PORTS

ASIA: The Port of Rotterdam advises the Indian Ports Association.

The Port of Rotterdam was commissioned about a year ago by the Indian Ports Association to offer strategic advice to the major Indian ports.

Their key recommendations were the delegation of power downwards from the Ministry of Shipping to the individual ports and from senior management to executives within organisations.

The report also suggested that investment in mechanised cargo handling rather than increasing the number of berths would lead to economic efficiencies.

Further recommendations were for increased outsourcing and the development of transport connectivity's which would facilitate the offer of total transport solutions to clients.

AIRLINES MARKETS

EUROPE: Private equity demonstrates appetite for European airlines.

Private equity house TPG (formerly Texas Pacific Group) is, in conjunction with British Airways, exploring an approximately $5 bn bid for Spanish flag-carrier Iberia. It is also one of three short-listed bidders for the Italian government's 49.9% interest in Alitalia.

British Airways currently owns 10% of Iberia and has first refusal on a further 30% so is able to thwart alternative bidders.

It has been argued that British Airways should be focussing its attention on growth markets in Asia rather than consolidation in the relatively stagnant European arena.

AIRLINE INDUSTRY

ASIA: Asia Pacific demand set to dominate aircraft market

Boeing have predicted that whilst global GDP growth will average 3.9% over the next 20 years, demand for air passenger and freight traffic will rise by 4.9% and 6.1% respectively. Passenger traffic within the Asia-Pacific region (excluding the domestic market in China) is estimated to rise by 5.4% and the figure for China itself is 8.8%. The region is forecast to represent 36% of the implied demand for 27,200 new passenger aircraft by the year 2025.