Running aground: A sharp decline in mining investment has caused industry revenue to plummet

The resources boom generated a surge in demand for new port construction and harbour upgrades to facilitate mineral and energy product exports and expedite the shipping process for bulk commodities. However, the completion of several resource-related port developments has contributed to a steep decline in the Port Construction industry's performance over the past five years. This decline has accompanied a shift in industry activity towards expanding existing general cargo and container cargo capacity close to major metropolitan ports.The industry has benefited from construction work on wharf facilities, jetties and dredging to service new LNG terminals in Queensland, Western Australia and the Northern Territory over the past five years...read more.

Industry Statistics & Market Size
Revenue
$873m
Annual Growth 14-19
-32.4%
Forecast Growth 19-24
Profit
Employment
1,725
Businesses
160
Market Share of Companies

Industry Threats & Opportunities

  • Reduced investment in mining has led to a significant decline in port construction activity
  • The completion of large LNG processing and export projects has caused industry revenue to decline
  • Industry activity is forecast to focus on upgrades and repairs over the next five years
  • Industry Report - Industry Investment Chapter

    The Port Construction industry displays low capital intensity. Most of the industry's value-add derives from skilled labour and project management services. Industry participants take on large-scale contracts and subcontract a substantial amount of the work to specialist tradespeople, and suppliers and operators of machinery and equipment (i.e. wet hire). The industry's direct wage costs are expected to account for 28.1% of revenue in 2018-19, while capital depreciation charges are anticipated represent 2.0% of revenue, which can be used as a proxy for capital expenditure. Consequently, the industry will spend an estimated $14.05 on labour inputs for every dollar invested in capital in the current year, which is indicative of low capital intensity...purchase to read more.

    Additional Insights for the Port Construction Industry

    IBISWorld has determined the most important Key Success Factors for the Port Construction are:

  • Ability to compete on tender
  • Ability to change which market the firm operates in
  • Ability to effectively communicate and negotiate
  • IBISWorld analysts also discuss how external factors such as Actual capital expenditure on mining and Total mass of exports by sea in the Port Construction industry impact industry performance..

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    What's in this report

    What is the Port Construction Industry?

    Companies in the Port Construction industry construct, refurbish and alter ports and port amenities, including terminal infrastructure. Repair and maintenance activities are excluded from the industry.

    Industry Products
  • Container ports
  • Bulk ports
  • General cargo
  • Specialised port facilities
  • LNG port facilities
  • Dredging
  • Industry Activities
  • Dredging
  • Container terminal construction
  • LNG jetty construction
  • Bulk cargo terminal construction
  • General cargo terminal construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Actual capital expenditure on mining
  • Total mass of exports by sea
  • Demand from mining
  • year bond rate
  • Domestic price of concrete, cement and sand

  • Current Performance
  • Participation and profitability
  • Supply lags
  • Critical mass
  • Capital city ports
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and participation
  • City ports
  • Profitability
  • Table: Port Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Port Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Port Operators

  • Key Selling Industries
  • Construction
  • Finance
  • Gravel and Sand Quarrying
  • Machinery and Scaffolding Rental
  • Rock, Limestone and Clay Mining
  • Surveying and Mapping Services
  • Transport Equipment and Large Vehicle Rental

  • Products & Services
  • Bulk ports
  • Container ports
  • Dredging
  • General cargo
  • Specialised port facilities
  • LNG port facilities
  • Chart: Port Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private owners and operators
  • State port authorities
  • Terminal operators
  • Chart: Major Market Segmentation for the Port Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Subcontract and professional services
  • Rent, utilities and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Port Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Port Construction Industry

  • Industry Globalization
    Aveng Australia Holdings Pty Ltd, Clough Limited,
  • Table: Aveng Australia Holdings Pty Ltd - financial performance
  • Table: Clough Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Port Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Port Construction Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bulk Cargo
  • Commodity cargo that is transported unpackaged in large quantities in custom-built containers. This is normally homogeneous cargo, i.e. coal or grain.
  • Dry Hire
  • The hire or lease of plant and machinery without an operator. Dry hire can be paid on an hourly, daily or weekly basis.
  • Epc
  • The provision of engineering, procurement and construction services on a project. Can also include the long-term provision of maintenance services (EPCM).
  • General Cargo
  • Cargo that is too heavy or large for shipping containers, such as structural steel components.
  • Wet Hire
  • The hire or lease of plant and machinery with a suitably qualified operator working under the direction of the prime contractor. Wet hire can be paid on an hourly, daily or weekly basis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Port Construction market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Port Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Port Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Port Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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