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Protocol on Transport, Communications and Meteorology (PTCM).
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Protocol on Transport, Communications and Meteorology (PTCM)
General objective – establish TCM systems which provide efficient, cost-effective and fully integrated infrastructure and operations to meet the needs of customers and promote economic and social development while being environmentally and economically sustainable. Strategic goals – • the elimination or reduction of hindrances and impediments to the movement of persons, goods, equipment and services • the integration of regional networks through the implementation of compatible policies and regulation • greater diversity of services and the promotion of competition between service providers through transparent, flexible, predictable and streamlined regulatory frameworks • the achievement of economies of scale between SADC service providers of varying size, increasing their global and regional competitiveness • broad-based investment to develop, preserve and improve strategic PTCM infrastructure within an investor-friendly environment which facilitates commercial activity • restructured state enterprises and public utilities which are financially independent and commercially viable Principal focus – integration of regional systems through compatible policies and legislation, but also contains some commitments pertaining to liberalisation.
PTCM in Transport Scope of application is the whole of the national and regional sectors (public and private). Expressly requires State Parties to treat equally the national freight and passenger service providers of State Parties with regard to the provision, access and use of infrastructure and immigration and clearance procedures.
Civil Aviation PTCM recognises the need for co-operation in the region in order to overcome “the constraints of small national markets, market restrictions and the small size of some SADC airlines and further to ensure the competitiveness of regional air services in a global context”. This indicates a need to open up markets. In order to achieve these objectives, Member States agreed to develop a harmonised regional civil aviation policy for the gradual liberalisation of intra-regional air transport markets for the SADC airlines.
Civil Aviation Cont. • The most significant progress towards liberalisation appears to be the adoption of the Yamoussoukro Decision Concerning the Liberalisation of Access to Air Transport Markets in Africa which came into effect in August 2000. • Aim – establish arrangements for the gradual liberalisation of scheduled and non-scheduled intra-Africa air transport services. It purports to have precedence over any [incompatible] multilateral or bilateral agreements on air services between State Parties. • Implementation of the framework (especially safety requirements) has apparently been poor to date. • Most Member States have not implemented their commitments under the Yamoussoukro Decision but maintain policies endorsing its implementation.
AIR TRANSPORT SERVICES • Passenger transportation • Freight transportation • Rental of aircraft with crew • Maintenance and repair of aircraft • Supporting services for air transport Services auxiliary to all modes • Cargo-handling services • Storage and warehouse services • Freight transport agency services • Other
Yamoussoukro Declaration • 1988 – new African air transport policy. • Focused primarily on airline cooperation and integration. • Driven more by need for pan-African cooperation than by objective of creating more competitive market environment. • Nevertheless, foresaw the gradual elimination of traffic restrictions, specifically the granting of fifth freedom rights to African airlines. • Enforced the notion that air transport sector in Africa needed to be liberalised.
Yamoussoukro Decision (YD) • 1999 – agreement to liberalise pan-African air services. • Formally adopted 2000. • Objective – gradual liberalisation of scheduled and non-scheduled intra-African air transport services. Granting free exercise of first, second, third, fourth, and fifth freedom rights on scheduled and non-scheduled passenger and freight air services. • Liberalises only international air services. • Frequencies and capacity offered on air services linking any city pair combination shall not be limited by either of the state parties concerned. No state party shall unilaterally limit volume of traffic, type of aircraft to be operated, or number of flights per week. • However, for environmental, safety, technical, or other special considerations, states may limit traffic. Other special considerations are primarily of a technical nature. These considerations should not be driven by commercial considerations in favour of any particular airline.
Yamoussoukro Decision (YD) Cont. • Each state party can designate in writing at least one airline to operate intra-African air transport services. No limitation to the number of carriers a state party can designate, as long as they meet the eligibility criteria (designated airline meets minimum standards with regard to legal and physical establishment, licensing, operating capacity, insurance coverage, capacity to maintain international standards; be legally established in accordance with the regulations applicable in the relevant state party; have its headquarters, central administration, and principal place of business physically located in that same country; be effectively controlled by the nationals of one, or in the case of multinational airlines, several state parties). • Strong focus on safety and security. • Recognise air operating certificates, certificates of airworthiness, certificates of competency, and personnel licences issued or validated by other state parties.
World Bank Report of 2010 identified four groups of countries (updated): (i), (iii) and (iv) should be willing to apply the Yamoussoukro Decision. (ii) maintaining heavily subsidised air carrier or procrastinating in the opening of air transport markets. World Bank Report – • None of the SADC Member States had liberalised in spirit of Yamoussoukro Decision. • Attributed South African domination of the market as prime reason for fifth freedoms being extremely limited. • PTCM and PTIS have not been implemented by Member States.
