The global economy might have passed its peak ports moment.
Bloomberg is reporting Singaporean terminal operator PSA International has ditched plans to sell its 20% stake in Hutchison Ports with limited interest unwilling to fork out the $4bn PSA was after. PSA bought the stake in 2006 for $4.4bn.
PSA has declined to comment on the decision to shelve the sale, which reportedly drew interest from Beijing in the form of COSCO and China Merchants
PSA is the world’s largest container terminal operator, with Hutchison ranking in sixth place according to data from UK consultants Drewry.
A recent Drewry report pointed to an increased fear of recession, higher inflation and rising interest rates hitting investor sentiment in ports.
Lower container volumes and increasing manpower costs have hit margins for most industry participants, Drewry warned.
