Overview of Investment opportunities and Pmaesa agenda
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1 Overview of Investment opportunities and Pmaesa agenda Workshop on Linking Ports to Corridors BY: Jerome NTIBAREKERWA, SECRETARY GENERAL PMAESA
2 Outline of Presentation Introduction of PMAESA Investment opportunities in: 1. Tanzania Port Authority -TPA 2. Kenya Port Authority- KPA 3. Port of Djiouti / DP World 4. Sudan Port Cooperation - SPC Regional Initiatives to tackling the challenges of Trade Facilitation in Africa Existing Projects as Catalysis of traffic grow Overview of Transit Corridors in the region PMAESA Initiatives and priority programs Concluding Remarks.
3 PMAESA Member States Angola Burundi Djibouti Ethiopia Eritrea Kenya Madagascar Malawi Mauritius Mozambique Namibia Rwanda Seychelles South Africa Sudan Tanzania Zambia Zimbabwe
4 Introduction PMAESA Established 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 development organs by modernization to enhance productivity and service delivery and trade facilitation Establish and maintain relations with other development partners and transport authorities for the study of matters beneficial to members
5 FOCUS of the Association Focus Visibility Communications Development of Human Resources Port development Development of Ports Activities integrated to Transport Corridors Respect for international norms/conventions
6 Strategic Objectives Objective 1 Improve visibility and image of the Association, by implementation of an appropriate communication policy among the members of the Association and partners Objective 2 Contribute to the development of maritime and port expertise in the subregion Objective 3 Improving the financial resources of the Association and ensure their efficient usage
7 Ports Corridor Partnerships PMAESA ports facilitated a volume of million tons of cargo in 2008 up from million tons in 2007, representing 90% of the total traffic. Nine transit corridors provide linkage and flow of traffic to and from the ports in the region: Northern Corridor Central Corridor; Djibouti corridor The Trans-Kalahari Corridor The Maputo Corridor The Durban Corridor The Northern Corridor only facilitated 17 million tons in The bulk of this traffic is handled by truck operators. This emphasis the significant role played by the truck drivers in the maritime sector.
8 ORGANIZATIONAL STRUCTURE Council Board Of Directors Committees Secretary General Communications Constitutional Affairs The Secretariat Finance Maritime Safety And Maritime Pollution Prevention Administrative Staff Technical Staff Communications IT Maritime Statistics
9 Challenges and existing investment opportunities Dar Es Salaam Port / TPA Mombasa Port / KPA Port of Djibouti / DP World Port Sudan / SPC
10 I. Current challenges for DSM Port 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.
11 Current business in TPA Hinterland markets of Malawi, Zambia, DRC, Burundi, Rwanda and Uganda ( 40% of transit cargo) Captive market Market likely to expand due to RECs integration agenda ( SADC, COMESA, EAC Customs Union), growing opportunities of mining industry development in Burundi, Rwanda, Zambia and DRC
12 Need for investment in TPA To meet traffic Development Container traffic is increasing from 333, 980 TEUs in 2007 to 473,705 in 2009 Container traffic compared to Dry cargo traffic increased up to 62% in 2008 compared to 48% in year 2006.
13 Need for investment (cont..) improve port performance indicators and overall competitiveness: The turn round time is above 5 days per ship The berth occupancy above 60% The dwell time for container reaching 20 days Crane productivity decreasing due to Terminal congestion: 18 moves per crane hour in 2009 compared to 24 moves per crane hour in 2005.
14 Major programs for port development in TPA Construction of a New Container Terminal at Bagamoyo Construction of Container Berths 13 & 14 adjacent to KOJ To deepen and widen the DSM port entrance channel so as to serve Panamax ships size Modernization of Oil handling facilities Upgrading Bulk handling facilities Finalization of Pre-Feasibility Study for Kisarawe Cargo Freight Station Completion of Feasibility Study for new Port at Mbegani Identification of Strategic Investor for Multi-Storey Car Park Development of Cruise, Leisure, Fishing and Dry Docking facilities
15 Potentials for TPA Ports Large hinterland market : six landlocked countries and growing captive market; Large consumer base : 160 million people with a combined DGP of about USD 44 billion; The two rail networks to the hinterland in the process of being improved through privatization; Large shipping networks destinations and large road network to hinterland being improved; Continued operational improvement with private sector participation in providing port service; Mtwara Port to be developed as a deep-sea port to link Malawi and Mozambique to southern region of Tanzania All lakes are navigable ( Victoria, Tanganika and Nyasa ).
