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The Ports Development in the Southern and Eastern Africa Region Col The Ports Development in the Southern and Eastern Africa Region Col. Andre Ciseau, PMAESA Secretary General African Ports & Rail Evolution 15 – 16 October 2019, Durban PMAESA Introduction • Established in 1973 under the auspices of the United Nations Economic Commission for Africa (ECA), • A non-profit, inter-governmental organization made up of Port Operators, Government Line Ministries, Logistics and Maritime Service Providers and other port and shipping stakeholders from the Eastern, Western and Southern African and Indian Ocean regions, • Has 25 countries under its jurisdiction • Governed by a Council and the Board of Directors (6 – representing Coastal Countries, Island Countries and Land-Linked Countries) – currently chaired in Namibia 2 Objectives • Enable relationships among member ports with a view to promoting regional cooperation and subsequently regional integration. • Framework for exchange of information and ideas among members and to enable members to interface with one another from the port, transport and trade spaces to exchange benchmarks and best- practices. • Working towards improving conditions of operation and management of ports (coastal and inland) in its region of coverage with a view to increase their efficiencies. 3 Pan-African Association for Port Cooperation (PAPC) UAPNA Members = 8 PMAESA Members = 25 Algeria Morocco Angola Namibia Egypt Sudan Botswana Rwanda Libya Tunisia Burundi Seychelles Mauritania Western Sahara Djibouti Somalia Eritrea South Africa Ethiopia South Sudan PMAWCA Members = 18 Kenya Sudan Lesotho Swaziland Angola Guinea Bissau Madagascar Tanzania Benin Ivory Coast Malawi Uganda Cameroon Liberia Mauritius Zambia Cape Verde Mauritania Mozambique Zanzibar Congo Nigeria Zimbabwe Equatorial Guinea Sao Tome & Principe Gabon Senegal Legend: Gambia Sierra Leone Ghana Togo PMAESA Region Guinea (Conakry) PMAWCA Region UAPNA Region Darkened shaded areas imply membership to 2 associations 4 Membership Port Authorities Railway Operators • Port de Djibouti S.A. • Eswatini Railways • Kenya Ports Authority • Sea Ports Corporation (Sudan) Line Ministries (Landlinked & coastal) • Transnet National Ports Authority (South Africa) • Ministry of Transport & Public Works - • Namibian Ports Authority Republic of Uganda • Tanzania Ports Authority • Ministry of Transport & Communications - • Port of Lobito Authority (Angola) Republic of Zambia • Société du Port à gestion Autonome de • Ministry of Transport - Federal Republic of Toamasina (Madagascar) Ethiopia • Mauritius Ports Authority • Ministry of Transport - Republic of Malawi • Zanzibar Ports & Harbors Corporation • Ministry of Transport - The State of Eritrea • Seychelles Ports Authority 5 Membership – cont’d Marine Transport Sector Service Providers (Private Sector & Gov’t affiliated) • Sanmar Shipyards (Turkey) Terminal Operators • Marine Crew Services (South Africa) • Maputo Port Development Company • Zambia Cargo & Logistics Limited - Tanzania • DSM Corridor Group (Tanzania) • Abu Dhabi Marine Services (SAFEEN) • Bid Freight Port Operations (South Africa) • Transnet Port Terminals (South Africa) Maritime Regulators • TASAC - Tanzania 6 Areas of Focus 1. Standardisation, collation and harnessing of information 2. Provide competence and expertise to members 3. Collaborative relationships 4. Promote development of women in the Maritime Sector 5. Promotion of the fishery and Aquaculture industry 6. Influence policy framework 7. Promotion of the integrated maritme tourism – cruise and yachting 8. Maritime safety and security 9. Alignment of initiatives to drive the achievement of • AU AIMS 2050 • UNECA SRCM business plan • UN Almaty Programme of Action (Addressing special needs of landlocked developing countries) 9 Current situation in brief • Majority of ESA Economies being import reliant, ports are looked upon not as trade enablers but for movement of goods and services with a bias towards bringing in imports or finished products. • Incoherent infrastructure investment programs which look at sections of the value chain instead of holistic approaches. • Vessels are getting bigger and bigger. Land for ports is prime and it is getting congested due to proximity to urban areas. • Can countries in the sub-region cope? ESA Ports – Specific Roles in the Region • Port characteristics in region vary Port Char. sharply – capacity, port area, Maputo Berth length: 308m connectivity and equipment. Container yard: 150,000 sqm • Reflects the role of each port and its Durban Berth length: 2.5km connectivity > 1 million sqm. • Lack of global hubs in ESA region Dar Es Salaam Between 200,000 and • Regional ports, small or large, have 250,000 sqm specific focus on port’s direct Beira “” hinterland, which determines the size Djibouti “” of the port. Mombasa “” Overview of selected main ports Djibouti Mombasa Dar Es Salaam Port Louis Maputo Durban • Vast hinterland • Hinterland • Large hinterland • Transshipment • Regional port • Gateway port & transit traffic – comprising land- (Burundi, hub for E. • Largest port in transshipment Ethiopia – 85% linked states Rwanda, Malawi, African region. Mozambique hub. of total (Uganda, Zambia & DRC) • 50% of container • Transit cargo for • Largest throughput Burundi, • transit volumes volumes being S. Africa, container port in • Regional Rwanda, S. represent 35 % transshipment Botswana and SSA transshipment Sudan), East DRC of total cargo (2016) Zimbabwe. • Strategically hub for other & N. Tz. throughput • Landlord port • Vol. doubled in 5 positioned along ESA ports • Feeder port and • Regional port authority – years (8 mil. Tons global shipping • Multimodal vital regional • Port authority is government in 2009 to 19 route linkages port gov’t owned owned mil. Tons in • TNPA and TPT • Port authority • Government • Container 2014) are gov’t owned. (PDSA) is a owned terminal under • Managed by private company • Multimodal PPP MPDC – locally with gov’t and linkage registered joint Chinese stake venture Ongoing and planned developments Djibouti Mombasa Dar Es Salaam Port Louis Maputo Durban • Djibouti LNG • Development of • Dar Maritime • Increase box • Expansion of • Expansion of Project in Kipevu CT for Gateway Project handling bulk terminal DCT Pier 1 Damerjong – additional berth • Dredging of capacity to 1 mil • Expand capacity • Extension and liquefaction increasing channel and TEU by 2025 of coal terminal deepening of plant & pipeline capacity to 1.5 widening turning • 60 Ha box to 20 mil. tons berths at Pier 2 to export gas mil. TEU. By basin terminal on per year to allow 3 super from Ethiopia 2023 • Development of reclaimed land • Build new roads post-panama multipurpose • Dredging of rail and berths vessel of • Djibouti Int’l • Upgrade of berth – Gerezani entrance • Dredging of capacity 14000 Container Kipevu Oil • Expansion of channel channel teu Terminal with Terminal to berths • Construction of • Targets annual • Expansion of capacity of 3 mil. handle 200,000 • Increase cargo new cruise throughput of 40 landside area TEU dwt vessels. handling terminal mil. Tons by will see capacity to 25 2020 additional 1.4 mil. Tons. • Box terminal mil. Teu capacity • Relocation of oil expansion to jetty handle 600,000 teu Challenges facing ports in ESA Region • External: move to larger vessels in the pursuit of economics of scale and the cascading of vessels down routes and ports • Internal: need to improve spatial and operational efficiency, and introduce modern information technology systems, attracting specialist terminal operators, improving functional integration along the logistics chain, and improving landside access and the port-city interface. • strategic ambitions of a port will be inhibited if both sets of issues raised above are not considered. Predicted demand growth • Africa’s overall population expected to quintuple between 2000 and 2100. • This translates to a 2000–2100 compound annual growth rate (CAGR) of 1.7 percent, significantly higher (compared with −0.1 percent for Europe to +0.5 percent for North America. ) – World Bank • Between 2006 and 2016, ESA’s gross domestic product (GDP) increased with a CAGR of 3.0 percent. • Economies of ESA countries are expected to maintain a robust growth rate of about 3 percent per year over the 2020–50 period (IMF Projections) • Ergo the demand for ports & logistics services is expected to grow steeply. • Total volumes in ESA ports predicted to increase with CAGR of 3.76 percent, to 640 million tons in 2050. • Containers (with 40% or total regional volume) forecast to be largest cargo type handled by ESA ports in 2050. Prospect for ESA Ports • Predicted growth is clear. • Urgent need for additional port capacity on the ESA coast, and detailed planning and project preparation to expand port capacity in many of the ports needs to begin now. • However required capital investment is substantial and there is always a risk that capacity increment comes on stream during a downturn in demand. • Delivery of necessary capacity increments looks delayed. • Enhancing maritime capacity alone is insufficient, improvement is needed in a range of areas in nearly all the ports. Conclusion • Urgent need to increase maritime capacity in all the East and Southern Africa ports • Both external and internal issues have to be considered. • growth trends envisioned across all commodity groups • overall container demand in the 15 ESA ports will start to exceed current total capacity by 2025 • capacity enhancement is needed especially for dry bulk and liquid bulk handling • For general cargo, capacity gaps are not expected soon.
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