Too good for too long?

The news that DP World had finally shrugged off the New York ports debacle has coincided with the rumour that the ports giant, already operating 51 terminals worldwide, now has it's sights squarely on Germany's Port of Hamburg. The deal between American investors AIG and the New York port authorities stalled over demands of investment guarantees of US$84m. The deal was subsequently rescued by a $50m investment commitment from AIG. Ultimately for DP World this means there are no further hurdles to the sale of its US ports businesses. The transfer of the other four container terminals in which DP World has a stake, Baltimore, Philadelphia, Miami and New Orleans - have already approved the transfer.

"We're pleased AIG and the port authority have resolved this," said Michael Moore, DP World's senior vice-president. After the treatment the Dubai firm has received at the hands of American legislators and Congressmen, never a truer word can have been spoken.

Any fears that a similar European reaction could bounce off the news of the Hamburg deal would have been quickly dispelled by anyone fortunate enough to attend the Marine Money Gulf Ship Finance Forum in Dubai.

Ship financiers and investment funds from all over Europe, with a particularly strong presence from Germany and Norway, couldn't stress the time proven relations European institutions have had with regional ship owners, and vice-versa.

Whilst the day was tinged with an air of caution regarding over-optimism, (quote of the day: "rather than ship owners never having it so good, they've had it too good for too long"), there was plenty of excitement over the strength of the regional maritime business.

The more cautious voices warned that while the overall market was in a very strong position, the principal weakness was that individual sub sectors were not all faring as strongly.

The knock-on effect of the huge demand for new buildings, repairs and retrofits is that the shipyards have undergone, and delivered a massive expansion in capacity to meet the market. The danger is obviously that while good money is being made now, and order books are full, many of these yards, new and old, actually require this exceptional demand to continue apace for some years to come to keep the industry buoyed. Confidence, however, was the overriding message of the day.

The new CEO of Gulf Energy Maritime speaks exclusively to Sea Freight Middle East this month, and if you need any assurance that the industry is in full swing, read this first. The massive expansion plans of the Dubai based firm, and the hint of an IPO in the future, will be enough to convince you that the shipping industry in the Middle East is in very good shape.

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