Future Cities2022 Global Seaport ReviewNavigating evolving global seaport regions and their impact on industrial real estateREPORTCBRE RESEARCHDECEMBER 20222CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review01 Key takeaways02 Logistics drivers and seaports as logistics hubs03 What are the risks to global supply chains?04 Major global ports05 Appendix35111792ContentsThis report looks at major and emerging seaports to explore and understand their capabilities and inter-connectivity around the globe,as well as the impact and influence they have on nearby industrial real estate markets.Key takeaways014CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewStrong demand for industrial real estate worldwideE-commerce growth,coupled with the need to hold more inventory to protect against supply chain disruptions,is fueling demand for industrial and logistics propertiesespecially those with transportation links to seaports.Heightened risks shape strategiesOngoing risksincluding inflation,rising interest rates,geopolitical tensions and possible temporary port closings or lockdowns due to the pandemicare prompting industrial investors and occupiers to reevaluate supply chain strategies and locations.High transportation costs influence site selectionTransportation costs account for the largest share of a companys total logistics costs,between 45%and 70%of total spend,according to CBRE Supply Chain Advisory.This compares with 3%to 6%for fixed facility costs like rent,and 15%to 25%for variable facility costs such as labor.To help minimize transportation costs,companies are targeting facilities near ports of entry,including seaports.Seaborne shipping increasing International shipping is growing,with TEU volumes climbing 36.5%over the past decade.More than 80%of the worlds merchandise trade by volume is seaborne,of which over half is shipped in ocean containers.01020304Logistics drivers and seaports as logistics hubs026CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewDemand drivers for logistics property FIGURE 1:Key drivers of logistics demandSource:CBRE Global I&L Outlook,November 2022.Omnichannel retail Accelerating growth in e-commerce requires retailers to augment delivery capacity Economic growth and urbanization support demand in emerging marketsOperational efficiency Upgrade to modern facilities to enhance storage efficiency Locate facilities near points of consumption Install tech,especially automationSupply chain resilience Localize production Diversify sourcingSector growth Third-party logistics(3PL)Retailer/wholesaler Cold storage Post and parcelsThe industrial and logistics sector is experiencing record demand as companies expand their real estate footprints to keep up with rising e-commerce sales and diversify supply chains to prevent disruptions and control inventories.133%Increase in global e-commerce sales over the past five years.Source:CBRE Global E-Commerce Outlook 2022.7CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewFIGURE 2:All markets witnessed an acceleration of e-commerce sales during the pandemicSource:CBRE Global I&L Outlook,November 2022.Companies are enhancing their distribution capabilities to protect inventories from global supply chain disruptions,like those caused by the pandemic,as well as fallout from other issues,such as congestion and closures at ports,blockages along key shipping routes and the ongoing war in Ukraine.To address these challenges,companies are locating their facilities near global transportation hubs,especially seaports.These hubs drive industrial real estate markets and are typically at the center of large clusters of logistics distribution facilities.Seaport-adjacent facilities also provide value-added services such as production,storage,customs clearance,packaging and processing for the enormous volume of cargo moving throughout the global supply chain.0 0P 152016201720182019202020212022(F)2023(F)2024(F)2025(F)2026(F)AustraliaChinaFranceGermanyMexicoU.K.U.S.KoreaForecastE-commerce%share of total retail sales8CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewBy 2026,1.7 billion sq.ft.to 2.2 billion sq.ft.(160 to 200 million sq.m.)of additional e-commerce dedicated logistics space will be required globally to support internet sales.Source:CBRE Global E-Commerce Outlook Update,June 2022.9CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewSeaports as major global logistics hubsSeaports have evolved over the decades,with the adoption of container shipping,the diversification of cargo types and equipment,better intermodal transportation of containers and advancements in port technologies.Today,major seaports typically connect to geographically concentrated and mutually related business facilities centered around transportation,trade,and industrial production and distribution.Global seaports distribute on a very large scale,often via Panamax container ships able to hold at least 5,000 20-foot equivalent units(TEUs).A TEU,or 20-foot equivalent unit,is the dimension of a standard shipping container(20 feet long and eight feet high and wide)and is generally used to determine the cargo capacity of container ships and terminals.10CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewContainer volume trade increaseTrade volumes are growing rapidly amid an increasingly global consumer landscape.Between 2012 and 2021,global TEU volumes grew 36.5%to approximately 850 million TEUs.More than 80%of world merchandise trade is currently seaborne,of which more than half(by value)is shipped in ocean containers.Long-distance transocean trade routes,along with a new class of post-Panamax container ships(vessels able to carry more than 20,000 TEUs),enable shipping companies to take advantage of economies of scale and reduce costs. 80%of world merchandise trade by volume is seaborneFIGURE 3:Container throughput worldwide has increased considerably over the last 10 yearsSource:Statista,April 2022.ForecastTEU volume(millions)4005006007008009001,0001,10020122013201420152016201720182019202020212022(F)2023(F)2024(F)2025(F)What are the risks to global supply chains?03-2-1012345Sep-97Jun-98Mar-99Dec-99Sep-00Jun-01Mar-02Dec-02Sep-03Jun-04Mar-05Dec-05Sep-06Jun-07Mar-08Dec-08Sep-09Jun-10Mar-11Dec-11Sep-12Jun-13Mar-14Dec-14Sep-15Jun-16Mar-17Dec-17Sep-18Jun-19Mar-20Dec-20Sep-21Jun-22Jul-2212CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewGlobal supply chain pressures In January 2022,the Federal Reserve Bank of New York introduced a new measure,the Global Supply Chain Pressure Index(GSCPI),to gauge supply chain conditions by combining several transportation and manufacturing metrics,including delivery times,pricing and inventory.The GSCPI data set tracks activity back to 1997.Following some fluctuations prior to 2020,the GSCPI surged at the beginning of the pandemic amid strict lockdown measures.The index fell briefly during the summer of 2020 when world production started to recover,before rising again at a dramatic pace as the omicron variant spread worldwide.Supply chains were pressured in 2020 and 2021 because of a surge in online spending amid a backdrop of capacity constraints,equipment shortages,renewed virus infections in some parts of the world(including at the critical Yantian Terminal in Shenzhen,China)and a one-week closure of the Suez Canal,when the 1,300-foot Ever Given container ship was temporarily trapped due to strong winds,preventing other vessels from passing through.Many of these factors continue to cause instability in the supply of key materials and components for global industrial production.FIGURE 4:Global Supply Chain Pressure Index and major supply chain disruptionsGlobal Supply Chain Pressure IndexNote:The Global Supply Chain Pressure Index(GSCPI)combines variables from several indices in transportation and manufacturing,such as those related to delivery times,prices,and inventory,to measure supply chain conditions.A measurement above zero indicates more supply chain pressure than usual,while a reading below zero indicates less pressure.Source:CBRE Research,Macrobond,Federal Bank of New York,Q3 2022.9/11(2001)Hurricane Katrina(2005)Hurricanes Maria&Harvey(2017)Global Financial Crisis(2008-09)Thailand floods/monsoon&Sendai earthquake(2011)Icelandic volcanic eruption(2010)U.S.-China trade disputes(2017-18)COVID-19(2020-22)Omicronvariant(2021)Russia-Ukraineconflict(2022)$0$2,000$4,000$6,000$8,000$10,000$12,000Nov-19Jan-20Mar-20May-20Jul-20Sep-20Nov-20Jan-21Mar-21May-21Jul-21Sep-21Nov-21Jan-22Mar-22May-22Jul-22Sep-2213CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewContainer shipping costs surgeThe rising cost of shipping has greatly impacted companies engaged in global distribution.Though ocean shipping rates are falling,they remain much higher than pre-pandemic levels.According to the Freightos Baltic Index,which represents a weighted average of spot shipping rates for a 40-foot container across 12 major global routes,rates steadily increased after COVID-19s onset and skyrocketed following the Suez Canal blockage.Rates rose from$1,400 at the end of March 2020 to$11,100 in September 2021,before settling down to a still-elevated$3,450 as of mid-October 2022.FIGURE 5:Container-shipping costs were affected by prolonged supply chain disruptionsNote:Global Container Freight Index represents the market rate to ship a 40-foot equivalent(FEU)container.Source:Freightos,October 2022.Global Container Freight Pricing Index,weekly prices(US$)Suez Canal blockageYantian,Shenzhen port closureRussia-Ukraine war$3,429$11,109 peakU.S.and European port congestionOcean shipping rates are at$3,450 as of mid-October 2022,up from$1,400 in March 2020.14CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewAccording to estimates from maritime data provider Lloyds List,$9.6 billion worth of trade was held up daily because of the Suez Canal blockage,topping$50 billion by the time the canal was cleared.However,this figure excludes the broader impact to trade and economies globally,as commodity prices increased because of the uncertainty.As a result,ports had to simultaneously deal with both scheduled and delayed ships,adding more stress on the global shipping system.The blockage occurred amid pandemic-induced labor shortages in U.S.ports and COVID-related disruptions in Chinese ports,and coincided with a surge in demand for manufactured goods,pushing up shipping rates.While costs have fallen as consumer demand stabilizes and port activities normalize,they are still significantly above pre-pandemic prices.The United Nations Conference of Trade and Development(UNCTAD)estimates that elevated container freight shipping costs will add 1.6%to consumer prices globally in 2023.Elevated container freight costs will add an estimated 1.6%to consumer prices globally in 2023.It takes roughly an 8%increase in fixed facility costs to equal the impact of just a 1%increase in transportation costs.Joe DunlapManaging DirectorCBRE Supply Chain Advisory45p%Transportation costs3%6%Fixed facility costs(includes rent)12%Inventory carrying costs15%Variable facility costs(includes payroll)7%Other related costs15CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTransportation large part of logistics costsTransportation accounts for 45%to 70%of total logistics spend,according to CBRE Supply Chain Advisory.This compares with 3%to 6%for fixed facility costs,including rent,and 15%to 25%for variable facility costs,including labor.In other words,it pays for companies to locate distribution infrastructure as close to ports as possibleeven as still-high shipping rates fallas the savings on transportation costs can materially benefit occupiers of industrial real estate.FIGURE 6:Logistics costsSource:CBRE Supply Chain Consulting,H1 2022.16CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewWhat are the ongoing key risks to watch?Inflation and rising interest ratesInflation is a worldwide problem,with headline inflation driven by surging energy prices.With global supply chain pressures expected to continue into 2023,its essential for companies to build adaptable and resilient distribution solutions.This is driving increased demand for warehouse space,particularly in well-established and emerging