A presentation by Paul Asare Ansah, communications director, Ghana Ports Authority and PMWACA Ghana delivered at the African Ports Evolution 2015 in Durban, South Africa More like this on www.transportworldafrica.co.za

1. “PORT EVOLUTION IN AFRICA”
BY
PAUL ASARE ANSAH
MARKETING & PUBLIC MANAGER
(SPECIAL ENVOY OF PMAWCA)
PORT OF TEMA

2. PMAWCA
BEST PERFORMING PORT & BEST CONTAINER TERMINAL
IN WEST & CENTRAL AFRICA (2012-2014)
PORT OF TEMA

3. SUMMARY OF PRESENTATION
I. THE HUMBLE BEGINNING OF AFRICAN PORTS
II. THE ROLE OF SHIPPING LINES IN RESHAPING AFRICAN PORTS
III. IMPACT OF PORTS PUBLIC PRIVATE PARTNERSHIP ON AFRICAN
PORTS
IV. CHALLENGES OF AFRICAN PORTS AND THE WAY FORWARD

4. THE BEGINNING OF AFRICAN PORTS
 Africa’s trade with the outside world before the C20th was
through forts and castles along the coasts from where slaves
were exchanged for foreign products
 Most of the ports in Africa were built in the early part of the
C20th with roads and rail lines connecting them to raw
materials production centres to facilitate the exploitation of
such resources as manganese, bauxite, iron ore, timber and
agro products like cocoa, coffee, groundnuts, cotton and
rubber.
 After independence, the ports were inherited and considered
as strategic national assets relying on government subvention
for maintenance and development.
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5.  Infrastructure were generally poor as they could not compete
for funding with other social infrastructure like health and
educational facilities. Many of the ports suffered long periods
of neglect and deterioration until the mid-1980s
 In the mid-1980s the ports went through structural reforms
increasing private sector participation in port operations as
part of the structural adjustment programmes implemented
with the view to transforming African economies.
 Most of the ports were rehabilitated with grants from donors
and soft loans from international financial institutions.
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6. TRENDS IN THE 1990s THAT ATTRACTED SHIPPING LINES
TO INVEST IN AFRICAN PORTS
• The growing importance Africa’s trade with China, India,
Korea, Japan, Singapore, Malaysia, etc. necessitated the
development of Asia - African routes
 The emergence of containerization necessitated action
to adapt the ports to meet the needs of container
handling
 Lack of sufficient funds for port development.
 Healthier economic growth rates averaging 3% that
fuelled growth in cargo traffic.
 Emerging signs of good governance
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7. ENTER THE SHIPPING LINES
 From the early 2000s the World Bank and the IMF guided
various governments into container terminal concession
deals with shipping lines especially the Bollore, Maersk,
MSC groups and other foreign investors.
 The ports of Abidjan, Douala, Tema, Cotonou, Lome, Dakar,
Freetown, Monrovia, Apapa, Conakry, etc., were given face
lift with modern ship to shore gantries and automation of
key operational processes during this period
 The Bollore group went further to link the ports with rail
and water ways. These include:- Douala, Abidjan, Dakar,
Bangui, and lately Cotonou.
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8. CONTAINER TERMINAL CONCESSIONS IN WEST AFRICA 2004-2010
Container Terminal Concessionaire Year
Dakar (Senegal) DP World (UAE) 2007
Conakry (Guinea) Bollore (FRANCE) 2008
Freetown (Sierra Leone) Bollore (FRANCE) 2010
Monrovia (Liberia) APM Terminals (DENMARK) 2010
Tema (Ghana)
Meridian Port Services
- BOLLORE
- APMT
- PORT AUTHORITY
2004
Lome (Togo) Bollore; MSC (SWITZERLAND) 2009
Cotonou (Benin) Bollore
2009
Apapa, Lagos (Nigeria) APM Terminals (DENMARK) 2006
Abidjan Bollore (FRANCE) 2004

