Transcript presentation at african ports & maritime conference

PRESENTATION
AT
AFRICAN PORTS &
MARITIME CONFERENCE
SWAKOPMUND HOTEL AND
ENTERTAINMENT CENTRE
SWAKOPMUND, NAMIBIA
CASE STUDY: EASTERN AND
SOUTHERN AFRICAN
CHALLENGES IN PORTS
DEVELOPMENT
BY
NII NIKOI AMASA
(PORT MONITORING
MANAGER, GHANA PORTS &
HARBOURS AUTHORITY)
MAJOR INVESTMENT AND INFRASTRUCTURE
PLAN AND PORT CAPACITY:
THE CASE OF A GHANAIAN PORT OF
TAKORADI

The relationship between ship size and provision
of appropriate port infrastructure can be likened
to the proverbial chicken and egg debate, Which
comes first? Port Infrastructure or Larger
vessels with enhanced characteristics?

This presentation will not attempt to take any
side of the debate; rather will highlight the
evolution of container ship, from the 1st
Generation to the 5th Generation, the
infrastructure and super structure requirements,
as well as the cost of providing them.
MAJOR INVESTMENT AND INFRASTRUCTURE
PLAN AND PORT CAPACITY:
THE CASE OF A GHANAIAN PORT OF
TAKORADI
 With a LOA of 135m, a draft requirement of <9m, and
between 500TEUs to 800TEUs on board vessels for the
period 1956-1970, what became to be known as 1st
Generation container ships were born.

The length, draft and carrying capacity of container vessels
evolved through Second Generation, Third Generation,
and Four Generation to Fifth Generation in the periods
shown in the diagram in the previous slide.

As can be seen in the next slide, each generation of vessel
came with its requirements, in terms of berth length, draft
and total boxes(TEUS) carried on board.
MAJOR INVESTMENT AND INFRASTRUCTURE
PLAN AND PORT CAPACITY:
THE CASE OF A GHANAIAN PORT OF
TAKORADI

Each generational requirement had its attendant
costs, not only in terms of superstructure, but
also cargo handling equipment like Ship To Shore
(STS) Gantry cranes, Shore Gantries and other
Equipment, Large tracts of land for equipment and
container movement and storage.

With containerization came the deployment of
appropriate IT software such as Navis to ensure
the quick and efficient movement of containers
from vessel to shore and vice versa.
MAJOR INVESTMENT AND INFRASTRUCTURE
PLAN AND PORT CAPACITY:
THE CASE OF A GHANAIAN PORT OF
TAKORADI
 Considering the size of investments needed
for port infrastructure and the worldwide
trend for Public Private Partnership, (PPP) it
is suggested that this(PPP) is the way for
ports to go to meet the major investment,
infrastructure plan and port capacity
challenges.

The issue of port productivity is directly
related with those of infrastructure and
investment.
Public Private Partnership
Opportunities in Ghana’s Port
Development Agenda
Ghana Ports and Harbours
Authority
Development of the Port of
Takoradi
Development of the Port of
Takoradi



The port development agenda for the Port of Takoradi
would cover major port infrastructure and superstructure
development/expansion aimed at eliminating the inherent
inefficiencies currently being experienced, such as draft
limitations, double handling of bulk cargoes, narrow quay
aprons, etc. and also to meet the emerging oil and gas
cluster.
The Project will include the extension of the main
breakwater, new quay walls, construction of a jetty and
platform for conveyor systems (dry bulk) and pipe
corridors for petroleum products, oil berthing facility and
substantial dredging and reclamation.
In later phases, the main container terminals and more oil
services bases would be developed after the current ore
terminal’s operations are re-located to the newly
developed terminals.
Development of the Port of
Takoradi

Technically, any part of the total development package can be
pursued under PPP within the project portfolio. It would
however be desirous that for the reasons enumerated below,
a distinction be made between the type of funding for basic
port infrastructure as distinct from that for superstructure
projects. Funding of basic port infrastructure may not be
attractive to the private investors because of the following;
They have long gestation periods of between 50-80 years, or
more, depending on the structure.
 They provide general services rather than specific services to
vessels and cargo.
 The rates chargeable for uses of these facilities are generally
low as they greatly influence overall port costs.
 The internal rate of returns (IRRs) of these projects as
stand-alone are generally unattractive.

