PRESENTATION AT AFRICAN PORTS & MARITIME CONFERENCE PRESENTATION AT AFRICAN PORTS & MARITIME CONFERENCE SWAKOPMUND HOTEL AND ENTERTAINMENT CENTRE SWAKOPMUND, NAMIBIA

CASE STUDY: EASTERN AND SOUTHERN AFRICAN CHALLENGES IN PORTS DEVELOPMENT BY NII NIKOI AMASA (PORT MONITORING MANAGER, GHANA PORTS & HARBOURS AUTHORITY)

MAJOR INVESTMENT AND INFRASTRUCTURE PLAN AND PORT CAPACITY: THE CASE OF A GHANAIAN PORT OF TAKORADI The relationship between ship size and provision of appropriate port infrastructure can be likened to the proverbial chicken and egg debate, Which comes first? Port Infrastructure or Larger vessels with enhanced characteristics? This presentation will not attempt to take any side of the debate; rather will highlight the evolution of container ship, from the 1 st Generation to the 5 th Generation, the infrastructure and super structure requirements, as well as the cost of providing them.

With a LOA of 135m, a draft requirement of <9m, and between 500TEUs to 800TEUs on board vessels for the period , what became to be known as 1 st Generation container ships were born. The length, draft and carrying capacity of container vessels evolved through Second Generation, Third Generation, and Four Generation to Fifth Generation in the periods shown in the diagram in the previous slide. As can be seen in the next slide, each generation of vessel came with its requirements, in terms of berth length, draft and total boxes(TEUS) carried on board. MAJOR INVESTMENT AND INFRASTRUCTURE PLAN AND PORT CAPACITY: THE CASE OF A GHANAIAN PORT OF TAKORADI

Each generational requirement had its attendant costs, not only in terms of superstructure, but also cargo handling equipment like Ship To Shore (STS) Gantry cranes, Shore Gantries and other Equipment, Large tracts of land for equipment and container movement and storage. With containerization came the deployment of appropriate IT software such as Navis to ensure the quick and efficient movement of containers from vessel to shore and vice versa. MAJOR INVESTMENT AND INFRASTRUCTURE PLAN AND PORT CAPACITY: THE CASE OF A GHANAIAN PORT OF TAKORADI

Considering the size of investments needed for port infrastructure and the worldwide trend for Public Private Partnership, (PPP) it is suggested that this(PPP) is the way for ports to go to meet the major investment, infrastructure plan and port capacity challenges. The issue of port productivity is directly related with those of infrastructure and investment. MAJOR INVESTMENT AND INFRASTRUCTURE PLAN AND PORT CAPACITY: THE CASE OF A GHANAIAN PORT OF TAKORADI

Public Private Partnership Opportunities in Ghana’s Port Development Agenda Ghana Ports and Harbours Authority Public Private Partnership Opportunities in Ghana’s Port Development Agenda Ghana Ports and Harbours Authority Development of the Port of Takoradi

Development of the Port of Takoradi The port development agenda for the Port of Takoradi would cover major port infrastructure and superstructure development/expansion aimed at eliminating the inherent inefficiencies currently being experienced, such as draft limitations, double handling of bulk cargoes, narrow quay aprons, etc. and also to meet the emerging oil and gas cluster. The Project will include the extension of the main breakwater, new quay walls, construction of a jetty and platform for conveyor systems (dry bulk) and pipe corridors for petroleum products, oil berthing facility and substantial dredging and reclamation. In later phases, the main container terminals and more oil services bases would be developed after the current ore terminal’s operations are re-located to the newly developed terminals.

Technically, any part of the total development package can be pursued under PPP within the project portfolio. It would however be desirous that for the reasons enumerated below, a distinction be made between the type of funding for basic port infrastructure as distinct from that for superstructure projects. Funding of basic port infrastructure may not be attractive to the private investors because of the following; They have long gestation periods of between years, or more, depending on the structure. They provide general services rather than specific services to vessels and cargo. The rates chargeable for uses of these facilities are generally low as they greatly influence overall port costs. The internal rate of returns (IRRs) of these projects as stand-alone are generally unattractive. Development of the Port of Takoradi

Ideally, it would be feasible for these infrastructures to be developed using concessionary funding as this has a number of advantages that go beyond the mere provision of the physical facilities but into matters of port organization and management. For example, by using concessionary loans the port can have leverage on its pricing of related services and facilities used by vessels and cargo. In addition, by the Port Authority undertaking this funding it can improve contestability where private sector operators are invited to develop, manage/operate the superstructure i.e., terminals and other cargo handling facilities and services. Development of the Port of Takoradi

The following are listed as PPP opportunities for further development and implementation: Breakwater Construction and Dredging of Port Entrance Channel and Berths alongside, Bulk ore terminals’ superstructures and operations, Oil and Gas Berth (depending on GNPC / Petroleum Authority plans for this sector of port development), Oil services’ terminals – development and operations, Utilities services – developments and operations to deliver utilities for operations e.g. fresh water, secured and sustained electricity, waste management, etc., Container Terminal, Transit Cargo Sheds – import and export, Cocoa Sheds, Truck Parks with Vehicle Appointment Schemes, Ancillary supplies and services, Development of the Port of Takoradi

Marine Works: Phase 1 ▫ Dredging access Channels to the new mineral ore jetty to 14m+ ▫ Construct new Ore jetty & Equip ▫ Transfer operation of manganese, bauxite, clinker and limestone to new jetty. ▫ Develop Existing Manganese Terminal into Oil Services Terminal. Expansion Works