9. IMPACT OF PORT
PUBLIC PRIVATE PARTNERSHIP ON
AFRICAN PORTS
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10. i. Berth occupancy (working) of the container terminal improved
from 55% in 2003 to 81% in 2014 whereas berth occupancy (not
working) reduced from 15% to 5% within the same period.
ii. Container handling improved from about 10 moves per ship hour
in 2005 to 23 moves per ship hour in 2014
iii. Container vessels time at birth decreased from 44.7hrs in 2005 to
28.6 hrs in 2014
iv. With only two terminal berths, container traffic in Tema Port
increased from 233, 377 TEUs in 2002 to 842,000 TEUs in
2013
1. IMPROVED EFFICIENCY AND PRODUCTIVITY IN CONTAINER
HANDLING : THE CASE OF TEMA PORT

11. 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
TEMA 305,868 342,882 392,761 425,408 489,147 555,009 525,694 590,147 756,899 824,238 841,989 732,382
TAKORADI 41,113 43,020 49,321 51,042 52,226 57,372 47,828 53,041 56,595 60,746 52,373 61,355
TOTAL TRAFFIC 346,981 385,902 442,082 476,450 541,373 612,381 573,522 643,188 813,494 884,984 894,362 793,737
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
TEMA PORT CONTAINER TRAFFIC IN TEUS 2000-2014

12. PROJECTED GROWTH OF CONTAINER TRAFFIC IN GHANA: 2008 -2028
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028
Year
TEUs
Optimistic Best E stimate Pessimistic

13. 2. TECHNOLOGICAL ADVANCEMENT IN AFRICAN PORTS:
THE CASE OF TEMA PORT
Port process automation:
• Automatic Ship Identification Systems
• Master Terminal Management Systems
• Deployment of ship to shore gantry cranes
• Online Vessel Berthing Booking and Stevedoring
Allocation Systems
• Enterprise Resource Planning Systems

14. • Electronic Data Interchange systems although sometimes
plagued by system failures.
• Electronic cargo tracking within and outside port
• Destination Inspection risk management of containers with
scanning equipment in almost all African Ports
• Port security with the use of OCR and CCTV cameras; turnstile
and speed stile equipment with biometric identification
• One stop center for revenue and data collection
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15. ELECTRONIC GATES: OPTICAL CHARACTER RECOGNITION SYSTEM

16. LANDLORD PORT AUTHORITIES IN AFRICA
Today the Bretton Wood institutions are leading an agenda to
position African ports as land lord ports in which:
 The port authority owns the land and infrastructure but the
infrastructure is leased to private operating companies.
 The private operating companies provide and maintain the
equipment and employ labour to handle cargo.
 Only the cost of infrastructure falls under the account of the port
authority;
 All other costs are covered by the stevedores. In many of the ports
as in Nigeria and Cote d’Ivoire marine operations have equally been
concessioned to the private sector
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17. THE PRIVATIZATION PROGRAMME IN GHANA (2001 – 2004)
1. Increased Private Sector Participation in Cargo Handling
• Licensing of 10 private stevedoring companies
• 75% of stevedoring services transferred to the private companies
• Bulk handling transferred to the private sector
• 100% of shore handling transferred to the private sector
• Six inland container depots established
• Privatization of Port Labour (Ghana Dock Labour Company)
Reduction of staff by 53%
. Establishment of a Joint Venture Container Terminal (MPS)
. Transfer of other non-core port services to the private sector

18. 1. “In most African ports, governments are still widely
involved in port management, mainly through public
landlord port authorities. At the same time, the role of
private enterprise in the sector will continue to grow”.
2. “Public service and tool ports will gradually disappear
and be transformed into landlord ports; in some cases,
fully privatized ports will emerge”.
WORLD BANK PREDICTIONS IN 2007:
PUBLIC AND PRIVATE SECTOR ROLES
AND RESPONSIBILITIES IN AFRICAN PORTS

19. 3. “For landlord ports, public bodies will retain the
ultimate ownership of assets (especially land), but will
transfer a major part of the financial and operational
risks to the private sector”.
4. “Governments will act mainly as regulators and land
developers, while private firms will assume the
responsibility for port operations”.

