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Study on Economic Partnership Projects in Developing Countries In Study on Economic Partnership Projects in Developing Countries in FY2008 Study on Namibe Port Development, in the Republic of Angola SUMMARY March 2009 Japan Port Consultants, Ltd. Toyota Tsusho Coporation Chapter 1 Overview of Host Country and Sector (1) Socio-Economic condition of Angola Angola has an area of 1.25 million km2 on the Atlantic coast of Africa with a western coastline of 1,600 km. The population is estimated as approximately 16 million, of which 34% is estimated to live in urban areas. The Republic of Angola is the third largest nation in sub-Saharan Africa, after the Democratic Republic of Congo and Sudan. The Angolan population is young and growing rapidly. The population growth rate is 2.9% per annum. Since the end of the civil war in 2002, Angola has made progress in stabilizing the macro-economy and reconstructing social infrastructure. However, economic growth remains largely dependent on the production of oil and diamonds, and relatively little progress has yet been made in the rebuilding of industrial activities including agriculture. As for industry, the country was known as an agricultural producer, not an oil exporter until 1975. Today, the economy is heavily dependent on oil production. Since 1973, the structure of the economy has changed substantially as the mining sectors increased their share of GDP. Within the Angolan economy, 92% of total exports and close to 80% of total government revenues depend on oil. The outlook for growth in Angola's overall GDP is optimistic. Based on the estimates of the IMF, real combined growth of all sectors is 27% in recent years. Macroeconomic stabilization is ongoing, with the Government continuing to follow the "hard Kwanza" policy, and inflation fell to as low as 12.2% in 2006. What remains, however, is to reconcile this stabilization with the structural and sectoral development of the non-oil micro-economy. Per capita GDP in 2007 was estimated at roughly US$3,767, well above the sub-Saharan average. But poverty is still strongly entrenched. Income distribution is extremely biased. It is estimated that more than two thirds of Angola's population live below the official poverty line of US$1.07 per day, and 28% are in extreme poverty (US$0.70 per day). (2) Port Sector and Maritime Transportation in Angola Container cargo in Africa has been growing rapidly in recent years. This trend is conspicuous in the trade between Europe as European cargo accounts for approximately 50% of the total. Import container cargo supersedes export containers by twice as many in the trade with Europe. Likewise, this trend is considered the same in the trade of Angola. Even with the effort to promote the manufacturing industry, export cargo will take time to develop after fulfilling the supply of commodities to substitute imports. Therefore this trend is assumed to continue for some time in the future. Figure 1-1 Container Traffic of Africa in Recent Years （,000TEU） There are four major commercial ports in Angola: Luanda, Lobito, Namibe, and Cabinda. Containers are handled in the first three ports. The throughput is dominated by the Luanda Port, where nearly 90 percent of containers are handled. Table 1-1 Container throughput record in Angolan Ports (container box) 2002 2003 2004 2005 2006 2007 Luanda 191,750 207,096 222,442 237,788 253,134 268,480 Lobito 30,924 23,909 28,950 25,954 24,967 23,980 Namibe 3,784 4,273 6,158 8,096 10,966 13,192 Total 226,458 235,278 257,550 271,838 289,067 305,652 The problem with the ports in Angola is that Luanda port is so congested that cargo cannot move from quayside to the yard unless yard gets free from storage cargo. The average berth waiting time is about 25 days and the average berthing time is almost 8 days. The congestion in Luanda port is very serious compared to other ports in Asia and West Africa. Quayside container handling is less than 10 boxes per hour. This situation is derived from the lack of warehouses in the city. The expensive and unreliable land registration and ownership caused the lack of proper infrastructure which in turn caused stagnation of cargo. Port of Namibe does no yet handle a large volume of cargo. Therefore waiting time is not long as port of Luanda, but the handling time is very long because of the lack of proper cargo handling gear. The port is now undergoing a rehabilitation program with the assistance of JICA and capacity is expected to be increased in the near future. (3) Conditions of Project Area Total length of roads in Namibe Province is 2,182 km. Among them, there are 5 primary roads which total 529 km in length and are asphalt-paved. There are also secondary and tertiary roads. They are non-asphalt-paved roads, but low-cost pavement or earth roads. The hinterland of Port