Trade between nations is highly facilitated by sea ports. Huge cargo items that cannot be transported by air arrive at major sea ports around the world daily evident by logistics and shipping market research reports that estimate that nearly 80% of all trade is seaborne hence, it is increasingly important to facilitate good seaport logistics. Studies on port activities are being conducted today to bring out the real importance of seaports although their contribution to an economy is debatable.
These days port activity is no longer limited to just cargo handling. Globalization of complex industrial production processes has increased the importance of sea ports in the global supply chain. It is not only the time and cost of delivery of shipments that matters but also its reliability and predictability.
- Many countries are recognizing the bright prospects of the rapidly growing demand by developing their seaports to form regional hubs. Logistics and shipping industry research and market reports reveal that Singapore, Shenzhen, Hong Kong and Dubai are all international hubs of sea trade. These regions are also investing in transshipment facility and efficient transport network.
- Better transport infrastructure not only leads to time saving but also leads to growth of trade and sharing of resources. This can significantly benefit both countries and even increase employment. A study conducted on 10 European countries that analyzed the impact of ports on local employment found that every million tons of net port throughput would create around 450-650 jobs in the region. Furthermore, it found that every 10% increase in port throughput can generate a 5%-20% increase in the GDP of the region.
- Government intervention can greatly aid port infrastructure and overall gain. India is a good example in this respect. India is the sixteenth largest maritime country in the world with an extensive coastline. The Indian trade and shipping plays a vital role in sustaining the country’s economy and commerce. The Indian Government plays an important role in supporting the seaports sector. It has allowed Foreign Direct Investment (FDI) in development, automation and maintenance of seaport logistics. It has also facilitated a 10 year long tax holiday to further the development and maintenance of ports. Under the National Perspective Plan six new mega ports will be developed in the country.
- Certain country’s have an innovative edge over others. Such countries are launching more eco friendly projects and this draws other nations to invest an ever increasing amount in these countries. The global concern for the environment has affected seaport logistics as well. Regions that have adopted the world environmental standards in operational activities are considered superior to others. The international reputation of countries like Singapore is a key driver of its prosperous trade which clearly has resulted in enormous wealth generation.
Sea ports are essential for a country’s overall development and wealth. Regional hubs are seen as an abbreviation for the global sea trade network which has favored countries that have invested in seaport logistics. The resultant trade network will further the country’s development status thereby augmenting employment and technology sharing. India is also making a mark on the global level and demonstrates the strength of government aid and foreign investment. International reputation of a nation also plays a prominent role in its progress especially in respect to the environmental sector.
Key Factors Considered in the Report:
Logistics and Shipping Market Research Reports
Logistics and Shipping Industry Analysis
Market Research Reports for Logistics
Logistic Market Research Report
Logistics and Transportation Market Research Reports Consulting
Logistics Business Review
Logistics and Shipping Industry Research and Market Reports
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Ankur Gupta, Head Marketing & Communications