19th MEETING OF THE INTERGOVERNMENTAL COMMITTEE OF EXPERTS (ICE)

Antananarivo, Madagascar 2 5 March 2015 ‐

Theme: Harnessing the Blue Economy for Eastern Africa's Development

THE SCOPE FOR REGIONAL COOPERATION ON PORT DEVELOPMENT MARITIME

TRANSPORTATION AND TRADE FACILITATION

Franklin Mziray PMAESA Secretary General

CONTENTS

• PMAESA• Port Development • Maritime Transportation• Trade Facilitation

PMAESA Background• The Port Management Association of Eastern and Southern Africa

(PMAESA), established in 1973 under the auspices of United Nations Economic Commission for Africa (UNECA) is a regional association of the port industry in the Eastern and Southern Africa region.

• PMAESA’s has ambitions to be a centre of excellence as an information exchange on port management practices that improves port utilisation resulting in improved port performance, which in turn will enhance trade facilitation, lower transport costs and expand trade flows.

• PMAESA’s organs include its Council, a Board, five Committees (Finance, Legal, Operations, Communication and Maritime Environment and Safety) and the Secretariat, which is located in Mombasa, Kenya.

PMAESA SPHERE• PMAESA members are ports authorities, transport ministries, or generally, stakeholders of

the ports and maritime sector in Eastern and Southern Africa• The Association has grown over the years to cover the whole sub-region; included the

islands of the Indian Ocean and some landlocked countries• It has a global outreach strategy, in which members are represented in relevant

regional/sub-regional and international organizations• A Secretariat has been set up in Mombasa KENYA, to coordinate the Association‘s activities• Navigational safety and environmental protection, facilitation of transit transport port

operations, in particular statistics and public –private sector partnership, communication, cruises and regional cooperation, specially with establishment of the Pan-African Association of port co-operation (PAPC) are the main areas of activity of PMAESA

• PMAESA organizes international port conferences annually, where key experts participate, share experience and network

• It facilitates access of information on market analysis, corridor reports, and performances in the region

What does PMAESA do?

• Knowledge Centre• Promote sub regional integration • improve the conditions and efficiency of ports

operations in Eastern and Southern Africa • To cooperate • International

– development partners,– regional/sub-regional, – international organizations and transport Facilitate

implementation of IMO Conventions and programs

Regional Context• The Pan-African Association for Port Co-operation (PAPC) :

– is the Port industry Association for the Continent, established by the three sub-regional Port Management Associations of Africa

• Objectives:– Provide a forum for cooperation among its members on matters concerning port

development in Africa– Ensure adequate representation of the interests & promote the image of African

Ports in the World– Assist in development of African Ports and improved efficiency and productivity, in

particular through training, organization of the African port symposium, seminars and workshops

– Develop integrated information system and network among the sub-regional port management associations

– Collaborate with all International Organizations, Governments and Institutions and other similar port groupings that can contribute to the achievement of its objectives.

•Angola•Burundi•Djibouti•Ethiopia•Eritrea•Kenya•Madagascar•Malawi•Mauritius

•Mozambique•Namibia•Rwanda•Seychelles•South Africa•Sudan•Tanzania•Zambia•Zimbabwe

Members

The Business Plan

• PMAESA’s understanding of the challenges posed by rapid change in the port sector

• PMAESA’s response to the challenges posed by rapid change in the port sector

Challenges Facing PMAESA Ports

The ports of the PMAESA region with the highest cargo throughput flows for 2013 are as follows (in Million Metric Tonnes):

1. Durban, South Africa: 44.82. Mombasa, Kenya: 22.33. Maputo, Mozambique: 17.2 4. Djibouti, Djibouti: 7.1 5. Dar es Salaam, Tanzania: 8.5 6. Walvis Bay, Namibia: 6.1 7. Port Louis, Mauritius: 6.8

Source: PMAESA

Growth vs CapacityThe figure opposite highlights the anticipated port constraints at 2020, 2030 and 2040. The key findings include the following:

1. 2020: Very Large Throughput Ports (>100 MTPA) with a capacity constraint is Mombasa in Kenya.

2. 2020: Large Throughput Ports (50-100 MTPA) with a capacity constraint is Maputo in Mozambique.

3. 2020: Medium Throughput Ports (10-50 MTPA) with a capacity constraint is Beira in Mozambique.

4. 2030: Very Large Throughput Ports (>100 MTPA) with capacity constraints are Djibouti and Dar es Salaam in Tanzania.

5. 2030: Large Throughput Ports (50-100 MTPA) with capacity constraints is Durban in South Africa.

6. 2030: Medium Throughput Ports (10-50 MTPA) with capacity constraints are Nacala in Mozambique and Walvis Bay in Namibia.

7. 2030: Smaller Throughput Ports (>10 MTPA) with a capacity constraint is Luanda in Angola.

8. 2040: Smaller Throughput Ports (>10 MTPA) with a capacity constraint is Lamu in Kenya.

Source: PIDA (2012)

Expansion in the Region

Some Assumptions• Port container traffic demand is expected to quadruple by 2020 and has

already triggered the need for more than US$9.5 billion in terminal developments.

• The rapid growth in traffic is already putting pressure on the ports system. • Shipping lines have serious concerns about the condition, capability and

future reliability of ports, road and rail services and infrastructure. • What are the infrastructure expansion priorities and how can African ports

attract private sector funding?• Strong competition exists among global supply chains to attract customers,

and transportation is increasingly important in buying decisions. • How can African ports improve their competitive position to retain existing

business and attract new business?

