A WORLD Bank Report into the state of global container ports has prompted debate, not only over performance but the report itself.
The Container Port Performance Index 2020 to 2024 was released earlier this month, having been prepared on behalf of the bank by S&P Global Market Intelligence.
The report authors argue that container port performance deteriorated markedly during 2021 and 2022, with COVID-19 contributing to global port congestion, vessel delays, and equipment shortages.
According to the authors, the lowest global average CPPI of the past five years was observed in 2022, consistent with the highest levels of port congestion and stress recorded in global supply chain indices.
CPPI scores reportedly rebounded in 2023 in parallel with “a sharp drop” in port congestion and a return to more stable freight markets.
“Ports in high-income economies regained much of their pre-pandemic operational efficiency, benefiting from more stable volumes and catch-up investment in technology and coordination,” the report states.
This recovery was stymied somewhat in 2024 due to the Red Sea crisis forcing ships to take the longer route around the Cape of Good Hope.
Climate-related disruption on the Panama Canal was also a factor.
Ports Australia chief executive Mike Gallacher said the report failed to capture the realities of Australian port operations.
“Ports Australia welcomes the opportunity to collaborate further with World Bank to ensure future reports comprehensively measure port performance,” Mr Gallacher said.
While this year’s report recognises performance must be based on myriad measurements, it still ignores key factors such as port call optimisation, connectivity, cargo dwell time and intermodal performance.”
Mr Gallacher said Ports Australia “firmly believes these should be included in future reports”.
“Ports Australia supports broadening the data used for Australian ports to ensure more meaningful comparisons, giving decision makers a clearer picture of port performance,” he said.
Mr Gallacher said Ports Australia port members had invested $3.8bn in capital expenditure during the past five years, including improving and expanding port infrastructure to secure efficient supply chains into the future.
“This is only the tip of the iceberg. This $3.8bn combined national investment doesn’t capture what port tenants, such as stevedores, have also invested into more productive and sustainable container terminals,” he said.
We welcome your views on the CPPI report. Email them to editorial@thedcn.com.au