Transcript Ports and Corridor Performance - PMAESA

Ports and Corridor
Performance
Charles Kunaka
Regional Coordinator – East and Southern Africa
Sub-Saharan Africa Transport Policy Program (SSATP)
Outline
Global perspective
Tackling congestion
Ports
Other system components
Corridor performance measurement
Conclusions
Ports are important
 Ports in developing countries:
 represent a key asset for economic development
 serve landlocked countries – key components of regional trade
corridors
 play an important role as interface between sea and land
transport systems
 Inefficiencies impact trade competitiveness
 Congestion at ports
 an increasing problem
 affects shipping schedules
 contributes to further congestion
 Constraints to capacity expansion:
 Lack of scope to increase capacity
 Weak inland transport links
Global container port capacity has reached
critical levels
North Europe
80.5% / 73.2%
North America
92% / 86%
Central America &
Carribean
82% / 73%
South America
111% / 102%
Global Total
99% / 89%
South Europe
82% / 78%
Eastern Europe
92% / 73%
Middle East
98% / 89%
Africa
79% / 71%
Far East
109% / 105%
Subcontinent South East Asia
87% / 57%
108% / 91%
Oceania
105% / 93%
Key:Based on Confirmed plans /
Included unconfirmed expansions
Source: Annual review of global
container terminal operators – 2005
(Drewry) (Courtesy: M Donner WB)
Factors driving growth
 External Factors:
Strong GDP expansion
Integration of regional economies with Asian
suppliers
Political stability
 Internal factors:
Privatization of ports sector - increased investment
Improved shipping links with Asia
Increased ship size and transshipment
Terminal productivity increases
 Above factors are increasing pressure on port
capacity
Port congestion regions
Courtesy of Michel Donner, World Bank
Responding to Port Congestion
Two main ways to address increasing
problem of congestion:
Improve efficiency
Develop additional capacity
Tackling Congestion Along the Logistics Chain
Rail
Transit
Port of
Entry
Multimodal
Transfer
Road
Transit
Border
Crossing
Road
Transit
Final
Clearance
Check Points
International Transit
National Transit
Mode
Port
Rail
Road
Road transit
Borders
ICDs
Destination
Key
players
Customs
Terminal
operator
Clearing
agents
Rail
operator
Truck
operators
Drivers
Police
Customs
Clearing
agents
ICD
Operators
Customs
Firms
Issues
Volumes
Capacity
Performance
Dwell time
Volumes
Performance
Delays
Delays
Truck
utilization
Delays
Checkpoints
Axle load
Transit
times
Delays
Dwell time
Time and
money cost
•Emphasis should be on total logistics chain
•smallest capacity determines maximum capacity
Port capacity
 What are the determinants of port capacity?
 Vessel access
 Berth access
 Terminal capacity
 Storage density – containers per acre
 Gate capacity
 Inland transport capacity
 Swift modal transfers are key to intermodal operations
 Ports do not typically control some of the key drivers
 E.g. Peaking – periodic increases in activity
 Bunching of vessels which can create inefficiencies
 Since the 1990’s, governments have sought private
sector involvement both for capital and operational
experience
 But …
 In Africa some 70% of the (container) port operations are still
run by the public sector
PPP success stories
(Source: Ocean Shipping Consultants - AICD)
Africa : performance and PPP arrangements
Port
Abidjan
Dar es Salaam
Douala
Toamasina
Djibouti
Durban
Tema
Elizabeth
Apapa
Capetown
Mombasa
Dakar
Maputo
Beira
Port Sudan
Walvis Bay
East London
Luanda
Matadi
Pointe Noire
avg moves/hour
operator
equipment
20
20
20
18
17
15
14
13
12
12
10
10
10
9
8
8
8
8
7
7
ppp
ppp
ppp
ppp
ppp
public
ppp
public
recent ppp
public
public
recent ppp
ppp
ppp
public
public
public
recent ppp
public
public
gantries
gantries
gantries
mobile cr.
gantries
gantries
gantries
gantries
gantries
gantries
gantries
mobile cr.
gantries
gantries
gantries
ship's gear
ship's gear
ship's gear
ship's gear
ship's gear
Dwell Time
 Dwell times vary by country of destination
 Dwell time is a critical factor influencing port capacity
 Container dwell time in ports in East Africa is the equivalent of at
least 20% of sailing from the Far East!
Traffic
Country
July
August
September
October
Average
Local
Kenya
13.2
14.0
14.3
13.3
13.7
Burundi
36.5
47.3
15.1
21.5
30.1
Congo
11.6
11.8
10.2
11.1
11.2
Malawi
18.0
20.0
19.0
19.0
Rwanda
12.4
13.9
14.5
13.5
13.6
Somalia
12.3
12.6
11.7
11.5
12.0
Sudan
15.3
12.8
16.0
18.0
15.5
Tanzania
10.9
15.4
10.2
12.7
12.3
Uganda
14.3
14.1
14.2
14.3
14.2
20.0
20.0
Transit
Zambia
Dwell times and corridor transit time
 Dwell time is a large proportion of total transit time
 Overland transit is slow - system has to be improved as
improvements are made within the port area
Northern Corridor Transit Time - Road
Days
Uganda
Indicator
Rwanda
Average
St. Dev.
Average
St. Dev.
Port Dwell Time
12.5
8.4
13.0
9.2
Land Transport
7.5
6.3
10.0
5.4
21.3
10.6
23.5
10.4
Total Transit Time
Northern Corridor Transit Time - Rail
Destination
ICD
Port time
Containers
Avg.
Rail time
St. Dev.
Avg.
Total time
St. Dev.
Avg.
St. Dev.
Kisumu
240
15.82
12.14
11.58
4.84
28.09
14.21
Malaba
615
22.78
13.18
13.45
6.37
37.35
15.39
Developing additional capacity
Dar es
Salaam
 Increase port efficiency
 Bad ports are the equivalent of 60% further away
from markets for the average country!
 Does the port organization and equipment match
rated capacity?
 Expand ports
 But most ports are surrounded by major cities
 Cities may benefit from ports, but Ports may also
have a negative influence on cities such traffic
congestion, air and noise pollution and security
issues
 Open land next to ports is not readily available
 Increasing trend towards Greenfield sites
 Develop new ports
 How long does it take to plan and develop new ports,
infrastructure?
 Development of new port capacity in countries like
China is fast, but in other regions it is much slower
 Utilize ICDs
 Use hub and spoke systems
 But, …
 What effect do the last two have on transit times?
Mombasa
Maputo
Northern Corridor – Impact of Transit Yards on Transit
Times
Impact of routing through Transit Yard in Mombasa
18.0
6000
4,987
15.0
12.0
4000
9.0
3000
6.0
2000
3.0
815
604
197
0.0
Congo direct

