PORTS PORTS ––ERA OF GLOBALIZATIONERA OF GLOBALIZATION

& the role AFRICAN PORTS & the role AFRICAN PORTS

AdmAdm [ret] [ret] ShabtayShabtay LevyLevy

Director, Port and Shipping Director, Port and Shipping Management ProgrammeManagement Programme

Galillee College, IsraelGalillee College, Israel

Transshipment Ship to Ship

= Hub = Link in the chain of multimodal transportation

Examine the logistic chain Israel land transport operate 12

hours , lack of depot. Look for the weak points at the chain

Distribution

Industrial

consolidation

Port future development Port future development [[profprof' E ' E FrenkelFrenkel]]

•• TRANSHIPEMENT IS COST TRANSHIPEMENT IS COST

EFFECTIVE, USING LARGE EFFICIENT EFFECTIVE, USING LARGE EFFICIENT

PORTS [HUB], THEN FEEDERS [BIG PORTS [HUB], THEN FEEDERS [BIG

BARGES],E ACH COTAINER MOVES 4 BARGES],E ACH COTAINER MOVES 4

TIMES.TIMES.

•• USE NEW TRANSPORT SYSTEM SUCH USE NEW TRANSPORT SYSTEM SUCH

AS J.I.TAS J.I.T --RELIABLERELIABLE

Prospects of Inland & Coastal NavigationProspects of Inland & Coastal Navigation

•• factors for IWT & CN are clear:factors for IWT & CN are clear:

•• –– low costslow costs

•• –– reliablereliable

•• –– (very) safe(very) safe

•• –– external effects / costsexternal effects / costs

•• GREEN = FriendlyGREEN = Friendly

Port future development Port future development [[profprof' E ' E FrenkelFrenkel]]

•• SINGAPORE 28.2 M TEU'S ,ADDED VALUE SINGAPORE 28.2 M TEU'S ,ADDED VALUE --FREE ZONE. FREE ZONE.

COTAINER PORT MAIN ECONOMY ENGINE COTAINER PORT MAIN ECONOMY ENGINE

•• FROM POOR COUNTRY TO A RICH 37000$ PER CAPITAFROM POOR COUNTRY TO A RICH 37000$ PER CAPITA

•• [INFORMATION = VALUE =1 B $][INFORMATION = VALUE =1 B $]

•• EFFIENCY EFFIENCY == UNEMPLOYEMENTUNEMPLOYEMENT

ON the contrary ,using TECHNOLOGYagain SINGAPORE from

30% UNEMPLOYEMENT to 0 .5 M foreigners emploees

NEW TECHNOLOGY,GANTRY NEW TECHNOLOGY,GANTRY

CRANES LIFT 4CRANES LIFT 4 COTAINERS, COTAINERS,

MOVE A WHOLE STACK, USE MOVE A WHOLE STACK, USE

NEW TRANSPORT SYSTEM NEW TRANSPORT SYSTEM

SUCH AS J.I.TSUCH AS J.I.T

Port future development Port future development [[profprof' E ' E FrenkelFrenkel]]

•• CHINE 22 PORTS [IN 15 CHINE 22 PORTS [IN 15 –– 20 YEARS IN 2025 WILL 20 YEARS IN 2025 WILL BECOMEBECOME No1 WORLD]No1 WORLD]

•• OPEN TO THE world Market]OPEN TO THE world Market]

•• MARITIME TRADE 30% OF WORLD ECONMY IN 2025 WILL BECOME MARITIME TRADE 30% OF WORLD ECONMY IN 2025 WILL BECOME 50%? WHY?GLOBALIZATION, 50%? WHY?GLOBALIZATION,

•• COTAINER from CHICAGO to GERMANY cost 6000$ transportation COTAINER from CHICAGO to GERMANY cost 6000$ transportation cost only 2000$ cost only 2000$ -- waist of time BUREAUCRACYwaist of time BUREAUCRACY

•• PORT IMPORTANT LINK IN THE CHAIN OF TRASPORTATION AND IN PORT IMPORTANT LINK IN THE CHAIN OF TRASPORTATION AND IN IS THE REGION ECONOMYIS THE REGION ECONOMY

•• FLOW OF INFORMATION TO THE LOWER LEVEL[ SINGAPORE THEY FLOW OF INFORMATION TO THE LOWER LEVEL[ SINGAPORE THEY MINIMIZE FROM 21 TO 4 LEVELS OF THE INFO, THEY SAVE TIME & MINIMIZE FROM 21 TO 4 LEVELS OF THE INFO, THEY SAVE TIME & MONEY.MONEY.

