Is this a bubble waiting to burst?

Overcapacity may spell the end of port construction bonanza

By Gary Gimson

This decade has been a story of expansion, modernisation and development for Caribbean ports and the region has become a key market for the world’s big harbor construction firms and dredging companies.

In fact, the Caribbean has undergone a port construction boom – but a boom whose days may be numbered. As post-panamax upgrading draws to an end and global trade eases, the prospect of overcapacity – especially in the container transhipment sector – looms large.

Leading

Almost everywhere across the region, harbor construction work is under way or close to completion. Arguably leading the way this year is the opening by ATM Terminals in February of the new billion-dollar Moin megaport in Costa Rica. Then there’s the planned US$ 200 million expansion of Cartagena Container Terminal by operator Compas SA. Meanwhile, work has begun on new ports, upgrades and expansions in Antigua, Panama and Jamaica. Together with proposed upgrades to many of Florida’s ports, it adds up an impressive list of major port construction projects.

As elsewhere in the world, Chinese investors have been scouting our region in search of opportunities for port and terminal development. And, after a slow and ignominious start, projects are starting to take shape.

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