PRESENTATION AT AFRICAN PORTS

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PRESENTATION AT AFRICAN PORTS
MARITIME CONFERENCESWAKOPMUND HOTEL AND
ENTERTAINMENT CENTRESWAKOPMUND, NAMIBIA
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CASE STUDY EASTERN AND SOUTHERN AFRICAN
CHALLENGES IN PORTS DEVELOPMENT BY NII
NIKOI AMASA (PORT MONITORING MANAGER, GHANA
PORTS HARBOURS AUTHORITY)
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MAJOR INVESTMENT AND INFRASTRUCTURE PLAN AND PORT
CAPACITY THE CASE OF A GHANAIAN PORT OF
TAKORADI

• The relationship between ship size and provision
  of appropriate port infrastructure can be likened
  to the proverbial chicken and egg debate, Which
  comes first? Port Infrastructure or Larger
  vessels with enhanced characteristics?
• This presentation will not attempt to take any
  side of the debate rather will highlight the
  evolution of container ship, from the 1st
  Generation to the 5th Generation, the
  infrastructure and super structure requirements,
  as well as the cost of providing them.

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MAJOR INVESTMENT AND INFRASTRUCTURE PLAN AND PORT
CAPACITY THE CASE OF A GHANAIAN PORT OF
TAKORADI

• With a LOA of 135m, a draft requirement of lt9m,
  and between 500TEUs to 800TEUs on board vessels
  for the period 1956-1970, what became to be
  known as 1st Generation container ships were
  born.
• The length, draft and carrying capacity of
  container vessels evolved through Second
  Generation, Third Generation, and Four Generation
  to Fifth Generation in the periods shown in the
  diagram in the previous slide.
• As can be seen in the next slide, each
  generation of vessel came with its requirements,
  in terms of berth length, draft and total
  boxes(TEUS) carried on board.

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MAJOR INVESTMENT AND INFRASTRUCTURE PLAN AND PORT
CAPACITY THE CASE OF A GHANAIAN PORT OF
TAKORADI

• Each generational requirement had its attendant
  costs, not only in terms of superstructure, but
  also cargo handling equipment like Ship To Shore
  (STS) Gantry cranes, Shore Gantries and other
  Equipment, Large tracts of land for equipment and
  container movement and storage.
• With containerization came the deployment of
  appropriate IT software such as Navis to
  ensure the quick and efficient movement of
  containers from vessel to shore and vice versa.

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MAJOR INVESTMENT AND INFRASTRUCTURE PLAN AND PORT
CAPACITY THE CASE OF A GHANAIAN PORT OF
TAKORADI

• Considering the size of investments needed for
  port infrastructure and the worldwide trend for
  Public Private Partnership, (PPP) it is
  suggested that this(PPP) is the way for ports to
  go to meet the major investment, infrastructure
  plan and port capacity challenges.
• The issue of port productivity is directly
  related with those of infrastructure and
  investment.

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Public Private Partnership Opportunities in
Ghanas Port Development AgendaGhana Ports and
Harbours AuthorityDevelopment of the Port of
Takoradi
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Development of the Port of Takoradi

• The port development agenda for the Port of
  Takoradi would cover major port infrastructure
  and superstructure development/expansion aimed at
  eliminating the inherent inefficiencies currently
  being experienced, such as draft limitations,
  double handling of bulk cargoes, narrow quay
  aprons, etc. and also to meet the emerging oil
  and gas cluster.
• The Project will include the extension of the
  main breakwater, new quay walls, construction of
  a jetty and platform for conveyor systems (dry
  bulk) and pipe corridors for petroleum products,
  oil berthing facility and substantial dredging
  and reclamation.
• In later phases, the main container terminals
  and more oil services bases would be developed
  after the current ore terminals operations are
  re-located to the newly developed terminals.

