STIMULATING DEVELOPMENT AND GROWTH OF PORTS ALONG THE

AFRICAN COASTLINE

John OmingoHead of Commercial Shipping

Kenya Maritime Authority

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

COVERAGE

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

INTRODUCING KMA

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

PORT GROWTH ALONG THE AFRICAN COASTLINE

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

SAFETY OF SHIPPING

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

Transport related incidences impact human life

SECURITY

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

SECURITY

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

Complex and entrenched beyond the capability of any one entity alone to effectively deal with;

Annual cost to the world economy : 7 - 12 billion US dollars (Recent World Bank Report)

Annual Piracy Surcharge in Mombasa - over US$ 200 Mil

Piracy

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

Enhanced resources in the form of naval vessels and military aircraft;

Compliance with the best management practices while sailing through piracy-infested areas;

Dealing with Piracy – Short Term measures

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

Enhancement of legislation for prosecution;

Capture, prosecution and punishment of Pirates;

Tracing of ransom money;

Confiscation of proceeds of crime derived from hijacked ships;

Criminalization of piracy under domestic laws of States;

Legislation

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

Establishment of specialized anti-piracy courts in Somalia and other States in the region;

Provision of international assistance to help make Piracy courts operational;

Ultimate Solution A stabilized Somalia with a functioning Government and adequate resources to patrol the coastal areas from which the pirates operate and into which they bring hijacked ships pending negotiations

Legislation

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

In Africa (70% - State run ports), there is great need for supportive laws and maritime practices that address port transit times in order to:

PORT EFFICIENCY AND PRODUCTIVITY

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

No accountability for delays in the flow of cargo;No standards on efficiency and quality; Ineffective consultation machinery on maritime issues;No Service level agreements – absence of competition;Shortage of professionalism across the logistics chain;

Industry Concerns

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

Maritime Service supply - AFRICA

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

Kenyan Response

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

Legislation

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

Predictable cargo clearance process and short transit times at the water/land interface;

Competitive supply of maritime transport services;

Effective interaction for better performance of the total transport logistics chain;

Outcome

ADDITIONAL PORT CAPACITY

Expand portsBut most ports are surrounded by major citiesCities 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 Green cities

Develop new portsHow long does it take to plan and develop new ports, infrastructure?

Development of new port capacity in countries like China is fast, but in Africa it is much slower

Utilize ICDs and CFSs - hub and spoke systemsBut, …How does it effect transit times and costs?

Mombasa

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

Focused attention on rail development - cleaner and greener;Improved pipeline infrastructure to keep tankers off the roads;Enhanced road infrastructure for cargo exit from the port;

LEGISLATION THAT STIMULATES GROWTH OF PORTS ALONG THE AFRICAN COASTLINE

CONCLUSIONAdopt a total logistics chain approach stimulate port growth. Overland systems with appropriate intermodal facilities:

–Alleviates port congestion problems–Facilitates growth in cargo volumes;–Provides great competitive advantage to a port;

Enhance customs and other agency processes within ports and along inland transport corridor;

Utilize effective key performance indicators–Monitoring reliability, efficiency, costs and of performance

Otherwise ‘Complex port problems in Africa will have simple, easy to understand wrong answers!!’

END – THANK YOU

The Presentation can be downloaded from:www.kma.go.ke

or email :

jomingo@kma.go.ke