16 II. Challenges and Investment opportunities at KPA Port facilities 13 General cargo Berths :2,832 m quay length 3 Container Berths with 596 m quay length Container Terminal capacity: 250,000 TEUs 2 Bulk Oil Jetties ( KOT, SOT) 3 dry bulk Wharves ( Quay length: 315 m) 2 Dhow Jetties 10 main Quay transit sheds: 171,690 sq.meters 3 Back of port sheds: 36,952 sq.meters Stacking grounds area of 124,117 sq. meters
17 Potentials for KPA 1. Expansion of the port to include development of a 2nd container terminal; 2. Implementation of the 3rd phase of our ICT strategy which is the Single window System 3. Facilitate development of Free-Trade Zones near the port 4. Dredging of the Channel to accommodate bigger ships; 5. Facilitate government efforts for the development of a second commercial sea port at Lamu.
18 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
19 Port of Doraleh Increase of maritime traffic ( Ethiopian market and transshipment) has led to the construction of a New Deep water port (18m-20m). Is already operational from beginning 2009 To accommodate the latest generation of container ships, Super-Post Panamax Budget: USD 370 million
20 Incentives for foreign investors in Djibouti Proposed series of fiscal and non fiscal incentives: Possibility of repatriating with complete freedom and at all times the funded capital; Exemption of any direct or indirect tax resulting from the national legislation Guarantee of the land property in free zone One Stop Shop for administrative support ; Free access and transfer of the foreign currencies
21 Port Sudan and SPC Country Profile 2.5 million sq.km 35 million population 750 km coast on the Red Sea 9 neighboring countries SPC : Sea Ports Corporation Responsibility: Construction, Maintenance and operation of Sudanese ports
22 Ongoing Projects in Port of Sudan 1. Green port, 2 nd stage: Dredging and construction of 2 Berths for General cargo( length: 648m, draught: 14.6m) Stacking capacity: 300,000m2 2. Container Terminal information system (CTIS) together with EDI. 3. Construction of Berth 13 in the Main Quays 4. New Container Berths Project with 2 new fully equiped Berths for containers: Length: 791m, draught: 16m 5. Development of Suakin Port as alternative to Port Sudan
23 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.
24 Existing Projects as Catalysts of Growth Traffic Following the EAC/COMESA countries : Kenya, Uganda, Sudan, Rwanda, Burundi and DRC have huge potential of natural resource including: Mineral Oil Gas reserves Rich sol for agriculture likely to attract FDI in the region.
25 Main projects in the region The Kodo Iron ore deposits in DRC Oil and Gas in Southern Soudan The both DRC and Uganda oil at Lake Albert The Musongati and Muremera Nickel reserves in Burundi Natural gas in Rwanda The iron-ore & steel in Uganda etc
26 REGIONAL INITIATIVES Development agencies such as the World Bank (SSATP), the AfDB, the EU etc place emphasis on the facilitation of inter-state trade along corridors. Increasingly funding corridor developments along corridors Borders delays, a proliferation of road checkpoints and other practices that increase monetary and time costs. Various initiatives have been designed to both monitor the performance of corridors and to eliminate the nontariffs barriers (NTBs); The objective is to enhance the efficiency and costeffectiveness of the main transport corridors into landlocked countries
27 Regional Initiatives (cont..) In eastern and southern Africa, Corridor Management Committees are emerging as strategic institutions for addressing all aspects of transport and transit of goods throughout a given corridor, Some Agreements signed by all participating countries and private sector stakeholders to deal with a wide range of issues such as infrastructure, customs, bottle-necks and user charges. Number of corridor management institutions have been set up such as Walvis Bay Corridor Group, Maputo Development Corridor,North-South Corridor in Southern Africa.
