Balancing the Development of Ports and Counterpart Facilities and Systemsin Africa

Introduction:

• World trade has been growing both in volume and value terms and sea transport conveys over 80 per cent in volume terms
•  Asia and Latin America have experienced rapid growth rates during last two decades and Africa could do the same in the coming decades
•  In order to meet Africa’s growth needs, ports and counterpart transport modes will need capacity to handle increased cargo volumes efficiently
• There is a systematic move towards regional economic blocks providing trading preferences among members
•  African ports make their own individual development master plans
•  Transport and terminal service providers make their own independent plans
•  There is need to handle transport services in the light of a total transport logistics approach
•  There are challenges in harmonizing the interests of ports and other players to achieve an optimal balance
• It is important to eliminate imbalances in capacity development
•   Individual ports and their associations can play an important role in promoting balance in the provision of capacity

Pre independence and post independence considerations in ports development

•        Meet the needs of extractive trade in minerals and agricultural raw
•        materials
•        Rail the primary mode of transport
•        Each colonial power built its own ports and transport links
•        Management controlled by the imperial powers
•        Shipping lines also dominated by metropolitan powers

Post-independence Considerations

•   On attaining independence states felt largely contented to inherit the colonial ports and transport networks and operate them as new acquisitions wielding power and prestige
•  Ports tried to respond to developments in the industrial world in order to cope with the developments in ship designs and waterside services but not matching the same in shore handling operations
•  New initiatives involving modern technology in areas information processing including ITC not adopted
•  Railway networks remain narrow gauge while the developed world hasgradually converted into standard or broad gauges
•  Management of ports and railways remains tightly under government control and have not encouraged innovation and competence

Current Imbalances (State of railways, roads, pipelines, human capital)

•  The principle that the maximum output of a serial network depends on the capacity of its slowest component applies
•   Internally ports have continued to develop physical infrastructure
•   Matching developments have not taken place in counterpart systems
•   Railways have been static or regressive in terms of permanent way and rolling stock due to lack of investment
•   Increase in road infrastructure development but due to lack of good husbandry in enforcing axle load limits and poor maintenance they have not provided a consistent and sustainable alternative
•  Ship operations outputs have risen but shore handling operations have
declined because of bottlenecks due to declining off take rates as rail
and road services have continued to decline
•        Strong lobbies by shipping lines, the ship-owners have continued to bid
for and obtain higher quality of service while the shipper has secured
comparable benefits from new investments because higher operating costs
arising from delays in cargo off take and persistent congestion.

Effects of Current Imbalances
•        Increased output levels in stevedoring (ship to shore) operations
•        Low outputs in shore handling operations
•        Low availability of rail wagons and locomotives
•        Delays in cargo deliveries
•        Congestion in port terminals and yards
•        High costs to cargo owners

Ports Capacities
•        Ports in the African region have developed as monopolies over the years and tend to have unique capacities not available in other spheres of government or private sector
•        These include specialized skills(Human capital) in areas such as
•        Navigation,
•        marine engineering,
•        equipment fabrication, operation and maintenance,
•        safety oversight,
•        pollution control
•        In some countries ports have been entrusted with regulatory responsibilities such as
•        flag state control
•        port state control

• Ports are often in possession of financial resources to undertake feasibility studies, coordinate planning and provide training
• Ports also have real potential in areas such as: advocacy and provision of peer exposure

Lessons from the rest of the world:

•        Integrated logistics for development of ports, rail and roads in the European Union
•        Integrated planning for the development of ports, railways, road and inland water operations in China
•        Construction of rail bypasses in the development of the new JNT port in Bombay
•        Establishment of rail land bridges in the US where shipping lines operate block trains from coast to coast

Current approaches at regional and continental levels to enhance balanced

At regional levels current approaches to enhance balanced development of facilities and systems include:
Corridor development approach
Regional trunk road networks
Establishment of project financing facilities
Transport facilitation instruments
Development of one stop border posts

At continental level the following approaches have been adopted:
Trans African highways
Continental rail gauges harmonization development of facilities and systems

Roles that African ports associations do facilitate balanced facilities
and systems

• The African ports associations can play the following important roles in facilitating balanced facilities and systems Network with counterpart associations in rail and roads Identify and prioritize regional projects for the development of integrated transport facilities Jointly with counterpart associations mobilize resources from regional and international investors and funds for total logistics project implementation Provide leadership through development of model instruments for adoption at country levels Facilitate peer networking and development of best practices in the integrated transport environment Provide advocacy through interventions in regional and continental fora

Roles of Ports and RECs
•        Engage national policy makers at the level of policy formulation to enhance integrated development of transport
•        Participate in identification of national/regional projects to enhance integrated development of transport
•        Provide resources to undertake upstream project preparation tasks and co finance projects which enhance promote integrated connectivity
•        Take part in specialist fora for networking with counterpart service providers and regulatory authorities
•        Participate in advocacy and peer networking for the ports sector
•        Participate actively in regional and continental dialogues on transport related issues
Roles of RECs
•        Facilitate in the identification and prioritization of regional projects to enhance integrated development of transport
•        Mobilize resources to undertake upstream project preparation for projects which enhance promote integrated connectivity
•        Facilitate the establishment of specialist regional fora for networking with counterpart service providers and regulatory authorities
•        Provide networks for advocacy and peer networking at regional levels for the ports sector
•        Provide for a for in regional and continental dialogues on transport related issues