PANAMA CANAL FROM 33M-TO 54M LOcK 300 M INVESTEMENT 6.8 B$

TheThe importanceimportance ofof SeaSea GatewaysGateways

inin Africa.Africa.

Expensive Expensive port port make Exmake Exportport less less competativecompetative & Im& Importport Expensive.Expensive.

The The Maritime ports in Africa have a strategic importance for its resMaritime ports in Africa have a strategic importance for its respective Countries.pective Countries.

Most of the raw materials as Mining products, Agriculture produMost of the raw materials as Mining products, Agriculture products and Crud Oil are originated in Africacts and Crud Oil are originated in Africa

. .

Expensive Expensive port port make Exmake Exportport less less

competativecompetative & Im& Importport Expensive.Expensive.

•• and sinceand since

•• the local industries are poor and cannot fulfill the local industries are poor and cannot fulfill the local demand for food, consumption the local demand for food, consumption products, Machinery, electronics etc., those products, Machinery, electronics etc., those Countries are depended on importation of goods Countries are depended on importation of goods from overseasfrom overseas

•• . Those facts explain the strategic importance of . Those facts explain the strategic importance of the Maritime Gateways in Africa the Maritime Gateways in Africa

•• as well as the reason why so many Shipping as well as the reason why so many Shipping Lines have included the African Ports in their Lines have included the African Ports in their Networks.Networks.

African portsAfrican ports

•• For many years, African ports have been For many years, African ports have been

blight by blight by ineffiencyineffiency ,corruption and ,corruption and

congestion. But new investments congestion. But new investments

heralding a more positive outlook.heralding a more positive outlook.

win win winwin situationsituation

•• InspiteInspite of Bureaucracy, of Bureaucracy, resistaneceresistanece to privatization great deal of to privatization great deal of financial interest financial interest

•• APMT [Danish] WON OPERATING CONCESSION at APMT [Danish] WON OPERATING CONCESSION at ApapaApapa & & OnneOnne [NIGERIA] [NIGERIA] Douala [CAMEROON]Douala [CAMEROON] Luanda [ANGOLA] Luanda [ANGOLA] & 40 %Abidjan & 40 %Abidjan VirdiVirdi container container terminal terminal

•• BolloreBollore has has stongholdstonghold in terminal Operation, stevedoring,& Logisticin terminal Operation, stevedoring,& Logistic

•• LAGOS COMPLEXLAGOS COMPLEX

•• GrimaldiGrimaldi [Italian] build by BOT RORO Terminal[Italian] build by BOT RORO Terminal

•• Bollore[FrenchBollore[French] & ] & ZimZim [Israel] [Israel] WON OPERATING CONCESSION in TinWON OPERATING CONCESSION in Tin--Can Can Island Island container terminal container terminal

•• Efficiency & productivity improvedEfficiency & productivity improved

•• Combining global experience with local expertise,Combining global experience with local expertise,

•• AQABA Jordan [AMPT] from 29 days waiting time per ship they wentAQABA Jordan [AMPT] from 29 days waiting time per ship they wentdown to 18 down to 18 houreshoures

CurrentCurrent SituationSituation inin thethe VariousVarious

Ports.Ports.

•• The African Ports are located along the coast. The infrastructuThe African Ports are located along the coast. The infrastructure is not well re is not well maintained, the Hinterland infrastructure (Roads, Railways and Wmaintained, the Hinterland infrastructure (Roads, Railways and Water ater Ways) are not well developed, and the Bureaucracy plays an imporWays) are not well developed, and the Bureaucracy plays an important role tant role in such a way that in some ports it became an obstacle for all pin such a way that in some ports it became an obstacle for all port users ort users (Shipping Lines & Customers)(Shipping Lines & Customers)

•• . .

