The port of Walvis Bay and Namport

Namibian Ports Authority

“Ports of Opportunity for Regional Growth”

A Presentation to the Delegation from the

NAMIBIAN LOGISTICS HUB FORUM/TRANSPORT SIG

By Mr I Hanabeb

Acting Executive : Port Operations

Walvis Bay – 04 December 2014

CONTENTS

1. Mandate and Structure

2. Link to National Strategy

3. Growth

4. Ports and Hinterland Links

5. Successes

6. Major Projects

7. Challenges

8. Competition

• Body Corporate established by Act of Parliament

• Falls under ambit of State-Owned Enterprises Governance Act

• State-owned Enterprise in the Transport Sector (Maritime Sub-Sector)

• Ministry of Works and Transport is portfolio Ministry

• Board of Directors comprises 5 independent non-executive members

• Key objects

• Manage and exercise control over operation of ports, lighthouses, and other navigation aids in Namibia and territorial waters

• Provide facilities / services related to a port

CHIEF EXECUTIVE OFFICER

PORT

AUTHORITY

Port Engineering

Projects

Marine Services

Risk and Security

Legal

PORT

OPERATIONS

Lüderitz Port Operations

Walvis Bay Port Operations

Commercial

Organisational Performance & Strategy

Property

Corporate Communications

HUMAN

RESOURCES

HR Services

Employee Relations

Organisational Development & Training

FINANCE

Financial Services

Procurement

Management Accounting

Reporting and Compliance

ICT

Business Applications

Infrastructure

Business Processes

Internal

Audit

Company

Secretarial

Services

DO 5.1 (Public Infrastructure) : By 2017, Namibia

National

Imperatives

shall have a well-functioning, high quality transport infrastructure connected to major local

and regional markets as well as linked to the Port of Walvis Bay: 70% of rail

National

Imperativesway network to comply with SADC axle load recommendation of 18.5 tonnes

DO 6 (Logistics) : By 2017, the volume in cargo handling and rail-transported cargo is double

that of 2012, and the Port of Walvis Bay has become the preferred African West Coast port

and logistics corridor for southern and central African logistics operations

TRANSPORT MARITIME SUB-SECTOR SECTORAL EXECUTION PLAN

Namport Strategy

National

Imperatives

A prosperous and industrialised Namibia, developed by her human resources, enjoying peace, harmony and political stability

Fourth NATIONAL

DEVELOPMENT PLAN

DO 5.1 (Public Infrastructure) : By 2017, Namibia shall have a well-functioning, high quality

transport infrastructure connected to major local and regional markets as well as linked to

the Port of Walvis Bay: 70% of railway network to comply with SADC axle load

recommendation of 18.5 tonnes




NDP 4 GOALS

DO 6 (Logistics) : By 2017, the volume in cargohandling and rail-transported cargo is doublethat of 2012, and the Port of Walvis Bay hasbecome the preferred African West Coast portand logistics corridor for southern and centralAfrican logistics operations


transport infrastructure connected to major local and regional markets as well as linked to the

Port of Walvis Bay: 70% of railway network to comply with SADC axle load recommendation of

18.5 tonnes




• New Container Terminal

• Walvis Bay SADC Gateway

• Luderitz Deep Water Port Area Angra Point

• NAVIS TOS

• Port Community System

• Cargo Ops and Seafarer Training

• Ship Repair

• Waterfront

• Car Terminal

• Bulk Terminal SADC Gateway

• Deep water port area Luderitz

Infrastructure

Capacity

Creation

Walvis Bay

Infrastructure

Development

Port

Automation

Port

Capacity

Building

Port

PPP

Promotion


transport infrastructure connected to major local and regional markets as well as linked to

the Port of Walvis Bay: 70% of railway network to comply with SADC axle load

recommendation of 18.5 tonnes




-

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

4 000 000

Total cargo containerised

Total cargo in bulk / break-bulk

TEU growth forecast2025

1 Million

TEUs

2045

3 Million

TEUs

Containers contribute 41%

of Total Revenue

WALVIS BAY CORRIDORS

• EXISTING Trans-Kalahari Walvis-Ndola-Lubumbashi Trans-Cunene

• NEW / UPGRADED

• Road Swakopmund – Henties Bay – Uis – Kamanjab

• To be upgraded to Bitumen standard. Will link to tarred roads Kamanjab – Oshikango.• Alternative to Trans-Cunene Corridor (saving of 90 km)

