TRANSPORT infrastructure is failing to keep pace with world trade and could lead to a slowing of economic growth warns APL chief executive Ron Widdows.

Mr Widdows told the European Conference of Ministers of Transport last week that by 2010 the container trade will be double that of 10 years ago but that in many key markets infrastructure was not able to handle the volumes without slowing down cargo flows.

He called for massive investment in modernising and expanding the transport system to avoid congestion that would slow future economic growth rates.

Mr Widdows highlighted a need to significantly expand and improve the efficiency of ports in the US and Europe.

While new port capacity in Asian countries such as China can and has been built extremely quickly, in Europe and US it take years to get permission to build or extend terminals, with plans often rejected.

The impact of this is translated into the fact that less than 30% of vessels arrived on time in European ports last year.

In Europe a need for greater use of rail transport was highlighted to avoid growing congestion on road networks and the impact this has on the environment.

Also while many Asian countries have invested heavily in new infrastructure, others still have a long way to go with the export orientated economies of India and Vietnam urgently need to build and expand ports and inland road and railway infrastructure

APL has previously highlighted the infrastructure issues facing both Vietnam and India in white papers and is investing in rail services in India and terminal capacity in Vietnam.

Mr Widdows called for a global solution to the growing problem with participation from all parties involved.

Because of the highly interconnected and integrated nature of the systems that today service international trade, we need a consistent worldwide approach to implement solutions. Congestion in any major part of the world s supply chain has global reverberations, he said.

Everyone with a stake in global trade has a role to play. Governments, shippers, transportation providers we must all do, and pay, our fair share.