Transcript The Role of African Ports in Economic Development

7TH PAPC CONFERENCE 2008
DJIBOUTI
Balancing the Development of Ports and
Counterpart Facilities and Systems in
Africa
G M Maeti
COMESA Secretariat
Lusaka, Zambia
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Outline of the Presentation
• Introduction
• Questions
• Pre independence and post independence
considerations in ports development
• Current Imbalances (State of railways, roads, pipelines,
human capital)
• Ports Capacities
• Lessons from the rest of the world
• Current approaches at regional and continental levels to
enhance balanced development of facilities and systems
• Roles that African ports associations do facilitate
balanced facilities and systems
• Roles of Ports and RECs
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Introduction
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World trade has been growing both in volume and value terms and sea
transport conveys over 80 per cent in volume terms
Asia and Latin America have experienced rapid growth rates during last two
decades and Africa could do the same in the coming decades
In order to meet Africa’s growth needs, ports and counterpart transport
modes will need capacity to handle increased cargo volumes efficiently
There is a systematic move towards regional economic blocks providing
trading preferences among members
African ports make their own individual development masterplans
Transport and terminal service providers make their own independent plans
There is need to handle transport services in the light of a total transport
logistics approach
There are challenges in harmonising the interests of ports and other players
to achieve an optimal balance
It is important to eliminate imbalances in capacity development
Individual ports and their associations can play an important role in
promoting balance in the provision of capacity
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Questions
• What considerations guided the development of port facilities in the
colonial period and which ones have been guiding the post colonial
period?
• Has the development of port facilities been balanced with other
transport facilities both in the waterside and landward dimensions?
• Can ports influence policy and actual investment in the development
of counterpart facilities and systems to maximise balanced
developments in the entire logistic chains?
• Are there lessons from the rest of the world?
• What is happening at regional and continental levels to enhance
balanced development of facilities and systems?
• What could African ports associations and RECs do tofacilitate the
development of balanced facilities and systems?
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Pre and Post-independence Considerations
• Pre independence Considerations
• Meet the needs of extractive trade in minerals and
agricultural raw materials
• Rail the primary mode of transport
• Each colonial power built its own ports and
transport links
• Management controlled by the imperial powers
• Shipping lines also dominated by metropolitan
powers
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Pre and Post-independence Considerations
• Post-independence Considerations
• On attaining independence states felt largely contented to inherit the
colonial ports and transport networks and operate them as new
acquisitions wielding power and prestige
• Ports tried to respond to developments in the industrial world in
order to cope with the developments in ship designs and waterside
services but not matching the same in shore handling operations
• New initiatives involving modern technology in areas information
processing including ITC not adopted
• Railway networks remain narrow gauge while the developed world
has gradually converted into standard or broad gauges
• Management of ports and railways remains tightly under
government control and have not encouraged innovation and
competence
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Current Imbalances
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The principle that the maximum output of a serial network depends on the
capacity of its slowest component applies
Internally ports have continued to develop physical infrastructure
Matching developments have not taken place in counterpart systems
Railways have been static or regressive in terms of permanent way and
rolling stock due to lack of investment
Increase in road infrastructure development but due to lack of good
husbandry in enforcing axle load limits and poor maintenance they have not
provided a consistent and sustainable alternative
Ship operations outputs have risen but shorehandling operations have
declined because of bottlenecks due to declining offtake rates as rail and
road services have continued to decline
Strong lobbies by shipping lines, the shipowners have continued to bid for
and obtain higher quality of service while the shipper has secured
comparable benefits from new investments because higher operating costs
arising from delays in cargo offtake and persistent congestion.
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Effects of Current Imbalances
• Increased output levels in stevendoring
(ship to shore) operations
• Low outputs in shore handling operations
• Low availability of rail wagons and
locomotives
• Delays in cargo deliveries
• Congestion in port terminals and yards
• High costs to cargo owners
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Ports Capacities
• Ports in the African region have developed as
monopolies over the years and tend to have unique
capacities not available in other spheres of government
or private sector
• These include specialised skills(Human capital) in areas
such as
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Navigation,
marine engineering,
equipment fabrication, operation and maintenance,
safety oversight,
pollution control
• In some countries ports have been entrusted with
regulatory responsibilities such as
• flag state control
• port state control
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Ports Capacities (cont)
• Ports are often in possession of financial
resources to
• undertake feasibility studies,
• coordinate planning,
• provide training
• Ports also have real potential in areas
such as
• Advocacy
• Provision of Peer exposure
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Lessons from the rest of the world
• Integrated logistics for development of ports, rail
and roads in the European Union
• Integrated planning for the development of ports,
railways, road and inland water operations in
China
• Construction of rail bypasses in the development
of the new JNT port in Bombay
• Establishment of rail land bridges in the US
where shipping lines operate block trains from
coast to coast
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Regional and continental
Approaches
• At regional levels current approaches to
enhance balanced development of facilities and
systems include
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Corridor development approach
Regional trunk road networks
Establishment of project financing facilities
Transport facilitation instruments
Development of one stop border posts
• At continental level the following approaches
have been adopted:
• Trans African highways
• Continental rail gauges harmonisation
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African Corridors
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Rail Links in ESA Region
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Regional Road Links in ESA
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Potential Roles for African Ports
Associations
• The African ports associations can play the
following important roles in facilitating balanced
facilities and systems
• Network with counterpart associations in rail and roads
• Identify and prioritise regional projects for the development
of integrated transport facilities
• Jointly with counterpart associations mobilise resources from
regional and international investors and funds for total
logistics project implementation
• Provide leadership through development of model
instruments for adoption at country levels
• Facilitate peer networking and development of best practices
in the integrated transport environment
• Provide advocacy through interventions in regional and
continental fora
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Role of Ports
• Engage national policy makers at the level of policy
formulation to enhance integrated development of
transport
• Participate in identification of national/regional projects to
enhance integrated development of transport
• Provide resources to undertake upstream project
preparation tasks and cofinance projects which enhance
promote integrated connectivity
• Take part in specialist fora for networking with
counterpart service providers and regulatory authorities
• Participate in advocacy and peer networking for the ports
sector
• Participate actively in regional and continental dialogues
on transport related issues
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Role of RECs
• Failitate in the identification and prioritisation of regional
projects to enhance integrated development of transport
• Mobilise resources to undertake upstream project
preparation for projects which enhance promote
integrated connectivity
• Facilitate the establishment of specialist regional fora for
networking with counterpart service providers and
regulatory authorities
• Provide networks for advocacy and peer networking at
regional levels for the ports sector
• Provide for a for in regional and continental dialogues
on transport related issues
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END
THANK YOU
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