seaport locations,creating opportunities for industrial and logistics property owners and investors.While there have been signs that supply chain disruptions eased earlier in 2022,there are several evolving economic and geopolitical challenges:COVID restrictions in ChinaAs of November 2022,the Chinese government is considering changes to its zero-COVID policy.This could create a short-term spike in infections,which could reduce mobility,impede manufacturing activity and disrupt supply chains.Continued port congestionU.S.ports could become congested again as there is a growing risk of labor negotiations leading to walkouts over pay.Natural weather-related occurrences also can heavily impact port operations,causing temporary closings at ports and possible roadway flooding.The war in UkraineRussias invasion of Ukraine affected maritime trade,as commodity origins had to be rerouted.Further port disruptions caused by the conflict,particularly in Northern Europe,are adding more demands on warehousing and storage capacity,placing upward pressure on costs.The war is also impacting other intermodal routes,including airfreight transportation across Asia-Europe trade routes that would usually travel through Russian airspace,and the disruption and rerouting of overland rail links from China to Europe.01020304Major global seaports0418CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewHover over port marker for more informationGlobal port city mapFelixstoweAntwerp-BrugesRotterdamHamburgPiraeusSingaporeMelbourneHo Chi Minh CityHong KongShanghaiVancouverLos Angeles/Long BeachManzanilloSavannahCharlestonNew York/New JerseyTanger MedValenciaSource:CBRE Research.19CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewGlobal seaports01 Los Angeles/Long Beach,California02 New York/New Jersey03 Savannah,Georgia04 Charleston,South Carolina05 Vancouver,British Columbia06 Manzanillo,Mexico07 Rotterdam,Netherlands08 Antwerp-Bruges,Belgium09 Hamburg,Germany10 Valencia,Spain11 Tanger Med,Morocco12 Piraeus,Greece13 Felixstowe,U.K.14 Shanghai,China15 Hong Kong SAR16 Singapore17 Ho Chi Minh City,Vietnam18 Melbourne,AustraliaLos Angeles/Long Beach,CaliforniaAmericasMenu21CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewThirty percent of U.S.imports travel through the San Pedro Port Complex,making it a critical part of Los Angeles logistics infrastructure.This is creating demand for industrial space in and around the port markets,driving vacancy to all-time lows and pushing prices to record highs.While leasing activity may have decreased over the past quarter,its more related to a lack of transactable space than the current economic moment.Lew Horne President,Advisory ServicesGreater Los Angeles,Orange County&Inland EmpireCBRELONG BEACH,CALIFORNIA Los Angeles/Long Beach,California22CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Los Angeles and Port of Long Beach make up the San Pedro Bay Port Complex.The Port of Los Angeles is the largest in North America,spanning 7,500 acres and 43 miles of waterfront.The Port of Long Beach handles more than 8.1 million TEUs each year with cargo valued at$200 billion.The San Pedro Bay Port Complex is ranked ninth worldwide and accounts for 31%of U.S.container movements in seaports.The ports provide approximately 190,000 jobs.The ports faced many obstacles over the past two years,including the pandemic,labor issues and changes in the rail and trucking industries.Earlier this year,truck drivers paused operations to protest Californias AB5 law,which forces trucking companies to reclassify drivers that previously had an independent contractor status as an employee.A high majority of trucking companies are owner-operated in California,fueling concern that this law impacts their ability to operate without being employed by another company or being part of a union.The new law may adversely affect the movement of goods from some West Coast ports as owners are unable to enter into lease agreements with motor carriers,reducing the number of trucks hauling loads to and from the ports.In September,a tentative deal was struck between the railway companies and union leaders,avoiding a strike which could have led to further supply chain disruptions.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of LA,Port of Long Beach,2022.Source:,Los Angeles Metro,2022.201020225-year projection%growth12,160,000 12,488,000 12,872,000 3.1%Los Angeles/Long Beach,CaliforniaPort featuresThe Port of Los Angeles includes a 53-foot main channel water depth,seven container terminals,270 berths and 85 container cranes.The port is big-ship-ready to transport goods to 14 major U.S.freight hubs.It includes 116 miles of rail,with five on-dock railyards and a classification yard.The Port of Long Beach has a depth of 76 feet,the deepest in the country,and contains 22 shipping terminals,of which six are container terminals,80 berths and 70 post-Panamax gantry cranes.FIGURE 3:Port detailsSource:CBRE Research,Port of Los Angeles,Port of Long Beach,2022.Los AngelesPort depth53 feet(16 meters)Cranes85 Berths270 Container terminals7 Long BeachPort depth76 feet(23 meters)Cranes70 Berths80 Container terminals6 10.7 Mcontainer units handled in 2021,the Port of Los Angeles busiest year ever15.015.516.016.517.017.518.018.519.019.520.020.5201920202021TEU volume(millions)23CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersThe Port of Los Angeless top trade partners in the last six to eight months include Mainland China,Vietnam,Thailand,South Korea and Taiwan.The top imported goods at the Port of Los Angeles include furniture,auto parts,apparel,plastics and footwear.The top exported good include pet/animal feed,paper/wastepaper,soybeans,fabrics/raw cotton and scrap metal.The Port of Long Beachs top trade partners include Mainland China,Vietnam,South Korea,Japan,Hong Kong SAR and Taiwan.Top imports include crude oil,electronics,plastics,furniture and clothing.Top exports include petroleum coke,petroleum bulk,chemicals,wastepaper and foods.Intermodal transportationThe Port of Los Angeles features on-dock and near-dock rail services,with two-thirds of the goods imported leaving via rail.At the Port of Long Beach,the$34.7 million Pier G/J Double Track Access project was completed in April,adding 8,000 feet of rail trackage and four terminals to increase train capacity.The Port of Long Beachs Middle Harbor Terminal Redevelopment project will join two of its aging shipping terminals to create whats billed as the worlds greenest container terminal.The Port of Los Angeles will invest$34.3 million in the Pier 400 Corridor Storage Track Expansion,which extends an existing rail bridge,adds new rail storage tracks and includes other rail modifications.Los Angeles/Long Beach,CaliforniaReal estate influenceThe ports are two of the busiest in the U.S.and greatly impact the regions industrial and logistics real estate market.Los Angeles County is the second-largest industrial market in the U.S.,with 948 million sq.ft.of space.As of Q2,the markets 0.6%vacancy rate is the fourth-lowest in the U.S.With limited supply and availability,asking rents continue to climb,reaching a record of$16.20 per sq.ft.per year in Q2.Warehouse leasing is driven by occupiers and users in the third-party logistics,retail and food industries.The ports also drive demand in many surrounding markets.The Inland Empire is one of the most dynamic industrial markets in the country due to its proximity to the ports and its plethora of Class A industrial facilities.The market had the worlds lowest vacancy rate,at 0.2%,in Q2,and its taking rents have grown 72%during the past 12 months.With record-low vacancy rates near the ports,markets further east are taking advantage of port-related demand,including Central Valley,Phoenix and Las Vegas.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,Q2 2022.Greater Los Angeles(GLA)Q2 2022 FigureAvg.asking rent$1.35 per SF per monthVacancy0.6%Net absorption-159,965 SFUnder construction7.3 million SFLOS ANGELES,CALIFORNIANew York/New JerseyAmericasMenu25CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewThe port continues to be a key driver for industrial development in New Jersey,but a dwindling supply of land and an increasingly difficult entitlement process is leading to a decline in the construction pipeline.Occupiers are making do with older,functionally obsolete inventory despite demand for first-generation space and corresponding outside storage.Larry SchiffenhausExecutive Vice President New JerseyCBREBAYONNE,NEW JERSEY New York/New Jersey26CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of New York and New Jersey ranks 37th on the United Nations Port Liner Shipping Connectivity Index,making it the best-connected port on the East Coast.Container volume increased approximately 11%through mid-year 2022.The port handles around 30%more cargo than it did before the pandemic.New tariffs were implemented in September on empty containers and export volume to help alleviate container backups,with a$100 container imbalance fee per container initiated if loaded and empty containers remain at the port.FIGURE 1:TEU volumesTEU volume(millions)Source:CBRE Research,Port Authority of New York and New Jersey,2022.FIGURE 2:Population demographicsSource:,Los Angeles Metro,2022.201020225-year projection%growth18,897,109 20,224,976 19,945,519-1.4%New York/New Jersey843,191TEUs moved in August,the highest month ever,surpassing Los Angeles/Long Beach in export and import volumePort featuresThe 3,000-acre port boasts 50-foot depths and six marine terminals:Port Newark container terminal(272 acres and 13 cranes),Maher terminal(350 acres and 15 cranes),GCT New York terminal(210 acres and six cranes),GCT Bayonne terminal(169 acres and eight cranes)and Red Hook container terminal(65 acres in New York,30 acres in New Jersey and eight cranes).FIGURE 3:Port detailsSource:CBRE Research,Port Authority of New York and New Jersey,2022.FeaturePort depth50 feet(15 meters)Terminals6 Cranes74 Post-Panamax Cranes63 Berths32 012345678910201920202021TEU volume(millions)27CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersAs a result of West Coast bottlenecks and congestion,containers were rerouted to the port as logistics companies looked elsewhere to unload products faster.As of the last six to eight months,the ports top trade partners include China,India,Vietnam,Italy and Germany.The top imported goods include furniture,holiday decorations/ornaments,plasticware,games/toys and clothing.Intermodal transportationThe port provides shippers with an on-and near-dock railyard network known as ExpressRail.The service is a sustainable mode of cargo transportation to destinations such as Chicago,the Ohio Valley,New England and Eastern Canada.The system has the capacity for 1.5 million rail lifts and connects two Class I railroad partners:CSX Transportation and Norfolk Southern.New York/New JerseyReal estate influenceThe Central and Northern New Jersey industrial real estate markets consist of 450 million and 408 million sq.ft.of space,respectively.The region greatly benefits from the handling of goods from the port.Northern New Jersey is an infill market,with most development now found in Central New Jersey(11.5 million sq.ft.underway as of Q2).Central and Northern New Jersey boast the highest U.S.asking rates outside of California,at$13.86 per sq.ft.and$14.09 per sq.ft.per year,respectively,as of Q2.The port also drives demand in other Northeast industrial markets,including the Pennsylvania I-78/81 Corridor,which is home to some of the last available land in the Northeast for big-box industrial development.Regional operators are setting up shop there at a brisk pace to service the Northeast.The Corridor was fifth in the U.S.in year-to-date net absorption(9.5 million sq.ft.)as of Q2,and fourth for product under construction at 36.7 million sq.ft.,of which 36%was pre-leased.FIGURE 4:Industrial&logistics market stats*Northeast U.S.Industrial Stats consisting of the Boston,Hartford,NYC,Northern&Central New Jersey,PA I-78/I-81 Corridor and Philadelphia Metro markets.Source:CBRE Research,Q2 2022.Q2 2022 Figure*Avg.asking rent$12.63 per SF NNNVacancy2.8%Net absorption10.2 million SFUnder