• Road behind Dunes Walvis Bay – Swakopmund

• To be upgraded to bitumen – includes passing lane and bridge over Swakop River.• Links future industrial area behind the Dunes with the port and Hinterland

• New Logistics Hubs : 1 in the North; and 1 in the East (Gobabis)

• Trans-Kalahari Railway Line

Intermodal Links

Ports Hinterland

• Bilateral agreement Botswana and Namibia signed March 2014

• Namport will develop a coal terminal at SADC Gateway Terminal and award a concession to the TKR developer

• Government appointed project office will enforce the agreement

• Estimated 65 Million Tons of Botswana coal through new Coal Terminal per annum

• Biggest importers of coal will be China & India

Construction will take 5 to 7 years

Commissioning by 2019 to 2021

Capital expenditure is around US$ 11 billion

Plus another US$ 30 billion in operational costs over 30 years

The TransKalahari

Railway Line

Facts & Figures

• Total Assets grew from 1.5 Billion NAD in 2008 to 2.8 Billion NAD in 2013

• Cargo Tonnage handled grew from 4.6 MT in 2008 to 6.5 MT in 2013

• TEUs handled grew from 183,000 in 2008 to 304,000 in 2013

• Vehicle Imports through Walvis Bay increased from 224,000 in 2008 to 357,000 in 2013

• Job Creation : 576 employees in 2008 increased to 829 in 2013

• Provide Dry Port land for Zambia, Zimbabwe and Botswana

• Introducing a 24/7 service to customers in certain key service areas

• Maximised existing capacity at Walvis Bay Port

• Increased TEU capacity from 250,000 to 355,000 TEUs

• Increased draft at Berths 1 to 3 from -12.8 m to -14 m

• Enabled Berths 1 to 3 to handle 4500 TEU container vessels – berth 2 x 250 m vessels at same time

• Relocated a shed on the quay to provide additional stacking pace

• Increasing future container handling capacity at Walvis Bay

• Commenced building a New Container Terminal with capacity of 750,000 TEUs p.a. with 16m draft and 600 m quay length

• Creating long-term sustainability

Extend current Port of Walvis Bay towards north – SADC Gateway (10 times bigger than current port) & create new deep water port area in Lüderitz

• Increased efficiences with ICT solutions - NAVIS TOS, SAP HCM,

SAP Procurement Systems, SAP Strategy, AIS, etc.

• First black Port Captain and Marine Manager appointed

• Females in management increased from 1 in 2008 to 8 in 2013

• First female manager appointed in Operations Department

Increased Ship Repair / Dry Docking Capacity

• Current Syncrolift (dry-dock) has lifting capacity of 2000 t

• In 2006, established floating dock with 8000 t lifting capacity in a PPP

• In 2008, second floating dock commissioned

• In 2013, third floating dock – lifting capacity of 15,000 t – commissioned

• In 2014 awarded tender to establish a

third ship repair facility in Walvis Bay

Awards and Recognition

• Old Mutual Top Performing SOE in Namibia – 2010

• Best Port Operator or Terminal in Africa Award – 2012

• Africa Ports Evolution Excellence Award – 2013

• Climbed from position 102 in 2004 to position 70 in 2014 on the Unctad Liner Shipping Connectivity Index

Port of Walvis Bay

In 2013, the port handled 6.2 million tonnes of cargo and 1,541 vessels visited the port

Medium-Term Projects – Port of Walvis Bay

NEW CONTAINER TERMINAL

(2017)

• 40 HA

• 600 m quay length,

• 750,000 TEU p.a.

• NAD 3.9 billion cost

• Cruise Terminal

• EPC Contract (Construction) commenced in May 2014

Medium-Term Projects – Port of Lüderitz

• Cold Storage Facility as a PPP Project (2015 / 2016)

• New Port Rail Network (2015)

• Increase Reefer Points to 200 (2015)

• Rehabilitation of Luderitz Boatyard (2015)

Long-Term Projects

PORT OF WALVIS BAY

SADC GATEWAY

• 1330 HA of port land

• 10,000 m of quay walls & jetties

• 30 large berths

• Coal Terminal connected to Trans-Kalahari Railway

Phase 1 : Tanker Jetty (2016)

Government Project

Phase 2 : Multi-purpose dry bulk

terminal - 30 Million tonnes p.a.

