MULTIPURPOSE TERMINAL OF THE PORT OF LUANDA...service concession of the management and operation of...
Transcript of MULTIPURPOSE TERMINAL OF THE PORT OF LUANDA...service concession of the management and operation of...
CONCESSÃO DO TERMINAL MULTIUSO DO PORTO DE LUANDA
Novembro 2019 VERSÃO PRELIMINAR
MULTIPURPOSE TERMINAL OF THE
PORT OF LUANDA
Concession of the Seaport Infrastructure
Investment Memorandum
December 2019
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Contents
1 INTRODUCTION .............................................................................................................. 5
2 ANGOLA’S SOCIAL AND ECONOMIC ENVIRONMENT ......................................................... 6
2.1 Social and Economic Development in Angola ............................................................... 6
2.2 Private Investment Framework ................................................................................... 12
2.3 Infrastructures National Development Plan ............................................................... 15
3 SEAPORTS SECTOR ........................................................................................................ 18
3.1 Seaport Activity in Sub-Saharan Africa ........................................................................ 18
3.2 Seaport Infrastructures in Angola ............................................................................... 20
3.3 Angolan Seaport Sector in Numbers ........................................................................... 28
3.4 Regulatory Framework of the Seaport Sector in Angola ............................................ 29
4 PORT OF LUANDA ......................................................................................................... 32
4.1 General Description..................................................................................................... 32
4.2 Main seaport infrastructures ...................................................................................... 33
4.3 Operational Activity Performance of the Port of Luanda ........................................... 37
5 MULTIPURPOSE TERMINAL OF THE PORT OF LUANDA ................................................... 46
5.1 Description of the different relevant activities developed in the Terminal ................ 46
5.2 Description of the main infrastructures and equipment ............................................ 46
5.3 Description of the current labour force ...................................................................... 52
5.4 Operational Activity Performance of the Multipurpose Terminal .............................. 55
5.5 Historical Economic Indicators of SOPORTOS ............................................................. 59
5.6 SWOT Analysis ............................................................................................................. 60
6 SUMMARY OF THE TENDERING PROCEDURE .................................................................. 60
7 SUMMARY OF THE SPECIFICATIONS .............................................................................. 62
Figures
Figure 1 – Development Areas ................................................................................................................... 12 Figure 2 – National Network of Seaports and Railways ............................................................................. 17 Figure 3 – Main Seaports and Railway Corridors in Africa ......................................................................... 19 Figure 4 – National Network of Seaports and Railways ............................................................................. 20 Figure 5 – Map of the Port of Lobito and its Existing Terminals ................................................................. 23 Figure 6 – Map of the Port of Cabinda ....................................................................................................... 24 Figure 7 – Layout of the First Stage of the Future Port of Caio .................................................................. 25 Figure 8 – Layout of the Second Stage of the Future Port of Caio ............................................................. 25 Figure 9 – Map of the Port of Namibe and Existing Terminals ................................................................... 26 Figure 10 – Map of the Port of Luanda and Terminals ............................................................................... 32 Figure 11 – Map of the Multipurpose Terminal ......................................................................................... 47 Figure 12 – LIEBHERR cranes and Pier Area ............................................................................................... 48
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Tables
Table 1 – Real GDP Growth Rates for Angola (2017-2020) .......................................................................... 9 Table 2 – Economic Indicators for Angola (2017-2020) ............................................................................... 9 Table 3 – Procedural Regimes for Private Investment Approval ................................................................ 13 Table 4 – Tax Incentives ............................................................................................................................. 13 Table 5 – List of Logistics Platforms planned for Angola ............................................................................ 16 Table 6 – List of Africa’s Largest Seaport Operators................................................................................... 19 Table 7 – Terminals and Concessionaires of the Port of Luanda ................................................................ 33 Table 8 – List of Existing Equipment in the General Cargo Terminal .......................................................... 34 Table 9 – List of Existing Equipment in the Multipurpose Terminal ........................................................... 34 Table 10 – List of Existing Equipment of the Container Terminal .............................................................. 35 Table 11 – Vessel traffic in the Port of Luanda (number of ships) ............................................................. 