construction78.1 million SFSavannah,GeorgiaAmericasMenu29CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review Savannah,GeorgiaSavannah is one of the most efficient and reliable gateways in the countrya market of choice for import and export logistics operations.The ports unprecedented container volume growth has fueled the regions expanding warehouse market,which has doubled in size over the last five years.More than 25 million sq.ft.of Class A space is under construction,providing a healthy number of options for occupiers.Bill SparksSIORExecutive Vice President,SavannahCBRESAVANNAH,GEORGIA30CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review Savannah,GeorgiaOverviewThe Port of Savannahhome to the largest single container terminal in North America,the Garden City Terminalis the fastest-growing port in the U.S.It spans more than 1,345 acres(544 hectares)and ranks 45th on the United Nations Port Liner Shipping Connectivity Index,making it one of the best-connected ports in the Southeast.The port moved a record 5.76 million TEUs in its 2022 fiscal year.Following the March completion of the Savannah River Dredging project,the port logged record-setting container volume levels.The Georgia Ports Authority(GPA)is expanding the Garden City Terminal even further,with Phase I,a 25-acre container yard,opening earlier this year,and Phase II expected to increase annual capacity by another 1 million TEUs.The port is also expanding Berth 1,which will increase on-dock capacity by 25%when complete in July 2023,adding an estimated 1.5 million TEUs of capacity annually.FIGURE 1:TEU volumesTEU volume(millions)Source:CBRE Research,Port of Savannah,2022.FIGURE 2:Population demographicsSource:,Savannah Metro 2022.201020225-year projection%growth262,000 334,000 355,000 6.3%9.5 Mprojected TEU container capacity by 2025,up 60%from 2021Port featuresThe port has 36 container cranes,with an additional 42 expected by 2028.It also includes more than two miles of contiguous berthing space.The harbor was recently deepened to 47 feet to handle ships carrying more than 16,000 TEUs.Savannah has not been immune to the challenges faced by other ports in the past 12 months.To improve operations,the port has hired additional workers,added more equipment and increased its container yard capacity by approximately 25%.FIGURE 3:Port detailsSource:CBRE Research,Port of Savannah,2022.FeaturePort depth47 feet(14 meters)Cranes36 Berths18 Terminals2 0123456201920202021SAVANNAH,GEORGIA31CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review Savannah,GeorgiaTrade partnersThe ports top trading partners in the last six to eight months include China,Vietnam,South Korea,India and Thailand.Top imports coming into the port include furniture,plasticware,auto vehicle parts,games/toys and clothing.The GPA in Savannah has established affiliations with several Chinese ports,with routine shipments to Ningbo,Quingdao,Shanghai,Shekou,Xiamen,Xingang/Tianjin and Yantian.Intermodal transportationThe port is easily accessed via interstates 95 and 16.Key Southeast and Midwest manufacturing hubs are reachable within a one-or two-day drive.The Garden City Terminal is the Southeasts busiest intermodal gateway.The GPA made numerous infrastructure improvements to increase its market share in existing and new destinations across an arc of inland markets spanning Atlanta,Memphis,St.Louis,Chicago and the Ohio Valley.The Mason Mega Rail project allows for cargo to move from a vessel to rail in just 24 hours,increases the number of working tracks from eight to 18 and adds 97,000 feet of new rail at the Garden City Terminal,doubling its rail lift capacity to 1 million containers per year.The just-completed Jimmy DeLoach Parkway extension project adds 3.8 miles of roads to connect the port directly to I-16.Real estate influenceThe port is the primary driver of Savannahs booming 86.7 million-sq.-ft.industrial real estate market.Savannahs vacancy rate dropped to 0.7%in Q2,the fifth-lowest in the U.S.Pre-leasing in under-construction developments is the best option for tenants seeking space.More than 2 million sq.ft.of new product delivered in Q2,most of which was occupied immediately.With vacancy remaining low,asking rents climbed to an average of$5.79 per sq.ft.in Q2,up 5.5%quarter-over quarter.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,Q2 2022.Q2 2022 FigureAvg.asking rent$5.79 per SF NNNVacancy0.7%Net absorption3.1 million SFUnder construction23 million SFCharleston,South CarolinaAmericasMenu33CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review Charleston,South CarolinaCharleston saw a 38%year-over-year increase in cargo.Dredging the harbor will allow the port to service post-Panamax vessels to better compete with other East Coast ports.The port is an economic driver for South Carolina and a major factor driving industrial real estate demand in Charleston and nearby Greenville.Stephen SmithManaging Director South CarolinaCBRECHARLESTON,SOUTH CAROLINA34CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Charleston is a top 10 U.S.container port spanning 200-plus acres.The port ranks 59th on the United Nations Port Liner Shipping Connectivity Index,making it one of the best-connected ports in the Southeast.Like other ports,Charleston saw an increase in shipments as West Coast ports were overloaded.The port plans to build near-dock railits currently the only East Coast port without oneand modernize and expand its terminals.In early 2021,Phase 1 of the greenfield Leatherman Terminal opened,adding 700,000 TEUs of capacity and the capability to handle 20,000-TEU-capacity ships.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Charleston,2022.Source:CBRE Demographics,2022.201020225-year projection%growth798,077 970,809 1,019,675 5.0ship-to-shore cranes now stand at the ports Wando Welch Terminal Charleston,South CarolinaPort featuresThe port has a harbor depth of up to 52 feet,making it the deepest harbor on the East Coast.It also includes 19 active container cranes,all of which are post-Panamax ready,and three container terminals.The ports cold chain business has rapidly expanded,with refrigerated cargo movements growing 110%over the past decade.It has invested$73 million in cold storage capacity improvements.FIGURE 3:Port detailsSource:CBRE Research,Port of Charleston,2022.FeaturePort depth52 feet(15.8 meters)Cranes19 Berths6 Terminals3 2.02.12.22.32.42.52.62.72.8201920202021TEU volume(millions)35CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersThe ports top trade partners include China,Germany,Vietnam,India and Belgium.South Carolina is home to major European automobile manufacturing plants and is a major trading partner with many European countries.Because of this,the Port of Hamburg is the international port most tied to Charleston.Intermodal transportationThe CSX and Norfolk Southern railways both operate expansive and well-equipped rail yards connecting Charleston with hubs in the Southeast,Gulf and Midwest.Both railways are served by double-stack intermodal trains.While Charleston does not offer on-dock rail,it does provide cost-efficient connections between the marine terminals and rail yards via its RapidRail dray program.Charleston,South CarolinaReal estate influenceCharleston is one of the top emerging U.S.industrial markets,with record demand throughout most of 2022 and development topping 7 million sq.ft.at mid-year.Much of the new inventory is built on a speculative basis,as the markets 0.5%vacancy rate is the third-lowest in the U.S.Imports from the port flow into surrounding inland ports,including two located near Greenville-Spartanburg,South Carolina.Greenvilles central location between Charlotte and Atlanta,its robust manufacturing industry and connectivity to the port via rail and ground has made it one of the top emerging markets in the country,with 19 million sq.ft.of industrial space under construction,the 10th-largest amount in the U.S.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,Q2 2022.Q2 2022 FigureAvg.asking rent$6.90 per SF NNNVacancy0.5%Net absorption562,942 SFUnder construction7.35 million SFVancouver,British ColumbiaAmericasMenu37CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review Vancouver,British ColumbiaThe Port of Vancouver is a critical link for Western Canadas supply chain and a key economic driver for Metro Vancouvers industrial market.Although theres been near-term supply chain challenges,container trading volume has grown 5%annually over the past 10 years.This is creating significant demand for industrial properties,leading to historic low vacancies and elevated lease rates.Jason KiselbachSenior Vice President&Managing Director,Operations British ColumbiaCBREVANCOUVER,BRITISH COLUMBIA38CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Vancouver is the largest in Canada,moving nearly 3.7 million TEUs in 2021 valued at CA$275 billion.The port provides 115,300 jobs in Canada,including 96,200 jobs in British Columbia.Last year,356,220 automobiles were imported,accounting for almost all Asian-built vehicles arriving in Canada.The ports Roberts Bank Terminal 2 project,which will add a three-berth marine container terminal,is located in deep marine waters to minimize environmental impacts.FIGURE 1:TEU volumesTEU volume(millions)Source:CBRE Research,Port of Vancouver,2022.FIGURE 2:Population demographicsSource:,2022.201020225-year projection%growth2,278,000 2,632,000 2,759,000 4.8%1.5 MTEU handling ability once the Centerm Expansion and South Shore Access projects complete in 2023Port featuresThe 1,500-hectare(3,700-acre)port spans 350 kilometers(217 miles)of shoreline.It contains 29 major marine cargo terminals,including four container terminals with on-dock rail facilities.The port offers a variety of cross-docking,transload and warehousing facilities as well as off-dock container yard and maintenance facilities.It is considered Canadas gateway to more than 170 trading economies.TEU volume increased 13%over the last five years.To handle growing activity,the Vancouver Fraser Port Authority started the Centerm Expansion and South Shore Access projects.When complete in 2023,these projects will expand the terminals footprint by 15%,reconfigure the Centerm container terminal,add a new overpass on Centennial Road and other enhancements.The port recently added two post-Panamax cranes with the ability to handle vessels up to 24 containers wide.FIGURE 3:Port detailsSource:CBRE Research,Port of Vancouver,2022.FeaturePort depth18.4 meters(60 feet)Cranes24 Berths57 Terminals4 Vancouver,British Columbia3.33.33.43.43.53.53.63.63.73.7201920202021TEU volume(millions)VANCOUVER,CANADA39CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersThe ports top trading partners include China,Japan,South Korea,the U.S.and India.Earlier this year,the port marked the 40th anniversary of its Sister Ports Agreement with the Port of Yokohama.Intermodal transportationVancouver is a global hub for importing and exporting goods via waterways,highways and railways.The port connects to the Canadian National(CN),Canadian Pacific(CP)and Burlington Santa Fe(BNSF)Class 1 railways via 680 kilometers(422 miles)of rail lines.CN and CP service on-dock rail facilities at the container and cargo terminals,offering double-stack intermodal service.The port also connects to 1,560 kilometers(970 miles)of major truck routes.Real estate influenceVancouvers 207.4 million-sq.-ft.market had a record-low vacancy of 1%as of Q2,with older,grade-loading space with reduced clear heights essentially the only stock available.As a result of the limited space availability,average lease rates have been on the rise,reaching a record CA$18.93 per sq.ft.in Q2,up 8.8%quarter-over-quarter.Submarkets within the urban core have all surpassed the CA$20-per-sq.-ft.mark.Development activity remains strong,with over 10 million sq.ft.of new Class A product underway,most of which has already been pre-leased.