Phase 3 : Coal Terminal

5 berths – 65 million tons per annum

Illustration from: http://www.quintiq.com/industries/mining.html

Namibian portion of the Trans-Kalahari Railway Route

Commissioning 2019 to 2021

CAPEX approxUS$ 11 billion

+ another

US$ 30 billion in OPEX over 30 years

Trans-Kalahari

Railway Line

• 5 HA

• Adjacent and connected to the local authority’s waterfront development

• Feasibility Study

• Tender for Developer will be issued early 2015

Port of Walvis Bay

Waterfront and Marina

Development

• Will issue tender for Port Automation Consulting Services in 2014

• Implementation Partner to be appointed early 2015

Port Community System

Port Capacity Building Programme

• Marine Pilots

• Tugmasters

• Productivity

• Cargo MLE Operators

• Pool Cargo MLE Operators

Port of Lüderitz

In 2013, the port handled 372,068 tonnes of cargo and 823 ships visited the port

Port of Lüderitz

Medium-Term Projects

• DEVELOPMENT OF A COLD STORAGE FACILITY AS A PPP PROJECT (2015 / 2016)

• NEW PORT RAIL NETWORK (in progress)

• INCREASE REEFER POINTS TO 200

• REHABILITATION OF LUDERITZ BOATYARD (2015)

• Tender for rehabilitation will be issued within the next few months

Other Developments :

• Luderitz Corridor Initiative

• Possible Manganese Ore Exports via Heavy Duty Rail from

Hotazel in South Africa through Port of Luderitz

HotazelLuderitz

LÜDERITZ CORRIDORS

• EXISTING

• Trans-Oranje Corridor road• Rail to port not connected

• NEW / UPGRADED

• Aus – Lüderitz Railway Line – will link to Lüderitz Port Rail Network –completion September 2014

• Lüderitz Corridor (Resource Gateway) Initiative

• Possible Heavy Haul Rail Deep Water Terminal Angra Point

Intermodal Links

Ports Hinterland

NEW DEEP WATER PORT

AREA AT ANGRA POINT

PPP PROJECT

• 886 HA

• Handling of iron ore, manganese, coal, phosphate

• Heavy-haul rail connection possibly to Northern Cape (South Africa) – Hotazel manganese mines)

Phase 3

Port of Lüderitz

Long-Term Projects

DO 5.1 (Public Infrastructure) : By 2017, Namibia

National

Imperatives

shall have a well-functioning, high quality transport infrastructure connected to major local

and regional markets as well as linked to the Port of Walvis Bay: 70% of rail

National

Imperativesway network to comply with SADC axle load recommendation of 18.5 tonnes




• Lack of rail capacity

• Connectivity to efficient and sufficient high quality road infrastructure, logistics centres/dry ports

• Minimal use of ICT systems in transport and logistics chain, lack of harmonisation of systems

• Cross-border management bottlenecks

• Lack of critical skills, work permits

• Insufficient capacity - draft, quay infrastructure, port lands

• Security / Fraud

• Productivity

• Demand for fixed berthing windows

Dakar : 1,6

Dakar

Lagos-Lekki : 2,5

LekkiAbidjan

Abidjan II : 1,4

Lome LCT : 1,9

Lome Badagry

Lagos-Badagry : 2,0

Kribi: 0,8

Kribi

Main capacity increases in West Africa: 11,55 mio. teu

in East and Southern Africa: 23,9mio. teu

Tema

Tema: 0,5

Pointe-

Noire

Pointe-Noire : 0,6

Lome TTL : 0,25

Source: Drewry Maritime Advisors

Walvis Bay II : 0,7

Walvis Bay

Durban

Durban DOP: 9,6

Bagamoyo

Bagamoyo: 10

Mombasa II: 1,2

Lamu: 2,4Mombasa

Lamu

Projected water-depths between –15 m and –16 m

13.5

14

14.5

15

15.5

16

16.5

17

17.5

18

18.5

projected water-depths (m)