37 Table 12 – Traffic of Long-haul Vessels by Navigation Agency ................................................................... 38 Table 13 – Traffic of Long-haul Ships by Navigation Agency (1st Semester 2018 vs. 1st Semester 2019) ... 39 Table 14 – Cargo Volume Handled by Type of Goods (2016- 1st Semester 2019) ..................................... 41 Table 15 – Cargo Volume Handled by Type of Goods (1 Semester 2018 vs. 1 Semester 2019) ................. 42 Table 16 – Cargo Volume Handled by Terminal (2016 – 1 Semester 2019) ............................................... 42 Table 17 – Cargo Volume Handled by Terminal (1 Semester 2018 vs. 1 Semester 2019) .......................... 42 Table 18 – Container Traffic by Terminal and type of Container ............................................................... 45 Table 19 – List of existing Mobile Cranes in the Terminal .......................................................................... 49 Table 20 – List of existing Handling Equipment in the Terminal ................................................................ 49 Table 21 – List of existing Light Vehicles in the Terminal ........................................................................... 50 Table 22 – List of IT Equipment .................................................................................................................. 51 Table 23 – Vessel Traffic Performance in the Multipurpose Terminal ....................................................... 55 Table 24 – SWOT analysis of the Multipurpose Terminal .......................................................................... 60 Table 25 – Summary Table of the Tender Procedure ................................................................................. 61 Table 26 – Summary of the Specifications ................................................................................................. 62
Graphics
Graph 1 – Oil & Gas Production and Real GDP Growth ................................................................................ 6 Graph 2 – Evolution of BNA Rate.................................................................................................................. 7 Graph 3 – Real GDP Growth (Oil and Non-oil Sectors) ................................................................................. 8 Graph 4 – Primary Balance and Fiscal Balance (% of GDP) ......................................................................... 10 Graph 5 – Largest Seaports in Sub-Saharan Africa in 2017, thousand TEUs handled ................................ 18 Graph 6 – Average Stay (days) for Ships in selected African Seaports, 2017 ............................................. 22 Graph 7 – Cargo Volumes Handled in the Ports of Angola between 2012 and September 2019 .............. 28 Graph 8 – Vessel Traffic per Terminal (number of ships) ........................................................................... 37 Graph 9 – Vessel Traffic in the Port of Luanda by Navigation Agency (2016 – 1st Semester 2019) .......... 40 Graph 10 – Passenger Traffic in the Port of Luanda (2016 – 1st Semester 2019) ...................................... 41 Graph 11 – Container Traffic in units (2012 – 1st Semester 2019) ............................................................ 43 Graph 12 – Container Traffic in TEUs ......................................................................................................... 43 Graph 13 – Container Traffic in TEUs by Terminal ..................................................................................... 44 Graph 14 – Container Traffic in TEUs by Terminal (1st Sem. 2018 vs 1st Sem. 2019) .................................. 44 Graph 15 – Age and Gender Distribution of the Labour Force ................................................................... 52 Graph 16 – Literacy of the Labour Force .................................................................................................... 53 Graph 17 – Labour Force by Department ................................................................................................... 53 Graph 18 – Minimum and Maximum Monthly Salary, Base and Total, in Kwanzas ................................... 54 Graph 19 – Performance of Containers Handled in TEUs (2012 – 1st Semester 2019) ............................. 56 Graph 20 – Relative Performance of Unloading and Loading Operations in handling of Full Containers, in
% (2012 – 1st Semester 2019) .................................................................................................................... 56
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Graph 21 – Relative Performance of Unloading and Loading Operations in handling of Empty Containers,
in % (2012 – 1st Semester 2019) ................................................................................................................ 57 Graph 22 – Relative Performance of the Transhipment Operations in Cargo handling, in % (2012 – 1st
Semester 2019) .......................................................................................................................................... 57 Graph 23 – Performance of the Handling of Non-container Cargo in the Multipurpose Terminal (2012 –
1st Semester 2019) ..................................................................................................................................... 58 Graph 24 –Operating Revenue performance of SOPORTOS between 2013 and 2018 .............................. 59
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Important Note
This Investment Memorandum is an integral part of the Public Tender documents for the public
service concession of the management and operation of Luanda’s Port Multipurpose Terminal
(“Concession”), comprising the rights to use and operate the seaport public domain property of
the Empresa Portuária de Luanda (EPL), in a Landlord Port management regime.
This Memorandum was prepared with the aim of supplying Bidders with information to facilitate
the analysis of the Concession object and elaborate proposals (“Proposals”) to present in the
tender procedure framework. Despite its availability being integrated and subject to the
Concession tender procedure, this Memorandum is purely informative and non-binding.
