The composition of the seven biggest terminal operators, which dominate over 40% of global container handling, is unlikely to change soon due to limited acquisition opportunities, Eleanor Hedland, Drewry’s Senior Analyst, Ports and Terminals, said during a webinar hosted by Drewry on Wednesday.

Seven companies have emerged as the leading operators in the global container terminal rankings, according to Drewry’s Global Container Terminal Operators Annual Review and Forecast 2024/25. The rankings are based on the operators’ throughput, which counts the total throughput of all the terminals in which a global operator holds a direct shareholding of 10% or more, as well as total reported equity-adjusted throughput, a metric that adjusts total throughput according to each terminal’s shareholders.

In 2023, this leading group of terminal operators reported an equity-adjusted throughput exceeding 40 million TEU, collectively accounting for 350 million TEU, which represents over 40% of global port handling.

Hedland explained that the gap between the seventh-largest operator, MSC Group, which reported 42.3 million TEU in equity-adjusted throughput in 2023, and the eighth-ranked ICTSI, with 11.6 million TEU, is considerable and unlikely to close anytime soon. The reason behind this is the lack of businesses available for acquisition big enough that could bridge this 30 million TEU gap in throughput.

However, there could be some changes on the top. Namely, Drewry’s report forecasts that China Cosco Shipping, which currently operates the largest portfolio when it comes to capacity, is expected to be surpassed by PSA by 2028, moving into the top spot. While many Global Terminal Operators (GTOs) plan to expand their capacities, some, like MOL and NYK, may experience reductions due to divestments of international assets.

“We can see the majority of GTOs will expand the capacity in their portfolios, but divestment is actually leading to a reduction in portfolio capacity for several operators, including MOL, which is likely to drop out of the rankings, and NYK. And this is because they’re selling their international assets to their international carrier, ONE (Ocean Network Express),” Hedland said.

Photo credit: Drewry

Geographical diversity among the top operators varies. Drewry’s criteria for ranking require that over 5% of equity-adjusted throughput comes from outside the home region, preventing several regional operators, like Shanghai International Port Group and Malaysia’s MMC, from making the list due to their concentrated portfolios.

Among the top operators, ICTSI and MSC Group, which includes TIL and the acquired Volore Group terminals, stand out for their geographical diversity, as well as APM Terminals and DP World.  Adani currently holds the least diverse portfolio, as it is heavily concentrated in India, though changes are expected next year.

The ownership structures of these companies also differ significantly. ICTSI, which typically holds full or majority ownership of its terminals, has the highest ownership ratio among the operators. In contrast, NYK has the lowest ratio, reflecting a greater proportion of minority stakes in its portfolio. Chinese companies like Cosco and China Merchants generate a substantial portion of their equity-adjusted throughput from holdings in other operators, such as stakes in Shanghai International Port Group.

Drewry’s research indicates that approximately two-thirds of the projected capacity increase among GTOs will be organic, stemming from the expansion of existing terminal assets. Greenfield projects are expected to contribute around 20% to GTO capacity additions in the next five years. In addition, some 14% is expected to be attributable to mergers and acquisitions based on the available short-term, outlook.

The composition of the seven biggest terminal operators, which dominate over 40% of global container handling, is unlikely to change soon due to limited acquisition opportunities, Eleanor Hedland, Drewry’s Senior Analyst, Ports and Terminals, said during a webinar hosted by Drewry on Wednesday.

Seven companies have emerged as the leading operators in the global container terminal rankings, according to Drewry’s Global Container Terminal Operators Annual Review and Forecast 2024/25. The rankings are based on the operators’ throughput, which counts the total throughput of all the terminals in which a global operator holds a direct shareholding of 10% or more, as well as total reported equity-adjusted throughput, a metric that adjusts total throughput according to each terminal’s shareholders.

In 2023, this leading group of terminal operators reported an equity-adjusted throughput exceeding 40 million TEU, collectively accounting for 350 million TEU, which represents over 40% of global port handling.

Hedland explained that the gap between the seventh-largest operator, MSC Group, which reported 42.3 million TEU in equity-adjusted throughput in 2023, and the eighth-ranked ICTSI, with 11.6 million TEU, is considerable and unlikely to close anytime soon. The reason behind this is the lack of businesses available for acquisition big enough that could bridge this 30 million TEU gap in throughput.

However, there could be some changes on the top. Namely, Drewry’s report forecasts that China Cosco Shipping, which currently operates the largest portfolio when it comes to capacity, is expected to be surpassed by PSA by 2028, moving into the top spot. While many Global Terminal Operators (GTOs) plan to expand their capacities, some, like MOL and NYK, may experience reductions due to divestments of international assets.

“We can see the majority of GTOs will expand the capacity in their portfolios, but divestment is actually leading to a reduction in portfolio capacity for several operators, including MOL, which is likely to drop out of the rankings, and NYK. And this is because they’re selling their international assets to their international carrier, ONE (Ocean Network Express),” Hedland said.

Photo credit: Drewry

Geographical diversity among the top operators varies. Drewry’s criteria for ranking require that over 5% of equity-adjusted throughput comes from outside the home region, preventing several regional operators, like Shanghai International Port Group and Malaysia’s MMC, from making the list due to their concentrated portfolios.

Among the top operators, ICTSI and MSC Group, which includes TIL and the acquired Volore Group terminals, stand out for their geographical diversity, as well as APM Terminals and DP World.  Adani currently holds the least diverse portfolio, as it is heavily concentrated in India, though changes are expected next year.

The ownership structures of these companies also differ significantly. ICTSI, which typically holds full or majority ownership of its terminals, has the highest ownership ratio among the operators. In contrast, NYK has the lowest ratio, reflecting a greater proportion of minority stakes in its portfolio. Chinese companies like Cosco and China Merchants generate a substantial portion of their equity-adjusted throughput from holdings in other operators, such as stakes in Shanghai International Port Group.

Drewry’s research indicates that approximately two-thirds of the projected capacity increase among GTOs will be organic, stemming from the expansion of existing terminal assets. Greenfield projects are expected to contribute around 20% to GTO capacity additions in the next five years. In addition, some 14% is expected to be attributable to mergers and acquisitions based on the available short-term, outlook.