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Ports and Corridor Performance
Charles KunakaRegional Coordinator – East and Southern Africa
Sub-Saharan Africa Transport Policy Program (SSATP)
Outline
Global perspectiveTackling congestion
Ports Other system components
Corridor performance measurementConclusions
Ports are important
Ports in developing countries: represent a key asset for economic development serve landlocked countries – key components of regional trade
corridors play an important role as interface between sea and land
transport systems Inefficiencies impact trade competitiveness
Congestion at ports an increasing problem affects shipping schedules
contributes to further congestion
Constraints to capacity expansion: Lack of scope to increase capacity Weak inland transport links
Global container port capacity has reached critical levels
North America92% / 86%
Central America &Carribean82% / 73%
South America111% / 102%
Africa79% / 71%
South Europe82% / 78%
North Europe80.5% / 73.2%
Middle East98% / 89%
South East Asia108% / 91%
Oceania105% / 93%
Subcontinent87% / 57%
Far East109% / 105%
Eastern Europe92% / 73%
Key:Based on Confirmed plans / Included unconfirmed expansionsSource: Annual review of global container terminal operators – 2005 (Drewry) (Courtesy: M Donner WB)
Global Total99% / 89%
Factors driving growth
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
Port congestion regions
Courtesy of Michel Donner, World Bank
Responding to Port Congestion
Two main ways to address increasing problem of congestion: Improve efficiency Develop additional capacity
Port of Entry
Rail Transit
MultimodalTransfer Road
TransitBorder
CrossingRoad
Transit
Check Points
International Transit National Transit
Final Clearance
Mode Port Rail Road Road transit Borders ICDs Destination
Key players
Customs
Terminal operator
Clearing agents
Rail operator
Truck operators
Drivers
Police
Customs
Clearing agents
ICD Operators
Customs
Firms
Issues Volumes
Capacity
Performance
Dwell time
Volumes
Performance
Delays
Delays
Truck utilization
Delays
Checkpoints
Axle load
Transit times
Delays
Dwell time Time and money cost
Tackling Congestion Along the Logistics Chain
•Emphasis should be on total logistics chain•smallest capacity determines maximum capacity
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
PPP success stories (Source: Ocean Shipping Consultants - AICD)
Africa : performance and PPP arrangements
Port avg moves/hour operator equipmentAbidjan 20 ppp gantriesDar es Salaam 20 ppp gantriesDouala 20 ppp gantriesToamasina 18 ppp mobile cr.Djibouti 17 ppp gantriesDurban 15 public gantriesTema 14 ppp gantriesElizabeth 13 public gantriesApapa 12 recent ppp gantriesCapetown 12 public gantriesMombasa 10 public gantriesDakar 10 recent ppp mobile cr.Maputo 10 ppp gantriesBeira 9 ppp gantriesPort Sudan 8 public gantriesWalvis Bay 8 public ship's gearEast London 8 public ship's gearLuanda 8 recent ppp ship's gearMatadi 7 public ship's gearPointe Noire 7 public ship's gear
Dwell Time
Traffic Country July August September October Average
Local Kenya 13.2 14.0 14.3 13.3 13.7
Transit
Burundi 36.5 47.3 15.1 21.5 30.1
Congo 11.6 11.8 10.2 11.1 11.2
Malawi 18.0 20.0 19.0 19.0
Rwanda 12.4 13.9 14.5 13.5 13.6
Somalia 12.3 12.6 11.7 11.5 12.0
Sudan 15.3 12.8 16.0 18.0 15.5
Tanzania 10.9 15.4 10.2 12.7 12.3
Uganda 14.3 14.1 14.2 14.3 14.2
Zambia 20.0 20.0
Dwell times vary by country of destination Dwell time is a critical factor influencing port capacity Container dwell time in ports in East Africa is the equivalent of at
least 20% of sailing from the Far East!