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,Q2 2022.Q2 2022 FigureAvg.asking rent$18.93 per SF NNNVacancy1.0%Net absorption192,346 SFUnder construction10.1 million SF Vancouver,British ColumbiaManzanillo,MexicoAmericasMenu41CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review Manzanillo,MexicoManzanillo is one of the busiest ports in Mexico,but the logistics operations around it consists of temporary storage of goods and supplies in outside lots that do not attract large industrial developments.The closest primary industrial market is Guadalajara,located 290 kilometers(180 miles)into Mexicos Bajo region,a logistics hub that connects the port with central Mexico.Sergio NavarroSenior Manager Guadalajara and Northwest DivisionCBREMANZANILLO,MEXICO42CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Manzanillo is the largest containerized port in Mexico and is considered the countrys most important due to its infrastructure and technology.The port functions as a main hub for Asian importers and exporters.It is also the port with the largest tonnage(31.8 million as of 2021)of foreign cargo shipping in Mexico.The port ranks 83rd on the United Nations Port Liner Shipping Connectivity Index,making it Mexicos best-connected port.FIGURE 1:TEU volumesTEU volume(millions)Source:CBRE Research,Port of Manzanillo,2022.FIGURE 2:Population demographicsSource:citypopulation.de,2022.201020225-year projection%growth161,420 191,031 195,000 2.1%of the value of all Mexican cargo transported during 2021 was via maritime shipping Manzanillo,MexicoPort featuresThe port includes four terminals,46-foot(14-meter)harbor depths and 17 berths.It contains freezing chambers in its fishing terminal with a storage capacity of up to 3,500 tons of seafood.The port is capable of handling bulk products such as cement,fertilizers,petroleum products and bulk agricultural products.Due to the nearly 16%increase in container volumes,the port will add four modern rubber-tired gantries to its landside equipment fleet to improve loading and unloading times.The project will double the ports cargo capacity and enhance rail connectivity.FIGURE 3:Port detailsSource:CBRE Research,Port of Manzanillo,2022.FeaturePort depth46 feet(14 meters)Terminals4 Cranes50 Cranes handling post-Panamax vessels16 Berths17 2.62.72.82.93.03.13.23.33.43.520192020202143CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersThe ports top trading partners includes China,South Korea,Japan,Canada,Chile and the U.S.Major exported commodities include beer,sugar,copper,steel,coal,resins and pipes.Intermodal transportationThe port has two primary routes to transport goods.By road,it connects to more than 285 kilometers of roadway in the Colima region.By rail,the Ferromex service serves the U.S.,Canada,Guatemala,Columbia and Chile.The port is a streamlined maritime path over the Pacific Ocean to Japan,China,India,Malaysia and Singapore.Manzanillo,MexicoReal estate influenceGuadalajaras 43.7 million-sq.-ft.industrial market benefits greatly from the port even though its located approximately 180 miles(290 kilometers)northeast via Mexican Federal Highway 54D.An additional 1 million sq.ft.delivered in Q1,of which only 10,000 sq.ft.was vacant.Another 2.1 million sq.ft.is expected to come online by the end of 2022.The vacancy rate reached a record low 1.1%in Q2,while average asking rents reached$6.11 per sq.ft.,up 15.3%year-over-year.Aside from Guadalajara,other Mexico markets near the port include Mexico City,Guanajuato and San Luis Potos.FIGURE 4:Industrial&logistics market stats*Guadalajara market stats Source:CBRE Research,Q2 2022.Q2 2022 Figure*Avg.asking rent$6.11 per SF per yearVacancy1.1%Net absorption1.4 million SFUnder construction2.1 million SFRotterdam,NetherlandsEMEAMenu45CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review Rotterdam,NetherlandsRotterdam is the largest port in Europe and has an enormous impact on the industrial and logistics sector.It directly employs more than 150,000 people,with a direct added value of approximately 22 billion.The port is essential to both the Rotterdam and Dutch economy.Jim OrselHead of Industrial&Logistics NetherlandsCBREROTTERDAM,NETHERLANDS46CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Rotterdam is Europes largest seaport.The port sits in the middle of the Rhine delta and Meuse River,providing direct access to the North Sea.It consists of five distinct port areas and three distribution parks that serve more than 500 million consumers throughout Europe.In 2021,the port transported 15.3 million TEUs and ranked seventh on the United Nations Port Liner Shipping Connectivity Index.In 2021,the port handled 28,876 seagoing vessels and 99,558 inland vessels.The port also handles commodities such as bulk goods,crude oil and mineral oil products.It is a major component of the Netherlands economy,with direct and indirect added value totaling 63 billion in 2021,or 8.2%of Dutch GDP.The port directly and indirectly employs approximately 565,000 people in the Netherlands.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Rotterdam,2022.Source:,2022.201020225-year projection%growth1,003,000 1,015,000 1,035,000 2.0%Rotterdam,NetherlandsFirst fully automated port in Europe with the highest container capacity in Northwest EuropePort featuresRotterdams port has a surface area of around 100 square kilometers,and a total port area length of 42 kilometers.It has the highest container capacity in Northwest Europe and a 24-meter(78-foot)draught that can handle some of the worlds largest ships.Due to the ports depth,shipping companies can maximize the capacity of their vessels,making it the first and last port of call for many of the worlds biggest container ships.The port operates four fully automated terminals and accepts vessels around the clock.It includes 20 container depots across more than 120 hectares to store,repair,clean and inspect empty containers.In August 2022,Hutchison Port Holdings(HPH)and MSC subsidiary Terminal Investment Limited(TIL)jointly agreed to develop a new container terminal with five deep-sea berths.The fully automated terminal will add around 7 million TEUs of annual capacity when it begins operations in 2027,with vessels unloaded by autonomous cranes and cabinless ground vehicles.FIGURE 3:Port detailsSource:CBRE Research,Port of Rotterdam,2022.FeaturePort depth24 meters(78 feet)Site size120 hectares(96 acres)Cranes334 Berths23 Terminals9 13.814.014.214.414.614.815.015.215.4201920202021ROTTERDAM,NETHERLANDS47CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersThe Port of Rotterdam has 2,307 direct connections across sea,railway and inland shipping routes,including scheduled deep-sea services to more than 1,000 international ports in 2021.The Netherlands main export partners include Germany,Belgium,France,the U.K.and the U.S.The Netherlands imports the largest amount of goods from Germany,China,the U.S.,Belgium and the U.K.Rotterdam partners with ports in Kuala Tanjung,Indonesia;Bintulu/Samalaju,Malaysia;Pecem,Brazil;and Sohar Port,Oman.Intermodal transportationMore than 400 international container rail services run to and from the port every week.By train,containers can reach many destinations in Europe within 24 hours.For shorter distances,the port is well connected by roads,including the A15,which links to national and European motorway networks.Rotterdam is well located for inland shipping,using the Maas and Rhine rivers to reach Germany,Belgium,France,Switzerland and Austria,and the Main and Danube rivers to reach the Black Sea.Inland shipping accounts for around half of incoming and outgoing cargo between the port and destinations in Europe.Rotterdam,NetherlandsReal estate influenceDue to the ports central role in global supply chains,the surrounding logistics industry is well-developed and has access to a deep knowledge base and a skilled labor pool.Most central fulfilment operations have moved further inland towards Bleiswijk(Zalando)or Ridderkerk(Picnic),with operations in Rotterdam and surrounding areas serving nearby population centers or port-related activities.Many logistics properties are found along the A15 motorway,which runs along the entire port area.In H1,Rotterdam logged 143,500 sq.m.of logistics take-up,up 24%year-over-year.Rotterdams vacancy rate fell to 2.7%in Q2,down from 5.9%in Q2 2021.Prime rents reached 75.00 per sq.m.per year in Q2,up 7%from the prior quarter.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,H1 2022.H1 2022 FigurePrime rent75 per SM per yearVacancy2.7%Take-up143,500 SMTotal stock2.76 million SMAntwerp-Bruges,BelgiumEMEAMenu49CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review Antwerp-Bruges,BelgiumAntwerp-Bruges is the second-largest port in Europe and the economic engine of Flanders,supporting a dynamic industrial real estate market with low vacancy and high rent growth.Strategic investments,such as the recent merger with the Port of Zeebrugge,new tidal dock plans,and the ongoing Oosterweel Link development,will secure its place as a leading port and driver of commerce into the future.Xavier Van ReethSenior Director,Head of Industrial&Logistics BelgiumCBREANTWERP-BRUGES,BELGIUM50CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewOne of the biggest drivers of the Belgian economy is the newly unified Port of Antwerp-Bruges,which merged the ports of Antwerp and Zeebrugge in April 2022.It is the second-largest port in Europe and an essential link in global supply chains,with more than 300 liner services to over 800 destinations.Each year the port handles around 290 million tonnes of international cargo.The port directly and indirectly employs approximately 164,000 people,representing 6%of total employment in the Flemish Region and 3.4%in Belgium.The port generates added value of more than 21 billion each year,accounting for 4.5%of Belgiums GDP,making it the countrys largest economic contributor.Antwerp-Bruges is Europes most central seaport,its largest for vehicle transshipment and among the largest for break bulk.Seagoing vessels can transport goods 80 kilometers inland into the heart of Europe.The port is ninth on the United Nations Port Liner Shipping Connectivity Index.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Antwerp Bruges,Port Technology,2022.Source:,2022.201020225-year projection%growth993,000 1,053,000 1,073,362 1.9%Antwerp-Bruges,BelgiumEuropes most central seaport,with vessels able to transport goods 80 kilometers inlandPort featuresAntwerp-Bruges handled more than 12 million TEUs in both 2020 and 2021.Prior to the pandemic,container terminals at Antwerp were almost full,operating at 90pacity.The Extra Container Capacity Antwerp(ECA)project is addressing this via a new container terminal at the Northern Inlet basin and a new tidal dock,which will add 7.2 million TEUs of additional container capacity.As a result of the deepening of the Western Scheldt navigation channel,the port can support container ships with approximately 15.6-meter(50-foot)drafts,which makes the port accessible for ships holding up to 23,000 TEUs.Antwerp is known for its high container handling productivity,with 40 moves per crane per hour.The Port of Antwerp-Bruges is also home to more than 63 million sq.ft.of temperature-controlled warehouses for storage of perishables,life sciences and healthcare products.Zeebrugge also handled 2.2 million new cars in 2021,making it the largest car port in the world.FIGURE 3:Port detailsSource:CBRE Research,Port of Antwerp Bruges,2022.FeaturePort depth15.6 meters(50 feet)Temperature-controlled warehouses63 million SFCranes33 Quayside length160 kilometersShip size capacity800 tonnes11.811.811.911.912.012.012.1201920202021ANTWERP-BRUGES,BELGIUM51CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersThe ports biggest trade partners include Germany,France,Netherlands,the U.K.,the U.S.and Ireland.In 2021,the largest portion of trade was within Europe(86.5 million tonnes).Trade was also high with North and Central America(39 million tonnes)and the Middle and Far East(also 39 million tonnes).Intermodal transportationAntwerp-Bruges is supported by a range of intermodal transportation including shortsea,barge,rail,road and pipeline.In 2021,34%of imports were transported by road,44%by barge,7%by rail and 15%by pipeline.The ports central location in the European road network makes it one of the fastest routes to almost all consumers and industrial centers in Belgium,the Netherlands,Germany,France,Switzerland,Italy and other European destinations.Its considered a cost-effective choice for companies transporting goods to end customers.Antwerp is also a central hub in three European rail freight corridors,along with frequent rail traffic to China and Korea using inland terminals.In 2021,24 million tonnes of freight were transported by rail,and 108.5 million tonnes were transported by barge.Antwerp-Bruges,BelgiumReal estate influenceAntwerp has a well-developed logistics market largely due to its excellent transportation connections,which supports its market-leading chemical and pharmaceutical clusters.Together with Brussels and Ghent,Antwerp forms part of the 7.7 million-sq.