected in non-liner taken place in non-liner traffic since the begin-
shipping than in liner shipping. Nearly half of the ning of 2009.
respondents report an increase in vessel size.
In 2015, the highest sulphur content allowed in cific cargo types in their port. Most often men-
ship fuel in the Baltic Sea will decrease to 0.1% tioned cargo type to experience decline in vo-
(MARPOL 73/78 Convention, Annex IV). The res- lumes is ro-ro. In addition to changes in cargo
pondents of the Barometer were asked to eva- volumes, 16% expect the vessel size of the ships
luate how this change will affect their own port. visiting their port to grow. Nevertheless, one
third foresees no changes due to switch to low
Most respondents believe that there will be a sulphur fuels in 2015.
decrease either in total cargo volumes or in spe-
Fig 35. Expected impact of switch to low sulphur fuels in the Baltic Sea in 2015: percentages of respondents who chose the given
option (n=49)
Baltic
Port
List
2009
2 0 1 0
c to ber
o u t in O
Com ing
General review of maritime transport in the Baltic Sea, detailed statistical data of single
ports, market share analyses, trends in 2006-2009, and much more.
www.balticportlist.com
CENTRE FOR MARITIME STUDIES
University of Turku, Finland
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