Dwell times and corridor transit time
Northern Corridor Transit Time - Road
Days Uganda Rwanda
Indicator Average St. Dev. Average St. Dev.
Port Dwell Time 12.5 8.4 13.0 9.2
Land Transport 7.5 6.3 10.0 5.4
Total Transit Time 21.3 10.6 23.5 10.4
Northern Corridor Transit Time - Rail
DestinationICD
Containers
Port time Rail time Total time
Avg. St. Dev. Avg. St. Dev. Avg. St. Dev.
Kisumu 240 15.82 12.14 11.58 4.84 28.09 14.21
Malaba 615 22.78 13.18 13.45 6.37 37.35 15.39
Dwell time is a large proportion of total transit time Overland transit is slow - system has to be improved as
improvements are made within the port area
Developing additional capacity Increase port efficiency
Bad ports are the equivalent of 60% further away from markets for the average country!
Does the port organization and equipment match rated capacity?
Expand ports But most ports are surrounded by major cities
Cities may benefit from ports, but Ports may also have a negative influence on cities such traffic congestion, air and noise pollution and security issues
Open land next to ports is not readily available Increasing trend towards Greenfield sites
Develop new ports How long does it take to plan and develop new ports,
infrastructure? Development of new port capacity in countries like
China is fast, but in other regions it is much slower Utilize ICDs Use hub and spoke systems But, …
What effect do the last two have on transit times?
Dar es Salaam
Maputo
Mombasa
Northern Corridor – Impact of Transit Yards on Transit Times
Traffic passing through ICDs takes longer to be delivered
Impact of routing through Transit Yard in Mombasa
604197 316
109
4,987
815
0.0
3.0
6.0
9.0
12.0
15.0
18.0
Congo direct Congo throughtransit yard
Rwanda direct Rwandathrough transit
yard
Uganda direct Uganda throughtransit yard
Fro
m P
ort
to
Ug
an
dan
bo
rder
0
1000
2000
3000
4000
5000
6000
Nu
mb
er
of
ob
serv
ati
on
s
Routing through a transit yard has limited impact on the reduction of the port dwell time
Net result is an increase in the inland transport time, ranging from 6 days for Uganda containers to 11 days for Rwanda containers
Main beneficiaries: road transport companies, their more efficient/recent trucks operating with faster turnaround times by avoiding the delays at the port, and inland, at the ICDs.
Hub and spoke systems
Can bring cost advantages cf multi-call systems
But in West Africa: Not all ports suited to play
hub role – due to draft and vessel size restrictions
Hub-and-spoke found to benefit only hub while increasing costs at other ports
transit times would increase at other ports
greater benefit would come from market liberalization (eg abolition of cargo reservation regimes)
Source: G. Palsson (1998), SSATP Working Paper 31
Other corridor system components
Constrictions can be identified Integration of Port and customs systems Railways and road transporters increasingly use
tracking systems Check points along corridors add to transit times Need to enforce axle loads while minimizing
delays Important to define core set of corridor
performance indicators
Corridor Performance Indicators
Volume
Time Price Quality
Corridor Total transit
Total transit time
Total price
Country Border counts
Border crossing delays, etc.
Road network, Customs fraud, etc.
Modes Nodes
Port traffic, rail activity, etc.
Port dwell time
Tariffs Fleet (rail, road), annual mileage, etc..
Conclusions Important to adopt a total logistics chain approach to
minimize transferring problems to a different location Overland systems with appropriate intermodal facilities:
Can contribute to addressing port congestion problems Improvements provide flexibility to shippers on port selection Can compete with coastal shipping services
Enhance customs and other agency processes within ports and along corridor
Utilize corridor-wide as well as component performance indicators Monitor reliability of performance – can have a significant impact
on costs Otherwise Grosman’s misquote becomes relevant:
Complex problems have simple, easy to understand wrong answers!!
The SSATP
35 Countries
7 RECS
AU/NEPAD, UNECA, AfDB
Where the SSATP is working
END – THANK YOU
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