-m.Golden Triangle logistics hub.To the south of Antwerp is the A12/E19 corridor with direct access to Brussels,which is the primary domestic logistics cluster in Belgium,with links to France and the Netherlands on the periphery.The Oosterweel Link project in Antwerp,Belgiums largest infrastructure project,will greatly enhance commercial road connectivity around the port and city.Demand for logistics space is high but hindered by the lack of available land.Take-up is driven by build-to-suits and the redevelopment of obsolete facilities.Vacancy in Antwerp was below 1%as of Q2,helping push rents up 12%year-over-year to 58 per sq.m.per year,making it the second-most expensive logistics market in Belgium after Brussels.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,H1 2022.H1 2022 FigurePrime rent58 per SM per yearVacancy0.5%Take-up16,784 SMTotal stock1.7 million SMHamburg,GermanyEMEAMenu53CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review Hamburg,GermanyHamburgs maritime culture characterizes the city and its peoples attitude to life.Strong demand for logistics space from retailers and distribution companies,mixed with tight supply conditions,has led to consistent rent growth and low vacancy rates across the markets serving the port.Michael MikuliczCity Lead Hamburg,Managing Director,Head of Investment HamburgCBREHAMBURG,GERMANY54CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Hamburg,Germanys largest and best-connected port,is the 18th-largest container port globally and the third-largest in Europe.The Northern German port sits on the Elbe River with access to the North and Baltic seas.It handles around 10,000 ship calls from Panamax and post-Panamax ships annually and ranks 15th on the United Nations Port Liner Shipping Connectivity Index.More than 600,000 jobs in Germany depend on the port,and 2.57 billion of tax was paid in 2019 by industries dependent on the port.Logistics Initiative Hamburg(LIH)is a public-private partnership tasked with promoting the logistics capabilities of the Hamburg Metropolitan Region,including the port.This initiative helped create the only logistics hub in Germany to be awarded the EU Gold Label for cluster management excellence.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Hamburg,2022.Source:,2022.201020225-year projection%growth1,775,000 1,788,000 1,791,000 0.2%Hamburg,GermanyGermanys most significant,globally connected port at the heart of an EU Gold Label logistics hubPort featuresThe port is situated on 71 square kilometers(17,544 acres),has 290 berths and 50 handling facilities.It has 75 terminals,of which four are container terminals,each with an integrated rail terminal,and a combined potential capacity of 12 million TEUs.This potential capacity excludes the multi-purpose terminals where containers are also processed.These facilities also handle heavy cargo,out-of-gauge loads,wheeled cargo,metals,forestry goods,citrus fruits,dry bulk,liquid cargoes and cruise ships.Plans are underway to deepen and widen parts of the Elbe River and the port so post-Panamax ships can operate regardless of the tides.FIGURE 3:Port detailsSource:CBRE Research,Port of Hamburg,2022.FeatureSite area71 square kilometersContainer terminal capacity12 million TEUsCranes80 Berths290 Terminals75 8.08.28.48.68.89.09.29.4201920202021TEU volume(millions)HAMBURG,GERMANY55CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersIn 2020 and 2021 the ports top six trading partners were China,the U.S.,Singapore,Russia,Sweden and the U.K.China(2,561 million tonnes)accounted for substantially more trade than the next five trading partners combined(1,918 million tons).The Port of Shanghai has been a sister port since 2004.Intermodal transportationHamburg is one of the most attractive logistics regions in Germany in terms of infrastructure.In 2021,11,000 vessels collected goods from the port for onward inland shipping.Cargo leaves Hamburg daily on the Elbe River and canals into the hinterland.Hamburg is also the major northeastern transshipment hub,and numerous feeder and short-sea services connect the port to Scandinavia,Poland,Finland,Russia,the Baltic states,the U.K.,Ireland and Iceland.The majority(52%)of freight transported from the port is distributed by rail via 2,000 rail freight connections across Europe and,in 2021,290 weekly rail connections to 25 locations in China.The Port of Hamburg railway has a track network of around 300 kilometers,which efficiently handles around 200 trains daily.Hamburg,GermanyReal estate influenceMore than 10,500 logistics companies employ around 290,000 people in the wider metropolitan region.The growth of the logistics sector is driven mainly by foreign trade and local e-commerce.Logistics properties are located within the city,particularly in the port areas,in Hamburgs industrial estates and along the A1 and A7 motorways.The Hamburg region recorded 245,000 sq.m.of logistics take-up in the first half of 2022,down 30%year-over-year.This is largely attributable to a massive shortage of space in the area as demand exceeds supply.The retail sector accounted for 44%of H1 take-up,followed by the transport and logistics sector,at 41%.Hamburgs average rent reached 90 per sq.m.per year in Q2,up 19%year-over-year,and is one of the most expensive markets in Europe.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,H1 2022.H1 2022 FigurePrime rent90 per SM per yearTake-up245,000 SMAvailable supply425,000 SMValencia,SpainEMEAMenu57CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review Valencia,SpainThe Port of Valencia is a key lynchpin in the Valencian and wider Spanish economy.With container and automotive capacity expanding and intermodal connectivity improving,particularly by rail,the value and centrality of the port is only set to increase.Javier Muoz PozueloDirector,Industrial&Logistics ValenciaCBREVALENCIA,SPAIN58CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Valencia comprises three ports:Valencia for container shipping,Sagunto for industrial goods and Gandia for general cargo.The port can accommodate post-Panamax ships and ranks 20th on the United Nations Port Liner Shipping Connectivity Index.Valencia is Spains leading Mediterranean port in terms of commercial traffic and a key hub for maritime trade in Southern Europe due to its strategic location and 1,000-plus connections to major world ports.It is the closest to the Suez-Gibraltar axis,making it the main route for interoceanic shipping lines,including close links to Southern Europe and North African countries.Valencias direct area of influence reaches 350 kilometers,an area that generates 51%of Spains GDP and includes half of Spains working population.As a hub for the entire western Mediterranean,the port distributes goods over a 2,000-kilometer radius to southern EU countries and North Africa(Morocco,Algeria,Tunisia and Libya),an area encompassing 270 million consumers.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Valencia,2022.Source:,2022.201020225-year projection%growth1,647,000 1,959,000 2,077,000 6.0%The largest and best-connected container port on the Iberian Peninsula,with global shipping lanes running from Asia to Northern Europe Valencia,SpainPort featuresThe port currently has a maximum capacity of 7.5 million TEUs.A new container terminal is being built that will increase capacity to 10 million TEUs.Goods handled include consumer products,agricultural goods,food,fuel products,chemicals,construction materials and machinery.Sagunto is highly competitive in the handling of motor vehicles,with around 125 acres dedicated to vehicle logistics.Sagunto is also the leading Spanish port for iron and steel products and a major destination for natural gas imports to the Iberian Peninsula and,more recently,gas exports.The port is targeting net zero emissions by 2030.To that end,its investing 130 million to build two electric substations and photovoltaic cells,and uses wind and hydrogen power.FIGURE 3:Port detailsSource:CBRE Research,Port of Valencia,2022.FeatureMaximum capacity7.5 million TEUsDepth14 metersCranes65 Berths40 Terminals 7 5.35.45.45.55.55.65.65.7201920202021VALENCIA,SPAIN59CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersSpains largest export destinations include France,Germany,Portugal,Italy and the U.K.,with imports concentrated from Germany,France,China,Italy and the Netherlands.Intermodal transportationThe port is well connected via a bypass road and rail to the center of Spain,making it the main port for Madrid and an essential hub for the entire Iberian Peninsula.All three ports have private railway systems that connect to Spanish and wider European railway networks,linking it to manufacturing hubs on the Iberian Peninsula and the Continent.The port is part of the EUs Trans-European Transport Network(TEN-T)via its CONNECT Valenciaport project,which will improve rail connectivity to various container terminals,extending platform lengths to 750 meters and changing the gauge width for freight trains.Valencia,SpainReal estate influenceWith 4.38 million sq.m.of logistics stock,Valencia is the third-largest logistics market in Spain.In 2021,Valencia take-up increased 78%year-over-year to a record 569,000 sq.m.In H1 2022,take-up reached 270,000 sq.m.,up 112%from H1 2021.Midway through 2022,146,000 sq.m.of logistics space was available,reflecting an estimated vacancy rate of 3.3%.Valencias logistics stock has increased by more than 90%over the past five years.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,H1 2022.H1 2022 FigurePrime rent54 per SM per yearInventory4.38 million SMVacancy3.3%Take-up270,000 SMTanger Med,MoroccoEMEAMenu61CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport Review Tanger Med,MoroccoTEU traffic continues to rise in the Tanger Med port complex with the opening of the TC4 and TC3 terminals.The new terminals solidify Tanger Meds leading position in the Mediterranean and Africa and as a major hub for the worlds leading shipping alliances.Houda QermaneManger,Advisory CasablancaCBRETANGER MED,MOROCCO62CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Tanger Med is located on the Strait of Gibraltar,the worlds second-largest trade gateway,around 40 kilometers from Tangier in northern Morocco.The ports is strategically situated along the maritime trade routes of Europe,the Americas and Africa.Opened in 2007,TEU volumes reached 7.2 million in 2021,up 24%from 2020,establishing itself as one of the most important container hubs in the Mediterranean.The port handled 10,902 vessels for export and import in 2021,up 12%from the previous year,including 929 Panamax or post-Panamax containerships.Tanger Med is ranked 23rd on the United Nations Port Liner Shipping Connectivity Index,which is notable since it has been open for only 15 years.The port has a 9 million-TEU capacity,the largest in Africa,and includes four container terminals,a rail terminal,a hydrocarbon terminal,a general cargo terminal and a new vehicle terminal.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Tanger Med,2022.Source:,2022.201020225-year projection%growth830,000 1,277,000 1,440,000 12.8%Largest handling capacity in Africa at 9 million TEUs,establishing itself as a key container hub for North Africa and the MediterraneanPort featuresThe 35-hectacre(86-acre)complex has eight berths with eight-meter(26-foot)drafts.Tanger Med alone handles more than half of Moroccan exports and nearly 97%of the flow of trucks exported from Morocco.Tanger Med includes storage spaces to warehouse goods awaiting export,extensive import container visit areas,and nearly 840,000 sq.m.of logistics space.In addition,Tanger Med has a 5,500-sq.