Recent Developments and Policy Implications for Port Modernization in

the MediterraneanVincent F. Valentine

Officer-in-Charge, Transport SectionDivision on Technology and Logistics

Parliamentary Assembly of the Mediterranean 2013

Contents

1. Overview2. Infrastructure3. Funding4. UNCTAD’s Work5. Policy Implications

1. Overview

Shipping in the Mediterranean

Source: Lloyd’s List Intelligence 28th May 2013 18.47hrs

PAM region Top 10 Container ports

Port Name 2008 2009 2010 2011

Preliminary figures for

2012Valencia 3'602'112 3'653'890 4'206'937 4'327'371 4'651'924 Port Said 3'186'589 3'300'951 3'474'792 4'272'060 4'592'465 Algeciras 3'324'310 3'042'759 2'810'242 3'602'631 4'070'791 Ambarli 2'262'086 1'836'030 2'540'353 2'697'891 2'900'233 Marsaxlokk 2'334'182 2'260'000 2'370'729 2'360'489 2'537'526 Gioia Tauro 3'467'772 2'857'440 2'851'261 2'304'982 2'477'856 Tangier 919'360 1'222'000 2'058'430 2'083'000 2'239'225 Barcelona 2'569'550 1'800'213 1'945'735 2'033'549 2'186'065 Genoa 1'766'605 1'533'627 1'758'858 1'847'102 1'985'635 Piraeus 433'582 664'895 878'083 1'680'133 1'806'143

Source: UNCTAD Estimates (2013)

Valencia

Source: Lloyd’s List Intelligence 28th May 2013 18.57hrs

PAM region - Port Throughput

Source: UNCTAD (2013) Review of Maritime Transport Forthcoming

UN Country 2008 2009 2010 2011Preliminary

figures for 2012Spain 10'728'506 9'653'300 10'209'527 11'375'949 12'427'107 Italy 10'530'214 9'532'462 9'787'403 9'529'351 10'179'439 Egypt 6'074'845 6'219'450 6'673'416 7'699'515 8'276'978 Turkey 5'218'316 4'521'713 5'574'018 5'990'103 6'439'361 Malta 2'407'332 2'323'941 2'450'665 2'444'981 2'628'355 Israel 2'089'900 2'033'000 2'281'552 2'394'000 2'623'087 Morocco 919'360 1'222'000 2'058'430 2'083'000 2'239'225 Greece 672'522 935'076 1'165'185 1'973'864 2'121'904 Portugal 1'297'402 1'233'482 1'622'247 1'758'167 1'962'035 France 847'651 882'580 953'435 944'674 1'062'408 Lebanon 861'931 994'601 949'155 1'034'249 882'922 Syrian Arab Republic 610'607 685'299 649'005 685'998 737'448 Jordan 582'515 674'525 619'000 654'283 703'354 Romania 1'380'935 594'299 556'694 662'796 684'059 Slovenia 353'880 343'165 476'731 589'314 570'744 Tunisia 424'780 418'884 466'398 492'983 529'956 Cyprus 416'970 353'913 349'357 360'652 387'701 Algeria 225'140 250'095 279'785 295'733 317'913 Libyan Arab Jamahiriya 174'827 158'988 184'585 195'106 209'739 Bulgaria 203'253 136'444 142'611 150'740 162'045 Croatia 168'761 130'740 137'048 144'860 155'724 Albania 46'798 68'780 86'875 91'827 98'714 Grand Total 46'236'445 43'366'737 47'673'121 51'552'144 55'400'218

2. Infrastructure

Parameter UnitSurface

(ha)Quay (km)

Berths (#)

STS (MHC)

STS (Gantries)

Capacity (2011)*

Throughput (2011)*

Utilization rate

West (Europe) Med 1,106 32 105 29 207 32 21 68%Adriatic 215 5 19 5 33 4 2 59%Greece & Turkey 421 15 64 64 63 13 8 62%Levant 543 13 50 9 94 14 11 80%North Africa 80 2 6 1 16 3 2 67%Grand total 1'259 67 244 108 413 65 45 68%* millions

Utilization rate and Growth

Parameter UnitSurface

(ha)Quay (km)

Berths (#)

STS (MHC)

STS (Gantries)

Capacity (new)

Capacity (2012)

Capacity (2021) Growth

West (Europe) Med 500 11.4 36 1 94 14.1 34 44.7 31%Adriatic 59 1.9 7 1 15 1.8 4 5.6 47%Greece & Turkey 254 6.9 32 -4 78 11.4 14 24.8 82%Levant 290 7.7 27 -2 73 12.5 14 24.4 74%North Africa 136 2.8 7 0 28 4.8 3 7.8 160%Grand total 1'238 31 109 -4 288 45 69 107 56%

