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MULTIMODAL TRANSPORT AND LOGISTICS SERVICES The case of São Tome e Príncipe

MULTIMODAL TRANSPORT AND LOGISTICS SERVICES The case of São Tome e Príncipe. Sao Tomé e Príncipe Fact Sheet. Situated in the Gulf of Guinea, 300 Km West from mainland, on the Equator 1001 Km 2 150.000 inhabitants Language: Portuguese

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MULTIMODAL TRANSPORT AND LOGISTICS SERVICES The case of São Tome e Príncipe

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  1. MULTIMODAL TRANSPORT AND LOGISTICS SERVICESThe case of São Tome e Príncipe

  2. Sao Tomé e Príncipe Fact Sheet • Situated in the Gulf of Guinea, 300 Km West from mainland, on the Equator • 1001 Km2 • 150.000 inhabitants • Language: Portuguese • Form of Government: Democratic Republic (Independent since 1975) • Main product: cocoa. New developments towards tourism and services

  3. Determinants of Quality and Costs of Transportation • Distance, volume and pattern of trade • Infrastructure • Security and safety • Facilitation • Legal Aspects

  4. Distance, volume and pattern of trade • Exports: 5.000 tons – 6 million USD (mainly cocoa) • Imports: 65.000 tons - 31 million USD (almost everything consumed except fresh agric. products) • Regional trade: 15% of total trade (mainly oil from Angola) • Trade with Europe: 80% of total trade • Higher cost compared to the region(ex. Luanda) Economies of scale not reached

  5. Infrastructure • Port: Depth limitation and obsolete equipment • Airport: Runway in bad state • Telecommunications: Well spread but small bandwidth • Roads network covers whole territory but secondary roads need important maintenance • No railways infrastructure

  6. Security and safety • Reliable Security and Safety conditions due to social peace; no crime • Rare cases of accidents or corruption • Lack of updated regulations and legislation pertaining to these issues

  7. Facilitation • SYDONIA: improves quality, increases control and provides reliable trade statistic information • Lack of updated regulations and legislation related to door-to-door operations • In compensation, Government facilitates procedures • No benefits from free circulation of goods and passengers within CEMAC

  8. Legal Aspects • Multimodal transport not covered by law yet • Commercial Code old and outdated • MT Convention not signed, no laws envisaged yet to cover Multimodal Transport

  9. Conclusions • S. Tomé e Príncipe does not have yet the pre-requisites for development of Multimodal Transport • Small amount of trade, poor infrastructures, inefficient operations of vessels and airplanes, costs surcharges, substantial effect on the cost of living • Comparative advantage in the region: Safety & Security and Facilitation

  10. The Panalpina case • Panalpina offers multimodal transport and logistic services to the oil companies operating in the region • During 3 years, S. Tomé e Príncipe was the company’s logistics center: regional comparative advantage in safety & security and facilitation • Cargo organized to arrive in the country and to be distributed to the oil platforms in the Gulf: treated as cargo in transit • Business amounted to 15% of FE earnings

  11. São Tome e Principe: a potential regional hub • Government’s development strategy: transformation of S. Tomé e Príncipe into a service center for the region • Strategic location • Large and growing regional market rich in natural resources • Country’s social peace and ethnical homogeneity • Expected results: boost in Trade  efficient transport services  Foreign Investment promotion • Recent launching of projects: BOT Deep Sea Port and Airport Renovation

  12. Only if… • Considerable upgrading in infrastructures • Revision and updating of legal framework • Improvement in the use of Information Technology

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