2019 APEC Port Development Report 2019 1 2 2018 APEC Port Development Report www.apecpsn.org APEC Port Services Network (APSN) is an international organization established in response to the directives of the 14th APEC Economic Leaders’ Meeting in 2006 and with the support of all leaders from APEC member economies to promote exchanges and cooperation among port and port-related industries in the Asia-Pacific region. The mandate of the APSN is to facilitate trade and investment and enhance supply chain security by strengthening economic cooperation, capacity building, information and personnel exchanges among port and port-related industries and services in the region, so as to achieve the common prosperity of the APEC member economies as a whole. Ever since establishment of APSN, as a complimentary service for port-related industries in the Asia-Pacific region, APEC Port Development Report has published 10 issues. This report focuses on the development of Asia-Pacific ports in 2019, covering trade, ocean shipping, port infrastructure and operation, laws and regulations, intelligent and sustainable development. With its detailed statistics, and in-depth analyses, APEC Port Development Report has become an important reference for those engaging in port-related industries. The APSN secretariat sincerely welcomes your advice, and we hope that ports and organizations can contribute variously valuable information so that we can follow the development of the industry even closer, and provide our readers with more accurate information in a more timely fashion. Fei Weijun Secretary General APEC Port Services Network May 2020 3 2018 APEC Port Development Report www.apecpsn.org 3 4 2018 APEC Port Development Report www.apecpsn.org 4 Table of Contents Chapter 1 Review of Global and Asia-Pacific Economic and Trade Development in 2019 1.1 Review of Global Economic and Trade Development.........................................................6 1.2 Review of Asia-Pacific Economic and Trade Development..............................................11 Chapter 2 Review of Global and Asia-Pacific Shipping Industry Development in 2019 2.1 Review of Global Shipping Industry Development............................................................20 2.2 Review of Asia-Pacific Shipping Industry Development...................................................28 2.3 Changes in Shipping Costs.................................................................................................39 2.4 Changes in Shipping Laws and Regulations.....................................................................45 2.5 Development Trends of International Shipping Organizations.......................................48 Chapter 3 Review of Asia-Pacific Port Development in 2019 3.1 Features of Port Route Network and Hub Ports in Asia-Pacific region...........................50 3.2 Review of Port Production...........................................................................................................55 3.3 Business Performance of Port Enterprises........................................................................82 3.4 Review of Multimodal Transport Development of Ports................................................94 3.5 Review of Port Infrastructure Construction......................................................................102 3.6 Review of Intelligent, Green and Safe Port Development................................................110 3.7 Review of International Port Organizations Development ..............................................115 Chapter 4 Review and Comment on Major Shipping and Port Events in the Asia-Pacific Region in 2019 4.1 Review and Comment on 10 Major Shipping Events in Asia-Pacific Region in 2019 ....................................................................................................................................................118 4.2 Review and Comment on 10 Major Port Events in Asia-Pacific Region in 2019 ....................................................................................................................................................122 References2.................................................................................................................................128 5 Chapter 1 Chapter 1 Review of Global and Asia-Pacific Economic and Trade Development in 2019 1.1 Review of Global Economic and Trade Development 1.1.1 Global economy under increased downside pressure The global economy in 2019 was dampened by factors including the prolonged trade disputes, the volatile financial market, escalated geopolitical tensions, and uncertainties in trade policies, and growth slowed down dramatically, with major economic indicators falling to historical lows. In the World Economic