Connecting West Africa's Ports

7/29/2019 Connecting West Africa's Ports

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Connecting West Africas [email protected]


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The Sea

The Port

The Land

The Future


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The Sea

The Port

The Land

The Future


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To capture a countrysconnectivity

UNCTAD developed the Liner ShippingConnectivity IndexLSCIusing the following 5 components:

Companies

Services

Largest shipNumber of ships

TEU


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To capture a countrysconnectivity

UNCTAD developed the Liner ShippingConnectivity IndexLSCIusing the following 5 components:

Companies

Services

Largest shipNumber of ships

TEU


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http://stats.unctad.org/lsci
http://stats.unctad.org/lscihttp://stats.unctad.org/lscihttp://stats.unctad.org/lsci


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Country Ships TEU LinerCompanies LinerServices MaxShipSize Rank LSCI

Nigeria 172 359264 24 62 4500 57 21.8

Ghana 121 239107 24 50 3681 64 17.9

Cte d'Ivoire 116 219985 17 53 3600 68 16.5

Benin 80 168838 16 30 3681 73 15.0

Senegal 72 102512 13 37 3430 78 13.6

components


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Nigeria 172 359264 24 62 4500 57 21.8

Ghana 121 239107 24 50 3681 64 17.9

Cte d'Ivoire 116 219985 17 53 3600 68 16.5

Benin 80 168838 16 30 3681 73 15.0

Senegal 72 102512 13 37 3430 78 13.6


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Nigeria 172 359264 24 62 4500 57 21.8

Ghana 121 239107 24 50 3681 64 17.9

Cte d'Ivoire 116 219985 17 53 3600 68 16.5

Benin 80 168838 16 30 3681 73 15.0

Senegal 72 102512 13 37 3430 78 13.6


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Nigeria 172 359264 24 62 4500 57 21.8

Ghana 121 239107 24 50 3681 64 17.9

Cte d'Ivoire 116 219985 17 53 3600 68 16.5

Benin 80 168838 16 30 3681 73 15.0

Senegal 72 102512 13 37 3430 78 13.6


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Nigeria 172 359264 24 62 4500 57 21.8

Ghana 121 239107 24 50 3681 64 17.9

Cte d'Ivoire 116 219985 17 53 3600 68 16.5

Benin 80 168838 16 30 3681 73 15.0

Senegal 72 102512 13 37 3430 78 13.6


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Nigeria 172 359264 24 62 4500 57 21.8

Ghana 121 239107 24 50 3681 64 17.9

Cte d'Ivoire 116 219985 17 53 3600 68 16.5

Benin 80 168838 16 30 3681 73 15.0

Senegal 72 102512 13 37 3430 78 13.6


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Why to we care about a highconnectivity?

More business for my countrys ports

More options and lower freight rates for mycountrys importers and exporters


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What explains my countrysconnectivity?

Geography (position in global networks)

My own trade (supply follows demand)

The quality and services of my own portMy wider hinterland


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What explains my countrysconnectivity?

Geography (position in global networks)

My own trade (supply follows demand)

The quality and services of my own portMy wider hinterland


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The Sea

The Port The Land

The Future


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Container port operators


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Container port operators

(2010)


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Why is port reformmore difficult in Africa?

Possible reasons

Difficult structural change(loss ofjobs in the ports)

Less vocal port users(importers, exporters, consumers)

Perhaps less interest from potential investors(smaller markets, uncertainty)

Less commercial pressure(less inter-port competition)


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Why to we care aboutport reform?

Empirically correlated with

More throughput and higher connectivity

Higher income for governmentsLower freight rates


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Dependent variable:

maritime transport costs per tonne of containerizable cargo

Wilmsmeier, Hoffmann, Sanchez, in: Porteconomics, 2006


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Dependent variable:


Better port infrastructure reduces maritime

transport costs


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Dependent variable:


Better (perceived)port efficiency reducesmaritime transport costs


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Dependent variable:


Port privatization in the exporting countryreduces maritime transport costs


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Dependent variable:


Better connectivity between ports/more competition among carriers

reduces maritime transport costs


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Dependent variable:


Trade facilitation in the importing countryreduces maritime transport costs


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Dependent variable:


Trade facilitation in the importing countryreduces maritime transport costs


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The Sea

The Port

The Land

The Future


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Seaports and transit cargo

The good news:An increasing awareness that transit trade isgood for the transit countries!

It is good for my ownports business.

It is good for my own

importers and exporters,because it helps improveshipping connectivity.


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Facilitating transit tradeand its transport

The good news: The increasing awarenessthat transit trade is good for the transitcountries!

It is good for my own ports business.

It is good for my own countrys importersand exporters, because it helps improve

shipping connectivity.

l d


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l d


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The bad news:Transit cargo stays longer in the port thannational imports and exports

The port is abusedas warehouse

Customs and other

authorities are notsufficiently preparedfor transit trade


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Need to involve all stakeholder:

Public and private sector

Users and providersTrade and Finance

= National Trade Facilitation Committee


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The Sea

The Port

The Land

The Future


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The future

The future of today is different


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Where are we heading?


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Liner shipping networks

Seek to benefit fromcompetition andeconomies of scale

Avoid unnecessaryrestrictions


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Port reform

Strengthen theprivate sector

Strengthen thepublic sector


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Inland connections

Infrastructureis important, butalso:

StrengthenCollaboration

Strengthen

Competition

M i t fi t d


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More income to finance tradefacilitation

-> Better trade facilitation

-> More Trade-> More income to finance trade

facilitation


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Lower Transport Costs

-> More trade

-> Economies of scale-> Lower Transport Costs

B tt i


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Better services

-> More trade

-> More income tofinance infrastructure

-> Better services


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Better connectivity

-> More competition

-> Lower freights

-> More trade

-> Better connectivity


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The Sea

The Port

The Land

Globalized production of


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8. Insurance services (P&I)

10. Container terminal operators

9. Seafarers

6. Financing

7. Classification

1.Building

5.Scrapping

2.Owning

3.Registration

4.Operation

Globalized production of"maritime transport"



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9. Seafarers

6. Financing

7. Classification

1.Building

5.Scrapping

2.Owning

3.Registration

4.Operation


Korea and China74.1%



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9. Seafarers

6. Financing

7. Classification

1.Building

5.Scrapping

2.Owning

3.Registration

4.Operation


Greece, Japan:32%



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9. Seafarers

6. Financing

7. Classification

1.Building

5.Scrapping

2.Owning

3.Registration

4.Operation


Panam, Liberia,Marshall Islands:

41%



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9. Seafarers

6. Financing

7. Classification

1.Building

5.Scrapping

2.Owning

3.Registration

4.Operation


Denmark andSwitzerland

23%



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9. Seafarers

6. Financing

7. Classification

1.Building

5.Scrapping

2.Owning

3.Registration

4.Operation


India,Bangladesh,

China, Pakistan94%



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9. Seafarers

6. Financing

7. Classification

1.Building

5.Scrapping

2.Owning

3.Registration

4.Operation


Services:UK, Scandinavia

4: Globalized production of


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9. Seafarers

6. Financing

7. Classification

1.Building

5.Scrapping

2.Owning

3.Registration

4.Operation

4: Globalized production of"maritime transport"

Philippines,Indonesia,



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9. Seafarers

6. Financing

7. Classification

1.Building

5.Scrapping

2.Owning

3.Registration

4.Operation


Hong Kong,Netherlands,

Singapore, UAE:46%

Documents

Connecting West Africa's Ports