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Requirements in Legislation Dealing with Maritime Service

STIMULATING DEVELOPMENT AND GROWTH OF PORTS ALONG THE AFRICAN COASTLINE John Omingo Head of Commercial Shipping Kenya Maritime Authority. Requirements in Legislation Dealing with Maritime Service Providers and Customs Authorities to: improve port efficiency and productivity

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Requirements in Legislation Dealing with Maritime Service

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  1. STIMULATING DEVELOPMENT AND GROWTH OF PORTS ALONG THE AFRICAN COASTLINEJohn OmingoHead of Commercial Shipping Kenya Maritime Authority

  2. Requirements in Legislation Dealing with Maritime Service Providers and Customs Authorities to: improve port efficiency and productivity stimulate growth in maritime economy COVERAGE

  3. Regulation of Kenya’s Maritime sector; (Kenya Maritime Authority Act, 2006 and Merchant Shipping Act 2009); Separation of regulation from operations; Safety of Life at Sea; International Maritime Conventions; Regional Search and Rescue coordination; Piracy information exchange centre; Prevention and control of Marine Pollution; Commercial Maritime Services; INTRODUCING KMA

  4. Three main factors : Safety and security Efficiency and Productivity Additional capacity PORT GROWTH ALONG THE AFRICAN COASTLINE

  5. Safety of local and foreign ships with regard to: Seaworthiness (Merchant Shipping Act , 2009) Flag State Implementation Port State Control; Safe arrival and departure of ships; Marine Pollution; Search and Rescue SAFETY OF SHIPPING

  6. Today there are occurrences that are not accidents, but deliberate acts of a kind few of us could previously have imagined: The US 9/11 Terrorist attack; Piracy off the coast of Somalia; SECURITY Transport related incidences impact human life

  7. Vital component of port operations; ISPS Code in ports and ships but security needed beyond the port - every node in the supply chain where each player is responsible for securing its leg of the supply chain; National supply chain security standard which all parties in the supply chain can sign up to. Authorized Economic Operator (WCO – AEO) model for administering security compliance; SECURITY

  8. Complex and entrenched beyond the capability of any one entity alone to effectively deal with; Annual cost to the world economy : 7 - 12 billion US dollars (Recent World Bank Report) Annual Piracy Surcharge in Mombasa - over US$ 200 Mil • Piracy

  9. Enhanced resources in the form of naval vessels and military aircraft; Compliance with the best management practices while sailing through piracy-infested areas; • Dealing with Piracy – Short Term measures

  10. Enhancement of legislation for prosecution; Capture, prosecution and punishment of Pirates; Tracing of ransom money; Confiscation of proceeds of crime derived from hijacked ships; Criminalization of piracy under domestic laws of States; • Legislation

  11. Establishment of specialized anti-piracy courts in Somalia and other States in the region; Provision of international assistance to help make Piracy courts operational; Ultimate Solution A stabilized Somalia with a functioning Government and adequate resources to patrol the coastal areas from which the pirates operate and into which they bring hijacked ships pending negotiations • Legislation

  12. Increase berth utilization; Attract ships; Reduce overall cost of transport logistics; Increase volume of cargo; Stimulate growth of ports along the African Coastline PORT EFFICIENCY AND PRODUCTIVITY In Africa (70% - State run ports), there is great need for supportive laws and maritime practices that address port transit times in order to:

  13. No accountability for delays in the flow of cargo; No standards on efficiency and quality; Ineffective consultation machinery on maritime issues; No Service level agreements – absence of competition; Shortage of professionalism across the logistics chain; Industry Concerns

  14. Uncompetitive: Importers’ minimal influence - most services are contracted by overseas sellers and buyers; Little or no contractual obligation for timely delivery - importers locked into the services of: Shipping Lines and Agents Port Authority Container Freight Station Operators Cargo Consolidators Customs Authorities and other Government Agencies; • Maritime Service supply - AFRICA

  15. Merchant Shipping (Maritime Service Providers) Regulations, 2010 Accountability structures: Establish Key Performance Indicators; Formalize obligations through Service Level Agreements • Kenyan Response

  16. Develop Key Performance Indicators for service providers with – SLAs; Establish structures for holding service provider accountable in the flow of goods/cargo - efficiency and speed of delivery; Develop institutional capacity for the monitor of service delivery: SLAs; Single Window Cargo Clearance • Legislation

  17. Predictable cargo clearance process and short transit times at the water/land interface; Competitive supply of maritime transport services; Effective interaction for better performance of the total transport logistics chain; • Outcome

  18. ADDITIONAL PORT CAPACITY • Expand ports But most ports are surrounded by major cities Cities may benefit from ports, but Ports may also have a negative influence on cities such traffic congestion, air and noise pollution and security issues Open land next to ports is not readily available – increasing trend towards Green cities • Developnewports How long does it take to plan and develop new ports, infrastructure? Development of new port capacity in countries like China is fast, but in Africa it is much slower • UtilizeICDs and CFSs - hubandspokesystems • But, … How does it effect transit times and costs? Mombasa

  19. Focused attention on rail development - cleaner and greener; Improved pipeline infrastructure to keep tankers off the roads; Enhanced road infrastructure for cargo exit from the port; • Cargo exit infrastructure

  20. CONCLUSION • Adopt a total logistics chain approach stimulate port growth. • Overland systems with appropriate intermodal facilities: • Alleviates port congestion problems • Facilitates growth in cargo volumes; • Provides great competitive advantage to a port; • Enhance customs and other agency processes within ports and • along inland transport corridor; • Utilize effective key performance indicators • Monitoring reliability, efficiency, costs and of performance • Otherwise ‘Complex port problems in Africa will have simple, easy to understand wrong answers!!’

  21. END – THANK YOU The Presentation can be downloaded from: www.kma.go.ke or email : jomingo@kma.go.ke

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