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Development of the Port of Takoradi

• Technically, any part of the total development
  package can be pursued under PPP within the
  project portfolio. It would however be desirous
  that for the reasons enumerated below, a
  distinction be made between the type of funding
  for basic port infrastructure as distinct from
  that for superstructure projects. Funding of
  basic port infrastructure may not be attractive
  to the private investors because of the
  following
•  
• They have long gestation periods of between 50-80
  years, or more, depending on the structure.
• They provide general services rather than
  specific services to vessels and cargo.
• The rates chargeable for uses of these facilities
  are generally low as they greatly influence
  overall port costs.
• The internal rate of returns (IRRs) of these
  projects as stand-alone are generally
  unattractive. 

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Development of the Port of Takoradi

• Ideally, it would be feasible for these
  infrastructures to be developed using
  concessionary funding as this has a number of
  advantages that go beyond the mere provision of
  the physical facilities but into matters of port
  organization and management.
• For example, by using concessionary loans the
  port can have leverage on its pricing of related
  services and facilities used by vessels and
  cargo.
• In addition, by the Port Authority undertaking
  this funding it can improve contestability where
  private sector operators are invited to develop,
  manage/operate the superstructure i.e., terminals
  and other cargo handling facilities and services.
  

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Development of the Port of Takoradi

• The following are listed as PPP opportunities for
  further development and implementation
•  
• Breakwater Construction and Dredging of Port
  Entrance Channel and Berths alongside,
• Bulk ore terminals superstructures and
  operations,
• Oil and Gas Berth (depending on GNPC / Petroleum
  Authority plans for this sector of port
  development),
• Oil services terminals development and
  operations,
• Utilities services developments and operations
  to deliver utilities for operations e.g. fresh
  water, secured and sustained electricity, waste
  management, etc.,
• Container Terminal,
• Transit Cargo Sheds import and export,
• Cocoa Sheds,
• Truck Parks with Vehicle Appointment Schemes,
• Ancillary supplies and services,

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Expansion Works

• Marine Works Phase 1
• Dredging access Channels to the new mineral ore
  jetty to 14m
• Construct new Ore jetty Equip
• Transfer operation of manganese, bauxite, clinker
  and limestone to new jetty.
• Develop Existing Manganese Terminal into Oil
  Services Terminal.

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Expansion Works

• Marine Works Phase 11
• Dredge Access channels to, at least, 16m Berths
• Development New Oil Services Terminal Container
  Handling terminal.
• Develop major port entry and exit routes

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Development of the Port of Takoradi

• As presented in the tables in the subsequent
  slides, these selected opportunities would
  require detailed studies within their respective
  multi-stakeholder settings to develop viable PPP
  schemes within the Port of Takoradi.

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SOME COST INDICATIONS FOR SUPERSTRUCTURE
DEVELOPMENT
Item Project Title Description Remarks
1 Breakwater Extension, Dredging and basic port infrastructure This is to provide a safe harbour basin and access / entry channel into the harbor for larger vessels at -16m, at least. This is usually not an attractive commercial venture and may not attract PPP interests. The Port Authority / Government need to undertake these developments with public funding / concessionary loans, where applicable. Breakwater (1200m) estimated at US100m Dredging gtUS65m, up to -14mCD and up to US85m to -16mCD
2 Bulk Ore and Oil Terminals This is to provide a new and modern bulk or handling facility for manganese, bauxite, clinker with provision for possible developments in iron ore and limestone. There is also the design for an oil and gas jetty / berthing dolphins adjacent to the ore terminals. The structures of the terminals would be designed for specific conveyor and piping systems for the products. The provision of the berthing structure (quay walls, berthing furniture, etc.) may be relatively more attractive than the breakwater and other basic port infrastructure. However, the essence of relocating the present bulk ore handling activities to a new, modern facility would present immense growth to the specific ore mining industry with all the relevant services within each sub-cluster. This could raise the private interest in the development of such infrastructure. Further, there would be the need, particularly on the part of the ore mining and/or handling companies, to invest in the appropriate superstructures conveyor systems, pipes, storage platforms, offices and other handling equipment with economies of scale. PPPs may be explored for such superstructures and operational investment and management. Terminal Infrastructure quay walls, dolphins, berthing furniture estimated US90m Cargo handling equipment, conveyors, loading arms, piping and installations, terminal offices and operation systems, approx. US60m