of Namibe is considered to be 4 provinces along the Mocamedes Railway. Those are Namibe, Huila, Cunene and Cuando Cubango. The total area is about 420,000 ㎢, 32.8% of the country’s total. The population of the hinterland is about 2.4 million people in 2005, 15.5% of the whole country. The increase ratio, 14.9%, is a little smaller than the country average. The biggest province is Huila which has a population of more than 1.2 million. Namibe province has the smallest population with 0.3 million people. Table 1-2 Land and Population of the Hinterland of Namibe Port Population (1,000 people) Province Area (㎢) Growth rate 1995 2000 2005 (2005/2000) Total of country 1278305 11,350.5 13,139.0 15,252.0 1.161 Total of 4 Provinces) 419530 1,780.4 2,062.1 2,368.7 1.149 Population share of 4 Provinces 32.8% 15.7% 15.7% 15.5% The hinterland has yet to become an active business area. But fishery business is conducted vigorously in Namibe. Fish production of Namibe province was 16,000 tons in 2007. Agriculture business has been extended most in Huila. The vast area in Huila is cultivated for horticulture, fruits and vegetables, cereals, root crops and stockbreeding. In Namibe and Cunene, there are not so many cultivated lands, but a few smaller ones. There are a lot of manufacturing firms in Huila province. The number of manufacturing firms is the third biggest in the country, following Luanda and Benguela. The general cargo wharfs are always occupied by 2-3 vessels. Around 20 vessels enter the port a month. Container ships, conventional ones and oil/gas tankers each account for approximately one third of vessel calls, respectively. Two thirds of vessels call at Port of Namibe while one third use Sacomar Port. There are feeder services to and from Walvis Bay and also shuttle services to Lobito by container ships. Long-distance container ships are from Singapore and Lisbon. Most container ships and conventional ones leave for West African Ports, but some ships head to Portugal, Brazil and Singapore. As to oil and gas tankers, most tankers move in the country. Chapter 2 Study Method (1) Contents of Study Contents of this study consist of the following two parts. 1. Study on New Container Terminal Development Based on the results of the demand forecast of container cargo, shipping trend survey, natural conditions study and environmental study, feasibility of the New Container Terminal Development Project is evaluated from technical, economical, potential and environmental aspects. 2. Study on Rehabilitation Plan of Sacomar Port After conducting visual site inspection on the deterioration condition of the existing iron ore handling facilities, appropriate Rehabilitation Plan of Sacomar port which compares both restoration and new construction/procurement options is proposed. (2) Study Method and Organization 1. Study Method Study method is shown in the flow chart bellow. Figure 2-1 Study Flow 2. Organization The study team was formed by Japan Port Consultants, Ltd. which is a firm specialized in planning, design and construction supervision of national and international port projects and Toyota Tsusho Corporation which has a business base in Angola and is familiar with the state of national infrastructure developments. The study was carried out by a team leader and 12 specialists in individual fields. (3) Study Schedule This study was carried out from 29 August 2008 to 30 January 2009 (5 months) including 3 site studies in Angola. 1st Site Study (18 September 2008 to 11 October 2008) : Luanda, Lobito, Namibe - Presentation of study scope, discussion - Collection of site data 2nd Site Study (21 November 2008 to 6 December 2008) : Luanda, Namibe - Presentation of progress and tentative results of study, discussion - Collection of additional site data 3rd Site Study (16 January 2009 to 26 January 2009) : Luanda, Namibe - Presentation of final results of study, discussion Chapter 3 Contents and its Technological Feasibility (1) Background of Project There are 20 ports in Angola. Six of them are public ports. Among them, main ports for container cargo handling are the Ports of Luanda, Lobito and Namibe. Those outlines are shown below. Table 3-1 Outlines of 3 major container ports in Angola Handling Container Max. Berth Open Port (1,000TEU) Pier Length (m) Location Depth (m) Year (2007) 1950 A natural harbor situated in Luanda Bay, Luanda 400.0 (not including -10.5 1576 protected to seaward by Luanda island. offshore terminals) 1122 A natural harbor situated in Lobito Bay Lobito 36* (not including a -10.6 1903 formed by a sand spit 4.8km in length. tanker terminal) 680 Situated on the south coast in Namibe Namibe 20* (not including a jetty -10.5 1958 Bay of Sacomar Port) Note: * of handling container means the number estimated as 1.5 x number of handling boxes of containers.
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