28 Regional initiatives (cont ) The Northern Corridor Transit Agreement ( NCTA, 1987) has been signed by five countries: Kenya, Uganda, Rwanda, Burundi and DRC to guarantee each other free passage through their respective territories of transit traffic and trade. The NCTA has led to the establishment of A Northern Corridor Transit Transport Coordination Authority The Djibouti Corridor in the Horn of Africa is a multi-modal network of routes linking the Port of Djibouti to the landlocked Ethiopia; Corridor management Institutions (CMIs) are therefore promoting and developing various transit corridors across Africa ; Challenge remains to set up a critical forum of consultation and coordination given the diversity of stakeholders and a large number of government agencies that oversee different activities within a corridor.
29 Road Transport Corridors of East and Southern Africa 1 Northern 2 Central 3 Dar essalaam 4 Nacala 5 Beira 6 Maputo 7 North-South 8 Trans Kalahari 9 Trans Kaprivi 10 Trans Cunene Luanda Lobito Walvis Bay Kinshasa 10 Windhoek 9 8 Kolwezi Lubumbashi Kampala Kitwe Kapiri Mposhi Lusaka Kafue 7,9 Harare Livingstone 7 7 Bulawayo Francistown 7 3,7,9 Kariba 7 1,2 7 Kigali Bujumbura Lake Tanganyika 3,7 7 7 Mbeya 7 Lake Victoria Dodoma 3,7 Tete 5 5 Beira 2 1 3,7 Lake Malawi Lilongwe Blantyre Nairobi Mombasa Mombasa 2,3,7 Dar es Salaam Dar es Salaam 4 Nacala Nacala km Gaborone Johannesburg Pretoria 7 6 Maputo Mbabane 6 Maseru Durban Maputo Saldanha Cape Town East London Coega Port Elizabeth
30 Northern Corridor missing link
31 Central corridor network D R CONGO NB: 1- Mtwara corridor, 2- DSM TAZARA corridor, 3- DSM Central corridor, 4- Tanga corridor
32 Maputo Corridor
33 Addis-Djibouti Railway
34 PMAESA Initiatives PMAESA has a work plan which encompasses the stakeholders and the regional integration agenda. The PMAESA activities and programs are in tandem with objectives of the RECS; Secretariat has defined its work plan based on the decisions and recommendations of the Board and its Council; Priorities activities of PMAESA has been defined take into consideration of the new trend in the maritime sector ; With the new technological development in the sector with the needs of our members. During the 2009 Council meeting held in Durban in Dec,2009, the Council adopted the program of port operation and trade Facilitation for our Secretariat ; Objectives of achieving global competitiveness in trade facilitation Ports being engines of trade facilitation, regional integration and economic growth of member states. need to respond to the dynamic demands of the global economy through continuous assessment of their development programs
35 Key Partners and RECs for development of PMAESA Agenda a. Developing Parterns International Maritme Organisation ; United Nations- Economic Commission for Africa ; World Bank / SSATP ; African Development Bank ; DFID/ Tradmark ; European Union / CDE ; US Coast Guards ; USAID UNAIDS b. Regional Economic Communities. COMESA, SADC, EAC, TTCA IGAD, IGR
36 ONGOING PMAESA PROGRAMMES Harmonization of regional port statistics and performance indicators for informed trade and development ; Restructuring / concessionning of our ports operations Management of Truck Movement & Packing Yards Rotterdam Rules 2009: Regional Workshop Development of Cruise in the PMAESA region HIV/ AIDS mitigation program
37 Conclusion & Environment Needs Update of the transport infrastructure /Equipment To create a favorable legal and institutional environment ( One Stop Shop) To link Ports to Corridors in management (Southern Africa model) To develop value added support activities (Djibouti model) To promote good governance in the public/private partnership (PPP) Create political will with Governments/Port Authorities to withdraw gradually with operational and commercial services To eradicate corruption with legal instruments (Mauritius model)
38 Dar Es Salaam Port / TPA Mombasa Port / KPA Port of Djibouti / DP World Port Sudan / SPC Thank you! Merci beaucoup, Asante Sana! God bless you all!!!
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