Chinas Slowdown and its Port Strategy TPM 2016 29 February 2016 - - PowerPoint PPT Presentation

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Chinas Slowdown and its Port Strategy TPM 2016 29 February 2016 - - PowerPoint PPT Presentation

Chinas Slowdown and its Port Strategy TPM 2016 29 February 2016 China's Slowdown and its Port Strategy Background Chinas economic growth: Official real GDP growth target for 2015 was 7% 6.9% GDP growth in 2015 vs. 7.3% in 2014


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China’s Slowdown and its Port Strategy

TPM 2016

29 February 2016

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Background

China’s economic growth:

  • Official real GDP growth target for 2015 was 7%
  • 6.9% GDP growth in 2015 vs. 7.3% in 2014
  • 6.5% GDP growth for 2016

This decline was both anticipated and an intended byproduct of economic restructuring. Tight monetary and fiscal policies, were largely responsible for the slow growth in 2015.

China's Slowdown and its Port Strategy

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China's Slowdown and its Port Strategy

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China’s Outlook

Slowing down of China’s economic growth rates is mainly due to country’s transition to consumer-based growth model. This slowdown will cause:

  • Devaluation of the Yuan
  • Imports from china become relatively less expensive

Moreover, as China’s economy continues to grow, wages will continue to increase, hence:

  • Increasing productivity
  • Maintaining high export levels

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Container trade is ultimately driven by GDP growth.

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Drivers for Asia port infrastructure investments:

  • Container trade

growth

  • Increased vessel size
  • Increased

transshipment

  • Growing intra-Asia

trade

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Port Infrastructure Investment

Terminals and hinterland infrastructure are under severe pressure due to worldwide growing demand and higher container throughput peaks. Mega-vessels are forcing terminals to upgrade infrastructure and improve hinterland.

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Solution

Terminal operators and hinterland transport companies will have to improve productivity and container flow, these can be achieved by:

  • Optimize use of container handling equipment
  • Improve communication systems in the supply chain
  • Introduction of flexible workforce in order to better process more

efficiently through peaks

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Thank you

Matthew D. Hoag Director, Operations and Commercial, DP World, Americas Region

  • T. +1 704 246-0348, M. +1 980 333-7356

matthew.hoag@dpworld.com

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