The entities and/or individuals to whom this document is made available will be responsible for
the analysis, interpretation and utilization of the information herein, for the preparation of
Proposals that should be elaborated under their full responsibility, in accordance with the
technical, financial and legal criteria defined in the tender documents.
EPL and its related entities and/or consultants are not responsible for the accuracy of the data
that the current document is based on, nor it provides any assurance, either expressly or
implicitly, neither about the information herein, nor about the information in which it is based,
neither about the fact that this information remains unchanged after the delivery of the present
Investment Memorandum.
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1 INTRODUCTION
The Government of Angola launched an International Public Tender for the concession and
operation of the Multipurpose Terminal of the Port of Luanda (“Concession”) with the aim of
promoting the development and improvement of the efficiency of the seaport activity, through
the involvement of private operators with proven experience in the sector.
The tender procedure was launched on 16 December 2019 with the delivery of proposals to be
made until 30 March 2020. After the evaluation of proposals, one or more applicants will be
selected for the negotiation phase in order to award the Concession.
Angola is currently the 7th largest African economy and the 4th in Sub-Saharan Africa. Rich in
natural resources (oil and minerals), Angola provides significant development potential in terms
of agriculture, manufacturing and tourism. With a GDP per capita that is twice the average of
Sub-Saharan Africa, and a population of about 30 million, the Government of Angola has
implemented measures aimed at reducing inflation, promoting fiscal balance, developing
exports and replacing imports, as well as promoting private investment and a gradual
stabilization of the foreign exchange market.
In the seaport sector, the Port of Luanda is the largest seaport in the country in terms of cargo
movements, working in a Landlord Port regime with five concessioned terminals: four in public
service regime and one in private regime dedicated to supporting the oil industry. The Port of
Luanda is located in the natural bay of the city of Luanda, the country’s capital, providing
excellent navigation and operating conditions for sea transport vessels. In terms of regional
location, the Port of Luanda is located in the middle of the west coast of the African Continent,
making its seaport infrastructures a mandatory stop for the sea transport routes in the west of
the African Continent.
The Multipurpose Terminal of Luanda (“MT”) works simultaneously in the manoeuvre of general
and container cargo, covering an embankment area of 229,100 square meters, a dock of 610
meters, with an average depth of (-12.5 m) ZH. The terminal has one access to the sea, one
access to land that connects through a seaport hinterland and one access that connects to other
terminals.
In 2018, the MT handled nearly 312,000 TEUs (58% full and 42% empty) with average daily
terminal arrivals of 1.5 ships and an average staying time (loading/unloading) for the container
ships between 1 and 1.8 days. The MT’s container park has a maximum storage capacity of
15,000 TEUs simultaneously, allowing the stacking of fully loaded containers up to five levels.
Under the tender documents, the MT will have 725 workers that will be transfer to the future
concessionaire.
The MT has seven mobile seaport cranes of the German brand LIEBHERR, all of them fully
operational. Additionally, there are two more mobile seaport cranes of the brand Gottwald that
are currently inoperative.
The tender process for the concession of the MT represents an unique opportunity for
experienced private operators and investors to enter a key sector of one of Africa’s most
important economies, undertaking an operation with proven track-record (infrastructure,
equipment, personnel and reference client portfolio) and with an attractive outlook in terms of
return on investment.
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2 ANGOLA’S SOCIAL AND ECONOMIC ENVIRONMENT
2.1 Social and Economic Development in Angola
Angola was one of the world’s fastest growing economies during the years 2002-12, a period
that marked the end of decades of civil war in the country and led to the signing of peace
agreements in the province of Luena in 2002.
The country recorded an average annual real GDP growth rate of about 11% during this period,
supported by a stable political and social environment and largely boosted by the increase in oil
production.
The Angolan economy also benefitted from the Government’s efforts to (1) rebuild the country
and rehabilitate its infrastructures, (2) gradually open to private investment and (3) implement
policies to promote and increase production capacity.
According to data from the International Monetary Fund (IMF), the country’s GDP per capita
stood at around 7,000 USD at the end of 2012, nearly twice the average in Sub-Saharan Africa.
However, since 2016, Angola has faced a more adverse economic environment, in line with what
happened in other countries in the region such as Nigeria and South Africa.
