Recent Developments and Policy Implications for Port Modernization in the Mediterranean Vincent F. Valentine Officer-in-Charge, Transport Section Division on Technology and Logistics Parliamentary Assembly of the Mediterranean 2013

Contents 1.Overview 2.Infrastructure 3.Funding 4.UNCTAD’s Work 5.Policy Implications

1. Overview

Shipping in the Mediterranean Source: Lloyd’s List Intelligence 28th May hrs

PAM region Top 10 Container ports Source: UNCTAD Estimates (2013)

Valencia Source: Lloyd’s List Intelligence 28th May hrs

PAM region - Port Throughput Source: UNCTAD (2013) Review of Maritime Transport Forthcoming

2. Infrastructure

Utilization rate and Growth Source: UNCTAD derived from Dynamar (2013) Container Throughput and Terminal Capacity in the Mediterranean STS - Ship to Shore MHC - Mobile Harbour Cranes

PAM Region - TEU Capacity Growth Forecast Western (Europe) Mediterranean 31% North Africa 160% Adriatic 47% Levant 74% Greece & Turkey 82% Source: Dynamar (2013) Container Throughput and Terminal Capacity in the Mediterranean

Future utilization Mediterranean terminal capacity is set to grow from 69 million TEU in 2011 to 113 million TEU by 2021, an increase of 66%.* Volumes during the same period are expected to increase by 83% from 45.1 million TEU in 2011 to 82.7 million in 2021 pushing utilization average rates to 73%. Source: Dynamar (2013) Container Throughput and Terminal Capacity in the Mediterranean *including Black Sea Ports

Future Capacity Variations by sub-region (based upon 75% utilization) Source: Dynamar (2013) Container Throughput and Terminal Capacity in the Mediterranean N.B. North Africa based on Tangier Med port

Average (159 countries) Trends Source: UNCTAD Liner Shipping Connectivity Index – RMT various years

3. Funding

Sources of International and Regional Funding

Infrastructure Investment Funds FundFirmSizeRegion Global Infrastructure Partners IIGlobal Infrastructure Partners8,250Global Global Infrastructure Partners 5,640Global Energy Capital Partners IIEnergy Capital Partners4,335North America EIG Energy Fund XVEIG Global Energy Partners4,121Global Alinda Infrastructure Fund IIAlinda Capital Partners4,097North America, Europe Morgan Stanley Infrastructure PartnersMorgan Stanley Infrastructure4,000Global Citi Infrastructure PartnersCiti Infrastructure Investors3,400OECD ArcLight Energy Partners Fund VArcLight Capital Partners3,310North America, Europe GS Infrastructure Partners IIGS Infrastructure Investment Group3,100North America, Europe Brookfield Americas Infrastructure FundBrookfield Asset Management2,655North America, South America Source: (Preqin, 2012) The 2012 Preqin Infrastructure Review

International Terminal Operators Source: Drewry (2012) Global Container Terminal Operators Annual Report

4. UNCTAD’s Work

Analysis Port Performance Research Network Publication Review of Maritime Transport Newsletter Data Port Training Programme UNCTAD ’ s - Network Portal/ Index ? IAPH PMAESA PMAWCAAAPA Trade Logistics Branch, DTL/UNCTAD Academic Journals Civil Society ESPOOther Ports Collaboration UNCTAD Secretariat PAM ?

JOC Port Productivity Index

Challenges Changing Trade Patterns CO 2 Emissions Bigger Customer $

5. Policy Implications

Policy Implications Governments need to find funding for port improvements (infra & superstructures) in a sustainable way so that future maintenance costs are easy to raise. Increased attention to port benchmarking means industry will play a greater role in monitor efficiency. Environmental concerns are fundamental to any development plan whether it be reporting, adaption or mitigation.

Main Sources Dynamar UNCTAD Drewry