1. Secretary General, PMAESA
US/AFRICA Workshop on Developing sustainable Transportation Systems
26-27 August 2009
Increasing Port capacity
Jerome Ntibarekerwa,
Secretary General, PMAESA

2. CONTENTS INTRODUCTION OF PMAESA CORRIDOR PARTNERSHIP
FACTOR OF TRAFFIC GROWTH
PORT IN THE REGION :Global picture& regional picture
PORT CAPACITY AND ITS EFFICIENCY
KEY CHALLENGES IN PORT AND INLAND WATERWAYS TRANSPORT
GLOBAL CHALLENGES
CARGO HUNDLY PREFORMANCE

3. Introduction Who we are?
Port Management Association of Eastern & Southern Africa (PMAESA) is a regional grouping of ports in the eastern and southern Africa with membership composed of state representatives and private sector from:
Port Authorities
Maritime transport departments
Port Operators
Maritime regulators

4. PMAESA Member States Angola Burundi Djibouti Ethiopia Eritrea Kenya
Madagascar
Malawi
Mauritius
Mozambique
Namibia
Rwanda
Seychelles
South Africa
Sudan
Tanzania
Zambia
Zimbabwe

5. Introduction What we do
Established in 1973 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 port development by enhancing productivity and service delivery and trade facilitation;
Establish linking from ports to transport Corridors;
To assist our ports /maritime members to implement IMO conventions
Establish and maintain relations with other development partners and transport authorities for the study of matters beneficial to members

6. Ports Corridor Partnerships
PMAESA ports facilitated a volume of million tons of cargo in 2006 up from million tons in 2005, indicating 4.3% growth
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

7. Factors driving traffic growth in the PMAESA region
External Factors:
Strong GDP expansion
Integration of regional economies with Asian suppliers
Political stability
Internal factors:
Privatization of ports sector - increased investment
Improved shipping links with Asia
Increased ship size and transshipment
Terminal productivity increases
Above factors are increasing pressure on port capacity

8. Global container port capacity has reached critical levels
North Europe
80.5% / 73.2%
Eastern Europe
92% / 73%
North America
92% / 86%
South Europe
82% / 78%
Far East
109% / 105%
Middle East
98% / 89%
Central America &
Carribean
82% / 73%
Subcontinent
87% / 57%
South East Asia
108% / 91%
Africa
79% / 71%
South America
111% / 102%
Oceania
105% / 93%
Global Total
99% / 89%
Source : World Bank , SSATP

9. Port congestion regions
Courtesy of
Michel Donner,
World Bank
State of the Port Sector 2008

10. Port congestion: Global Picture
The following factors have impacted negatively on ports capacity globally:
Global container port throughput has grown substantially in the last few years
Growth in transshipment more rapid than Direct import/export
Increase in hub-and spoke distribution of containers;
Increase ship size. Over 70% ships ordered over 7000 TEUs
Empty containers represent over 20%
Lead time for delivery of STS now close to 2 years

11. Port congestion: Global Picture (cont..)
The origin of port congestion is complex to identify, is related to:
Inadequate physical capacity and insufficient productivity
Inadequate information technology systems
Cumbersome and bureaucratic cargo clearing systems
Shortage of adequate storage areas
Clogged access way to the port and saturated inland connections
Inefficient inter-modal cargo flow/ network of rail & road transport
Seasonal congestion – export commodities
Administrative slow-downs and bottle-necks

12. A regional picture
Economic growth and stability in the South East and Central Africa region
Some of our Ports strategically placed regionally.
Ongoing Improvement of road infrastructure
Transshipment cargo for Island Regional economies
Political stability

13. Responding to Port Congestion
Two main ways to address increasing problem of congestion:
Improve efficiency
Develop additional capacity

14. Tackling Congestion Along the Logistics Chain
Port of Entry
Rail Transit
Multimodal
Transfer
Road Transit
Border
Crossing
Check Points
International Transit
National Transit
Final Clearance
Mode

15. Port capacity What are the determinants of port capacity?
Vessel access
Berth access
Terminal capacity
Storage density – containers per acre
Gate capacity
Inland transport capacity
Swift modal transfers are key to intermodal operations
Ports do not typically control some of the key drivers
E.g. Peaking – periodic increases in activity
Bunching of vessels which can create inefficiencies
Since the 1990’s, governments have sought private sector involvement both for capital and operational experience
But …
In Africa some 70% of the (container) port operations are still run by the public sector

16. Tackling Congestion Along the Logistics Chain
Port
Rail
Road
Road transit
Borders
ICDs
Destination
Key players
Customs
Terminal operator
Clearing agents
Rail operator
Truck operators
Drivers
Police
ICD Operators
Firms
Issues
Volumes
Capacity
Performance
Dwell time
Delays
Truck utilization
Checkpoints
Axle load
Transit times
Time and money cost
Emphasis should be on total logistics chain
smallest capacity determines maximum capacity

17. Key challenges of our ports
Acquiring more spaces for port activities
Infrastructure development :Purchasing of new equipments
Using ICDs
Developing IT systems and free port activities
Restructuring the management model
Improving safety, security and environment protection to meet international standards

18. Challenges with Growing Demand: Key ports in the region
Key ports in the Eastern and Southern Region:
Kenya Ports Authority
Tanzania Ports Authority
South Africa , Transet NPA
Djibouti port , DP World
Sudan port Cooperation