5000
316
109
Congo through Rwanda direct
Rwanda
transit yard
through transit
yard
Number of observations
From Port to Ugandan border
Traffic passing
through ICDs
takes longer to
be delivered
1000
0
Uganda direct Uganda through
transit yard
Routing through a transit yard has limited impact on the reduction of the port dwell
time


Net result is an increase in the inland transport time, ranging from 6 days for
Uganda containers to 11 days for Rwanda containers
Main beneficiaries: road transport companies, their more efficient/recent trucks
operating with faster turnaround times by avoiding the delays at the port, and
inland, at the ICDs.
Hub and spoke systems
 Can bring cost
advantages cf multi-call
systems
 But in West Africa:
 Not all ports suited to
play hub role – due to
draft and vessel size
restrictions
 Hub-and-spoke found to
benefit only hub while
increasing costs at other
ports
 transit times would
increase at other ports
 greater benefit would
come from market
liberalization (eg abolition
of cargo reservation
regimes)
Source: G. Palsson (1998), SSATP Working Paper 31
Other corridor system components
 Constrictions can be identified
 Integration of Port and customs systems
 Railways and road transporters increasingly use
tracking systems
 Check points along corridors add to transit times
 Need to enforce axle loads while minimizing
delays
 Important to define core set of corridor
performance indicators
Corridor Performance Indicators
Volume
Time
Price
Corridor
Total
transit
Total
transit time
Total price
Country
Border
counts
Border
crossing
delays, etc.
Modes
Nodes
Port traffic,
rail activity,
etc.
Port dwell
time
Quality
Road network,
Customs fraud, etc.
Tariffs
Fleet (rail, road),
annual mileage,
etc..
Conclusions
 Important to adopt a total logistics chain approach to
minimize transferring problems to a different location
 Overland systems with appropriate intermodal facilities:
 Can contribute to addressing port congestion problems
 Improvements provide flexibility to shippers on port selection
 Can compete with coastal shipping services
 Enhance customs and other agency processes within
ports and along corridor
 Utilize corridor-wide as well as component performance
indicators
 Monitor reliability of performance – can have a significant impact
on costs
 Otherwise Grosman’s misquote becomes relevant:
Complex problems have simple, easy to understand
wrong answers!!
The SSATP
35 Countries
7 RECS
AU/NEPAD, UNECA,
AfDB
Where the SSATP is working
END – THANK YOU
Publications can be downloaded from:
www.worldbank.org/afr/ssatp
or email :
[email protected]