Title

Report
Infrastructure & Operational Efficiency and Port
Productivity Management in African Ports
(South African Perspective)
THE 7TH PAPC CONFERENCE 2008
15TH December 2008
DJIBOUTI
CONTENTS
1. Emerging story
2. Developments that support efficiency and productivity management
3. Stakeholders objectives on efficiency and productivity of ports
4. Complementary port strategic objectives on efficiency and productivity
Next steps
1
EMERGING STORY
• Past and future economic growth of South Africa is enabled by strong growth in
containerised import/export gateway traffic through the South African Ports and
railroads, presenting most promising growth opportunities for Transnet, that could
amount to around 20 million TEU in 2038.
Market
potential
Self and
Competitor
landscape
Objectives
and criteria
for
Operational
Efficiencies
• In addition South African ports system faces an opportunity to attract additional
coastal and transhipment business, building on steady growth of the Sub-Saharan
economies as well as the South-South Trade lanes. These could potentially add
between approximately 8 and 34 million TEU in 2038 with further transhipment
potential from south-south interline volumes. The nature of the port productivity on
commodities e.g. coal and iron ore has and it will remain a collaboration between the
port system and the private sector regardless of the current economic condition
• Capturing these opportunities (market potential) is time-critical as current productivity
levels are low couple with capacities are reaching their limits within the short-term
future. In addition, competing ports in the region envision to establish themselves in
the transhipment market, in partnership with global terminal operators
• In order to inform a decision on the future productivity improvement, the analyses
done focused on two triggering criteria, (a) optimisation of the total logistic cost for
the country, and (b) value creation for port users. These triggering criteria aggregate a
multitude of input factors such as skilled personnel, measurable performance
indicators, productivity management etc.
2
REGIONAL SCENARIO THAT SUPPORTS ELEMENTS OF OPERATIONAL
EFFICIENCIES
1m TEU by 2015
Uganda
Equatorial
Guinea
Zaire
Gabon
$130m
investment
on current
port
Kenya
Rwanda
Congo
Burundi
Tanzania
Luanda
(APM)
Building a new port
at Dande Bay at
double capacity
Malawi
Angola
R1.2bn investment
to increase capacity
to 500 000 TEU
$62m investment to
increase capacity
Dar-es-Saalam
(HPH)
Zambia
Madagascar
Zimbabwe
Namibia
Walvis Bay
(APM &
Namport)
Swaziland
Lesotho
South Africa
Cape Town
(TPT)
• A lot of these ports
being operated by
global operators who
without doubt could
bring strong
operational efficiencies
to the region ports
Mozambique
Botswana
R4.2m upgrade
to expand
capacity to 1.4m
TEU
Introduction of new
players and prudent
infrastructure investment
could contribute to
productivity level
Mombasa
Maputo
(DPW
&Grindrod)
Current plans
to increase to
Durban (TPT)
4.3m TEU
Ngqura
Port Elizabeth (TPT)
(TPT)
Expected capacity
of 4.5m TEU
Source: Dynamar; press search; Mauritius Presentation; UNCTAD; www.ports.co.za
Tomasina
$30 million investment
in terminal
modernisation
Plans to increase
capacity to 1m TEU
Mauritius
• Transnet would need
to improve overall
operating efficiency in
order to effectively
compete with these
ports
• Global operators are
willing to invest in
African port
expansions and could
gain first mover
advantage
• If other ports develop
a hub part in the
region, SA ports could
be relegated to a
feeder part status if
there is no
improvement in
efficiencies
3
ELEMENTS OF CO-EXISTENCE WITH PORT PRODUCTIVITY MANAGEMENT
Changing demand for freight
• New markets conditions (reliance on global supply chains).
• Tertiarization of the South African economy (gradual shift from manufacturing to services).
Changing supply of freight
• Development of intermodal transportation systems.
• Integration of freight transport services (third party logistics).
• Higher level of supply chain management.
Public policy
• Converging and diverging policies.
• Investment, zoning, security and safety regulation.
• Shift from a modal to multi-modal surface transportation policy.
• Increased environmental accountability.
4
MULTIPLICITY OF STAKEHOLDERS WITH DIFFERENT
OBJECTIVES TO SUPPORT EFFICIENCY AND PORT PRODUCTIVITY MANAGEMENT
Stakeholders
Objectives
• Cargo owners
• Minimise logistic cost
• Dispose of approximate
• Investors
• Invest port infrastructure
• Shipping lines
• Make calls at port with
• 3PL/freight
forwarders
• Partner with T/Os on
lowering cost structures
• Private port
• Improve productivity
• Transnet
• Reduce logistic cost for
Efficiency and
Port Producvity
Management
Stakeholders
• DOT
Government
• Reduce cost of
• DPE
• Positive social
• Community
• Reduce
• Cities/local
• Maximise
• Trade union
doing business
predictable services
• Collaborate with r port
terminal
operators
Source:
action system serving
identified corridors
Maximise ROI
• Rail/trucking
companies
Transnet
National
Ports
Authority
• Efficient transport
capacity
Overall
economy
Transporters/
logistics
players
Objectives
impact
environmental
damage
government
Civil
society
service providers with
predictable service
levels to serve the
customer and meet
regulations
•
workers, benefit
Promotes jobs
the country
• Be sustainably profitable
• Provide service that is
satisfactory to customers
Transnet Vulindlela Team 2007
5
ANALYSIS OF THE MULTICRITERIA IMPORTANT ELEMENTS
Criteria
Attractiveness
to lines
Attractiveness
to operator
Attractiveness
to community
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Location/Centrality index (markets and routes)
Draft
Berth availability
Port costs
Service availability/reliability (incl.. Nautical services)
Working hours
Port reputation
Speed of vessel turnaround
Dock worker relationships
Potential for a dedicated terminal
Cargo volume
Cargo profitability
Import/export cargo balance
Feeder connections
Inland truck and train services
Total logistic cost
Complementary Port
System NPV
• NPV (Port)
• Possibilities to expand
• Capacity of connecting land infrastructure
•
•
•
•
•
•
•
•
Network efficiency
Road congestion
Economic benefit (value added)
Economic benefit (employment)
Land use
Visual intrusion
Energy use
Pollution (C02, NOx, SO2)
Additional discriminating
factors
6
STRATEGIC GOALS SUPPORTING EFFICIENCY AND PRODUCTIVITY
INITAITVES
2007/2008
Strategic Goals
1. Improve vessel and cargo turnaround
2. Provision of Port Infrastructure ahead of
demand
3. Improve productive use of assets
4. Increase the Market
5. Enterprise-wide Risk Management
6. Develop human capital and skills to achieve
objectives
2009 - 2012
Initiatives currently underway to enable the safe,
efficient and effective functioning of the
productive port system
• Sustained infrastructure capacity provision,
ahead of growth demands
• Integrated planning for port infrastructure
• Safe and secure world-class port system,
preserving the environment
• Competitive and efficient port system that
drives volume growth
• Growing, productive and committed workforce
7
I THANK YOU
8

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