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Re-berth

24 September 2009

The slowdown in global trade has meant lean times for port operators. But interest in PPPs for port facilities in the US remains high. By Joseph Seliga, partner, Mayer Brown LLP

The significant downturn in global trade since late 2008, continuing into 2009 and projected through 2010 and beyond is creating challenges for ports across the world, including in the United States, as port volumes decline. While global container volumes underwent years of consistent growth from the mid 1980s through the early to mid 2000s, the economic downturn of 2008 and 2009 has led to a sharp reduction in volumes.

Double digit decreases in volumes between 2008 and 2009 have been common. As of June 2009, US port volumes for the year decreased nearly 20% from the same time in 2008, with some ports, including Long Beach, Tacoma, Seattle, Virginia and Charleston reporting declines of over 20%. A decrease in consumer demand has had a ripple effect on the global port market, affecting shippers, shipping lines and ports themselves.

However, in the midst of these challenges, opportunities remain for public-private partnerships...


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