Source: UNCTAD derived from Dynamar (2013) Container Throughput and Terminal Capacity in the Mediterranean

STS - Ship to ShoreMHC - Mobile Harbour Cranes

PAM Region - TEU Capacity Growth Forecast

Western (Europe)Mediterranean

31%

North Africa 160%

Adriatic47%

Levant74%

Greece & Turkey82%

Source: Dynamar (2013) Container Throughput and Terminal Capacity in the Mediterranean

Future utilization

• Mediterranean terminal capacity is set to grow from 69 million TEU in 2011 to 113 million TEU by 2021, an increase of 66%.*

• Volumes during the same period are expected to increase by 83% from 45.1 million TEU in 2011 to 82.7 million in 2021 pushing utilization average rates to 73%.

Source: Dynamar (2013) Container Throughput and Terminal Capacity in the Mediterranean

*including Black Sea Ports

Future Capacity Variations by sub-region(based upon 75% utilization)

Source: Dynamar (2013) Container Throughput and Terminal Capacity in the Mediterranean

N.B. North Africa based on Tangier Med port

Maximum vessel size

TEU

Vessels

Services

Companies

70

80

90

100

110

120

130

140

150

160

170

2004 2005 2006 2007 2008 2009 2010

Average (159 countries)Average (159 countries)

Trends

Source: UNCTAD Liner Shipping Connectivity Index – RMT various years

3. Funding

Sources of International and Regional FundingTotal lending* Infrastructure

lendingTransport Sector

lending ***Transportation Sector Share

European Investment Bank$57.6 billion (EUR 44.8 billion)

$13 billion (EUR 10.1 billion)

23%

Asian Development Bank $21.6 billion $5 billion 25%International Bank for Reconstruction and development /International Development Assn.

$35.3 billion $4.4 billion 13%

International Finance Corporation

$15.5 billion $1.5 billion

Inter American Development Bank

$11.4 billion $1.7 Billion 15%

European Bank for Reconstruction and Development

$7.7 billion (EUR 6 billion)

$1.6 billion (EUR 1,3 billion)

21%

African Development Bank$8.8 billion (UA 5.7 billion)

$2.4 billion ** (UA 1.57 billion)

$1.5 billion (UA 1 billion)

63%

* For 2012** For 2011

Source: Compiled by UNCTAD secretariat from various annual accounts 2012

*** May include other sectors e.g. communication or environment

Infrastructure Investment FundsFund Firm Size Region

Global Infrastructure Partners II Global Infrastructure Partners 8,250 Global

Global Infrastructure Partners Global Infrastructure Partners 5,640 Global

Energy Capital Partners II Energy Capital Partners 4,335 North America

EIG Energy Fund XV EIG Global Energy Partners 4,121 Global

Alinda Infrastructure Fund II Alinda Capital Partners 4,097 North America, Europe

Morgan Stanley Infrastructure Partners Morgan Stanley Infrastructure 4,000 Global

Citi Infrastructure Partners Citi Infrastructure Investors 3,400 OECD

ArcLight Energy Partners Fund V ArcLight Capital Partners 3,310 North America, Europe

GS Infrastructure Partners II GS Infrastructure Investment Group 3,100 North America, Europe

Brookfield Americas Infrastructure Fund Brookfield Asset Management 2,655 North America, South America

Source: (Preqin, 2012) The 2012 Preqin Infrastructure Review

International Terminal Operators

Source: Drewry (2012) Global Container Terminal Operators Annual Report

4. UNCTAD’s Work

AnalysisPort Performance Research Network

Publication

Review of Maritime Transport

TransportNewsletter

Data

Port Training Programme

UNCTAD’s - Network

Portal/ Index ?

IAPH PMAESA

PMAWCA AAPA

Trade Logistics Branch, DTL/UNCTAD

AcademicJournals

Civil Society

ESPO Other Ports

Collaboration

UNCTAD Secretariat

PAM ?

JOC Port Productivity Index

Challenges

Changing Trade Patterns

CO2 Emissions

Bigger Customer

$

5. Policy Implications

Policy ImplicationsGovernments need to find funding for port

improvements (infra & superstructures) in a sustainable way so that future maintenance costs are easy to raise.

Increased attention to port benchmarking means industry will play a greater role in monitor efficiency.

Environmental concerns are fundamental to any development plan whether it be reporting, adaption or mitigation.

Main Sources

Dynamar UNCTADDrewry