-m.refrigeration unit dedicated to the storage,preservation,labeling,packaging and light processing of agri-food products.The new vehicles business is divided between the Renault vehicle terminal and the multiuser vehicle terminal.Around 430,000 new vehicles were handled across the two terminals in 2021,up 20%year-over-year.The carrier car terminal is connected to 35 ports,including Le Havre,France;Jebel Ali,Dubai;and Brisbane,Australia.FIGURE 3:Port detailsSource:CBRE Research,Port of Tanger Med,2022.FeatureContainer capacity9 million TEUsTerminals4 Cranes27 Berths8 Ship size capacity400 meters Tanger Med,Morocco012345678201920202021TEU volume(millions)TANGER MED,MOROCCO63CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersThe largest import partners are Spain,France,Italy,India and Germany.The largest export partners are Spain,China,France,Germany and the U.S.Morocco benefits from 55 free trade agreements including EFTA(European Free Trade Association)with Iceland,Liechtenstein,Norway and Switzerland,the EU,the U.S.,the United Arab Emirates and Turkey.These trade agreements provide access to almost 1 billion consumers.Morocco also has preferential arrangements with 62 countries.Intermodal transportationTanger Meds success is due,in large part,to its extensive rail and highway links.The 10-hectacre railway terminal features three 800-meter-long lanes to transport containers.One of the rail terminals key uses is to transport new vehicles between production plants,including Renaults Tanger Med plant(Africas largest)and the Stellantis plant in Kenitra.Maritime routes directly connect Tanger Med to more than 180 ports in 70 countries.Via ship,Tanger Med is almost three days from Rotterdam,10 days from North and South America and 20 days from China.The port is a major logistics hub for Africa and serves as a sea bridge over the Strait to Spain,France and Italy.Real estate influenceMorocco is growing as a global logistics distribution hub for international players aiming to optimize their export networks and regional distribution across Europe,Africa and the U.S.Tanger Med is tied to more than 20 million sq.m.of industrial space and the Tanger Free Zone,which provides fiscal incentives to firms operating within.Tanger Med is home to more than 1,000 companies exporting more than$8.8 billion in automotive,aeronautics,logistics,textiles and general trade.Major international operatorsincluding DHL,DB Schenker,CEVA Logistics,Nippon Express,Emirates Logistics,Decathlon and Adidashave a presence in the ports logistics area to facilitate distribution to markets across Africa,Europe and the Americas.Tanger Med,MoroccoPiraeus,GreeceEMEAMenu65CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewThe Port of Piraeus has achieved impressive container volume growth over the past decade,increasing from 2 million TEUs to nearly 6 million TEUs amid a quantum increase in both the number of ships and the average shipment size.Nassos PerrotisExecutive Vice President CBRE Atria PIRAEUS,GREECE Piraeus,Greece66CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Piraeus,Greeces biggest port,is the 24th-largest container port globally,the fourth-largest in Europe and the largest in the eastern Mediterranean.The port is in Attica in southern Greece and is centrally positioned for traffic passing through the Suez Canal,and the Mediterranean and Black seas.The port is south of the 38th parallel,which allows it to attract Asian shipping without requiring significant deviation from established trade routes.The port ranks 27th on the United Nations Port Liner Shipping Connectivity Index,making it the best-connected port in the eastern Mediterranean.It offers transshipment feeder services to ports throughout the Balkans and the Black Sea.The Piraeus Port Authority(PPA)is majority owned by COSCO Shipping,a Chinese state-owned company.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Piraeus,2022.Source:(Athens,Greece),2022.201020225-year projection%growth3,170,000 3,154,000 3,158,000 0.1%Recently upgraded port in the eastern Mediterranean facilitating Asian-European trade Piraeus,GreecePort featuresThe ports piers have a total length of 1,150 meters and a maximum depth of 18 meters(59 feet),with a combined capacity of approximately 7.2 million TEUs.The piers can accommodate post-Panamax ships carrying up to 16,000 TEUs.The port features a 72,400-sq.-m.container storage area and seven ship-to-shore cranes,four of which are large enough to handle post-Panamax vessels.Piraeus rolling program for infrastructure investment and equipment upgrades has quintupled its handling capacity since 2008.Its potential capacity will exceed 10 million TEUs within the first half of the 2020s.FIGURE 3:Port detailsSource:CBRE Research,Port of Piraeus,2022.FeaturePort depth18 metersCapacity7.2 million TEUsCranes36 Terminals4 Storage area72,400 SM1.02.03.04.05.06.07.0201920202021TEU volume(millions)PIRAEUS,GREECE67CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersThe ports largest trading partner is China,with Greece now Chinas fourth-largest trading partner among Central and Eastern European countries.China is the third-largest trading partner of Greece and its biggest trading partner outside the EU.Other major trading partners include Italy,Germany,the Netherlands and Cyprus.Intermodal transportationA rail line links the port with the primary logistics area near Athens on the Thriasio plain and logistics assets near newly constructed railway facilities.The port specializes in global container traffic,regional transshipment and onward freight traffic via road and rail.It dispatches 10 trains daily able to reach Austria,the Czech Republic,Poland and Germany within four or five days.A planned second route,the Orien/East-Med Corridor,will connect to other Greek ports and European industrial and distribution hubs along a route through Bulgaria,Romania,Hungary,Austria,the Czech Republic and Germany.Piraeus,GreeceReal estate influenceStrategic investments are being made to connect the port with three logistics areas on more suitable land beyond the city.The Thriasio Pedio plain is home to Thriasio I,a new 240,000-sq.m.logistics development to be situated on 0.6 square kilometers of land,with construction commencing in 2023 once final parliamentary approval is granted.Thriasio II is a further concession of 1.45 square kilometers of land from the Greek state for the construction of a new logistics facility.The concession for Thriasio II has not been finalized but the process is nearing completion.The other two hubs are located outside Oinofyta in suburban Athens,which is connected to the port by motorway and rail line,and is close to Athens International Airport.The suburban hub is mainly occupied by wholesale and retail occupiers.Government and EU-level plans to turn Greece into a regional and global logistics hub are centered on Piraeus as a key point of entry,which will drive further expansion of the ports logistics market.Felixstowe,U.K.EMEAMenu69CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewFelixstowe is the most significant container port in the U.K.Its new freeport status and its established intermodal links to the U.K.s key logistics hubs will fuel strong market growth.Daniel OlliffeDirector,U.K.Industrial&LogisticsCBREFELIXSTOWE,U.K.Felixstowe,U.K.70CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Felixstowe is the largest and most significant container port in the U.K.,processing between 3 million and 4 million TEUs a year.The port handles around 2,000 ship calls a year,including regular services to some 700 ports globally,and can accommodate the largest container ships operating today.Felixstowe is close to the main European shipping lanes,with only a small deviation required for ships operating in the range of Hamburg to Le Havre.These factors contribute to the ports 35th ranking on the United Nations Port Liner Shipping Connectivity Index.Felixstowe is within the boundaries of Freeport East,one of the U.K.s new freeport zones,providing tax advantages and simplified customs procedures.Its owned and operated by CK Hutchinson,a Hong Kong-based company that owns numerous ports worldwide.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Felixstowe,2022.Source:World Population Review,Ipswich,2022.201020225-year projection%growth133,400 139,700 142,500 2.0%The U.K.s preeminent container port with a deep harbor and strong intermodal links to the Midlands Golden Triangle Felixstowe,U.K.Port featuresThe port has nine berths and is one of only two U.K.ports that can accommodate post-Panamax container ships up to 22,000 TEUs in size.The port has also invested in eight electric remote-controlled gantry cranes.There are a variety of tax incentives to spur land development and leasing within the freeport to support the establishment and expansion of business activities.These include Stamp Duty Land Tax relief,Enhanced Structures and Buildings allowances,business rate relief,employer national insurance contributions relief,and enhanced capital allowances.Companies also benefit from simplified customs procedures that allow customs duties to be waived or deferred.FIGURE 3:Port detailsSource:CBRE Research,Port of Felixstowe,2022.FeaturePort depth16 metersCapacity6 million TEUsCranes111 Post-Panamax cranes29 3.23.33.43.53.63.73.83.9201920202021TRIMLEY,U.K.71CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersThe ports main trade is conducted with EU countries.Some of its key partners are the Netherlands,Belgium,France and Germany.Intermodal transportationThe port has three rail terminals connecting it to 15 terminals across the U.K.,with the majority located in the Midlands and the North.There is a direct rail connection to the Midlands Golden Triangle,which is the destination of 70%of containers traveling through the port.Felixstowe,U.K.Real estate influenceThe port is a significant factor in the local logistics market.There is 1.45 million sq.ft.of space already developed at the Trinity Distribution Park,located within the port precinct.In addition,2.36 million sq.ft.will be developed as part of Freeport East.This will be the largest logistics park in the region,with both build-to-suit and speculative units.There is also 1.18 million sq.ft.of new speculative development close to the port across six units to be delivered between Q3 2022 and Q2 2023.FIGURE 4:Industrial&logistics market stats*Ipswich market stats Source:CBRE Research,H1 2022.H1 2022 Figure*Prime rent9.40 per SF/yrInventory7.4 million SFVacancy5.1%Take-up YTD16.9%Shanghai,ChinaAsia-PacificMenu73CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewShanghais total imports and exports increased from$434 billion in 2016 to$629 billion in 2021,with an average annual growth rate of 7.2%.Thanks to its connectivity and well-developed infrastructure,the port has close trade ties worldwide and is the first choice for foreign brands entering China.Cindy SunHead of Advisory&Transaction Services,Industrial&Logistics ChinaCBRESHANGHAI,CHINA Shanghai,China74CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Shanghai is the worlds busiest container port.With volume exceeding 47 million TEUs in 2021,it has held the top spot globally for 12 consecutive years.Volume continues to grow despite COVID-19 lockdowns largely because of the pandemic-induced surge in demand for consumer products.The port is by far the largest by throughput in China,a market which boasts seven of the top 10 ports by TEU volume globally.In June 2022,the port reached a single-day high of 142,500 TEUs.Port officials plan to further expand capacity by implementing new automation technology to streamline operations.Shanghais automated terminal at Yangshan will be capable of handling 26 million TEUs by 2025.The port covers an area of over 3,500 square kilometers and is located at the mouth of the Yangtze River.It contains river ports and deep-water ports capable of accommodating fully laden post-Panamax ships.