20. DANGEROUS TREND FOR AFRICAN PORTS
 Lack of legislative backing expose port reform activities
to excessive governmental interference and control
 Little or no involvement of port authority in the
negotiation of port concessions.
 Risk analysis and mitigation provisions are compromised
as proper due diligence is not done
 Many of the port concessions have poor compensation
and payment structures
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21. CONSEQUENCES OF THE TREND ON AFRICAN PORTS
 Private sector monopolies emerge with “footloose”.
 Port authorities become “restrained princes” incapable of
exercising monitoring and regulatory functions over the
concessionaires
 Local content and technology transfer provisions are not
respected but port authorities are unable to apply sanction for
non compliance
 Public sector interests are subordinated to the profit
maximization motive of the concessionaire. Eg:-
Escalation of cost of doing business as operators subject port
users to regular price hikes
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22.  Where agreed key performance indicators are not met
the concessionaire often got away with it.
 Competition in service delivery is stifled as almost all the
terminals belong to the same actors.
 The kind of port concessions in Africa provides the
environment for the flight of potential capital for future
development of the ports in Africa
 Concessions threaten the financial viability of national
port authorities
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23. CHALLENGES OF AFRICAN PORTS AND THE WAY FORWARD
1. INCREASE IN THE SIZES OF SHIPS CALLING AFRICA
• Ship owners operating both container and general cargo are
resorting to Larger ships to reap economies of scale.
• In the face of financial challenges, ports have to respond by
expanding their infrastructure and equipment to accommodate
these post-pannamax vessels or risk becoming feeder ports.
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24. 2.a. INCREASING PORT AND SHIPPING COST
 Larger ships and more total TEU carrying capacity
should ideally lead to economies of scale and lower
freight costs.
 In 2012, the maritime sector experienced higher freights
following the 2008/9 economic and financial crisis.
 In 2013 however, freight rates along all the shipping
routes came down with Africa recording the least
reduction

25. NORTH-SOUTH CONTAINER FREIGHT RATES IN $/TEU: 2009-2013
SOURCE: UNCTAD MARITIME TRADE REVIEW, 2014
2009 2010 2011 2012 2013
Shanghai–South America
(Santos) 2,429 2,236 1,483 1,771 1,380
Percentage Change -7.95 -33.68 19.42 -22.08
Shanghai–Australia/New Zealand
(Melbourne) 1,500 1 189 772 925 818
Percentage Change -20.73 -35.07 19.82 -11.57
Shanghai–West Africa (Lagos) 2,247 2,305 1,908 2,092 1,927
Percentage Change 2.56 -17.22 9.64 -7.87
Shanghai–South Africa (Durban) 1.495 1 481 991 1 047 805
Percentage Change -0.96 -33.09 5.65 -23.11

26. 2.b. HIGH PORT AND SHIPPING COSTS CONTINUED.
 In addition to high freight, shipping lines operating in Africa
impose extra charges that increase the cost of doing
business and unbearable conditions that defeat door to
door delivery of containers: These include:
• High Demurrage,
• Release Fees,
• Container Administration fees charged per container,
• Exorbitant Container Deposits,
• Container Cleaning fees,
• Congestion Surcharges,
• Ports Security Charges and
• Short Container Rent Free Periods for Transit Containers

27. 3. ACTUAL AND ATTEMPTED PIRACY ATTACKS IN WEST AFRICAN WATERS
Source: ICC IMB PIRACY AND ARMED ROBBERY AGAINST SHIPS ANNUAL REPORT 2014
COUNTRY 2008 2009 2010 2011 2012 2013 2014
Benin 0 1 0 20 2 0 0
Ivory
Coast 3 2 4 1 5 4 3
Ghana 7 3 0 2 2 1 4
Guinea 0 5 6 5 3 1 0
Liberia 1 0 1 0 0 0 0
Nigeria 40 29 19 10 27 31 18
Togo 1 2 0 6 15 7 2
Somalia 19 80 139 160 49 7 3
Terrorism threats following events of 9/11 have increased sensitivity
to port security globally. In Africa in particular the rise in the
incidence of piracy and armed robbery attacks heighten the feeling
of insecurity in the maritime environment.

28. 11/6/2015 Marketing Information Systems
SECURITY PATROL BOAT IN TEMA PORT

29. 4. LACK OF MULTIMODAL HINTERLAND ACCESSIBILITY
 Most of the ports in Africa are handicapped relying on
congested artery roads as the only reliable inlets and outlets
for cargo.
 As recently as 2010 only 11 countries in Africa had more
than 50% of their roads paved.
 Rail lines in Africa were built by colonial administrations
from ports to raw materials producing centers. They are
generally outmoded and inefficient.