Similarly to the oil crisis of 2008-09, the slowdown in economic activity in the country resulted
from the abrupt and prolonged decrease in oil prices since mid-2014 that led to significant
underinvestment in the oil and gas sector in recent years. This was eventually reflected in the
marked decline in oil production and, as a result, lower proceeds from the sector for the public
coffers.
Graph 1 – Oil & Gas Production and Real GDP Growth
Sources: INE and Ministry of Finance.
1,698
1,906
1,809
1,758
1,660
1,7351,716
1,672
1,7801,749
1,762
1,597
1,517
-5%
0%
5%
10%
15%
20%
25%
1,5
1,6
1,7
1,8
1,9
2,0
2007 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19P
Oil and Gas Production (mbpd) (LHS) Real GDP growth
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The need to secure some fiscal deficit adjustment led the Government to aggressively reduce
capex levels, which only exacerbated the downturn in activity. Indeed, public investment
remains a key source of growth of the non-oil sector, which now represents more than 65% of
the country’s GDP (vs. less than 45% a decade ago).
Economic activity in the country was also impacted by a tighter monetary policy followed by the
Banco Nacional de Angola (BNA), the central bank, in recent years. This policy aimed to contain
inflationary pressures that placed inflation at levels last seen more than a decade ago, above
41% at end-2016. It mostly reflected the impacts from the depreciation of the kwanza, the
reduction in fuel subsidies at the time and higher food prices.
Since 2014, the BNA lifted its benchmark interest rate once in 2014, five times in 2015, twice in
2016 and once in 2017 for a total increase of 925 basis points (“b.p.”). These increases placed
the BNA rate at 18%, a historical high.
Meanwhile, inflation has declined since end-2017, allowing the central bank to lower the BNA
rate by 150 b.p. in 2018 and 100 b.p. in 2019. The benchmark interest rate currently stands at
15.5%, which compares with 9.25% in mid-2014 before the oil crisis.
Graph 2 – Evolution of BNA Rate
Source: BNA.
According to data from the Instituto Nacional de Estatística (INE), real GDP contracted 2.6% in
2016, 0.1% in 2017 and 1.2% in 2018. Angola is expected to record its fourth consecutive year
of economic recession in 2019 as lackluster growth in the non-oil sector has been insufficient to
offset the impact from lower oil production. Current forecasts suggest a contraction of 1.1% in
economic activity this year, which compares with a lower decline expected by the IMF for the
period (-0.3%).
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19
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Graph 3 – Real GDP Growth (Oil and Non-oil Sectors)
Sources: INE and Ministry of Finance.
However, the economic recession that has hit Angola in the last four years is expected to come
to an end in 2020.
The Budget Proposal for 2020 recently presented to Parliament includes a forecast for real GDP
growth of 1.8%. This projection is based on a recovery in the oil sector (1.5%), after a very weak
performance recorded in recent years, and a slight acceleration in activity in the non-oil sector
(1.9% versus 0.6% expected in 2019).
The Budget Proposal also assumes a recovery of 3.4% in oil production to 1.4 million barrels per
day thanks, in part, to the stabilization in production in Total’s project in Kaombo Sul and an
average oil price of 50 USD per barrel. This is the same price projection included in the Revised
Budget for 2019, which, according to the performance recorded throughout the year, proved to
be somewhat conservative. In terms of the non-oil sector, the Government expects a more
pronounced improvement in the agriculture, fishing and retail sectors.
-5.2%
8.5%
-0.9%
-2.5%
11,1%
-2.7%
-5,3%
-9.5%
-5.2%
10.0%8.6% 8.7% 9.2%
-4.4%
-2.5%
1.2% 1.0% 0.6%
2011 2012 2013 2014 2015 2016 2017 2018 2019F
Oil & Gas Sector Non-oil Sector
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Table 1 – Real GDP Growth Rates for Angola (2017-2020)
Economic Activity
2017 2018 20191 20202
Real GDP Growth -0.1% -1.2% -1.1% 1.8% - Oil & Gas -5.3% -9.5% -5.2% 1.5%
Oil -5.2% -9.7% -6.1% 3.4% Gas 461.4% -5.3% 7.8% -21.8%
- Non-oil 1.2% 1.0% 0.6% 1.9% Agriculture 1.4% -2.0% 1.8% 3.1% Fishing -1.1% -17.1% -0.2% 4.0% Extractive Industry -0.8% -6.3% 17.9% 6.6% Manufacturing Industry 1.2% 4.6% 3.6% 1.2% Construction 2.5% 0.4% 3.5% 1.3% Energy -1.7% 22.3% 10.7% 0.5% Retail 1.5% -0.2% 0.5% 1.2% Others 0.3% 1.2% -3.1% 1.5%
(1) Revised Budget (2) Forecast; (3) Budget Proposal.