Development of the Port of
Takoradi

Ideally, it would be feasible for these infrastructures to
be developed using concessionary funding as this has a
number of advantages that go beyond the mere
provision of the physical facilities but into matters of
port organization and management.

For example, by using concessionary loans the port can
have leverage on its pricing of related services and
facilities used by vessels and cargo.

In addition, by the Port Authority undertaking this
funding it can improve contestability where private
sector operators are invited to develop,
manage/operate the superstructure i.e., terminals and
other cargo handling facilities and services.
Development of the Port of
Takoradi

The following are listed as PPP opportunities for further
development and implementation:

Breakwater Construction and Dredging of Port Entrance Channel and
Berths alongside,
Bulk ore terminals’ superstructures and operations,
Oil and Gas Berth (depending on GNPC / Petroleum Authority plans for
this sector of port development),
Oil services’ terminals – development and operations,
Utilities services – developments and operations to deliver utilities for
operations e.g. fresh water, secured and sustained electricity, waste
management, etc.,
Container Terminal,
Transit Cargo Sheds – import and export,
Cocoa Sheds,
Truck Parks with Vehicle Appointment Schemes,
Ancillary supplies and services,









Expansion Works
•
Marine Works: Phase 1
▫ Dredging access Channels to the new mineral
ore jetty to 14m+
▫ Construct new Ore jetty & Equip
▫ Transfer operation of manganese, bauxite,
clinker and limestone to new jetty.
▫ Develop Existing Manganese Terminal into Oil
Services Terminal.
Expansion Works
•
Marine Works: Phase 11
▫ Dredge Access channels to, at least, 16m
Berths
▫ Development New Oil Services Terminal &
Container Handling terminal.
▫ Develop major port entry and exit routes
Development of the Port of
Takoradi

As presented in the tables in the
subsequent slides, these selected
opportunities would require detailed
studies within their respective multistakeholder settings to develop viable PPP
schemes within the Port of Takoradi.
SOME COST INDICATIONS FOR
SUPERSTRUCTURE DEVELOPMENT
Item
1
2
Project Title
Description
Remarks
Breakwater Extension,
Dredging and basic port
infrastructure
This is usually not an attractive commercial venture and may not
attract PPP interests. The Port Authority / Government need to
This is to provide a safe harbour basin undertake these developments with public funding / concessionary
and access / entry channel into the harbor loans, where applicable.
for larger vessels at -16m, at least.

Breakwater (1200m) estimated at US$100m

Dredging >=US$65m, up to -14mCD and up to US$85m to 16mCD
Bulk Ore and Oil Terminals
The provision of the berthing structure (quay walls, berthing
furniture, etc.) may be relatively more attractive than the
breakwater and other basic port infrastructure. However, the
essence of relocating the present bulk ore handling activities to a
new, modern facility would present immense growth to the specific
This is to provide a new and modern bulk
ore mining industry with all the relevant services within each subor handling facility for manganese, bauxite,
cluster. This could raise the private interest in the development of
clinker with provision for possible
such infrastructure.
developments in iron ore and limestone.
Further, there would be the need, particularly on the part of the
There is also the design for an oil and gas
ore mining and/or handling companies, to invest in the appropriate
jetty / berthing dolphins adjacent to the
superstructures – conveyor systems, pipes, storage platforms,
ore terminals.
offices and other handling equipment – with economies of scale.
The structures of the terminals would be
PPPs may be explored for such superstructures and operational
designed for specific conveyor and piping
investment and management.
systems for the products.