30. PERCENTAGE OF ROADS PAVED- COUNTRY RANKING 2010-2008
African
Ranking
World
Ranking
Countries 2010 2009 2008
1 24 Mauritius 98.5 98.0 98.0
2 26 Seychelles 96.5 96.5 96.5
3 30 Egypt 92.2 89.4 86.9
4 59 Algeria 77.1 74.0 73.5
5 60 Comoros 76.5
6 61 Tunisia 76.0 75.2
7 64 Morocco 70.4 70.3
8 68 Cape Verde 69.0
9 69 Sao Tome and Principe 68.1
10 79 Libya 57.2
11 84 Lesotho 53.0
Source: World Bank report 2013

31. 5. ENVIRONMENTAL CONCERNS
UNCTAD MARITIME TRADE REVIEW 2014
Types of pollution occurring in ports
GAS EMISSIONS
CARGO
OPERATIONS ACCIDENTS
Cars Light Oil Spill
Trucks Dust Cargo Spill
Railways Noise Sewage And Sludge
Ships Vibration
Ballast Water
Contaminants
Cranes Wash Off
Port Equipment
Office (Cooling & Heating)

32. 6. DELAYS IN CARGO CLEARANCE IN AFRICAN PORTS
• Delays in the transfer of containers from the terminals to the Inland
Clearance Depots
• Delays by Ports’ inability to locate containers at the terminals
• EDI system failures where EDI messages take a long time before
getting to the recipient.
• Delays by legislative and administrative impediments
• Delays by the activities of multiple regulatory agencies
• Delays by cumbersome customs clearance processes
As a result of these delays manufacturing companies are unable to
meet production targets and also have to pay high rent and
demurrage on goods imported.

33. 1. CONTROLLING PORT AND SHIPPING COSTS:
THE GHANAIAN EXAMPLE
• In some countries government regulatory instruments have been
introduced to compel port service providers negotiate their rates
with shippers representatives to forestall rampant price increases.
• In Ghana for instance Regulation LI 2190 of 2012 requires that
service providers in the shipping industry submit the structure of
their rates and changes by October every year to Ghana Shippers’
Authority to allow for negotiations so that the agreed rates could
take effect in January the following year.
• Unlike other ports where service providers subject port users to
rampant prices increases, all service providers engaged by the
port to offer services must apply tariffs managed by the Port Auth

34.  Shippers are required to provide advance cargo information
on shipments to enable pre-clearance documentation to
commence before the arrival of the vessel to prevent the
payment of high rent charges and demurrage.
 The clearing processes are being simplified to eliminate
unnecessary bureaucracies. Customs has now introduced
the Pre Arrival Assessment Reporting (PAAR) system.
 Legal instruments of the ports and regulatory agencies
are being reviewed to remove repetitive and time
wasting procedures that increase the cost of doing
business.
2. CONTROLLING DELAYS

35. • In recent years ship owners have come under increasing
pressure to increase energy efficiency and reduce
greenhouse gas emissions from international shipping.
• Ports are also under pressure to provide facilities to minimize
emissions, cargo operations related pollution and accidental
pollution.
4. INCREASING THE USE OF TECHNOLOGY.
• Automation must not be seen as alternative to dock labour in
African Ports
3. CONTROLLING MARINE POLLUTION

36. 5. TRADE FACILITATION IN WEST AFRICA
Initiatives funded by West African development partners
Include:
• Transit Corridor Roads Rehabilitation,
• Border Management Reforms-Joint Border Posts and Alignment
of cross border customs working hours
• ECOWAS Inter State Road Transit Scheme (ISRT)
• ECOWAS Axle Load Management Infrastructure
• Transit Parks and Rest Stops development,
• Observatory for Abnormal Practices on the Transit Corridors

37. 6. DEVELOPMENT OF ALTERNATIVE FUNDING SCHEMES
I. BOND FINANCING
The issuing of bonds is seen as a favourable means to raise revenue
for new infrastructure projects. Raising development funding
through the issuing of bonds helps ports to shore up cash flow and
address liquidity constraints without relying on public funds.
- United States - $12 billion worth of bonds
- India, tax-free bonds of $769 million for port projects .
- Peru, $110 million of bonds
Port revenue bonds are retired through revenues, user fees and
tariff charges paid principally by port customers.