•• Most of the ports are operated by the Governmental Ports AuthoriMost of the ports are operated by the Governmental Ports Authorities and ties and the efficiency and productivity is in a very low rate. There isthe efficiency and productivity is in a very low rate. There is a lack of a lack of suitable professional Port equipment as well as lack of knowledgsuitable professional Port equipment as well as lack of knowledge ande and

•• unfortunately, in some of the Countries it is accompanied with Cunfortunately, in some of the Countries it is accompanied with Corruption. orruption. The immediate consequences are that vessel are wasting a lot of The immediate consequences are that vessel are wasting a lot of time by time by waiting and cargo operation that increases the costs of the shipwaiting and cargo operation that increases the costs of the shipping lines ping lines and on the other handand on the other hand

•• it takes a lot of time for the importer to clear his goods and tit takes a lot of time for the importer to clear his goods and this fact his fact accumulates additional unexpected expenses as Demurrage and Storaccumulates additional unexpected expenses as Demurrage and Storage. age. In the end of the day the end user in Africa is paying the priceIn the end of the day the end user in Africa is paying the price for it.for it.

PortPort reformsreforms inin AfricanAfrican CountriesCountries

•• In some of the Countries the Governments have realized that in oIn some of the Countries the Governments have realized that in order rder to be more efficient in their Maritime Gateways, it is essentialto be more efficient in their Maritime Gateways, it is essential to to establish some Ports Reforms in their system and to privatize thestablish some Ports Reforms in their system and to privatize this is industry to private operatorsindustry to private operators

•• that will investthat will invest

•• in infrastructurein infrastructure

•• , equipment, labor training etc,., equipment, labor training etc,.

•• will offer a high level standards of port operation this will rewill offer a high level standards of port operation this will reduce the duce the cost for shipping lines as well as for importerscost for shipping lines as well as for importers

•• , the end user may benefit cheaper cost and the respective , the end user may benefit cheaper cost and the respective Governments will enjoy a nice income and Royalties from the privGovernments will enjoy a nice income and Royalties from the private ate Port Operators. Port Operators.

•• There are two main kinds of Privatization. BOT and ConcessioThere are two main kinds of Privatization. BOT and Concession in n in which the Governmental Ports Authorities will remain as Land Lorwhich the Governmental Ports Authorities will remain as Land Lord d and Regulator.and Regulator.

less Bureaucracy win less Bureaucracy win winwin situationsituation

•• Privatization and custom reforms Privatization and custom reforms

•• Transportation infrastructure, Transportation infrastructure,

MORE,RoadsMORE,Roads, , Rail,andRail,and Waterways Waterways

Examine the Examine the logistic chainlogistic chain for weak pointsfor weak points,

,

Average growth West African ports 9.2 %

higher 1% than world growth

19 signature,29goverement agencies,45 days to clear import container

Security objectiveSecurity objective

& & dilemasdilemas

•• Deterrence Deterrence ––hard targets [publicize hard targets [publicize vsvs security] 9/11security] 9/11

•• FACILITATION [FACILITATION [CARGO flowCARGO flow vsvs security & custom] E.D.I. security & custom] E.D.I. intelligence , intelligence , sellectionsellection

•• DEFENCE PROGRAM Ships & PORTSDEFENCE PROGRAM Ships & PORTS

•• The The israeliisraeli model outer & inner model outer & inner defencedefence

•• ARMS,DOORS,WATCHES [pirates prevent to attack Israeli ARMS,DOORS,WATCHES [pirates prevent to attack Israeli ships ]ships ]

•• Drill ,routine, changeDrill ,routine, change

•• THE BOTTOM LINE THE BOTTOM LINE ––TO INVEST AT SECURITY PAYS.TO INVEST AT SECURITY PAYS.

•• ONES YOUR PORT OR SHIP BECOME ONES YOUR PORT OR SHIP BECOME GREENGREEN, U MOVE , U MOVE THROUGH THE THROUGH THE GREEN PATHGREEN PATH

••Thank youThank you