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SOME COST INDICATIONS FOR SUPERSTRUCTURE
DEVELOPMENT
Item Project Title Description Remarks
3 Oil Services Terminals This is envisaged to come on stream after the bulk ore terminals have been taken out of the way to provide space for high frequency oil services vessel calls.   Such terminals would consist of heavy-duty fabrication, maintenance workshops, equipment repairs, storage platforms with access to quays and berthing structures. Other services from fresh supplies of basic daily consumables, foods, water, medical services, personnel, conservancy, communications, security, etc. would be undertaken from the oil services terminals (depending on the operational licenses / concession contracts). There are already unsolicited commercial interests for such developments. Such interests would have to be investigated and developed further into real business ventures as part of the oil and gas cluster. As long as the service vessels and crafts will continue to supply the off-shore Floating, Production, Storage and Off-loading (FPSO) Vessel and the increasing off-shore rigs / platforms.   Utilities services providers e.g. Ghana Water Company, Electricity Company of Ghana, who provide supplies to the Port Authority for onward supplies to the ports tenants. These companies may have to upgrade their systems, as major stakeholders, for the envisaged increases in utilities consumption in the Port. Construction of quay walls, pavements, reclamation, revetments, etc. estimated US180m, minimum. Workshops, offices, etc. would vary depending on the management interests of the investment. Total physical structures investment could exceed US100m.   Consulting services would be required to identify other PPP opportunities within this business sub-cluster.
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SOME COST INDICATIONS FOR SUPERSTRUCTURE
DEVELOPMENT
Item Project Title Description Remarks
4 Container/Multi-purpose Terminals This is basically to provide container handling services to containerized cargo. Long term plans make room for adequate terminal space with dedicated container berths and multi-purpose berths for general cargo. The dynamics of container terminal operations and concessions would be relevant under this venture. PPP is a primary method. Oil services could also be undertaken under this venture, depending on the practical circumstances. There is a relatively higher demand for water-front oil services terminals in the medium term. May be in excess of US200m for physical structures including berthing furniture, storage sheds, utilities, but excluding cargo handling equipment and terminal management offices / systems.
5 Transit Sheds Construction and management of cargo storage sheds, particularly for transit cargo. Reclamation space would be made available for the construction of such facilities. General cargo storage, transit cargo imports and export services support. Up to US15m per shed of about 150mX35mX15m excluding loading and management systems
6 Cocoa Sheds Construction of new cocoa sheds. There will be the need to demolish the present configuration of cocoa sheds and have new constructions which will support both containerized and loose beans cocoa handling. The cocoa exporting companies and entities would help in this venture.
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SOME COST INDICATIONS FOR SUPERSTRUCTURE
DEVELOPMENT
Item Project Title Description Remarks
7 Vehicle appointment truck parking facilities This is to regulate the flow of traffic in and out of the port area and all the respective cargo loading and off-loading sites. Such a facility may not have to be located at one place, though its management would also consider relations with the prevailing axle loading requirements, weighbridges services, Customs clearance requirements, etc. Operational licenses / concessions could be drafted to enforce compliance by all the terminals within the port. This enhances compliance to ISPS and other efficiency standards, especially for local Truckers Unions.
8 Ancillary supplies and services This will involve several other services which are triggered by the provision of port infrastructure, may not require large physical structures and can be run privately. E.g. inspection companies, container scanning, banking services, information technology and communication services, office supplies and consumables, security services, clearing and forwarding services, etc. Such units will be triggered by increased port activities within the cluster. Costs of such investments would depend largely on the business market demands and supply interests.
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THANK YOU!