Industry Analysis & Industry Trends
With strong growth in the value of total merchandise trade, the industry has performed solidly over the past five years. As more cargo has moved through Australia's ports, the industry has gained more opportunities to charge for its port services. The value of merchandise trade exports has grown faster than merchandise trade imports because of high demand for commodity exports. This bustling activity in trade to and from Australia has led to solid growth in revenue for port operators over the past five years, at an estimated 2.3% per annum. In 2012-13, industry revenue is forecast to increase by 7.0% to $3.39 billion.
The industry's operating profit margin is expected to decline at a compound annual rate of 4.9% over the five years through 2012-13... purchase to read more
Industry Report - Industry Investment Chapter
Port operators spend approximately $1.71 in capital investments for every dollar spent on labour. The high capital intensity comes from the significant capital costs associated with constructing and maintaining wharves.
The degree of capital intensity varies with the service provided by the port authority. If the port provides terminal services, then the port can be described capital intensive. However, port authorities are now refraining from owning terminals, with companies such as DP World, Patrick/Asciano, and recently Hutchison serving this function. Instead, port operators focus on being responsible landlords, and providers of safe passage for ships into and out of their wharves.
Over the long term, capital investment within the industry is likely to increase... purchase to read more