Freight transportation reports, projects and other news from outside North America (6/6/2025)

Tariffs, trade uncertainties to prompt shippers to reroute to ‘other emerging markets’ — ABI Research

“The imposition of tariffs has led to a significant reduction in shipments, with the Ports of Los Angeles and Long Beach anticipating a 35% drop in cargo volumes from China. As a result, ABI Research forecasts that inbound maritime cargo volume in the United States will drop in the coming years. In response to trade uncertainties, companies are diversifying sourcing away from China. Shipping giant Maersk is redirecting 20% of its capacity from China-U.S. routes to other emerging markets. Furthermore, the cumulative effect of trade policies and supply chain disruptions also contributes to economic headwinds, indicating a potential recession, which could further dampen consumer demand. Furthermore, ABI Research anticipates an increase in localized supply chains with more reshoring efforts, which will further add to falling imports.” — from “Tariff Forecasts & Fallout: 30 Tech Market Scenarios in the Face of a Renewed Trade War,” a whitepaper issued June 5 by ABI Research

Chinese AI software, service revenue could benefit long term from tariff imposition — ABI Research

“Chinese artificial intelligence (AI) software and service revenue may benefit from tariff imposition, as rising infrastructure costs force stakeholders to make supplier decisions. AI software and service regional power dynamics may go through long-term structural changes as a result of tariffs. Although certain exemptions exist, tariffs will put upward pressure on AI infrastructure costs, especially hitting the cloud and data center providers. Assuming they do not eat the entire cost, this increased [capex] bill will be passed onto U.S.-based independent software vendors. The result of this will be rising enterprise AI software and service costs. China will be the main benefactor of enterprises looking to reduce software operational expenditure — this will definitely be supported by other supply side trends, e.g., the emergence of competitive Chinese AI open-source models and accelerators.” — from “Tariff Forecasts & Fallout: 30 Tech Market Scenarios in the Face of a Renewed Trade War,” a whitepaper issued June 5 by ABI Research

U.S foreign policy ‘disruptions,’ global trade shifts help nudge European freight-rail industry toward ‘a profound crisis’ — SCI Verkehr study

European freight-rail transport is “amid a profound crisis,” according to research firm SCI Verkehr, which issued the results of a multi-client market study on June 4. “Disruptions in U.S. foreign policy and shifts in global trade are colliding with an industry already facing structural weaknesses," they said.

Among the key causes of said structural weaknesses: declining demand for traditional goods (coal, steel, chemicals), insufficiently digitized infrastructure and increasing transformation pressure from European Union competition policy. 

“Profitable companies remain the exception, and rail continues to lose market share to road transport,” SCI Verkehr officials said.

How much share’s been lost? Despite increasing transport volumes, “rail freight transport has lost nearly 2.5 percentage points of marketshare in recent years, they said. “The modal split in 2023 was just 16.4%. Even under favorable economic conditions — such as a successful stabilization of the global economy — SCI Verkehr forecasts only an average annual growth of 1.3% until 2030.”

That said, intermodal’s been something of a bright spot — a stabilizing factor, according to SCI Verkehr. The firm estimated a recovery of 4.7% in 2024 after a decline of 7.3% in 2023.

“This development is mainly driven by container traffic from Eastern Europe and an increasing number of military transports,” the study’s writers said. “These impulses stabilize the overall market but do not reach the growth rates of around 2% per year that were common before 2023.”

DP World investing $2.5 billion in 2025 to expand its global logistics network

Dubai-based DP World is expanding its global logistics network to the tune of $2.5 billion this year, launching major infrastructure projects across India, Africa, South America and Europe.

“Global trade is evolving fast, and we are investing boldly to shape its future,” said DP World Chairman and Group CEO Sultan Ahmed bin Sulayem in a May 20 statement on the company’s website. “Despite short-term uncertainty, this $2.5 billion commitment reflects our confidence in long-term trade growth and our determination to build the infrastructure needed to keep the world connected.”

For example; Construction is underway on a $510 million terminal at Tuna Tekra in Gujarat on India’s northwestern coast. Featuring a 1.1-kilometer berth and an annual capacity of 2.19 million TEU, the terminal will connect India’s “vast hinterland to global markets through a network of roads and railways, enabling faster, more efficient trade access for Indian businesses,” DP World officials said.

