South-east Asian port efficiency challenges loom

Subject

Port and shipping infrastructure in South-east Asia.

Significance

South-east Asia is likely to experience a recovery in freight shipping this year, after cargo traffic volumes grew in the fourth quarter of 2016. However, this rebound will put further pressure on congested ports and the region’s logistical capability.

Impacts

• Port congestion should ease as more capacity comes online, but secondary gateways will see little improvement.
• Regulatory reforms are lagging expansion plans, depriving the industry of much-needed investment.
• More investment will be needed in road and rail networks to link ports to supply chains.