Source: Angolan Authorities.
The Government also anticipates inflation to increase to 25% in 2020 largely due to a gradual
adjustment in fuel prices. This projection is against the aim of inflation not increasing after the
year 2018 and for the increase in prices to gradually decline towards single figures until end-
2022. This forecast also compares with 17.7% expected in 2019 and is slightly above the 17.5%
initially foreseen. This results from adjustments made by the Government in electricity tariffs in
2019.
Table 2 – Economic Indicators for Angola (2017-2020)
Economic Indicators
2017 2018 20191 20192 20203
Inflation 23.7% 18.6% 17.5% 17.7% 25.0% Diamond Production (Thousand Carats) 8.964,1 8.096.5 9.547.3 9.547.3 10.175.0 Diamond Average Price (US$/Carat) 115.1 144.1 154.4 154.4 162.1 Annual Oil and LNG Production 643.2 583.0 571.7 553.6 560.9
Oil Production (MBbl) 597.6 539.8 523.7 507.1 524.5 LNG Production (MBOE) 45.6 43.2 48.0 46.5 36.4
Daily Oil Production (Million bpd) 1,637 1.479 1.435 1.389 1.437 Average Oil Price (US$/Bbl) 53.9 70.6 55.0 63.2 55.0 Average LNG Price (US$/BOE) 29.0 48.7 29.0 48.7 50.9
(1) Revised Budget; (2) Forecast; (3) Budget Proposal.
Source: Angolan Authorities.
In particular, the Budget Proposal for 2020 amounts to AKZ 15,971 billion, representing an
increase of 53.5% when compared with the 2019 Revised Budget figure of AKZ 10,407 billion. It
also foresees a fiscal surplus of 1.2% and a primary surplus of 7.1% of GDP. If confirmed, this
would mean that the country’s public accounts would reach a surplus for the third consecutive
year in 2020.
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Graph 4 – Primary Balance and Fiscal Balance (% of GDP)
(1) Revised Budget; (2) Budget Proposal. Source: Ministry of Finance.
The Budget Proposal for 2020 envisages gross financing needs of AKZ 7,879 billion (18.7% of
GDP) e net financing needs of AKZ 653 billion (1.6% of GDP). This represents an increase of 78.2%
in gross financing needs when compared with the Budget for 2019. This increase is due the
higher debt service in the period, which amounts to AKZ 9,699 billion (23% of GDP) when
compared with the Revised Budget figure of AKZ 5,333 billion (14.4% of GDP).
The Government is going to continue to allocate a significant part of expenditures to the social
sector (16% of total), mainly towards spending on education and healthcare as well as spending
related to defense, security and social order (7.6% of the total). Expenditures with the social
sector are expected to see an increase of 27.6% relatively to the forecast for 2019 while spending
on defense, security and social order are anticipated to increase 21.2%.
Meanwhile, the long-term growth outlook of the country will depend on the implementation of
structural reforms. These reforms will be very relevant in order to correct the imbalances that
still exist, namely reducing the persistently high dependency from the oil sector, and also
improve the business environment to attract more foreign direct investment to the country.
It is worth noting the new Private Investment Law introduced in June 2018 that establishes the
guidelines for private investment. This law is applicable to all investments in the country and,
contrary to the prior legislation, it does not include any minimum required amount or demand
for a local partner. Incentives will be granted depending on the sectors that the investment is
made (namely those sectors that contribute to import substitution, increase in exports and
economic diversification) and its location.
The Government also launched in 2019 a Privatization Program (PROPRIV) that aims to restart
activity in the private sector and reform public finances. In particular, the Government plans to
privatize 195 entities/assets in the next four years (2019-22) through the stock market or
competitive tenders. The aims of the PROPRIV include (1) promoting macroeconomic stability,
(2) improving the productivity of the local economy and (3) distributing in a more equitable
manner the income of the country.