Terminal Infrastructure – quay walls, dolphins, berthing
furniture estimated US$90m

Cargo handling equipment, conveyors, loading arms, piping
and installations, terminal offices and operation systems,
approx. US$60m
SOME COST INDICATIONS FOR
SUPERSTRUCTURE DEVELOPMENT
Item
Project Title
Description
This is envisaged to come on stream
after the bulk ore terminals have been
“taken out of the way” to provide space
for high frequency oil services vessel
calls.
3
Oil Services Terminals
Such terminals would consist of heavyduty fabrication, maintenance
workshops, equipment repairs, storage
platforms with access to quays and
berthing structures. Other services from
fresh supplies of basic daily consumables,
foods, water, medical services,
personnel, conservancy,
communications, security, etc. would be
undertaken from the oil services
terminals (depending on the operational
licenses / concession contracts).
Remarks
There are already unsolicited commercial interests for such
developments. Such interests would have to be investigated and
developed further into real business ventures as part of the oil
and gas cluster. As long as the service vessels and crafts will
continue to supply the off-shore Floating, Production, Storage and
Off-loading (FPSO) Vessel and the increasing off-shore rigs /
platforms.
Utilities services providers e.g. Ghana Water Company, Electricity
Company of Ghana, who provide supplies to the Port Authority
for onward supplies to the port’s tenants. These companies may
have to upgrade their systems, as major stakeholders, for the
envisaged increases in utilities consumption in the Port.

Construction of quay walls, pavements, reclamation,
revetments, etc. estimated US$180m, minimum.

Workshops, offices, etc. would vary depending on the
management interests of the investment. Total physical
structures’ investment could exceed US$100m.
Consulting services would be required to identify other PPP
opportunities within this business sub-cluster.
Item
4
5
6
Project Title
SOME COST INDICATIONS FOR
SUPERSTRUCTURE DEVELOPMENT
Description
Remarks
Container/Multi-purpose
Terminals
The dynamics of container terminal operations and
concessions would be relevant under this venture. PPP is a
This is basically to provide container
primary method. Oil services could also be undertaken under
handling services to containerized
this venture, depending on the practical circumstances. There
cargo. Long term plans make room for is a relatively higher demand for water-front oil services
adequate terminal space with
terminals in the medium term.
dedicated container berths and multi- 
May be in excess of US$200m for physical structures
purpose berths for general cargo.
including berthing furniture, storage sheds, utilities, but
excluding cargo handling equipment and terminal
management offices / systems.
Transit Sheds
Construction and management of
cargo storage sheds, particularly for
transit cargo. Reclamation space
would be made available for the
construction of such facilities.
General cargo storage, transit cargo imports and export
services support.

Up to US$15m per shed of about 150mX35mX15m
excluding loading and management systems
Construction of new cocoa sheds.
There will be the need to demolish the present configuration
of cocoa sheds and have new constructions which will
support both containerized and loose beans cocoa handling.
The cocoa exporting companies and entities would help in
this venture.
Cocoa Sheds
SOME COST INDICATIONS FOR
SUPERSTRUCTURE DEVELOPMENT
Item
7
8
Project Title
Description
Remarks
Vehicle appointment
truck parking facilities
This is to regulate the flow of
traffic in and out of the port
area and all the respective
cargo loading and off-loading
sites.
Such a facility may not have to be located at one
place, though its management would also
consider relations with the prevailing axle loading
requirements, weighbridges services, Customs
clearance requirements, etc. Operational licenses
/ concessions could be drafted to enforce
compliance by all the terminals within the port.
This enhances compliance to ISPS and other
efficiency standards, especially for local Truckers’
Unions.
Ancillary supplies and
services
E.g. inspection companies, container scanning,
banking services, information technology and
This will involve several other communication services, office supplies and
services which are triggered
consumables, security services, clearing and
by the provision of port
forwarding services, etc. Such units will be
infrastructure, may not require triggered by increased port activities within the
large physical structures and
cluster.
can be run privately.
 Costs of such investments would depend
largely on the business’ market demands and
supply interests.
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