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Shanghai,2022.Source:,2022201020225-year projection%growth20,314,308 28,516,904 31,570,248 10.7%Yangshans fully automated deep-water terminal will handle 26 million TEUs by 2025 Shanghai,ChinaPort featuresThe three main container port areas,Wusongkou,Waigaoqiao and Yangshan,have a combined quay length of more than 13 kilometers(8 miles),43 berths and 156 container cranes.The port has two bulk cargo terminals and three break-bulk terminals located in Longwu,Luojing and Wusong.The Yangshan Deep-Water Port was built on reclaimed land in the East China Sea and is connected to the Mainland via the Donghai Bridge.It significantly increases the ports ability to handle the worlds largest container ships.Yangshan Phase Four,launched in 2017,is the worlds largest automated container terminal,with a capacity of 6.3 million TEUs,2.4 kilometers of quays,seven berths,21 quay cranes,108 rail-mounted gantry cranes and 125 automated guided vehicles.FIGURE 3:Port detailsSource:CBRE Research,Port of Shanghai,2022.FeaturePort depth16 meters(52 feet)Container capacity47 million TEUsCranes156 Berths43 Site area3,500 square kilometers4142434445464748201920202021TEU volume(millions)SHANGHAI,CHINA75CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersThe Port of Shanghai tops the United Nations Port Liner Shipping Connectivity Index.Shanghais largest export destination as of July 2022 was the U.S.,followed by Japan,Hong Kong,Taiwan and Germany.The largest importers include Japan,the U.S,Germany,Taiwan and South Korea.Intermodal transportationIn 2019,a joint venture between Shanghai International Port Group and Chinas COSCO Shipping was established to improve the ports insufficient rail network.The project will provide environmental and cost benefits over road transportation.Shanghai also benefits from an extensive canal network and inland connections with major Chinese cities,including Hangzhou,Suzhou,Wuxi and Yangzhou.Shanghai,ChinaReal estate influenceShanghai,and its satellite cities Kunshan and Taicang,contains 7 million sq.m.of logistics space.Based on the China Logistics Occupier Survey,38%of respondents would like to expand there,second only to the Greater Bay area.Shanghai industrials market was impacted by strict pandemic controls.While the port kept running under“closed-loop operations,”logistics and leasing activities were hindered.The lockdown-driven surge resulted in high demand from the fresh grocery sector.In Q2,vacancy fell 70 basis points quarter-over-quarter to 8.5%and rents remained stable.While full-year rent growth is expected to be lower than forecasted,CBRE expects the ongoing demand arising from supply chain development and the need for necessities will continue to underpin steady demand for logistics space.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,H1 2022.H1 2022 FigureInventory7 million SMVacancy8.5%Net absorption179,996 SMHong Kong SAR,ChinaAsia-PacificMenu77CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewGovernment investments will transform the Port of Hong Kong into a smart port.Its free trade policy,low tax regime and world-class professional services make it one of the most important transshipment hubs in Asia.Samuel LaiSenior Director,Advisory&Transaction Services,Industrial&Logistics Hong KongCBREHONG KONG SAR,CHINA Hong Kong SAR,China78CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Hong Kong is one of the worlds 10 busiest container ports,though TEU volumes have declined since 2017.It faces stiff competition from ports in southern China and has lost market share to the Port of Shenzhen in recent years due to the latters lower cost and more efficient operation.Despite slipping in both regional and global rankings,the port still holds significant weight in Hong Kongs local economy.In 2019,it was estimated that the port and associated shipping and maritime services contributed HK$30.9 billion to Hong Kongs economy,equivalent to 1.1%of total GDP.The port and related shipping and maritime services employed 81,500 people,or 2.1%of the territorys total workforce.In 2020,the government introduced initiatives to aid the port in the face of regional competition,including tax exemptions and concessions for certain ship lessors and leasing managers,and a 50%tax concession on the profits of marine insurance businesses.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Hong Kong,2022.Source:,2022.201020225-year projection%growth7,025,000 7,643,000 7,859,000 2.8%A key global hub facing competition from other regional ports Hong Kong SAR,ChinaPort featuresThe main container terminal is in Kwai Tsing,a district west of Central Hong Kong.The 279-hectacre(689-acre)port has nine terminals,24 berths and 96 quay cranes.Its quay length,at just under 7.8 kilometers,is smaller than others in the area.Hongkong International Terminals has invested in automation,with Terminal 9 featuring remote control cranes and automated container stacking systems.In 2019,four operators formed the Hong Kong Seaport Alliance,which aims to build a smart green port.However,progress has been limited amid concerns over the investment required and the impact on profits.FIGURE 3:Port detailsSource:CBRE Research,Port of Hong Kong,2022.FeaturePort area279 hectaresTerminals9 Cranes96 Berths24 17.417.517.617.717.817.918.018.118.218.318.418.5201920202021HONG KONG SAR,CHINA79CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersThe port ranks sixth on the United Nations Port Liner Shipping Connectivity Index.However,its score has decreased for four consecutive quarters.Mainland China is by far the ports biggest trading partner,with more than 50%of cargo heading to or from the region.Taiwan,Malaysia,Japan,Vietnam,the U.S.and Singapore round out the top seven,with all other partners accounting for less than a quarter of trading volume.Intermodal transportationThe port is a key intermodal gateway to southern China and the rest of the world.River transportation has become increasingly important,with more than 50%of containers bound for China travelling by river vessels.Hong Kongs high-speed road network,along with its international airport and well-connected cross-boundary points,link the container terminals with various logistics nodes.Around 270 international container vessels sail to and from the port each week,connecting to nearly 600 destinations worldwide.In addition,the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link(XRL)offers direct rail services to 58 destinations in China.Hong Kong SAR,ChinaReal estate influenceDemand has been subdued in recent years due to U.S.-China trade tensions and pandemic-related restrictions.Despite this,domestic requirements,including short-term government requirements,continue to drive leasing activity.Although some 3PLs and retailers may consider restructuring global supply chains,other high-end logistics operations plan to expand in the city.The limited space and higher margins for carriers will encourage occupiers to consolidate and upgrade warehouses.Amid sustained domestic demand,vacancy fell to 1.4%in Q2,while rents rose 2.5%quarter-over-quarter.Around 6.7 million sq.ft.of new warehouse supply is due to complete in 2022 and 2023,over half of which has been pre-leased or reserved for self-use.Strong demand will spur further development and redevelopment of existing space.Vacancy rates are poised to remain low,fueling solid rent growth for the foreseeable future.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,H1 2022.H1 2022 FigureInventory62 million SFVacancy1.4%Under construction6.7 million SFSingaporeAsia-PacificMenu81CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewThe pandemic accelerated e-commerce sales,driving demand for modern logistics space,while supply chain disruptions triggered demand for inventory space as companies adopt a just-in-case inventory approach.The new Tuas Port will be the largest fully automated container terminal in the world by 2040,ensuring Singapores role as a leading transshipment and logistics hub.Rimon AmbarchiHead of Industrial and Logistics Singapore and Southeast AsiaCBRESINGAPORE Singapore82CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Singapore is the worlds second-busiest container port,handling 37.5 million TEUs in 2021.Container handling volumes fell by less than 1%in 2020 and rebounded the following year,exceeding pre-pandemic levels.In 2019,the port and broader maritime industry accounted for an estimated 7%of Singapores total GDP,employing approximately 170,000 people.The port accounts for a fifth of all transshipment activity globally.Large parts of Singapore,including the container port,fall into one of the city-states Free Trade Zones,providing tax advantages including no import tax on imported or transshipped goods.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Singapore,2022.Source:,2022.201020225-year projection%growth5,163,590 5,975,689 6,159,440 3.1%The Tuas Mega Port will become the worlds largest automated container terminal upon completion in 2040 SingaporePort featuresThe port,a good portion of which is automated,is equipped with over 200 quay cranes as well as gantry cranes capable of handling containers from large ships.Tuas Mega Port,currently under construction on reclaimed land at the extreme western end of the city-state,is one of Singapores flagship infrastructure projects.The first phase opened in late 2021 and comprises 21 berths,adding 20 million TEUs of capacity.When the fourth and final phase of the S$20 billion project completes in 2040,Tuas Ports annual capacity will reach 65 million TEUs,close to double the ports current level.It will be the worlds largest fully automated container terminal,using over 2,000 automated vehicles.Tuas Port is being built on a greenfield site and is expected to achieve net-zero carbon emissions by 2050.The port will be able to serve vessels more than 400 meters long.FIGURE 3:Port detailsSource:CBRE Research,Port of Singapore,2022.FeatureContainer capacity37 million TEUsCranes200 Berths52 Terminals4 36.536.636.736.836.937.037.137.237.337.437.537.6201920202021TEU volume(millions)SINGAPORE83CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersSingapore is ranked third globally on the United Nations Port Liner Shipping Connectivity Index.The ports top five trading partners are Mainland China,Hong Kong SAR,the U.S.,Malaysia and Indonesia.The port is generally seen as an intermediary between Southeast Asia and the rest of the world,with raw materials from the region exported and finished goods imported.Electrical machinery and computing equipment also represent a significant share of exports.Intermodal transportationSingapore is a hub for sea-air cargo throughout the region,facilitating the transit of goods from Europe to other locations in Southeast Asia.It has established intermodal solutions to cope with the surge in e-commerce.An agreement was recently signed with the nearby island of Batam,Indonesiaa key hub for electronics manufacturingto transport time-sensitive cargo to Singapore by sea,which is then flown to other countries.SingaporeReal estate influenceWith a population of 5.9 million and warehouse inventory topping 122 million sq.ft.,Singapore boasts one of the highest rates of warehouse space per capita in the region.Singapores substantial investment in Tuas Port will link the project to industrial districts in the Western region,such as the Jurong Lake District,the Jurong Innovation District and the Tuas Industrial District.Vacancy rates are low,at 2.1%as of Q2,due to increasing e-commerce penetration.As e-commerce grows in Singapore,the desire to locate advanced logistics facilities in Tuas will fuel long-term demand.In addition to e-commerce,occupiers expanding in Tuas include food users,3PL providers,semiconductor manufacturers and electronics companies.The pharmaceutical and biomedical sectors also remain active.Year-to-date,prime logistics rents are up 4.1%,largely because of strong leasing demand and a shortage of quality warehouse space.While the government is looking to ramp up industrial land supply via the H2 2022 IGLS Programme,completions will take two-to-three years.Thus,further rent increases are expected in the near term.