7.6%
1.1%
-5.4%
-1.3% -1.7%
-3.0%
6.5%
5.2%
7.1%6.7%
0.3%
-6.6%
-3.3%
-4.5%
-6.3%
2.0%
0,0%
1.2%
2012 2013 2014 2015 2016 2017 2018 2019 (1) 2020 (2)
Primary Fiscal Balance Overall Fiscal Balance
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Moreover, BNA introduced in 2019 some key legislation aimed at increasing the amount of
credit granted to investment projects that contribute directly and indirectly to the national
production and, as a result, reduce the large import dependency. First, the central bank
announced that the banks operating in Angola will have to grant credit specifically for these
types of projects in an amount equivalent to 2% of their total assets (at the end of the previous
year) at a total cost (interest plus commissions) no greater than 7.5%. In addition, the Credit
Support Programme (PAC) for the period 2019-22 aims to make it easier to grant credit to the
companies operating in the production and commercialization of 54 essential goods for the
Angolan population. These goods are defined in the PRODESI program that aims to replace
imports with local production and diversify exports.
In sum, after the slight recovery expected in 2020, Angola’s real GDP growth could accelerate to
a level more in line with population growth while inflation could slow to single-digits in the next
few years. The evolution of economic activity will depend on the improvement in crude
production and a faster expansion in the non-oil sector.
Economic diversification remains a key priority for the Government in its strategic objective to
gradually replace imports with local production. Activity sectors like construction and public
works, financial services (banking and insurance) and other services (telecoms, hotels, retail and
distribution) as well as food and manufacturing, saw a rapid expansion some years ago and are
expected to return as key drivers for national growth.
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2.2 Private Investment Framework
The new Private Investment Law (“PIL”) was approved in June 2018 under Law n: 10/18. The
new PIL sets the guidelines for private investment and is applicable to all investments done in
Angola, either foreign or private, without any requirements in terms of minimum invested
amount or local partnership.
The new PIL is not applicable to sectors where the regulatory investment framework is governed
by a specific statutes (e.g., oil & gas, mineral exploration).
The granting of incentives depends on the activity sector in which the investment is made (i.e.,
sectors that lead to import substitution, increase in exports and economic diversification) and
the Development Areas in which it is located.
According to Presidential Decree n: 81/18, of 19 March 2018, the Agência de Investimento
Privado e Promoção das Exportações (Agency for Private Investment and Export Promotion) –
AIPEX was created, having the power to, among other things, approve private investment
projects.
The PIL sets several priority sectors, namely:
Education, Technical and Professional Training, Scientific Research and Innovation;
Agriculture, Food and Agro-Industry;
Specialized Health Units and Services;
Reforestation, Industrial Transformation of Forestry Resources and Forestry;
Textiles, Clothing and Footwear;
Hotels, Tourism and Leisure;
Construction, Public Works, Telecommunications and Information Technology, Seaport
and Railway infrastructures;
Electricity Production and Distribution;
Basic Sanitation, Solid Waste Collection and Treatment.
The PIL sets several development areas that are eligible for different tax incentives:
Figure 1 – Development Areas
Source: Law n:10/18.
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The investment projects are subject to two different procedure regimes for approval:
Table 3 – Procedural Regimes for Private Investment Approval
Source: Law n:10/18.
Investors can choose any of the investment regimes, although the Special Regime is limited to
investment projects in priority sectors.
Presidential Decree 250/18 sets up the regulation for the PIL, namely the procedures to access
each one of the two regimes.
The existing tax incentives for each regime cover several tax categories, also distinguishing
according to geographic zone where the investment project is expected to be undertaken:
Table 4 – Tax Incentives
Subject to the presentation of proof that the investment was undertaken, the new PIL ensures
that overseas investors have the right to repatriate:
Dividends and distributed profits;
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Proceeds from investment settlements and due compensations;
Royalties and other remunerations related with usage rights.
Foreign investment is also subject to the following rules:
Shareholders’ loans are limited to 30% of the total amount of the investment made by
the incorporated company and can only be reimbursed after three years
The sum of supplementary capital, shareholders’ loans, debt (e.g. bank loans and
DFI/ECA financing) and other forms of “indirect investment” are limited to 50% of the
total amount of the investment
Specific benefits for special purpose investment vehicles are also foreseen and they include,
amongst others:
Regular assistance in resolving problems which may arise with public authorities during
the implementation phase of the projects, regarding granting of visas and other
required documentation for the implementation of the private investments (namely,
construction and commercial licenses, environmental licenses and authorization's,
utilities supply, etc.);
Exemption from payment of fees and administrative costs due by any requested service
(including customs) provided by a public authority which is not a public company, for a
limited period of 5 (five) years.