19. Challenges with Kenya Ports Authority
The rapid increase of traffic is likely to continue
The container Dwell time is yet to be reduced
The hinterland rail connections remain inefficient
More dependence on road mode of transport with 3 axle road rule constraint for hauliers
Long documentation procedures
Inadequate capacity to handle the forecasted cargo volumes;

20. Challenges with Kenya Ports Authority (Cont)
The exploration of Oil in Lamu District
The Regional Integration expectations : EAC/COMESA Customs Union expected positive results
The Transport Sector Reforms : Concession of RVR, Rehabilitation of major roads links to other countries

21. 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

22. Challenges with Tanzania Ports Authority
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.

23. Challenges with Tanzania Ports Authority (Cont)
More investment to increase container terminals capacity and Inland Depot
Improve efficiency and productivity within the existing port infrastructure and equipment
Continue to involve private sector in port operations and concessioning which will improve port development

24. Challenges in South Africa (TRANSNET NPA)
Responding to the opportunities presented by :
Growth in global economic activity - increase inter/intra African trade
Link industrial and mining sector activity to markets
Alternate logistic & hub – South S trade
Regional economic integration – Transport corridor development
Intermodal harmonisation to improve regional supply chain and reduce logistics costs

25. 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.

26. Global Challenges : Port and Inland Waterways
Development of Hub Ports & Spoke Routes
Use of containers and shift to larger vessels led to creation of hub ports and spoke routes
Hubbing reduces transport cost and time, increases efficiency of terminals and leads to predictable schedules
Promotes transhipment, port development and competition
Traffic is dominated by large efficient container terminals
Driven by globalization – desire to serve all customers and markets
High Technology – large vessels and computerized operations systems

27. Challenges in ports and Inland waterways
Other Factors are:
Environmental
Pollution control
Waste management plant
Contingency plans, etc
Dgerdding
Sardregging etand Security
Anti-terrorism safeguards
Container security initiative
Regional and bilateral security and safety coordination
Surveillance systems

28. Challenges in management of Inland Waterways transport
Strengthening institutional capacity for management of our waterways transport ;
Harmonsation of policies , legislation and regulatory standards ;
Pollution control and prevention ;
Rehabilitation of wastewater treatment Facilities ;
Pollution risk management and safety of navigation
Community capacity building and participation

29. Challenges in the Globalization of Maritime Transport Services
Pertinent issues in PMAESA Ports
Physical limitation and constraints
Nautical Restriction – Most ports are Length & Draft restricted
Lack of Navigation aids at night
Piracy in territorial waters and at anchorage has not been eliminated
Handling Equipment and Productivity:
Few ports are well equipped with adequate gear to load/discharge Panamax & post-Panamax vessels
Geared container and conventional vessels are expensive
Productivity of Gantry cranes is consequentially low at 20 moves/hour
Poor performance due to lack of maintenance

30. Comparative Review with key PMAESA Ports
In terms of :
Cargo handling performance
Container handling performance
Transit traffic
Transshipment traffic
Port regulation model
Other safety and security arrangements

31. Cargo handling performance (DWT “000”)
2003
2004
2005
2006
2007
2008
AVG.
GROWTH RATE
DJIBOUTI
5,868
5,594
5,435
5,489
7,470
9,379
6.9%
KENYA
11,931
12,921
13,281
14,402
15,962
16,414
8.6%
MAURITIUS
5,543
5,816
5,602
5,686
7,040
7,420
8.3%
REUNION
3,435
3,891
3,765
3,947
4,214
4,286
9.1%
S. AFRICA
171,621
168,751
173,555
179,984
183,353
185,079
9.5%
TANZANIA
5,481
5,416
6,864
7,291
7,427
7,421
8.9%
Note: Figures shown are in calendar year
Source: PMAESA

32. Cargo handling (cont)
Ports in South Africa handle more cargo than other in the region
They are followed by Mombasa, Dar Es Salaam,Djibouti , sudan and Mauritius

33. Container handling PORT T E U s ANNUAL GROWTH 2005 2006 2007 2008 VOL%
DURBAN
1,899,065
2,198,600
2,479,232
2,642,165
162,933
7.4
CAPE TOWN
690,895
782,868
764,005
767,501
3,496
0.4
MOMBASA
436,671
479,355
585,367
615,733
30,366
6.3
PORT ELIZABETH
369,759
392,813
422,846
423,885
1,039
0.3
DAR ES SALAAM
287,948
256,391
333,980
373,548
39,568
15.4
DJIBOUTI
195,250
224,896
294,902
356,462
61,560
27.4
EAST LONDON
49,338
38,308
41,986
57,418
15,432
40.3
RICHARDS BAY
5,179
4,191
4,021
9,350
5,329
127.2

34. Container Handling
Durban: handling to one third of the entire region’s shares of container traffic and maintaining the high profile and dominant position in the region
East London and Mossel Bay recorded notable cargo increase of 8,2% and 10%
East Africa, Mombasa posted a modest growth of 5,2%in 2008 compare to 22.1% in 2007 (global economic impact )
Dar port with only 11.8% growth in compare to 30.3% in 2007

35. Container Handling ( cont…)
Namport, with excellent performance : from 3.6mT in 2007 to 4,9mT in 2008
Mauritius , a regional transshipment in the Eastern African Indian ocean with 5,4% growth in total traffic and 10%in container traffic

36. Thank you for your attention??
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Any Questions? ?