This situation is mainly due to the fact that goods destined for the ports of Eastern Mediterranean increasingly rely on transhipment services to and from western Mediterranean ports as many ships bypass the Suez Canal and opt for routes around the Cape of Good Hope (South Africa). New Moroccan port of Swimmer West Med, scheduled for completion by the end of 2024, is poised to become a key solution to alleviating this congestion. This is what emerges from a new study published by BMI-Fitch Solutions.
According to the study, port utilization rates – the percentage of a port’s capacity that is in use at any given time – increased significantly across the Western Mediterranean in the first half of 2024. A healthy utilization rate is typically between 60 and 70 percent, allowing for efficient operations while providing sufficient reserve capacity to handle fluctuations in demand without significant delays or operational issues.
Risk of a prolonged crisis in the Red Sea
“The new Nador West Med port will ease congestion in the Western Mediterranean by providing additional transshipment capacity once operational by the end of 2024, attracting carriers seeking alternatives to overcrowded ports and those affected by vessel diversion due to the crisis in the Red Sea”, underline the experts of the macroeconomic and sectoral research firm “BMI”.
Nador West Med, a strategic project
In addition, Morocco is preparing to launch a call for tenders for a floating terminal of liquefied natural gas (LNG) at the Nador West Med port, targeting financial close by 2025 and operations starting in 2026. The terminal will be connected to domestic gas fields and will import 0.5 billion m³ of LNG per year. With its completion expected by the end of 2024, major carriers currently lacking terminal capacity in the region are expected to show significant interest in concessioning the new port due to its potential to serve as an alternative hub and mitigate disruption. caused by the crisis. Among these carriers is the Chinese giant Coscoincluding the Eastern Mediterranean hub at Piraeus (Greece) was one of the hardest hit by ship deviations.
However, the BMI-Fitch Solutions study provides a clarification: “although the port is supposed to attract large carriers and strengthen the importance of Morocco in the transport maritime regionally, timely operational activity at the port remains uncertain due to construction delays and a lack of clear investment incentives.”
Note that the development of the Nador West Med port is accelerating to make up for the delay due in particular to the crise Covid-19.