Lesotho and Swaziland – rely entirely on foreign operators, markets liberalised. • Botswana, DR Congo and Zambia – rely on private or foreign carriers, markets substantially liberalised. • Levels of competition vary but in general the sector is relatively competitive. In some countries, stated policy is one of liberalisation, but cautiously applied with protection of the national carrier uppermost in government’s mind. • Model is for state or state agency to own and operate airports. • Ancillary services such as cargo handling at airports usually concessioned, or offered by mix of state and private operators. Freight forwarding, logistics, etc., in the hands of private sector. • Regulatory authorities not independent from policymakers and not accountable to operators. Nonetheless, relatively little evidence of anti-competitive behaviour. Very few countries have a Competition Commission; instead, sector is regulated either by government or state agency. • Prices on airlines are mainly market-determined. • Cabotage rights not granted. • Generally few restrictions on foreign investment or the formation of joint ventures/ partnerships with locals, except for stipulations on minimum ownership by locals in (Angola, South Africa, Tanzania). • Work permits usually required for foreign nationals. • In Botswana, ground services specifically reserved for locals.
Inland Waterway Transport In addition to developing a harmonised maritime and inland waterway transport policy, State Parties undertook to develop common understanding on specific matters such as the encouragement of joint ventures and alliances between shipowners to promote economies of scale. Parties to the PTCM • in principle committed not to restrict cabotage (i.e., shipping between ports in the same country) by ships registered in another party to the PTCM. • agreed to adopt measures to promote competition in the provision of port and related services. • specific undertaking to adopt measures for harmonised tariff structures and regulation of charges so as to avoid monopolistic exploitation. • essentially agreed to extend MFN treatment to other parties to the PTCM with regard to the provision of or access to any port services including the freedom to establish facilities.
INTERNAL WATERWAYS TRANSPORT • Passenger transportation • Freight transportation • Rental of vessels with crew • Maintenance and repair of vessels • Pushing and towing services • Supporting services for internal waterway transport Services auxiliary to all modes • Cargo-handling services • Storage and warehouse services • Freight transport agency services • Other
Only four Member States have inland waterways of any significance. Malawi and Tanzania – little information. Mode appears to have been substantially liberalised in Zambia (which considers that it has met its regional commitments) and, de facto if not de jure, in DRC. • Malawi’s attempt at concessioning lake services did not endure. Although officially committed to deregulation and privatisation, Tanzania and Mozambique do not appear to have implemented the PTCM. • In Mozambique lake transport is underdeveloped, and consequently cabotage rights have been granted to the Malawi state operator. • Ports owned and run by state; concessioning by Zambia in ports sector also did not endure. • At port of Kinshasa private firms are involved (possibly by default) in provision of their own equipment and cargo handling. • State-owned and state-operated ferries but a wide variety of private craft on lakes and, in DRC and Zambia, on rivers. In DRC push tugs are owned and operated both by state entities and private sector. A number of Chinese firms in DRC also operate their own vessels and cargo handling. • Zambia – no lake service and relies on vessels from Tanzania, DRC and Burundi. • Bilateral agreements for cross-lake transport common; allow for reciprocal ferry services and recognise partner countries’ licences, certificates and training.
PIPELINE TRANSPORT • Transportation of fuels • Transportation of other goods Services auxiliary to all modes • Cargo-handling services • Storage and warehouse services • Freight transport agency services • Other
PIPELINES • PTCM does not refer to pipelines. A significant mode in the eastern maritime states (Mozambique, Tanzania and South Africa). Also serve landlocked countries of Zambia and Zimbabwe. • Construction entails high capital outlays and requires complex land expropriation procedures, therefore construction and operation typically in the hands of the state. Little or no competition. Mozambique – pipeline to Zimbabwe managed by local parastatal for the fuel industry. Gas pipeline a joint venture between governments of Mozambique and South Africa. Tanzania – sector controlled by government although the pipeline is privately owned. South Africa – network in the hands of parastatal. Controlled by industry regulator which issues licences and deals with annual applications for tariff increases. Competition Commission has full jurisdiction over the sector in South Africa. Private foreign firm has been contracted by the Malawi government to build and operate a gas pipeline from Beira to Malawi. Joint South Africa/Mozambique company has been granted a licence to build and operate a cross-border gas pipeline.