38. II. THE CHINESE FACTOR IN PORT FINANCING
• In the United Republic of Tanzania, an agreement with the
Government of China to build a $10 billion–$11 billion new
port the historical port city of Bagamoyo was announced in
2013.
• The new port will be the biggest in the whole of Africa and
handle some 20 million TEUs a year when complete.
• 34-kilometre road joining Bagamoyo to Mlandizi and
• 65 kilometres of railway Connecting Bagamoyo to the
Tanzania–Zambia Railway and the Central Railway.
• In early 2013, a $933-million contract was signed between
the Abidjan Port Authority and China Harbour Engineering
Company Limited.

39. III. ESTABLISHMENT OF PORT DEVELOPMENT FUNDS
 African governments must begin to explore the establishment
of port infrastructure development fund either at the country
or sub-regional level to raise capital for future development
needs of the ports as done in the United States, European
Union and other advanced countries.
 Specific fund can also be set up by respective countries to fund
specific development projects as done by the UK for the
development of the wind energy for the port industry.

40. IV. REGIONAL MARITIME BANKS
 The establishment of the Regional Maritime Bank as
proposed by Maritime Organization of West and Central
Africa with its headquarters in Abuja is long overdue.
 Emergence of developing-country banks like the proposed
BRICS (Brazil, Russia, India, China and South Africa) bank
offers a great potential to raise funding to meet the
significant needs for investment in maritime transport
infrastructure

41. 7. OVERCOMING CAPACITY LIMITATION: TEMA HYBRID PORT
• Limited dredging of port basin to 10 meters @ US$ 1.7 Million
• Construction of Bulk Teminal $122 Million
• Construction of a new 800 TEU refer terminal and Transit Teminal
• US$ 2.5 Billion For Tema Port Expansion and access road upgrade
(Joint venture with APMT and Bollore group)
• US$ 500 Million For Takoradi Port Transformation from
Dependency on Export of Ore to a modern oil and gas hub
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42. 11/6/2015 Marketing Information Systems
CONSTRUCTION OF BULK CARGO HANDLING JETTY – TEMA PORT

43. PORT OF TEMA CURRENTLY

44. DATA SHEET FOR TERMINAL 3 DEVELOPMENT PROJECT
44
TOTAL THROUGHPUT CAPACITY
3.5 MILLION TEU
Entrance Channel & Harbour Basin
Dredged to accommodate
vessels with 16 Meters draft

45. Upgrade of Access Roads to Tema
Port

46. THE TEMA PORT EXPRESSWAY - UNDER A PPP ARRANGEMENT

47. Hamale Paga
Tamale
Yendi
Sawla
Fufulusu
Techiman
Sunyani
Nyinahin
Awaso
Takoradi
Accra
Tema
Kade
Tarkwa
Aflao
Omape
Akosombo
Dunkwa
Kumasi
Prestea
G u l f o f G u i n e a
DEVELOPMENT OF RAIL CONNECTIVITY TO
THE HINTERLAND WITH PORT FACILITIES FOR RAIL
TRANSPORT OF CONTAINERS AND GENERAL CARGO IN GHANA.

48. THE OLD PORT OF TAKORADI
THE NEW PORT OF TAKORADI

49. TAKORADI LIQIUD MUD AND BULK PLANTS

50. INSTALLED 1,020M3/DAY DESALINATION PLANT

51. SUB-SEA 7 FABRICATION YARD IN TAKORADI PORT

52. A LOGISTICS PLATFORM UNDER
CONSTRUCTION IN TAKORADI

53. NEED FOR OIL SERVICES PLATFORM IN TAKORADI PORT

54. NEED FOR A CONTAINER TERMINAL AND ICDS
LINKED BY RAIL IN TAKORADI PORT

55. NEED FOR
ESTATE HOUSING
AS INITIATED BY ……
...THE PORT OF TAKORADI

56. NEED FOR TRUCK PARKS WITH RESTAURANTS, DORMITORIES,
VULCANIZING FACILITIES, ETC TO EASE TRUCK CONGESTION
IN AND AROUND THE PORTS