Press Center | Freight Shipping Logistics News
Feb 6, 2011
General
caxias
A race is underway in East Africa — but it is not a middle distance running competition.
This is a race for port efficiency and competitiveness, of access to the fast growing container trade through the ports of East Africa.
This is a race for port efficiency and competitiveness, of access to the fast growing container trade through the ports of East Africa.
A race is underway in East Africa — but it is not a middle distance running competition.
This is a race for port efficiency and competitiveness, of access to the fast growing container trade through the ports of East Africa.
Who will win? Who is leading the pack? Who has been training hard? Who is prepared to go the distance and who will reach the finishing line victorious?
Ninety per cent of the world’s cargo is carried by sea, and this region is no exception. In 2010 industry experts estimated that over 1.5 million TEU (twenty foot container equivalent units) would be traded along the east and southern coasts of Africa by more than 15 shipping lines.
The three main countries vying for dominance in this race are Kenya, Tanzania, and Mozambique.
Shipping lines will focus on the best ports to act as a hub for other destinations. Those to be chosen will have to prove that they can handle the largest vessels and volume of cargo and offer efficient service.
Ports like Singapore handle transshipment cargo almost exclusively. Closer home, the ports of Salalah in Oman, Djibouti, Algeciras in Spain, and Durban in South Africa focus to a significant extent on transshipment volumes, thereby attracting the largest vessels in the region.
Which ports display natural talent backed by a strategic and viable training programme capable of handling the rigours of the race ahead?
Kenya is no stranger to tough races and the port of Mombasa has enjoyed a healthy 12.5 per cent compounded annual growth in container traffic since 2002. Its location is strategic and it serves as the hub for several East African countries.
Even during recession, Mombasa port’s container traffic still recorded growth, reaching 618,816 TEU in 2009.
The current plan by the Kenya Ports Authority is to privatise and convert berths 11 to 14 to handle containers and to build a brand new container terminal at Kipevu West.
Kenya is leading the pack of regional contenders and no doubt has the right combination of natural capacity and potential. However, it has yet to stamp its authority on the race and there are no signs yet of a breakaway.
Tanzania has at times found itself at the front of the pack. As recently as 2003, the port of Dar es Salaam was the most efficient in the African continent following the successful privatisation of its container terminal.
Significant expansion in Dar es Salaam harbour is in the final stages of approval at what is commonly referred to as berths 13 and 14.
There are longer term plans for a bridge and additional port opposite the current facility, improvements at the ports of Tanga and Mtwara, and in the longer term, a major hub port in Bagamoyo, some 60km north of Dar es Salaam.
The breakaway will come, but who is going to make the move first and be able to sustain it? Mozambique has taken bold steps towards port reform.
The Maputo Port Authority has privatised not just the operating entity but the entire port. Maputo also serves as a vital gateway to inland destinations.
Beira has an international operator in place and has this year embarked upon a 14 million euro (Sh1.6 billion) dredging programme of the port.
Nacala is reputed to have the deepest natural harbour on the east coast and, with significant coal finds in Tete, it could become a major facility along the coast line.
With so much potential, will Mozambique’s ports provide an impressive final sprint and take the lead in the closing stretch? One thing is clear; this is a race.
The first port to secure a viable and sustainable expansion programme will break away from the others and secure volume, increase revenue, build reputation, support trade growth, and provide a platform for continued development in its homeland.
Kenya needs to see the same success in port development as we have seen with our track athletes. I believe that Kenya has the basic requirements and a comprehensive programme that can secure victory.
The KPA, the government, and all the stakeholders involved in port reform and development need to push on with the race and time the breakaway to perfect precision. The final bend is approaching, the home stretch beckons.
This is a race for port efficiency and competitiveness, of access to the fast growing container trade through the ports of East Africa.
Who will win? Who is leading the pack? Who has been training hard? Who is prepared to go the distance and who will reach the finishing line victorious?
Ninety per cent of the world’s cargo is carried by sea, and this region is no exception. In 2010 industry experts estimated that over 1.5 million TEU (twenty foot container equivalent units) would be traded along the east and southern coasts of Africa by more than 15 shipping lines.
The three main countries vying for dominance in this race are Kenya, Tanzania, and Mozambique.
Shipping lines will focus on the best ports to act as a hub for other destinations. Those to be chosen will have to prove that they can handle the largest vessels and volume of cargo and offer efficient service.
Ports like Singapore handle transshipment cargo almost exclusively. Closer home, the ports of Salalah in Oman, Djibouti, Algeciras in Spain, and Durban in South Africa focus to a significant extent on transshipment volumes, thereby attracting the largest vessels in the region.
Which ports display natural talent backed by a strategic and viable training programme capable of handling the rigours of the race ahead?
Kenya is no stranger to tough races and the port of Mombasa has enjoyed a healthy 12.5 per cent compounded annual growth in container traffic since 2002. Its location is strategic and it serves as the hub for several East African countries.
Even during recession, Mombasa port’s container traffic still recorded growth, reaching 618,816 TEU in 2009.
The current plan by the Kenya Ports Authority is to privatise and convert berths 11 to 14 to handle containers and to build a brand new container terminal at Kipevu West.
Kenya is leading the pack of regional contenders and no doubt has the right combination of natural capacity and potential. However, it has yet to stamp its authority on the race and there are no signs yet of a breakaway.
Tanzania has at times found itself at the front of the pack. As recently as 2003, the port of Dar es Salaam was the most efficient in the African continent following the successful privatisation of its container terminal.
Significant expansion in Dar es Salaam harbour is in the final stages of approval at what is commonly referred to as berths 13 and 14.
There are longer term plans for a bridge and additional port opposite the current facility, improvements at the ports of Tanga and Mtwara, and in the longer term, a major hub port in Bagamoyo, some 60km north of Dar es Salaam.
The breakaway will come, but who is going to make the move first and be able to sustain it? Mozambique has taken bold steps towards port reform.
The Maputo Port Authority has privatised not just the operating entity but the entire port. Maputo also serves as a vital gateway to inland destinations.
Beira has an international operator in place and has this year embarked upon a 14 million euro (Sh1.6 billion) dredging programme of the port.
Nacala is reputed to have the deepest natural harbour on the east coast and, with significant coal finds in Tete, it could become a major facility along the coast line.
With so much potential, will Mozambique’s ports provide an impressive final sprint and take the lead in the closing stretch? One thing is clear; this is a race.
The first port to secure a viable and sustainable expansion programme will break away from the others and secure volume, increase revenue, build reputation, support trade growth, and provide a platform for continued development in its homeland.
Kenya needs to see the same success in port development as we have seen with our track athletes. I believe that Kenya has the basic requirements and a comprehensive programme that can secure victory.
The KPA, the government, and all the stakeholders involved in port reform and development need to push on with the race and time the breakaway to perfect precision. The final bend is approaching, the home stretch beckons.
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