Is there hope for faster transit times and expanded shipping capacity?
Reduction in Panama Canal wait times
The Panama Canal made some impressive strides in 2024, despite facing less rainfall than usual.
At the New York Maritime Forum (NYMF), Administrator Ricaurte Vásquez Morales shared the data. One highlight was that ships had to wait about 15 hours less on average, a 1% reduction in vessel waiting time from the previous year. Transit times
through the Canal also got a little faster , with vessels spending 0.89 hours less in Canal waters, which adds up to nearly 16 hours saved per transit.
They also managed to cut water usage for Neopanamax ships by 5%, cutting the water usage by 0.0394 hm3.
In total, 9,944 ships passed through the Canal this year. 7,084 were panama vessels and the other 2,852 were Neopanamax vessels. 423 million tonnes of cargo was shipped and most of the traffic came from container ships, chemical tankers, and bulk
carriers.
The Lula administration, which took office in 2023, halted previous plans to privatise the Port of Santos’ management. However, the government has now revised the concession model and plans to auction the terminal in 2025. The updated plan includes
four berths, instead of three, increasing the port’s container capacity by 50%.
Currently, the Port of Santos handles 6 million TEU per year, and this will rise to 9 million with the new terminal. There are also plans
to build a passenger terminal within the 601,000-square-meter STS10 area.
Some controversy surrounds the project, as part of the terminal’s location is occupied by Ecoporto, whose concession ends soon. If renewed,
some worry about reduced space for container operations. Meanwhile, the project reflects Brazil’s shifting stance on port privatisation, as seen in CMA CGM’s recent investment in Santos Brazil.
DP world delays its UK Investment
DP World, the Dubai-based owner of P&O Ferries, has delayed its £1bn UK investment after criticism from UK ministers. The investment, which included expanding London Gateway port, was to be a highlight of the Labour government's investment
summit. However, following remarks by Deputy Prime Minister Angela Rayner and Transport Secretary Louise Haigh, who condemned P&O Ferries as a “rogue operator,” DP World’s CEO, Sultan Ahmed bin Sulayem, pulled out of the
event.
P&O Ferries faced backlash in 2022 for firing 800 crew members without notice, replacing them with low-paid staff. Haigh announced a boycott of P&O and instructed her department to avoid dealings with the company or its
parent, DP World.
While Labour criticised DP World’s practices, Downing Street distanced itself from Haigh’s comments. DP World is now reconsidering its plan to expand London Gateway, partly due to concerns over
Labour’s employment and tax policies.
Source: The Guardian - https://www.theguardian.com/business/2024/oct/11/p0-ferries-owner-pulls-news-of-1bn-port-investment-after-ministers-criticise-firm