Connecting West Africa's Ports

Connecting West Africas ports
Jan.Hoffmann@UNCTAD.org
The Sea
The Port The Land

The Future
The Sea
The Port The Land

The Future
To capture a countrys connectivity

UNCTAD developed the Liner Shipping Connectivity Index LSCI using the following 5 components: Companies Services Largest ship Number of ships TEU
To capture a countrys connectivity

UNCTAD developed the Liner Shipping Connectivity Index LSCI using the following 5 components: Companies Services Largest ship Number of ships TEU
http://stats.unctad.org/lsci
Country
Ships
TEU
Liner Companies
Liner Services
Max ShipSize
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
Country
Ships
TEU
Liner Companies
Liner Services
Max ShipSize
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
Country
Ships
TEU
Liner Companies
Liner Services
Max ShipSize
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
Country
Ships
TEU
Liner Companies
Liner Services
Max ShipSize
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
Country
Ships
TEU
Liner Companies
Liner Services
Max ShipSize
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
Country
Ships
TEU
Liner Companies
Liner Services
Max ShipSize
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
Why to we care about a high connectivity?

More
business for my countrys ports More options and lower freight rates for my countrys importers and exporters
What explains my countrys connectivity?

Geography
(position in global networks) My own trade (supply follows demand) The quality and services of my own port My wider hinterland
What explains my countrys connectivity?

Geography
(position in global networks) My own trade (supply follows demand) The quality and services of my own port My wider hinterland
The Sea
The Port The Land

The Future
Container port operators
Container port operators
(2010)
Why is port reform more difficult in Africa?

Possible reasons Difficult structural change (loss of jobs 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)
Why to we care about port reform?

Empirically correlated with More throughput and higher connectivity Higher income for governments Lower freight rates
Dependent variable: maritime transport costs per tonne of containerizable cargo
Wilmsmeier, Hoffmann, Sanchez, in: Porteconomics, 2006
Better port infrastructure reduces maritime transport costs
Better (perceived) port efficiency reduces maritime transport costs
Port privatization in the exporting country reduces maritime transport costs
Better connectivity between ports/ more competition among carriers reduces maritime transport costs
Trade facilitation in the importing country reduces maritime transport costs
Trade facilitation in the importing country reduces maritime transport costs
The Sea
The Port The Land

The Future
Seaports and transit cargo

The good news: An increasing awareness that transit trade is good for the transit countries! It is good for my own ports business. It is good for my own importers and exporters, because it helps improve shipping connectivity.
Facilitating transit trade and its transport

The good news: The increasing awareness that transit trade is good for the transit countries! It is good for my own ports business. It is good for my own countrys importers and exporters, because it helps improve shipping connectivity.



The bad news: Transit cargo stays longer in the port than national imports and exports The port is abused as warehouse Customs and other authorities are not sufficiently prepared for transit trade

Need to involve all stakeholder: Public and private sector Users and providers Trade and Finance = National Trade Facilitation Committee
The Sea
The Port The Land

The Future
The future
The future of today is different
Where are we heading?
Liner shipping networks

Seek
to benefit from competition and economies of scale Avoid unnecessary restrictions
Port reform
Strengthen
the private sector Strengthen the public sector
Inland connections
Infrastructure
is important, but also: Strengthen Collaboration Strengthen Competition
More income to finance trade facilitation -> Better trade facilitation -> More Trade -> More income to finance trade facilitation
Lower Transport Costs -> More trade -> Economies of scale -> Lower Transport Costs
Better services -> More trade -> More income to finance infrastructure -> Better services
Better connectivity -> More competition -> Lower freights -> More trade -> Better connectivity
The Sea
The Port The Land
Globalized production of "maritime transport"
1. Building
2. Owning
3. Registration
4. Operation
5. Scrapping
6. Financing 7. Classification 8. Insurance services (P&I) 9. Seafarers 10. Container terminal operators

Korea and China 74.1%
1. Building
2. Owning
3. Registration
4. Operation
5. Scrapping

Greece, Japan: 32%
1. Building
2. Owning
3. Registration
4. Operation
5. Scrapping

Panam, Liberia, Marshall Islands: 41%
1. Building
2. Owning
3. Registration
4. Operation
5. Scrapping

Denmark and Switzerland 23%
1. Building
2. Owning
3. Registration
4. Operation
5. Scrapping

India, Bangladesh, China, Pakistan 94%
1. Building
2. Owning
3. Registration
4. Operation
5. Scrapping

Services: UK, Scandinavia
1. Building
2. Owning
3. Registration
4. Operation
5. Scrapping
4: Globalized production of "maritime transport"

Philippines, Indonesia,
1. Building
2. Owning
3. Registration
4. Operation
5. Scrapping

Hong Kong, Netherlands, Singapore, UAE: 46%
1. Building
2. Owning
3. Registration
4. Operation
5. Scrapping

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Connecting West Africas ports

The Port The Land

The Port The Land

To capture a countrys connectivity

To capture a countrys connectivity

Why to we care about a high connectivity?

What explains my countrys connectivity?

What explains my countrys connectivity?

The Port The Land

Container port operators

Container port operators

Why is port reform more difficult in Africa?

Why to we care about port reform?

Dependent variable: maritime transport costs per tonne of containerizable cargo

Wilmsmeier, Hoffmann, Sanchez, in: Porteconomics, 2006

Dependent variable: maritime transport costs per tonne of containerizable cargo

Better port infrastructure reduces maritime transport costs

Dependent variable: maritime transport costs per tonne of containerizable cargo

Better (perceived) port efficiency reduces maritime transport costs

Dependent variable: maritime transport costs per tonne of containerizable cargo

Port privatization in the exporting country reduces maritime transport costs

Dependent variable: maritime transport costs per tonne of containerizable cargo

Dependent variable: maritime transport costs per tonne of containerizable cargo

Trade facilitation in the importing country reduces maritime transport costs

Dependent variable: maritime transport costs per tonne of containerizable cargo

Trade facilitation in the importing country reduces maritime transport costs

The Port The Land

Seaports and transit cargo

Facilitating transit trade and its transport

Facilitating transit trade and its transport

Facilitating transit trade and its transport

Seaports and transit cargo

Seaports and transit cargo

The Port The Land

The future of today is different

Where are we heading?

Liner shipping networks

to benefit from competition and economies of scale Avoid unnecessary restrictions

the private sector Strengthen the public sector

is important, but also: Strengthen Collaboration Strengthen Competition

The Port The Land

Globalized production of "maritime transport"

Globalized production of "maritime transport"

Globalized production of "maritime transport"

Globalized production of "maritime transport"

Globalized production of "maritime transport"

Globalized production of "maritime transport"

Globalized production of "maritime transport"

4: Globalized production of "maritime transport"

Globalized production of "maritime transport"

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