Intra-Asia boom must be sustained by new infrastructure: APL

INTRA-ASIA trade now leads the global container recovery, but its very strength could well cripple the fragile infrastructure that hobbled growth before the recession, said APL intra-Asia vice president Jason Wong.

"Intra-Asia is already the world's single largest container trade," said Mr Wong at the eighth ASEAN Ports & Shipping Conference. "This will continue over the long term as Asian consumer markets develop."

Mr Wong said freight infrastructure development must be a top priority across Asia to optimise trade flows and maximise economic growth, in a statement from APL, the container shipping arm of Singapore-based Neptune Orient Lines (NOL).

He highlighted Vietnam's progress in developing world-class freight handling facilities, especially in and around Ho Chi Minh City, such as the Vietnam International Container Terminal (VICT) and new deepwater terminals, such as Saigon Port-PSA (SP-PSA). It was from the SP-PSA terminal that APL launched the industry's first direct container shipping service between Vietnam and the US in 2009.

By 2015, intra Asia will contribute 32 per cent of global container trade, with the Asia-US and Asia-Europe trades accounting for 17 per cent and 18 per cent respectively, predicted analyst Global Insight.

Mr Wong pointed out that along with China and India, south east Asian economies such as Vietnam and Indonesia had shown resilience to the global crisis and had continued to grow in 2010.

Mr Wong believes that more transportation services will be required to support the growth of freight moving within Asia, particularly as north Asia and south east Asia are seen as having "high potential" for trade. To serve these markets, he said, APL launched the Japan-Thailand-Vietnam and Korea China Straits services in 2009.

"These facilities will help place Vietnam alongside the top trading nations," he said.

( Source: www.schednet.com )