Port strategy urgently needed to support Africa’s economic growth 


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After years of under-investment, many new port developments are underway in Africa. From Eritrea to South Africa, significant projects are either under construction or in the pipeline, aimed at addressing the capacity shortage and inefficiencies which have characterized Africa’s ports and shipping sector for so long. 

This is undoubtedly good news due to the economic benefits which will (and in some cases are already) being generated by cheaper imports and exports. According to a new report by PwC, a consultancy, entitled ‘Strengthening Africa’s Gateways to Trade’, there is the potential for three large hub ports to develop in sub-Sahara Africa (SSA) suggesting that these will be Durban (South Africa), Abidjan (Cote d’Ivoire) and Mombasa (Kenya). This is not to say that other countries do not have ambitions of their own, not least, for example, Bagamoyo in Tanzania which has aspirations to eventually rival Rotterdam in terms of scale. 

Recommendations of the report include that: 

  • There should be more collaboration between countries in developing a strategy to serve a region, rather than duplicate efforts in developing a number of sub-optimal and inefficient ports. 
  • Governments should work hard on developing a good environment for investors, including strong ports regulation, but leave the private sector to look after operations. 
  • Governments should streamline customs and other agency processes to increase efficiency.  
  • There is a need for better road and rail infrastructure in and around ports. 

The authors suggest that the poor global connectivity of the region’s ports is due to: 

  • Low freight volumes 
  • Size limitations on ships 
  • Port inefficiencies and long turnarounds (making calls expensive) 

By focusing resources around a smaller number of port hubs, freight volumes could be increased; capacity constraints lifted and processes improved. Also, the authors believe that a Sub-Saharan based and focused shipping line would lead to better services for the region. 

There is still a huge amount of progress to be made before ports in Africa can reach the efficiencies or capacity of those in other regions. The report asserts that across the whole of sub-Saharan Africa only Durban presently qualifies as a hub port. It concludes, ‘Most African countries either have inadequately-developed ports, too few ports and/or no port facilities in key areas. Considering that port demand volume is expected to grow by 6-8 times by 2040, the challenge is significant.’ 

Source: Transport Intelligence, April 8, 2019

Author: John Manners-Bell

 

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