With seaborne trade gaining importance in terms of economic development of a nation, government organizations are largely investing in harbor deepening activities worldwide, Fact.MR said in their latest study on Harbor Deepening Market.
A deeper harbor can accommodate heavy and large container ships allowing expansion of trading activities in the respective region. This has gained higher significance against the backdrop of a beleaguered scenario of international trade due to the China – United States trade war, according to the Dublin headquartered market research firm.
Although the possibility of improving this condition is true, it is also likely that this scenario can have a throwback on the harbor deepening market, given the likelihood of reduction in shipping activities, they stated.
Requirement for harbor deepening in urban development is rapidly increasing however is overpowered by trade maintenance activities, according to a recent Fact.MR study. The study envisages that the harbor deepening market is projected to grow at a steady CAGR of 3.0% in terms of value during the period of forecast, 2018-2028.
Shipping industry has permeated the international trading space. The International Chamber of Shipping revels that more than 50,000 merchant ships, accounting for around 90 percent of worldwide trading via international waters have been in operation. This has led to increasing number of large vessel anchoring, consequently increasing the need for harbor deepening.
Expanding oil and oil gas sector has remained influential in increasing the harbor deepening activities, especially after the removal of trade restrictions on crude oil exports across major countries. This has translated into an increase in oil exports to an average of 1.1 million barrels per day from the United States alone in 2017. Implementation of technologies also have accelerated the global oil trade, thus raising the need for harbor deepening projects across nations.
Higher cost associated with harbor deepening has had a deepening impact on the overall market. However, this is likely to be offset by favorable government encouragement in terms of budget allocations. The steadily rising harbor deepening activities will coattail rising government funding as a consequence.
The Charleston Harbor Deepening Project and Savannah Harbor Deepening Project are few of the major activities heavily funded by the government, with a large funding of $ 509 million for the former and additional $ 100 million for the later. Rising support from government organizations have shored up the harbor deepening projects that are likely to expand at a 2.1% by 2028.
Harbor deepening activities have also penetrated the cruising space, wherein various projects are being undertaken for facilitating navigation of large cruise vessels. The CLIA (Cruise Lines International Association) has estimated that the cursing industry has seen its pink with increasing number of passengers opting for cruising.
The association expects that the passenger count is likely to cross 27 million only for cruising. This math has shaken few of the major ports worldwide, which are increasingly investing in harbor deepening, such as PortMiami.
United States have remained dominant in the North America region, wherein increasing harbor deepening projects are being undertaken funded by the U.S government. The harbor deepening of ports in the country has largely been influenced with the increasing oil exports.
Likewise, in terms of freight logistics, Germany holds an upper hand in the European Union. The harbor deepening scenario in the United Kingdom is also a significant one with increasing harbor redevelopment projects such as the Peter Harbor Redevelopment initiative.
Harbor deepening in Japan has taken a rapid upswing on back of increasing foreign trade. The country’s container shipping and seaborne vehicle shipping are other aspects adding fuel to the activity of harbor deepening.
That said, the country is likely to present lucrative growth opportunities for harbor deepening in the forthcoming years.