PPP and Port Efficiency

Public Private Partnership And Port Efficiency: The Nigerian Experience

By

Habib Abdullahi Managing Director, Nigerian Ports Authority

At the 12th Intermodal Africa Conference & Exhibition Lagos Oriental Hotel, Lagos, Nigeria

March 2014

Contents

Introduction

Existing PPP Structures in NPA

Impacts of PPPs on Nigerian Ports

Investment Opportunities

Conclusion

2

Introduction Ports in Nigeria

Lagos Port Complex

Tin Can Island Port

Rivers Port

Delta Port

Onne Port Complex

Calabar Port

3

Prior to the Port Reforms in Nigeria, port services were characterised by :

Inadequate funding

Ineffectiveness and inefficiency

Bureaucratic bottlenecks

Multiple and uncoordinated security Agencies

Decaying Port Infrastructure

Restive dock labour

Inadequate cargo handling equipment etc

To eliminate the weaknesses, Government embarked on the port reforms of 2006 which significantly increased the level of private participation in the port sector.

Introduction Contd

4

Terminal Concessions

Joint Ventures

Management Contracts

Existing PPP Structures in NPA

5

PORTS NO. OF CONCESSIONS

Lagos Ports Complex 6 + 1 (ICD)

Tin Can Island Port Complex 4 + 1 (BOT)

Rivers Port 2

Delta Ports Complex 5

Onne Ports (FOT & FLT) 4

Calabar Port 3

Total 24 + 2

6

Terminal Concessions

ICD Inland Container Depot BOT Build, Operate & Transfer

Joint Ventures

WRECK REMOVAL CHANNEL DREDGING

7

MAIN ACTIVITY NO. OF JVs

Channel Management (LCM, BCC &

CCC) - Dredging, Surveys, Navigational

Aids, Wreck Removal e.t.c

3

Towage Services 1

Ship Building & Repair 1

Ship Waste Management All Pilotage Districts

More efficient port services

Upsurge in cargo throughput

Reduction in cargo dwell time in ports

Improved vessel turn around time

Deeper and safer navigation channels

Improved port infrastructure through rehabilitation, upgrading and greenfield developments etc

Impacts of PPPs on Nigerian Ports

8

Trend of Cargo Throughput (Mt) Excl. Crude Oil Terminals

0

10

20

30

40

50

60

70

80

90

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

29

36 37 40 41

45 46

57

64 66

77

83

77 77

PRE-CONCESSION POST CONCESSION Millions

9

2012/2013 drop in throughput attributable

mainly to:

- Global economic

recession

- Security challenges in

the Gulf of Guinea

Turn Around Time of Vessels (Days)

PRE-CONCESSION POST CONCESSION

0

2

4

6

8

10

12

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

7.01

7.91

11.3

7.89

6.44

7.4

5.31 5.6

5

6.7

5.9 6.2 6

5.2

10

On-going automation of processes like e-payment

solution will guarantee

quicker delivery

Quest to increase private participation in the

provision of towage

services is bound to

further impact turn around

time

WAFMAX Inaugural Call at Onne Port in Dec. 2013 (the result of channel dredging campaign by one of the JVs)

11

Port Infrastructure/Facility Upgrades

FLT 4 DEVELOPMENT

Before Dredging June 2005 During Piling Feb. 2006

12

1985 2013

Port Infrastructure/Facility Upgrades Contd

FLT Transformation

13

Port Infrastructure/Facility Upgrades Contd

FOT Transformation

1995 2013

14

Port Infrastructure/Facility Upgrades Contd

Calabar Port Transformation

1985 2013

15

Port Infrastructure/Facility Upgrades Contd

Warri Oil & Gas Free Port Transformation

1990s 2013

16

Channel Management;

Pilotage and Towage Services

Utilities Water & Electricity (Independent Power Project)

Information & Communication Technology (ICT)

Greenfield Port Developments

Investment Opportunities

17

Greenfield Port Developments: Deep Sea Ports

18

Deep Sea

Ports

Lekki

Agea

Ogidigben

Olokola

Badagry

Ibaka

The increased participation of the private sector has been a key ingredient in improving the fortunes of Nigerian Ports

Several areas still exist in the ports that are open to further private sector participation e.g. greenfield deep sea port developments

A subsisting Act of Parliament gives backing to PPP transactions in Nigeria. This is in addition to the political will of Government.

The Nigerian environment and its port sector in particular is thus conducive for private sector participation.

Conclusion

19

Thank you

20