Transcript Slide 1

PAN-AFRICAN PORT COOPERATION CONFERENCE
DJIBOUTI 15th - 18th Dec 2008
PMAESA PORTS: CHALLENGES & OPPORTUNITIES
Jerome Ntibarekerwa,
Secretary General, PMAESA
Introduction
Who we are?
Port Management Association of Eastern & Southern Africa (PMAESA) is a
regional grouping of ports in the eastern and southern Africa with
membership composed of state representatives and private sector from:
• Port Authorities
• Maritime transport departments
• Port Operators
• Maritime regulators
PMAESA Member States
Introduction
What we do
Established in 1973 under the auspices of the UNECA with the following
objectives among others:
• Offer platform to exchange ideas and information where
members can interface with one another in transport and
trade facilitation
• Assist port development by enhancing productivity and
service delivery and trade facilitation;
• Establish linking from ports to transport Corridors;
• To assist our ports /maritime members to implement IMO
conventions
• Establish and maintain relations with other development
partners and transport authorities for the study of matters
beneficial to members
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
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
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%
Source : World Bank , SSATP
7
Port congestion regions
Courtesy of
Michel Donner,
World Bank
State of the Port Sector 2008
8
Measures to address port
efficiency and productivity




Acquiring more spaces for port activities
Purchase of new equipment
Using ICDs
Developing IT systems and free port
activities
 Restructuring the management model
 Improving safety, security and
environment protection to meet
international standards
OUR PORTS KEY CHALLENGES
 Acquiring more spaces for port activities
 Infrastructure development :Purchasing of new
equipments
 Using ICDs
 Developing IT systems and free port activities
 Restructuring the management model
 Improving safety, security and environment
protection to meet international standards
Challenges with Growing Demand
Key ports in the Eastern and Southern Region:
 Kenya Ports Authority
 Tanzania Ports Authority
 South Africa , Transet NPA
 Djibouti port , DP World
 Sudan port Cooperation
 Mauritius Ports Authority
 Seychelles Ports Authority
Challenges with
Kenya Ports Authority – KPA


