Jerome Ntibarekerwa,

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PAN-AFRICAN PORT COOPERATION CONFERENCE
DJIBOUTI 15th - 18th Dec 2008 PMAESA PORTS
CHALLENGES OPPORTUNITIES
Jerome Ntibarekerwa, Secretary General, PMAESA
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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

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PMAESA Member States
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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

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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

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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

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Global container port capacity has reached
critical levels
North Europe 80.5 / 73.2
Eastern Europe 92 / 73
North America 92 / 86
South Europe 82 / 78
Far East 109 / 105
Middle East 98 / 89
Central America Carribean 82 / 73
South East Asia 108 / 91
Subcontinent 87 / 57
Africa 79 / 71
South America 111 / 102
Oceania 105 / 93
Global Total 99 / 89
Source World Bank , SSATP
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Port congestion regions
Courtesy of Michel Donner, World Bank
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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

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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

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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

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Challenges with Kenya Ports Authority KPA

• 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.

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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

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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).

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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.

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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

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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

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Challenges in South Africa (TRANSNET NPA)

• Responding to the opportunities presented by
• 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
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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.

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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

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Cargo handling performance (DWT 000)
  Port Authority 2002 2003 2004 2005 2006 AVG.GROWTH 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
MAURITIUS MPA 5,552 5,543 5,816 5,602 5,686 0.6
REUNION PORT REUNION 3,195 3,435 3,891 3,765 3,947 5.6
SOUTH AFRICA NPA 189,155 171,621 168,751 173,555 179,984 -1.1
SUDAN SPC 4,388 5,048 5,575 7,858 22.1
TANZANIA TPA 4,724 5,481 5,416 6,864 7,291 7.9
Note Figures shown are in calendar year Source
PMAESA
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Cargo handling

• Ports in South Africa handle more cargo than
  other in the region
• They are followed by Mombasa, DSM, Mauritius and
  Djibouti.

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Container handling (TEUs)
Country Port 2002/03 2003/04 2004/05 2005/06 2006/07 AVG.GROWTH 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
South Africa Richards Bay 4,694 5,542 4,981 3,332 -8.4
South Africa Durban 1,313,290 1,603,924 1,690,885 1,955,803 2,334,999 15.7
South Africa East London 43,579 58,637 42,545 41,836 1.8
South Africa Port Elizabeth 278,145 282,865 340,144 370,849 407,278 10.2
South Africa Cape Town 476394 512,529 609,572 736,943 764,753 12.8
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Container Handling

• Durban and Cape Town are the biggest container
  handling ports
• Mombasa is the 3rd while
• DSM is the sixth position

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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

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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
South Africa       Durban 331,736 299,806 358,841 334,071 324,649
South Africa       East London 1,280 2,298 3,246 0 69
South Africa       Port Elizabeth 11,444 26,898 53,108 25,715 37,362
South Africa       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
Source PMAESA Note Figures shown are in
calendar year
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Container handling Performance
Avg/hour Handling System management
DSM 20 Container Gantries concessioned
Djibouti 17 Container Gantries concessioned
Mombasa 10 Container Gantries Not concessioned
Port Sudan 8 Container Gantries Not Concessionned
Port Louis 14 Container Gantries concessioned
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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

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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

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Thank you for your attention
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Do You Have Any Questions?
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