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,H1 2022.H1 2022 FigurePrime logistics rentS$1.53 per SF per monthYTD rental growth4.1%Vacancy2.1%Ho Chi Minh City,VietnamAsia-PacificMenu85CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewThe Cat Lai Terminals strategic location near major industrial hubs plays a critical role in the development of the Ho Chi Minh Greater area.Its importance will grow as new mega infrastructure projects are completed,connecting the terminal to cities throughout Vietnam.Hieu LeSenior Director,Head of Advisory&Transaction Services VietnamCBREHO CHI MINH CITY,VIETNAM Ho Chi Minh City,Vietnam86CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Ho Chi Minh City(HCMC)is Vietnams biggest port by container volume and is the 20th-largest globally.The port grew its container throughput by 13%to 8.9 million TEUs in 2021.Ownership of the port infrastructure in HCMC is fragmented,with various operators managing smaller ports in and around the city.Key cargo handling terminals include Cat Lai,Saigon and the Vietnam International Container Terminal(VICT).Most container terminals are managed by state-owned enterprises.The Cat Lai Terminal accounts for approximately half the countrys total container volume,but has become increasingly congested.In May 2022,the United States Agency for International Development(USAID)and the General Department of Vietnam Customs(GDVC)released an action plan for reducing congestion by upgrading technology and expanding port facilities to improve efficiency and operational performance as part of the five-year,$21.7 million USAID Trade Facilitation Program.The program runs until 2023 and is aimed at supporting Vietnam in developing a more attractive trade and investment climate.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Lloyds List One Hundred Ports 2021.Source:,2022.201020225-year projection%growth6,189,000 9,077,000 10,315,000 13.6%The fast-growing regional hub saw growth in throughput despite the pandemic Ho Chi Minh City,VietnamPort featuresHCMCs port infrastructure is fragmented,with various ports and terminals around the city.The Cat Lai Terminal occupies 60 hectares(148 acres),with a quay length of approximately 1.2 kilometers,a 12-meter(39-foot)depth and around 20 quayside gantry cranes.The terminal was also the first port to be granted free port status in Vietnam.In 2022,Cat Lai became Vietnams first green port,following its replacement of diesel-powered lifting equipment with greener,electric-powered machinery,reducing carbon emissions and operating costs.According to Vietnams Ministry of Transportation,all ports developed from 2030 must adhere to green port standards.In 2022,it was reported that the Mediterranean Shipping Co.(MSC)expressed interest in building a$6 billion port in Can Gio,south of HCMC.The port would be able to accommodate post-Panamax vessels,with a total annual throughput capacity between 10 million and 15 million TEUs,which would make it Vietnams largest port.FIGURE 3:Port detailsSource:CBRE Research,Port of Ho Chi Minh City,2022.FeatureContainer capacity7.9 million TEUsSite size60 hectares(148 acres)Port depth12 meters(39 feet)Berths14 Ship size capacity80k tonnes(6k TEUs)6.57.07.58.08.59.0201920202021TEU volume(millions)HO CHI MINH CITY,VIETNAM87CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersVietnams top five import trading partners by value are Mainland China,South Korea,Japan,Singapore and Hong Kong SAR.Its top exporting partners are the U.S.,China,Japan,South Korea and Germany.Key exports from Vietnam include electronics,particularly mobile telecommunications,textiles and footwear.Key imports include circuitry,electrical components and petroleum.Intermodal transportationThe modern Long Thanh Dau Giay Expressway and Highway 51 connect HCMCs ports with key industrial zones across Vietnam.In addition,there are extensive barge networks,with transit between Phnom Penh,Cambodia,taking around 48 hours.There is currently no rail network connecting the individual ports and terminals,so freight must be transported by road or barge,increasing costs.Ho Chi Minh City,VietnamReal estate influenceHCMCs seaport has supported strong industrial development,especially at the Cat Lai port.Land prices near ports are approximately 10%to 15%higher than the average level of the city.This rate is expected to accelerate further when roads directly connecting to the Cat Lai port area and Hiep Phuoc port are fully renovated by 2025.Demand for warehouse and factories,and for industrial and warehouse land leases has picked up.Manufacturing and trading-related occupiers are focused on regionalizing their supply chains and nearshoring within the region.After the country reopened its border earlier this year,construction began on several industrial projects.Industrial land supply in the Southern region is expected to increase to nearly 40,000 hectares over the next three years,of which one-fifth will be in second-tier industrial provinces like Binh Thuan,B RiaVng Tu and Binh Phuoc.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,H1 2022.H1 2022 FigureIndustrial land area4,000 hectares(9,884 acres)Leasable industrial land area2,000 hectares(4,942 acres)Occupancy rate95%Melbourne,AustraliaAsia-PacificMenu89CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewAs Australias largest container port,the Port of Melbourne drives significant growth and activity in the industrial and logistics sector.On-dock rail connectivity investments will fuel the ports growth,enabling it to continue as the leading location for distribution solutions and provide seamless rail transport to key logistics and industrial precincts.James JorgensenState Director,Industrial&Logistics Advisory&Transaction Services VictoriaCBREMELBOURNE,AUSTRALIA Melbourne,Australia90CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewOverviewThe Port of Melbourne is the largest container port in Australia and accounts for around 30%of its international goods trade by value.The port is operated by Port of Melbourne Operations Pty Ltd under a 50-year lease which began in 2016.Melbourne functions as a transshipment hub for onward traffic to Tasmania and other locations.More than 1,000 container ships passed through in 2021.It ranks 116th on the United Nations Port Liner Shipping Connectivity Index,making it the best-connected port in Australia.The port supports around 30,000 full-time equivalent jobs and adds AU$7.5 billion in value annually to the Australian economy.The port forecasts 3.5%long-term annualized growth in TEU container trade volumes and has a rolling program of development projects to support the increase in activity.FIGURE 1:TEU volumesTEU volume(millions)FIGURE 2:Population demographicsSource:CBRE Research,Port of Melbourne,2022.Source:,2022.201020225-year projection%growth3,932,000 5,151,000 5,535,000 7.5%Australias largest and busiest container port,with over 1,000 container ships passing through in 2021 Melbourne,AustraliaPort featuresThe port sits on more than 1,200 acres(500 hectares)with over 16 miles(27 kilometers)of waterfront.It features a 14-meter(46-foot)depth shipping channel draught,30 commercial berths and handles an average of 900 new motor vehicles per day.Multiple development projects are being pursued,including a new container terminal planned at Webb Dock North.Webb Dock Easts quay line is being expanded by 71 meters,which will allow it to accommodate two large modern container ships of up to 14,000 TEUs when it opens in 2023.The structural renewal of Swanson Dock West,targeted for completion in 2017,will be done on a rolling basis so that two out of the three berths are continually in use and ships of up to 10,500 TEUs can access the facility.FIGURE 3:Port detailsSource:CBRE Research,Port of Melbourne,2022.FeaturePort depth14 metersAcres1,200 Waterfront16 milesBerths30 Ship size capacity80k tonnes(6k TEUs)2.62.72.82.93.03.13.23.33.4201920202021TEU volume(millions)MELBOURNE,AUSTRALIA91CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewTrade partnersChina is the ports largest trading partner for import and export containers.Most vehicles imported through the port come from Japan.New Zealand is a key trading partner,with containers taking four days to arrive.The U.S.and Singapore are also close trading partners,with ships taking three and two weeks,respectively,to traverse.Intermodal transportationThe overwhelming majority of freight is transported by truckonly 8%of TEUs were transported by rail in 2019.To ease congestion,a new road tunnel is being constructed so trucks can directly access the road network without passing through residential and busy commercial areas.The port is also implementing a comprehensive plan to expand the capacity and improve the commercial viability of rail.The plan includes a new port rail line and integrated port rail container terminals connecting all docks to the rail network.The site of the former Melbourne Market,which is being used to expand the logistics capacity of the port,will also connect to the rail network.The port is working alongside the Victorian government to improve the interconnectivity and capacity of the wider Victorian freight rail network.Melbourne,AustraliaReal estate influenceThe port is a major generator of industrial and logistics demand and is the strongest market of occupier activity in Australia.Vacancy is at an all-time low of 1.1%as of Q2.Transport,postal and warehousing occupiers account for most leasing activity(45%),followed by manufacturing(19%)and the retail trade(15%).Like Sydney,Melbournes record-low vacancy pushed up rents for super prime-and prime-grade stock.Its predicted that Melbournes industrial market will require at least 490,000 sq.m.of additional e-commerce dedicated logistics space over the next three years to support growing internet sales.Average land values in Melbourne have increased at a record rate of 35%over the past 12 months.The port and the Victorian government have identified the former Melbourne Market as a key site for the development of future logistics capacity,allowing for expansion within the already highly developed precinct close to the port.FIGURE 4:Industrial&logistics market statsSource:CBRE Research,H1 2022.*Y-o-YH1 2022 FigureAvg.asking rentAU$120 per SMVacancy1.1%Super prime rent growth13.9%*Prime rent growth11.1%*Appendix0593CBRE RESEARCH2022 CBRE,INC.Future Cities2022 Global Seaport ReviewAPPENDIX:Historial TEU volumes across major portsPortRegion201920202021Port connectivity ranking as of H1 2022Los AngelesAmericas9,337,6329,213,39610,677,61061Long BeachAmericas7,632,0328,113,3159,384,36858New York/New JerseyAmericas7,471,1317,585,8198,985,92937SavannahAmericas4,599,1724,682,2495,613,16345CharlestonAmericas2,436,1852,309,9952,751,44259VancouverAmericas3,398,8603,467,5213,678,95289ManzanilloAmericas3,069,1832,909,6323,370,00083RotterdamEMEA14,821,49714,349,44615,299,9707Antwerp-BrugesEMEA11,860,20412,031,46912,020,2459HamburgEMEA9,300,0008,500,0008,700,00015ValenciaEMEA5,439,8275,428,3075,604,47820Tanger MedEMEA4,801,7135,771,2217,173,87023PiraeusEMEA5,650,0005,437,0005,300,00027FelixstoweEMEA3,800,0003,435,0004,000,00035ShanghaiAsia-Pacific43,303,00043,501,40047,030,0001Hong KongAsia-Pacific18,361,00017,971,00017,772,0006SingaporeAsia-Pacific37,195,63636,870,94037,500,0003Ho Chi Minh CityAsia-Pacific7,531,0547,854,0918,890,00085MelbourneAsia-Pacific3,018,625*2,880,790*3,294,306*116*Fiscal year CBRE Research;UNCTADSTAT Port Liner Connectivity Index.ContactsGlobal Research LeadershipRichard Barkham,Ph.D.,MRICSGlobal Chief Economist&Head of Americas Research 1 617 912 Henry Chin,Ph.D.Global Head of Investor Thought Leadership Head of Research,Asia Pacific 852 2820 Julie WhelanGlobal Head of Occupier Thought Leadership 1 617 912 Jos TrompGlobal Head of Data Intelligence 31 EMEATasos VezyridisExecutive Director,U.K.&EMEA Retail&Logistics Research Global Thought Leadership 44 20 7182 Annabel NashIndustrial&Logistics Research,U.K.&EMEA 44 20 7182 Alex OzgaResearch,EMEA 44 20 7182 Fraser DaisleyIndustrial&Logistics Research,U.K.&EMEA 44 20 7182 AmericasJames BreezeSenior Director Global Head of Industrial&Logistics Research,U.S. 1 909 354 Jennifer Olsen-SuhrIndustrial Research,U.S. 1 630 368 Asia-Pa