Delmas United Kingdom

1
Shipping to West Africa

• Is victory in sight?

2
The French Connection

• Delmas
• OTAL

3
New identity
4
The batting order

• Context the market
• Operations
• The way forward

5
The players
CSAV
6
The recently departed

• PO
• WAL

7
The market

• Population 800 million

that he approaches this summer with full respect
for the values
8
Will West Africa triumph?

• Economic growth lt2
• 60 below poverty line
• 500 million hectares degraded
• Tropical forest declining 1 per annum

9
The threat from China

• 2005 Asia / Africa volumes exceed Europe /
  Africa volumes for the first time.

10
Undone by spin

• Nigerian imports
• 16 ex China
• 9 ex UK

11
East versus West
12
An import economy!
13
Not a Frenchman in sight!

• Top 3 West African destinations ex Atlantic
  Europe
• 1/ Nigeria 18
• 2/ Ghana 14
• 3/ Angola 13

14
Commodities shipped

• 1 Electrical goods 28
• 2 Industrial raw materials 14
• 3 Chemical products 14

15
Europe as water carrier

• Ireland
• Far East consumables in
• West Africa milk powder out

16
The UK charts

• The three thirds principle
• Nigeria
• Ghana
• The rest!

17
UK / Nigeria

• Nigeria 35 of UK / West Africa official
  trade.
• Possibly close to 45 in reality..

18
Heroes or villains?

• Shipping lines that operate services to West
  Africa deserve a medal
• Lloyds List

19
Under fire

• Too slow
• Too expensive
• Too many surcharges

20
Congestion myth or reality

• Is it real?
• Who is to blame?
• What is being done?

21
Is it real?
22
Apapa a tale of increasing misery

• 2000 183,000 units
• 2001 215,000 units
• 2003 240,000 units

23
Twists of the knife

• 2001 destination inspection. Container
  deliveries slow down by 75 for 3 months!
• 2003 rumours of renewed destination inspection.
  Speculative imports. 8000 such containers still
  in port now!

24
Meltdown at Apapa

• July Task force imposes 100 check on
  documents. Strict line, even with reputable
  importers. Clearing time doubles!
• September Ministry of Finance cancels duty
  concessions. New applications take 6-8 weeks.
  Cargo blocked meantime!

25
Paying the price

• Port costs (tugs, pilotage, mooring, taxes)
• 2.67 times gt Abidjan
• 1.5 times gt Conakry

26
Down..and nearly out!

• Average waiting time to berth
• 3 weeks at 26,000 per day
• From discharge to dock gate 40 days!

27
Making up for lost time!

• Pay a contractor do it yourself!
• Apapa 200 moves per day
• Tin Can 300 moves per day

28
What now, boss?

• NPA
• 500 employees in Kano!
• 31 outside terminals 55,000 containers per
  annum. Now all full.
• 1000 containers moved in 48 hours to land
  previously off limits to shipping companies.

29
Consequences of failure

• Delays in supply chain
• Prohibitive cost
• Productivity 1/3 of norm
• For how long is this sustainable?

30
Is there hope of progress?

• Concessions
• CET tariff.
• Fast track system

31
Concessions spin or substance?

• NPA as landlord. spot the difference!
• Revenue generation 4.93 billion raised with 18
  / 25 concessions concluded

32
Time to celebrate?

• Apapa container terminal 20/03/06
• Improve basic infrastructure and storage
• Commitment 3.62 billion over 25 years

33
Realism!

• No overnight change.
• Harbour services, including dredging, are outside
  the concession.
• To get more boxes out than in, customs tariffs
  and procedures must evolve.

34
Getting back on track?

• Handlers and gantries on order..... arrive
  September
• 2000 overtime (gt90 days) containers evacuated. To
  be auctioned
• Blockstacking means can take 2 weeks to find a
  container!

35
Are we there yet?

• Only one scanner in both Apapa and TCI
• 70 of cargo expected to be subject to physical
  exam till end 2006
• Offdock terminals to remain for at least a year

36
Customs listening at last?

• CET tariff would harmonise duty rates across West
  Africa making smuggling less attractive.
• However, vested interests are lobbying
  against.unlikely to be resolved before 2007
  elections.

37
Raising standards.

• Fast track system for major importers to clear
  under bond.
• No need for CRI or advance payment of duty.
• Some initial success but very much at early
  stages..

38
The story elsewhere

• Luanda
• Growth brings grief!

39
Reacting in time?

• Unplanned growth

40
Locked in a struggle

• Committed to berth at Luandas request
• Waiting time 183 hours not allowed to load
  exports!

41
Full is full!

• Matadi
• 10 over capacity

42
A tactical battle

• Use of feeder in Matadi to reduce risk
• Kissama (April) 249 hours waiting time...then
  loads 28 TEU!

43
Summary

• Volumes remain relatively strong. Far East
  expected to consolidate status as lead player.
• Current port operations remain disastrous for all
  stakeholders.
• Grounds for guarded optimism over new initiatives
• In other words.

44
Two out of three aint bad!

45
Thank you!