The company also is developing a new deep-sea port at Banana in the Democratic Republic of Congo (DRC). With a capacity of 450,000 TEUs per year, the facility on the DRC’s Atlantic coast will “bring significant cost and time savings for the country's trade, as it will attract more direct calls from larger vessels from Asia and Europe, boosting economic growth across the region,” company officials said. 

On the West African coast in Senegal, work is already underway on Ndayane Port, which will have the capacity to handle 1.2 million TEUs per year. Initial investment: $830 million.

At the Port of Posorja in Ecuador, DP World is working on a $140 million berth expansion that will expand the dock to 700 meters, enabling it to accommodate two post-Panamax vessels at the same time. 

And at the London Gateway logistics hub, DP World is spending $1 billion to build two shipping berths and a second rail terminal. 

Saudi Arabian port receives fully automated gantry cranes, trains Saudi women to be remote-control operators

On June 4, the Port of NEOM received the first fully automated, remote-controlled ship-to-shore and electric rubber-tired gantry cranes in the kingdom of Saudi Arabia.

The new cranes represent a key part of the Red Sea port’s automation strategy, unlocking the potential for high-volume, high-efficiency operations, officials said in a press release. The cranes’ remote-control capability “allows for a future-ready workforce model, where operators can manage equipment from secure, ergonomic environments,” they added.

Development at the port’s Terminal 1, a next-generation container facility, is ahead of its planned 2026 opening. It’ll feature a 900-meter quay wall and the deepening of the port channel to 18.5 meters, enabling the world’s largest vessels transiting the Suez Canal to call, port officials said. 

Terminal 1 also will feature horizontal transport automation as part of the broader goal to achieve full automation. Once operational, these technologies will “significantly expand the port’s logistics capacity, driving regional industrial growth, opening access to global markets, enhancing supply chain resilience and unlocking business opportunities,” officials said.

Meanwhile, Port of NEOM officials also say they’re committed to talent development, including training Saudi women to take on high-tech roles. One example: They’re training next-generation production specialists to be remote crane operators. 

Ten participants from the Tabuk region are currently enrolled in a two-year program that features technical instruction, hands-on training and mentorship.

“This experience has shown me that port logistics is far more complex than just moving cargo; it’s about teamwork, precision and responsibility,” said Hajjer Alatawi, a trainee participating in the program. “Seeing more Saudi women entering this space gives me hope for a future where industries are defined by skills, not gender.”

South Africa: Transnet receives $2.9 billion government guarantee to refinance debt, support capex

The South African government agreed to a Rand 51 billion ($2.9 billion) government guarantee facility to support Transnet SOC Ltd.'s "sustainability and long-term growth," the state-owned railroad and logistics company announced on May 22.

The facility will enable Transnet to refinance maturing debt and ensure the organization’s "continued access to adequate resources and facilities" to continue operations and fund its capital investment program "for the foreseeable future," Transnet officials said. The facility also enables the railroad to focus on operational improvements and strategic reforms, they said.

To meet the government's guarantee framework conditions, Transnet has made "significant strides in implementing rail and port reforms," including the implementation of partnerships with "several key private-sector participation transactions," Transnet officials said.

German port/logistics firm acquires majority stake in Ukranian intermodal terminal

Hamburger Hafen und Logistik AG (HHLA) has acquired 60% of the shares in Eurobridge Intermodal Terminal LLC in Batiovo, western Ukraine. Financial terms weren’t disclosed.

The terminal will be operated under the name “HHLA Eurobridge Batiovo” as a joint venture between HHLA International GmbH and the Ukrainian investment company Fortior Capital LLC. HHLA will continue to develop the terminal together with its rail subsidiary METRANS. The transaction is subject to approval by the Ukrainian competition authorities.

“Ukraine is and remains an important growth market with great potential for intermodal freight transport. Especially in challenging times, an efficient and reliable infrastructure is of central importance,” said Angela Titzrath, HHLA’s CEO in a June 4 press release. “The aim is to create a strong intermodal corridor between the EU and Ukraine, thereby contributing to economic integration — building bridges, as the name Eurobridge aptly describes.”

Qatar Airways Cargo, IAG Carg, MASkargo to launch global cargo business

Qatar Airways Cargo, IAG Cargo, and MAB Kargo Sdn Bhd (MASkargo) plan to start their previously announced global cargo joint business in late 2025, the firms announced at a June 2 press conference in Munich, German. 

The aim of the partnership, which is subject to regulatory approvals: deliver new routing opportunities, increased operational agility and better connectivity for customers across the global air freight market, the firms said in a statement posted on Qatar Airways Cargo’s website.