1. Trade Logistics Branch
IAPH Africa Regional Conference September, 2018 Abuja, Nigeria “African Ports and Hinterland Connectivity”
Liner shipping connectivity and the role of the hinterland
Hassiba Benamara
Transport Section
Trade Logistics Branch

2. Outline An overview of Africa’s maritime trade and ports
Shipping connectivity and transport costs
UNCTAD Liner Shipping Connectivity Index (LSCI)
Connecting the sea and landside

3. World seaborne trade by region, 2017
UNCTAD Review of Maritime Transport 2018 (forthcoming)

4. Africa’s contribution to world seaborne trade
Goods loaded: 726 MT
Goods unloaded: 500 MT
Loading: WA, NA, SA, CA, EA
Unloading: NA, WA, EA, SA, CA
UNCTAD Review of Maritime Transport 2018 (forthcoming)

5. World container port traffic, 2017
Projected to average annual growth rate 5.5% (Drewry Maritime Research, 2018)
World share to remain marginal at around 4% during the projection period
UNCTAD Review of Maritime Transport 2018 (forthcoming)

6. International transport costs
(% value of imports, all modes, ten-year average, )
Africa
UNCTAD Review of Maritime Transport 2015

7. Why the difference in transport costs?

8. Key determinants of maritime transport costs
UNCTAD Review of Maritime Transport 2015

9. Maritime transport connectivity
Geographic distance alone does not explain differences in rates
A country’s position within the global and shipping networks
Network structures (e.g., regular liner shipping services)

10. Higher liner shipping connectivity reduces trade costs
Arvis et al, 2013

11. To measure connectivity…
UNCTAD developed the Liner Shipping Connectivity Index – LSCI using the following 5 components:
#Companies (competition)
#Services (position in network)
Size of largest ship deployed (infrastructure and scale)
# Ships deployed (trade)
Capacity deployed in TEU (trade, total supply to shippers)
Source for components: MDS Transmodal

12. “Connectivity”
Per country – a “point” (159)

13. “Connectivity”
Per route – between countries (159*158/2=12561)

14. UNCTAD LSCI generated with data from MDS Transmodal - www.mdst.co.uk

15. UNCTAD LSCI generated with data from MDS Transmodal - www.mdst.co.uk

16. Liner Shipping Connectivity Index (LSCI) Africa 2018*
UNCTAD LSCI generated with data from MDS Transmodal -

17. Improved connectivity between Africa and the rest of the world Requires improved connectivity within Africa i.e. at port and hinterland connection level

18. #1 Facilitate transit
Maritime connectivity benefits from a larger hinterland
Transit facilitation in line with international standards and recommendations (UN, WCO, and WTO)
Customs cooperation, reform and modernization, transit regimes, border management
#2 Improve inland connections
Improve inland connections (infrastructure, warehousing, dry ports, trucking market structure, transport facilitation, etc.)
Promote multimodal transport and transport corridor approaches

19. #3 Cabotage restrictions
Link national, regional and inter-continental shipping services
Avoid unnecessary restrictions that cause operational inefficiencies and undermine connectivity
#4 Promote regional coordination
Ports along the same route, could plan investments jointly (they tend to serve the same lines and hinterland)
#5 Promote port competition
Inter- and intra-port competition
Continue with port reforms and modernization
#6 Leverage technology/digital solutions
Track and trace, efficient processing, automation, etc.

20. #7 Collaborative platforms
Stakeholders coordination and cooperation (TFA, IMO FAL)
Should go beyond compliance issues, and aim at all necessary reforms
#8 Address trade imbalances
Strategies to ensure availability of backhauls (e.g. capacity sharing, resource pooling, electronic platforms linking spare capacity with cargo, etc.)
Trade policies to promote complementarity of exports and imports
#9 Measure hinterland connectivity
Hinterland Connectivity Index ?
Monitor shipping and hinterland connectivity developments

21. UNCTAD Liner Shipping Connectivity Index – LSCI – http://stats. unctad

22. The Review of Maritime Transport is complemented by
On-line statistics
Maritime country profiles
Teaching and advisory services
Blogs and quarterly news

23. Thank you