Abandon ship: Revenue continues to sink as major mining projects reach completion

The surge in demand for new port construction and harbour upgrades to facilitate the exports generated by the resources boom has been the principal factor determining the performance of the Port Construction industry over the past five years. Mining firms' investment in export facilities included the dredging of harbours, the erection of jetties, and the construction of terminal and port facilities to expedite the shipping of bulk commodities. Port authorities have heavily invested in expanding the existing general cargo and container cargo capacity in major metropolitan ports over the past five years. However, the winding back of investment in the Mining division since the 2012-13 record peak has contributed to a sharp decline in port construction activity in recent years...read more.

Industry Statistics & Market Size
Revenue
$977m
Annual Growth 12-17
-30.0%
Forecast Growth 17-22
Profit
Employment
2,575
Businesses
200

Industry Threats & Opportunities

  • Solid growth in demand for port facilities to meet the growing export and import of bulk and merchandise goods
  • Industry Report - Industry Investment Chapter

    The Port Construction industry has a low degree of capital intensity. The bulk of value added is derived from the application of 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). Industry wage costs are estimated at 24.3% of revenue in 2016-17, and capital depreciation charges represent an estimated 2.2% of revenue (proxy for capital expenditure). Therefore, the industry currently allocates an estimated $11.05 on labour input to construction for every dollar invested in capital...purchase to read more.

    Additional Insights for the Port Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Port Construction Industry 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
  • Liquefied natural gas (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
  • year bond rate
  • Domestic price of concrete, cement and sand

  • Current Performance
  • Industry participation and profitability
  • Supply lags
  • Critical mass
  • Capital city growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Gas and coal pipeline
  • City ports
  • Participation strengthens
  • Profitability deteriorates
  • 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
  • LNG port facilities
  • General cargo
  • Specialised port facilities
  • Chart: Port Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • State port authorities
  • Private owners and operators
  • 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
  • Wage costs
  • Subcontract and professional services
  • Purchases
  • Rent, utilities and depreciation
  • Other costs
  • 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, Dredging International (Australia) Pty Limited,
  • Table: Aveng Australia Holdings Pty Ltd - financial performance
  • Table: Clough Limited - financial performance
  • Table: Dredging International (Australia) Pty 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • 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.
  • Containerised Freight
  • Goods transported in shipping containers. These are commonly referred to as TEUs (twenty foot equivalent units) or FEUs (forty foot equivalent units).
  • General Cargo
  • Cargo that is too heavy or large for shipping containers, such as structural steel components.
  • Throughput
  • The volume of a certain amount of cargo transported through a port.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Port Construction market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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