Transcript Objectives of the Workshop

STIMULATING DEVELOPMENT AND
GROWTH OF PORTS ALONG THE
AFRICAN COASTLINE
John Omingo
Head of Commercial Shipping
Kenya Maritime Authority
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
COVERAGE
Requirements in Legislation
Dealing with Maritime Service
Providers and Customs Authorities to:
improve port efficiency and productivity
stimulate growth in maritime economy
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
INTRODUCING KMA
Regulation of Kenya’s Maritime sector;
(Kenya Maritime Authority Act, 2006 and Merchant Shipping Act 2009);
Separation of regulation from operations;
Safety of Life at Sea;
International Maritime Conventions;
Regional Search and Rescue coordination;
Piracy information exchange centre;
Prevention and control of Marine Pollution;
Commercial Maritime Services;
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
PORT GROWTH ALONG THE AFRICAN COASTLINE
Three main factors :
Safety and security
Efficiency and Productivity
Additional capacity
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
SAFETY OF SHIPPING
Safety of local and foreign ships with regard to:
Seaworthiness (Merchant Shipping Act , 2009)
Flag State Implementation
Port State Control;
Safe arrival and departure of ships;
Marine Pollution;
Search and Rescue
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
SECURITY
Transport related incidences impact human life
 Today there are occurrences that are not accidents, but
deliberate acts of a kind few of us could previously have
imagined:


The US 9/11 Terrorist attack;
Piracy off the coast of Somalia;
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
SECURITY
 Vital component of port operations;
 ISPS Code in ports and ships but security needed beyond the
port - every node in the supply chain where each player is
responsible for securing its leg of the supply chain;
 National supply chain security standard which all parties in the
supply chain can sign up to.
 Authorized Economic Operator (WCO – AEO) model
for administering security compliance;
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
Piracy
 Complex and entrenched beyond
the capability of any one entity
alone to effectively deal with;
 Annual cost to the world
economy : 7 - 12 billion US
dollars (Recent World Bank
Report)
 Annual Piracy Surcharge in
Mombasa - over US$ 200 Mil
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
Dealing with Piracy – Short Term measures
Enhanced resources in the form of naval vessels and
military aircraft;
Compliance with the best management practices while
sailing through piracy-infested areas;
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
Legislation
Enhancement of legislation for prosecution;
Capture, prosecution and punishment of Pirates;
Tracing of ransom money;
Confiscation of proceeds of crime derived from hijacked
ships;
Criminalization of piracy under domestic laws of States;
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
Legislation
Establishment of specialized anti-piracy courts in
Somalia and other States in the region;
Provision of international assistance to help make Piracy
courts operational;
Ultimate Solution
A stabilized Somalia with a functioning Government and
adequate resources to patrol the coastal areas from which
the pirates operate and into which they bring hijacked ships
pending negotiations
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
PORT EFFICIENCY AND PRODUCTIVITY
In Africa (70% - State run ports), there is great need for
supportive laws and maritime practices that address port
transit times in order to:
 Increase berth utilization;
 Attract ships;
 Reduce overall cost of
transport logistics;
 Increase volume of cargo;
 Stimulate growth of ports
along the African Coastline
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
Industry Concerns
No accountability for delays in the flow of cargo;
No standards on efficiency and quality;
Ineffective consultation machinery on maritime issues;
No Service level agreements – absence of competition;
Shortage of professionalism across the logistics chain;
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
Maritime Service supply - AFRICA
 Uncompetitive:

Importers’ minimal influence - most services are contracted by
overseas sellers and buyers;

Little or no contractual obligation for timely delivery - importers
locked into the services of:
 Shipping Lines and Agents
 Port Authority
 Container Freight Station Operators
 Cargo Consolidators
 Customs Authorities and other Government Agencies;
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
Kenyan Response
 Merchant Shipping (Maritime Service Providers)
Regulations, 2010

Accountability structures:
 Establish Key Performance Indicators;
 Formalize obligations through Service Level Agreements
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
Legislation
Develop Key Performance Indicators for service providers
with – SLAs;
Establish structures for holding service provider accountable in the
flow of goods/cargo - efficiency and speed of delivery;
Develop institutional capacity for the monitor of service delivery:
SLAs;
Single Window Cargo Clearance
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
Outcome
 Predictable cargo clearance process and short transit times at
the water/land interface;
 Competitive supply of maritime transport services;
 Effective interaction for better performance of the total
transport logistics chain;
ADDITIONAL PORT 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 Green cities
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 Africa it is much slower
Utilize ICDs and CFSs - hub and spoke systems
But, …
How does it effect transit times and costs?
Mombasa
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
Cargo exit infrastructure
Focused attention on rail development - cleaner and greener;
Improved pipeline infrastructure to keep tankers off the roads;
Enhanced road infrastructure for cargo exit from the port;
LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE
CONCLUSION
Adopt a total logistics chain approach stimulate port growth.
Overland systems with appropriate intermodal facilities:
–Alleviates port congestion problems
–Facilitates growth in cargo volumes;
–Provides great competitive advantage to a port;
Enhance customs and other agency processes within ports and
along inland transport corridor;
Utilize effective key performance indicators
–Monitoring reliability, efficiency, costs and of performance
Otherwise ‘Complex port problems in Africa will have
simple, easy to understand wrong answers!!’
END – THANK YOU
The Presentation can be downloaded from:
www.kma.go.ke
or email :
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