ATHENS PROGRAMME Stijn Koshari & Tom Van der Voorde KU Leuven – Chemical Engineering.

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Port hubs The African situation

Stijn Koshari & Tom Van der VoordeKU Leuven – Chemical Engineering

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Port hubs◦ What is a port hub?◦ Criteria for choosing a port hub◦ Consequences of being a port hub◦ Port hubs worldwide

Port hubs in Africa◦ An overview◦ Major problems◦ Port evolution in Africa

Case study: Nigeria◦ Competition to become West Africa’s major hub◦ Realisations

Conclusion

Contents

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Port hubs◦ What is a port hub?◦ Port hubs worldwide◦ Consequences of being a

port hub◦ Port hubs worldwide

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PORT HUBS 4

What is a port hub?

This Day Live. 29 April 2012.

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PORT HUBS 5

Good intermodal transport possibilities Optimal geographical location

◦ Minimal deviation◦ Ability to serve a large number of small markets

Criteria for choosing a port hub

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PORT HUBS 6

Good intermodal transport possibilities Optimal geographical location

◦ Minimal deviation◦ Ability to serve a large number of small markets

Port operation & services◦ Low cost◦ Reliability◦ Technological advancement◦ Regulations and rules

Regional solidity◦ Safety (e.g. piracy)◦ Political stability and corruption free◦ Natural disaster low risk zone

Criteria for choosing a port hub

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PORT HUBS 7

Increased port activity Investments of major shipping and terminal

companies Job creation Economic growth Financial benefits due to taxes Cheaper goods in port’s country International power

a

Consequences of being a port hub

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PORT HUBS 8

Increased port activity Investments of major shipping and terminal

companies Job creation Economic growth Financial benefits due to taxes Cheaper goods in port’s country International power

But: social and environmental pressure

Consequences of being a port hub

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PORT HUBS 9

Port hubs worldwide

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PORT HUBS 10

Port hubs worldwide

Wang, C. and Wang, J. 2011.

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PORT HUBS 11

Port hubs worldwide

Wang, C. and Wang, J. 2011.

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Port hubs in Africa◦ An overview◦ Major problems◦ Port evolution in Africa

The most importantAfrican trade hubs

An overview

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AFRICA 14

2008Lagos: 3-10 Mln tonSingapore: 515 Mln tonRotterdam: 421 Mln tonHouston: 192 Mln ton

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AFRICA 15

An overview

Example CMA-CGM

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AFRICA 16

An overview

AICD. 2009.

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AFRICA 17

Big imbalance

Major problems

AICD. 2009.

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AFRICA 18

Big imbalance Infrastructure and

accessibility◦ Low road and railway

development and maintenance

◦ Old fashioned vehicles and vessels

◦ Low reliability◦ Under equipped ports

Major problems

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AFRICA 19

Big imbalance Infrastructure and

accessibility◦ Low road and railway

development and maintenance

◦ Old fashioned vehicles and vessels

◦ Low reliability◦ Under equipped ports

Capacity constraints Larger dwell times and higer costs

Major problems

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AFRICA 20

Regional instability

Major problems

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AFRICA 21

Regional instability - corruption

Major problems

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AFRICA 22

Competition to become Africa’s biggest hub Trend to solve some major problems

Port evolution in Africa

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Case Study: Nigeria◦ Competition to become

West Africa’s major hub◦ Realisations

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NIGERIA 24

Competition to become West Africa’s major hub

AICD. 2009.

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NIGERIA 25

Privitization◦ Shift from the service port system to the landlord

port model◦ Financial plans

Improvement of port accesses, both road and rail, to optimize intermodal movements

Realisations

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NIGERIA 26

Privitization◦ Shift from the service port system to the landlord

port model◦ Financial plans

Improvement of port accesses, both road and rail, to optimize intermodal movements

Plan and develop the port infrastructure Increase of performance to acceptable

levels, reduced congestion Port security

Realisations

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NIGERIA 27

Realisations Plans for new Lekki

(Lagos) deep waterports

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Conclusion

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CONCLUSION 29

Although interest in port hub development, Africa’s ports lag behind other world regions

Huge effort necessary to improve efficiency, but potential rewards are compelling

Case Study: Nigeria◦ Privatization initiatives have been a success ◦ Port performance still impeded by wider issues:

port marine and landside access modernize customs corruption

Conclusion

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Thanks for your attention

Questions?

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Extra slides

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EXTRA SLIDES 33

Wang, C. and Wang, J. 2011.

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ADBG. (November 2012).

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EXTRA SLIDES 35

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AICD. 2009.