Outlook released in January 2020, the International Monetary Fund (IMF) lowered the global economic growth rate in 2019 to a 10-year low of 2.9%. In addition, factors such as lower productivity, insufficient endogenous drives for economic growth, and climate changes due to lack of technological innovation, aging population, and slow progress of reforms, among other reasons, have restrained the current global economic growth to a certain extent. Table 1-1 Global GDP Growth Rates in 2018-2021 (Unit: %) Historical Estimated Forecast Value Item Value Value 2018 2019 2020* 2021* Global GDP 3.6 2.9 -3.0 5.8 Advanced Economies 2.2 1.7 -6.1 4.5 The United States 2.9 2.3 -5.9 4.7 Euro Area 1.9 1.2 -7.5 4.7 Japan 0.3 0.7 -5.2 3.0 United Kingdom 1.3 1.4 -6.5 4.0 Canada 2.0 1.6 -6.2 4.2 Emerging Markets and 4.5 3.7 -1.0 6.6 Developing Economies Russia 2.5 1.3 -5.5 3.5 China 6.7 6.1 1.2 9.2 India 6.1 4.2 1.9 7.4 ASEAN-5 5.3 4.8 -0.6 7.8 Brazil 1.3 1.1 -5.3 2.9 South Africa 0.8 0.2 -5.8 4.0 Note: * indicates projections; ASEAN-5 represents Indonesia, Malaysia, Philippines, Thailand, and Vietnam. Source: International Monetary Fund (IMF) In 2019, the global economic and trade growth slowed down significantly, with foreign direct investment slumping, growth of major advanced economies continuing to dip, and emerging economies under increased downside pressure. The latest IMF report shows that the economic growth rates of advanced economies, emerging 6 2018 APEC Port Development Report www.apecpsn.org 6 markets and developing economies all declined to vary degrees year-on-year. Specifically, advanced economies recorded an economic growth rate of 1.7%, a year-on-year drop of 0.5 percentage points and emerging markets and developing economies registered 3.7% growth rate, down by 0.8 percentage points year-on- year. Among advanced economies, the United States recorded an economic growth rate of 2.3% in 2019, down by 0.6 percentage points year-on-year. Against an across- the-world economic slump in 2018, the United States economy "outshone others". However, the United States economic growth has been slowing down since 2019, and its relatively strong performance is diminishing. Meanwhile, the combined impacts from the negative term spreads, the high corporate debts, the new low of unemployment rate, the easing trade tensions, the upcoming election of United States, and the sharp drop in the private investment contribution to GDP growth have driven the United States economy to decline at a faster rate in 2019. European economic growth remained low, with the euro area recording only 1.2% in 2019, down by 0.7 percentage points year-on-year. It is worth noting that Germany, the "engine of European economy", fell into technical recession. Its economic growth in 2019 was only 0.6%, and its manufacturing depression has continued for six consecutive quarters. The economy of the debt-ridden EU member states in southern Europe, represented by Italy, also remained sluggish, and the large-scale strikes in France are hurting the economy. Due to postponements of the United Kingdom's Brexit, the British economy fluctuated widely in 2019 and continued the slowdown in recent years, with its economic growth standing at 1.4%. As a result of the sluggish external demand and weak inflation, as well as the consumption tax rise, Japan's economic growth was restrained and became weak, with its 2019 economic growth recording only 0.7%. Driven by the large-scale economic stimulus policies of the government, Japan became one of the few economies that succeeded in maintaining faster economic growth among major advanced economies. In 2019, due to factors such as geopolitical uncertainties, intensified global trade frictions, global economic depression, and structural issues, emerging markets and developing economies witnessed a new low in economic growth since 2009, with the annual economic growth standing at 3.7%, down by 0.8 percentage points year-on-year. Emerging markets and developing economies experienced a general decline in economic growth in 2019. China, under the pressure of weak domestic and foreign demands and increased tariffs imposed by the United States, recorded an economic growth rate of 6.1%, down by 0.6 percentage points year-on-year. It is worth noting that, with India's non-banking financial sector debt easing and loan growth falling, its domestic demand growth slowed down faster than expected. As a result, India's economic growth decelerated significantly. In 2019, India recorded an economic growth rate of 4.2%, down by 1.9 percentage points year-on-year. In 2019, Russia's economic growth declined to 1.3% due to multiple unfavorable factors including poor business investment, slower growth of import and export trade, and sluggish household