Jerome Ntibarekerwa, Secretary General, PMAESA

1. PAN-AFRICAN PORT COOPERATION CONFERENCE DJIBOUTI 15th - 18th Dec 2008 PMAESA PORTS: CHALLENGES & OPPORTUNITIES Jerome Ntibarekerwa, Secretary General, PMAESA

2. Introduction Who we are? Port Management Association of Eastern & Southern Africa (PMAESA) is a regional grouping of ports in the eastern and southern Africa with membership composed of state representatives and private sector from: • Port Authorities • Maritime transport departments • Port Operators • Maritime regulators

3. PMAESA Member States

4. Introduction What we do Established in 1973 under the auspices of the UNECA with the following objectives among others: • Offer platform to exchange ideas and information where members can interface with one another in transport and trade facilitation • Assist port development by enhancing productivity and service delivery and trade facilitation; • Establish linking from ports to transport Corridors; • To assist our ports /maritime members to implement IMO conventions • Establish and maintain relations with other development partners and transport authorities for the study of matters beneficial to members

5. Ports are important • Ports in developing countries: • represent a key asset for economic development • serve landlocked countries – key components of regional trade corridors • play an important role as interface between sea and land transport systems • Inefficiencies impact trade competitiveness • Congestion at ports • an increasing problem • affects shipping schedules • contributes to further congestion • Constraints to capacity expansion: • Lack of scope to increase capacity • Weak inland transport links

6. Factors driving growth • External Factors: • Strong GDP expansion • Integration of regional economies with Asian suppliers • Political stability • Internal factors: • Privatization of ports sector - increased investment • Improved shipping links with Asia • Increased ship size and transshipment • Terminal productivity increases • Above factors are increasing pressure on port capacity

7. Global container port capacity has reached critical levels North Europe 80.5% / 73.2% Eastern Europe 92% / 73% North America 92% / 86% South Europe 82% / 78% Far East 109% / 105% Middle East 98% / 89% Central America & Carribean 82% / 73% Subcontinent 87% / 57% South East Asia 108% / 91% Africa 79% / 71% South America 111% / 102% Oceania 105% / 93% Global Total 99% / 89% Source : World Bank , SSATP

8. Port congestion regions Courtesy of Michel Donner, World Bank State of the Port Sector 2008

9. Measures to address port efficiency and productivity • Acquiring more spaces for port activities • Purchase of new equipment • Using ICDs • Developing IT systems and free port activities • Restructuring the management model • Improving safety, security and environment protection to meet international standards

10. OUR PORTS KEY CHALLENGES • Acquiring more spaces for port activities • Infrastructure development :Purchasing of new equipments • Using ICDs • Developing IT systems and free port activities • Restructuring the management model • Improving safety, security and environment protection to meet international standards

11. Challenges with Growing Demand Key ports in the Eastern and Southern Region: • Kenya Ports Authority • Tanzania Ports Authority • South Africa , Transet NPA • Djibouti port , DP World • Sudan port Cooperation • Mauritius Ports Authority • Seychelles Ports Authority

12. Challenges with Kenya Ports Authority – KPA • The rapid increase of traffic is likely to continue • The container Dwell time is yet to be reduced • The hinterland rail connections remain inefficient • More dependence on road mode of transport with 3 axle road rule constraint for hauliers • Long documentation procedures • Inadequate capacity to handle the forecasted cargo volumes.

13. Challenges with Kenya Ports Authority (Cont...) • The exploration of Oil in Lamu District • The Regional Integration expectations : EAC/COMESA Customs Union expected positive results • The Transport Sector Reforms : Concession of RVR, Rehabilitation of major roads links to other countries

14. Challenges with Djibouti Ports • The throughput in TEU has grown by 31% in 2007 while the General Cargo grew by 44%; • The stripping operations by Freight Forwarders remain very slow; • The yard is occupied at 95%; • There is a high level of stacking ( up to 5 highs); • The number of full and empty containers is very high; • The port is facing many difficulties linked with Ethiopian bureaucracy as 85% of the total handled cargo is for Ethiopia ( Customs clearance taking more than 3 weeks, cargo financed by L/C).

15. Challenges with Tanzania Ports Authority- TPA- • The insufficient container storage space • The long container dwell time (has reached 25 days in Aug.2008) • The rapid increase of container traffic and • The low performance of inland modes of transport especially the rail lines with very low availability of wagons and locomotives.

16. Challenges with Tanzania Ports Authority(Cont.) • More investment to increase container terminals capacity and Inland Depot • Improve efficiency and productivity within the existing port infrastructure and equipment • Continue to involve private sector in port operations and concessioning which will improve port development

17. Challenges with Mauritius Ports Authority • The current port charges are high: there is need to assess adequacy of current charges to sustain Investments • The low level of connectivity of major shipping lines • The 15% corporate tax imposed on free port companies to be dropped at zero rate ( expected on 1st July 2009) • Business environment yet to be friendly in regards with regulations, procedures …

18. Challenges in South Africa (TRANSNET NPA) Responding to the opportunities presented by : • Growth in global economic activity - increase inter/intra African trade • Link industrial and mining sector activity to markets • BRIC phenomena – Alternate logistic & hub – South S trade • Regional economic integration – Transport corridor development • Intermodal harmonisation to improve regional supply chain and reduce logistics costs Focus on Time, Cost & Skills

19. Challenges with Sea Port Corporation – Sudan • To cope with technological advances in maritime industries • To face the political and economical challenges internally and externally: Requirements of WTO,COMESA agenda • Exploration of Sudanese Oil, • To handle economic activities logistics after Peace Agreements in Sudan.

20. Comparative Review with key PMAESA Ports • In terms of : • Cargo handling performance • Container handling performance • Transit traffic • Transshipment traffic • Port regulation model • Other safety and security arrangements

21. Cargo handling performance (DWT “000”) Note: Figures shown are in calendar year Source: PMAESA

22. Cargo handling • Ports in South Africa handle more cargo than other in the region • They are followed by Mombasa, DSM, Mauritius and Djibouti.

23. Container handling (TEUs)

24. Container Handling • Durban and Cape Town are the biggest container handling ports • Mombasa is the 3rd while • DSM is the sixth position

25. Transshipment • Mombasa and DSM competing for the business with Kenya holding a leading share up to 2003 • Trend reversed following to logistical problems associated to over-utilization capacity. • Still the 2 ports remain behind regional Hubs of Durban, Port Louis and lately Djibouti

26. Transshipment Traffic (TEUs) Source: PMAESA Note: Figures shown are in calendar year

27. Current Port regulation • Most PMAESA ports under the auspices of the ministry of transport (Djibouti, Sudan) • Regulatory body with TPA,SUMATRA • Regulatory Body in Kenya has to be set up • South Africa Independent port regulator can be seen as a model. • Further institutional reforms are required in many ports

28. Safety and Security Arrangements • All PMAESA ports surveyed have achieved ISPS code approval • Closed Circuit Television( CCTV) • Container Scanning • Automated Port Access Are also reported

29. Thank you for your attention ?? Do You Have Any Questions? ?