Marine Works: Phase 11 ▫ Dredge Access channels to, at least, 16m Berths ▫ Development New Oil Services Terminal & Container Handling terminal. ▫ Develop major port entry and exit routes

As presented in the tables in the subsequent slides, these selected opportunities would require detailed studies within their respective multi- stakeholder settings to develop viable PPP schemes within the Port of Takoradi. Development of the Port of Takoradi

SOME COST INDICATIONS FOR SUPERSTRUCTURE DEVELOPMENT ItemProject TitleDescriptionRemarks 1 Breakwater Extension, Dredging and basic port infrastructure This is to provide a safe harbour basin and access / entry channel into the harbor for larger vessels at -16m, at least. This is usually not an attractive commercial venture and may not attract PPP interests. The Port Authority / Government need to undertake these developments with public funding / concessionary loans, where applicable.  Breakwater (1200m) estimated at US$100m  Dredging >=US$65m, up to -14mCD and up to US$85m to - 16mCD 2 Bulk Ore and Oil Terminals This is to provide a new and modern bulk or handling facility for manganese, bauxite, clinker with provision for possible developments in iron ore and limestone. There is also the design for an oil and gas jetty / berthing dolphins adjacent to the ore terminals. The structures of the terminals would be designed for specific conveyor and piping systems for the products. The provision of the berthing structure (quay walls, berthing furniture, etc.) may be relatively more attractive than the breakwater and other basic port infrastructure. However, the essence of relocating the present bulk ore handling activities to a new, modern facility would present immense growth to the specific ore mining industry with all the relevant services within each sub- cluster. This could raise the private interest in the development of such infrastructure. Further, there would be the need, particularly on the part of the ore mining and/or handling companies, to invest in the appropriate superstructures – conveyor systems, pipes, storage platforms, offices and other handling equipment – with economies of scale. PPPs may be explored for such superstructures and operational investment and management.  Terminal Infrastructure – quay walls, dolphins, berthing furniture estimated US$90m  Cargo handling equipment, conveyors, loading arms, piping and installations, terminal offices and operation systems, approx. US$60m

SOME COST INDICATIONS FOR SUPERSTRUCTURE DEVELOPMENT ItemProject TitleDescriptionRemarks 3Oil Services Terminals This is envisaged to come on stream after the bulk ore terminals have been “taken out of the way” to provide space for high frequency oil services vessel calls. Such terminals would consist of heavy- duty fabrication, maintenance workshops, equipment repairs, storage platforms with access to quays and berthing structures. Other services from fresh supplies of basic daily consumables, foods, water, medical services, personnel, conservancy, communications, security, etc. would be undertaken from the oil services terminals (depending on the operational licenses / concession contracts). There are already unsolicited commercial interests for such developments. Such interests would have to be investigated and developed further into real business ventures as part of the oil and gas cluster. As long as the service vessels and crafts will continue to supply the off-shore Floating, Production, Storage and Off-loading (FPSO) Vessel and the increasing off-shore rigs / platforms. Utilities services providers e.g. Ghana Water Company, Electricity Company of Ghana, who provide supplies to the Port Authority for onward supplies to the port’s tenants. These companies may have to upgrade their systems, as major stakeholders, for the envisaged increases in utilities consumption in the Port.  Construction of quay walls, pavements, reclamation, revetments, etc. estimated US$180m, minimum.  Workshops, offices, etc. would vary depending on the management interests of the investment. Total physical structures’ investment could exceed US$100m. Consulting services would be required to identify other PPP opportunities within this business sub-cluster.

ItemProject TitleDescriptionRemarks 4 Container/Multi-purpose Terminals This is basically to provide container handling services to containerized cargo. Long term plans make room for adequate terminal space with dedicated container berths and multi- purpose berths for general cargo. The dynamics of container terminal operations and concessions would be relevant under this venture. PPP is a primary method. Oil services could also be undertaken under this venture, depending on the practical circumstances. There is a relatively higher demand for water-front oil services terminals in the medium term.  May be in excess of US$200m for physical structures including berthing furniture, storage sheds, utilities, but excluding cargo handling equipment and terminal management offices / systems. 5Transit Sheds Construction and management of cargo storage sheds, particularly for transit cargo. Reclamation space would be made available for the construction of such facilities. General cargo storage, transit cargo imports and export services support.  Up to US$15m per shed of about 150mX35mX15m excluding loading and management systems 6Cocoa ShedsConstruction of new cocoa sheds. There will be the need to demolish the present configuration of cocoa sheds and have new constructions which will support both containerized and loose beans cocoa handling. The cocoa exporting companies and entities would help in this venture. SOME COST INDICATIONS FOR SUPERSTRUCTURE DEVELOPMENT

ItemProject TitleDescriptionRemarks 7 Vehicle appointment truck parking facilities This is to regulate the flow of traffic in and out of the port area and all the respective cargo loading and off-loading sites. Such a facility may not have to be located at one place, though its management would also consider relations with the prevailing axle loading requirements, weighbridges services, Customs clearance requirements, etc. Operational licenses / concessions could be drafted to enforce compliance by all the terminals within the port. This enhances compliance to ISPS and other efficiency standards, especially for local Truckers’ Unions. 8 Ancillary supplies and services This will involve several other services which are triggered by the provision of port infrastructure, may not require large physical structures and can be run privately. E.g. inspection companies, container scanning, banking services, information technology and communication services, office supplies and consumables, security services, clearing and forwarding services, etc. Such units will be triggered by increased port activities within the cluster.  Costs of such investments would depend largely on the business’ market demands and supply interests. SOME COST INDICATIONS FOR SUPERSTRUCTURE DEVELOPMENT

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