Ports Cooperation

Port Cooperation Perspectives• Cooperation is not a new concept The aims of strategic port cooperation

are threefold: 1. to better use assets in terms of efficiency, scale and scope 2. to improve competencies and 3. to gain positional advantage that may potentially pre-empt the competition

• Cooperation between ports and especially between those close to each other is most welcome, as it can lead, inter alia, to increased competitiveness, specialization in cargo or ship types, and organization and pooling of hinterland transport facilities.

• It would certainly lead in many cases to an improvement in output• cooperative port development projects popular and even led to more

permanent forms of association between ports

Soft Cooperation• The PMAESA Platform• RECs• Intra Africa Trade • Globalization and Regional Integration • Trade Corridor by Africa Countries• Port-Port bilaterals• Partnership between developed and developing

ports • Politically

MARITIME TRANSPORTATION AND TRADE FACILITATION

Trade Facilitation Role of Trade Corridors

• The Region has established corridors as a means of creating product specific routes that enhance focus on increasing efficiencies of doing their port business.

– Northern Corridor Corridor – Central Corridor– Trans-Kalahari (Namibia) etc…

• Important that the land locked countries are given access to transport their goods through any port through these corridors

• Transit Cargo that passes through these corridors going to especially the landlocked countries need to be catered for when these corridor approaches is developed

Mombasa

Dar es Salaam

Nacala

Beira

Maputo

0 500 1000km

Road Transport Corridors of East and Southern Africa

Walvis Bay

Lobito

Luanda

Saldanha

Cape Town

Durban

Maputo

Beira

Johannesburg

Kampala

Bujumbura

Kigali

Kolwezi

Lubumbashi

Kitwe

LusakaKafue

Harare

Pretoria

Nairobi

Mombasa

Dar es Salaam

Nacala

Blantyre

Kinshasa

Mbeya

Lilongwe

Tete

Kariba

Lake Malawi

Lake Tanganyika

Lake Victoria

Windhoek

Kapiri Mposhi

Livingstone

Francistown

Maseru

Dodoma

Pretoria

1

2

3,7

4

5

6

7

7

7

3,7

7

3,7,9

8

9

10

3,7

1 Northern2 Central3 Dar es Salaam4 Nacala5 Beira6 Maputo7 North-South8 Trans Kalahari9 Trans Kaprivi10 Trans Cunene

7,9

7

6

7

7

7

2,3,7

1,2

5

7Bulawayo

Gaborone

Mbabane

East LondonCoega

Port Elizabeth

Facilitation

• Competitiveness• Shipping fleet ownership• Maritime Clusters• Capacity Building• Investment in IT

Soft Facilitation

• Facilities for regulators• Interlinking regional and intercontinental loops• Regional customs facilitation • Political Environment• Safety and Security

– Piracy• Barometer

Leveraging on PAPC• Africa has over 100 Ports, regional ports should be identified to be the leads in the

implementation of the AIMS 2050 strategy which is the nucleus of the blue Economy initiative

• PAPC should sustain and enhance interport cooperation and exchange of best practices in all facets of port management and development.

• Strategic partnerships should be built between the PAPC and sister organizations on other continents in order to build the mutual synergy for operation efficiency, trade facilitation and sustainable economic development of the African continent.

• In order to fully explore the African Blue Economy, there is need to adopt an integrated infrastructure development system consisting of other modes of transport like roads, rail, pipeline and inland waterways.

• Integrate cruise tourism in Port planning and develop cruise tourism circuits to tap the growing cruise tourism market. Co-operation Agreements or Charters could also be signed bilaterally among the stakeholders to improve operations and service delivery.

Executive support

• Governments formulate integrated national and regional maritime policies.• Develop African ports and auxiliary infrastructure, domestic shipping, maritime and

maritime related industries to enhance intra-African and international trade. • Encourage coastal states to develop national maritime business plans as well as national

and regional maritime security strategies. • Promote maritime studies and technology in African colleges and universities. • Establish research, training and information centres. • Facilitate maritime transport by removing trade barriers and reviewing national maritime

and criminal legislation and its implementation.• Promote African vessel ownership and participation in seaborne trade. • Establish maritime training institutions for seafarers to mitigate the current worldwide

shortage (50,000 per year) and create jobs for the youth.• Attract investment in the African maritime transport/infrastructure sector.• Integrate inland waterways (including navigable rivers) in the national transportation plans. • Promote maritime tourism, fisheries and the aquaculture industry.• Offshore exploration and exploitation within the Exclusive Economic Zone.

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• Cooperation between port is vital• Port Infrastructure investment is an obligation not an option • Need for Africa to develop sufficient transport infrastructure and

improve efficiency in port operations, pool resources to effectively exploit the enormous, unexploited maritime resources in the region, and adopt the corridor-wide model of logistics supply chain développent, using examples such as the LAPSSET Transport Corridor in Kenya as cases in point.

• Need for Africa to prioritize réduction of Non Tariff Barries and other challenges affecting efficience and cargo clearance processes.

• Both Managerial and Political drive is significant in port development

Summing up

Going forward

The Theme: Port Strategies for Harnessing the African Blue Economy and

Investments Options