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The rapid increase of traffic is likely to continue
The container Dwell time is yet to be reduced
The hinterland rail connections remain inefficient
More dependence on road mode of transport
with 3 axle road rule constraint for hauliers
 Long documentation procedures
 Inadequate capacity to handle the forecasted
cargo volumes.
Challenges with Kenya Ports Authority
(Cont...)
 The exploration of Oil in Lamu District
 The Regional Integration expectations :
EAC/COMESA Customs Union expected
positive results
 The Transport Sector Reforms :
Concession of RVR, Rehabilitation of
major roads links to other countries
Challenges with Djibouti Ports
• The throughput in TEU has grown by 31% in 2007 while
the General Cargo grew by 44%;
• The stripping operations by Freight Forwarders remain
very slow;
• The yard is occupied at 95%;
• There is a high level of stacking ( up to 5 highs);
• The number of full and empty containers is very high;
• The port is facing many difficulties linked with Ethiopian
bureaucracy as 85% of the total handled cargo is for
Ethiopia ( Customs clearance taking more than 3 weeks,
cargo financed by L/C).
Challenges with Tanzania Ports Authority- TPA-
• The insufficient container storage space
• The long container dwell time (has
reached 25 days in Aug.2008)
• The rapid increase of container traffic and
• The low performance of inland modes of
transport especially the rail lines with very
low availability of wagons and
locomotives.
Challenges with Tanzania Ports Authority
(Cont.)
 More investment to increase container
terminals capacity and Inland Depot
 Improve efficiency and productivity within the
existing port infrastructure and equipment
 Continue to involve private sector in port
operations and concessioning which will
improve port development
Challenges with
Mauritius Ports Authority
• The current port charges are high: there is need
to assess adequacy of current charges to
sustain Investments
• The low level of connectivity of major shipping
lines
• The 15% corporate tax imposed on free port
companies to be dropped at zero rate ( expected
on 1st July 2009)
• Business environment yet to be friendly in
regards with regulations, procedures …
Challenges in South Africa
(TRANSNET NPA)
Responding to the opportunities presented by :
1.
Growth in global economic activity - increase inter/intra
African trade
–
Link industrial and mining sector activity to markets
–
BRIC phenomena – Alternate logistic & hub – South S trade
–
Regional economic integration – Transport corridor
development
–
Intermodal harmonisation to improve regional supply chain
and reduce logistics costs
Focus on Time, Cost & Skills
Challenges with
Sea Port Corporation – Sudan
 To cope with technological advances in
maritime industries
 To face the political and economical
challenges internally and externally:
Requirements of WTO,COMESA agenda
 Exploration of Sudanese Oil,
 To handle economic activities logistics
after Peace Agreements in Sudan.
Comparative Review with
key PMAESA Ports
• In terms of :
Cargo handling performance
Container handling performance
Transit traffic
Transshipment traffic
Port regulation model
Other safety and security arrangements
Cargo handling performance
(DWT “000”)
2002
2003
2004
2005
2006
AVG.GR
OWTH
RATE
DJIBOUTI PAID
4,409
5,868
5,594
5,435
5,489
6.6%
KENYA
KPA
10,564
11,931
12,921
13,281
14,402
8.1%
MAURITI
US
MPA
5,552
5,543
5,816
5,602
5,686
0.6%
PORT
REUNION REUNION 3,195
3,435
3,891
3,765
3,947
5.6%
SOUTH
AFRICA
NPA
189,155
171,62
1
168,751
173,555
179,984
-1.1%
SUDAN
SPC
4,388
5,048
5,575
7,858
TANZANI
A
TPA
4,724
5,481
5,416
6,864
Port
Authority
22.1%
7,291
7.9%
Cargo handling
• Ports in South Africa handle more cargo
than other in the region
• They are followed by Mombasa, DSM,
Mauritius and Djibouti.
Container handling (TEUs)
Country
Port
2002/03
2003/04
2004/05
2005/06
2006/07
AVG.GROW
TH RATE
Kenya
Mombasa
337,568
418,465
434,538
454,437
526,676
12.1%
Tanzania
Dar es
Salaam
166,253
205,044
255,578
287,948
256,391
12.4%
4,694
5,542
4,981
3,332
-8.4%
1,603,924
1,690,885
1,955,803
2,334,999
15.7%
43,579
58,637
42,545
41,836
1.8%
Richards
Bay
Durban
South Africa
1,313,290
East
London
Port
Elizabeth
278,145
282,865
340,144
370,849
407,278
10.2%
Cape
Town
476394
512,529
609,572
736,943
764,753
12.8%
Container Handling
• Durban and Cape Town are the biggest
container handling ports
• Mombasa is the 3rd while
• DSM is the sixth position
Transshipment
• Mombasa and DSM competing for the
business with Kenya holding a leading
share up to 2003
• Trend reversed following to logistical
problems associated to over-utilization
capacity.
• Still the 2 ports remain behind regional
Hubs of Durban, Port Louis and lately
Djibouti
Transshipment Traffic (TEUs)
Country
Port
2000
2001
2002
2003
2004
Djibouti
Djibouti
29,532
36,224
66,605
105,361
4,822
Kenya
Mombasa
17,667
25,769
27,368
49,605
34,245
Tanzania
Dar es
Salaam
3,960
12,423
24,866
37,246
56,249
Durban
331,736
299,806
358,841
334,071
324,649
East London
1,280
2,298
3,246
0
69
Port
Elizabeth
11,444
26,898
53,108
25,715
37,362
Cape Town
55,836
106,614
110,969
91,571
90,411
Mauritius
Port Louis
6,830
7,748
72,186
204,564
200,632
Reunion
Port Reunion
8,033
8,876
7,742
9,103
14,469
South Africa
Source: PMAESA
Note: Figures shown are in calendar year
Current Port regulation
• Most PMAESA ports under the auspices of
the ministry of transport (Djibouti, Sudan)
• Regulatory body with TPA,SUMATRA
• Regulatory Body in Kenya has to be set up
• South Africa Independent port regulator
can be seen as a model.
• Further institutional reforms are required in
many ports
Safety and Security Arrangements
• All PMAESA ports surveyed have
achieved ISPS code approval
• Closed Circuit Television( CCTV)
• Container Scanning
• Automated Port Access
Are also reported
Thank you for your attention
Do You Have
Any Questions?