1. ATHENS PROGRAMME Stijn Koshari & Tom Van der Voorde KU Leuven – Chemical Engineering

2. ATHENS PROGRAMME  Port hubs ◦ What is a port hub? ◦ Criteria for choosing a port hub ◦ Consequences of being a port hub ◦ Port hubs worldwide  Port hubs in Africa ◦ An overview ◦ Major problems ◦ Port evolution in Africa  Case study: Nigeria ◦ Competition to become West Africa’s major hub ◦ Realisations  Conclusion 2

3. ATHENS PROGRAMME ◦ What is a port hub? ◦ Port hubs worldwide ◦ Consequences of being a port hub ◦ Port hubs worldwide 3

4. ATHENS PROGRAMME 4 This Day Live. 29 April 2012. PORT HUBS

5. ATHENS PROGRAMME  Good intermodal transport possibilities  Optimal geographical location ◦ Minimal deviation ◦ Ability to serve a large number of small markets 5PORT HUBS

6. ATHENS PROGRAMME  Good intermodal transport possibilities  Optimal geographical location ◦ Minimal deviation ◦ Ability to serve a large number of small markets  Port operation & services ◦ Low cost ◦ Reliability ◦ Technological advancement ◦ Regulations and rules  Regional solidity ◦ Safety (e.g. piracy) ◦ Political stability and corruption free ◦ Natural disaster low risk zone 6PORT HUBS

7. ATHENS PROGRAMME  Increased port activity  Investments of major shipping and terminal companies  Job creation  Economic growth  Financial benefits due to taxes  Cheaper goods in port’s country  International power a 7PORT HUBS

8. ATHENS PROGRAMME  Increased port activity  Investments of major shipping and terminal companies  Job creation  Economic growth  Financial benefits due to taxes  Cheaper goods in port’s country  International power  But: social and environmental pressure 8PORT HUBS

9. ATHENS PROGRAMME 9PORT HUBS

10. ATHENS PROGRAMME 10 Wang, C. and Wang, J. 2011. PORT HUBS

11. ATHENS PROGRAMME 11 Wang, C. and Wang, J. 2011. PORT HUBS

12. ATHENS PROGRAMME ◦ An overview ◦ Major problems ◦ Port evolution in Africa 12

13. The most important African trade hubs 13 ATHENS PROGRAMME AFRICA

14. ATHENS PROGRAMME 2008 Lagos: 3-10 Mln ton Singapore: 515 Mln ton Rotterdam:421Mln ton Houston:192Mln ton 14 ATHENS PROGRAMME AFRICA

15. ATHENS PROGRAMME 15 Example CMA-CGM AFRICA

16. ATHENS PROGRAMME 16AFRICA AICD. 2009.

17. ATHENS PROGRAMME  Big imbalance 17AFRICA AICD. 2009.

18. ATHENS PROGRAMME  Big imbalance  Infrastructure and accessibility ◦ Low road and railway development and maintenance ◦ Old fashioned vehicles and vessels ◦ Low reliability ◦ Under equipped ports 18AFRICA

19. ATHENS PROGRAMME  Big imbalance  Infrastructure and accessibility ◦ Low road and railway development and maintenance ◦ Old fashioned vehicles and vessels ◦ Low reliability ◦ Under equipped ports  Capacity constraints  Larger dwell times and higer costs 19AFRICA

20. ATHENS PROGRAMME  Regional instability 20AFRICA

21. ATHENS PROGRAMME  Regional instability - corruption 21AFRICA

22. ATHENS PROGRAMME  Competition to become Africa’s biggest hub  Trend to solve some major problems 22AFRICA

23. ATHENS PROGRAMME ◦ Competition to become West Africa’s major hub ◦ Realisations 23

24. ATHENS PROGRAMME 24NIGERIA AICD. 2009.

25. ATHENS PROGRAMME  Privitization ◦ Shift from the service port system to the landlord port model ◦ Financial plans  Improvement of port accesses, both road and rail, to optimize intermodal movements 25NIGERIA

26. ATHENS PROGRAMME  Privitization ◦ Shift from the service port system to the landlord port model ◦ Financial plans  Improvement of port accesses, both road and rail, to optimize intermodal movements  Plan and develop the port infrastructure  Increase of performance to acceptable levels, reduced congestion  Port security 26NIGERIA

27. ATHENS PROGRAMME 27  Plans for new Lekki (Lagos) deep water ports NIGERIA

28. ATHENS PROGRAMME 28

29. ATHENS PROGRAMME  Although interest in port hub development, Africa’s ports lag behind other world regions  Huge effort necessary to improve efficiency, but potential rewards are compelling  Case Study: Nigeria ◦ Privatization initiatives have been a success ◦ Port performance still impeded by wider issues:  port marine and landside access  modernize customs  corruption 29CONCLUSION

30. ATHENS PROGRAMME Questions? 30

32. ATHENS PROGRAMME 32

33. ATHENS PROGRAMME 33 Wang, C. and Wang, J. 2011. EXTRA SLIDES

34. ATHENS PROGRAMME 34 ADBG. (November 2012). EXTRA SLIDES

35. ATHENS PROGRAMME 35EXTRA SLIDES

36. ATHENS PROGRAMME 36 AICD. 2009. EXTRA SLIDES