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2.3 Infrastructures National Development Plan
The Transport and Logistics cluster plays vital importance in the future economic and social
development of Angola. This cluster lays upon the intermodality of various types of transport,
significantly wagering on a rail sector that connects seaport and airport infrastructures with a
vast road network that allows the coverage of the entire country. The interconnection points
between sea, rail and road transport take place in a vast national network of logistics platforms
that facilitate the transhipment of goods between the various modes of transportation.
Air and sea transportation play fundamental roles in the north-south relations in the Angolan
territory. They are equally important on the international front where Angola intends to have a
relevant role in the primary objective of reaching an “integral connectivity of infrastructures of
the African continent” set in the African Union’s Agenda 2063.
Today, the importance of having efficient logistics and transport services is widely recognized as
these allow the expansion of domestic and international trade, the diversification of exports and
imports and the capture of foreign investment. This will ultimately lead to faster growth as well
as greater economic and social development for a country. As a result, the new logistics
paradigm started to be focused on the end consumer, based on the construction of
interoperable and interconnected transportation networks that go beyond national borders and
allow the circulation of goods more efficiently and at lower costs.
In the African continent and, in particular, in Angola where the primary objectives continue to
be focused on combating hunger and poverty as well as ensuring food self-sufficiency, it is
important to proceed towards the ordering of logistical services and the transportation of goods
bearing in mind of the following:
1. Define the transport infrastructure network already existing and the one that is to
be projected bearing in mind the future network for the circulation of goods that
ensures the permanent nationwide supply. This would allow meeting the basic food
needs and improving economic activity in all of the 164 existing municipalities;
2. Ensure the different types and utilizations of the transportation network (sea, rail,
road and air) as strategic vectors for the future System for the Transportation of
Goods;
3. Encourage the partnership between public and private entities in order to promote
and manage new logistics spaces. This would be done by attracting investments
from well-known logistics operators that would promote Angola as a distributor of
goods in the domestic, SADC and world markets.
It is against this backdrop that the Angolan government set the following strategic objectives in
the transport sector for the period 2018-22:
Improve the service and comfort levels of the country’s airports in accordance with the
rules set by ICAO/IATA as well as expand, rehabilitate and construct new airports
(Luanda, Mbanza Congo, Cuíto-Bié, Cabinda, Lugango and Huambo);
Develop the necessary infrastructure to allow the transport and operation of other
maritime activities, promoting the construction and upgrade of seaport infrastructures
considered of priority intervention for the national development;
Develop urban, suburban and long-distance rail transportation, offering conditions that
will promote the competition between the different modes of transportation of goods;
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Endow the country with infrastructures that connect and promote the large axis and
national corridors through the National Network of Logistics Platforms.
Table 5 – List of Logistics Platforms planned for Angola
Platform Location Province Label
Logistics Platform of Soyo Zaire 1
Logistics Platform of Cabinda Cabinda 2
Logistics Platform of Huambo Huambo 3
Logistics Platform of Cuíto Bié 4
Logistics Platform of Lobito Benguela 5
Logistics Platform of Luanda Luanda 6
Logistics Platform of Luau Moxico 7
Logistics Platform of Lubango Huíla 8
Logistics Platform of Matala Huíla 9
Logistics Platform of Lucapa Lunda Norte 10
Logistics Platform of Luena Moxico 11
Logistics Platform of Mbanza Congo Zaire 12
Logistics Platform of Malange Malange 13
Logistics Platform of Menongue Cuando Cubango 14
Logistics Platform of Namibe Namibe 15
Logistics Platform of N´Dalatando Cuanza Norte 16
Logistics Platform of Sudeste Cuando Cubango 17
Logistics Platform of Ondjiva Cunene 18
Logistics Platform of Saurimo Lunda Sul 19
Logistics Platform of Benguela Benguela 20
Logistics Platform of Uíge Uíge 21
Source: National Director Plan for the Transport Sector, MINTRANS.
Page 17 of 65
Figure 2 – National Network of Seaports and Railways
Source: National Director Plan for the Transport Sector, MINTRANS.
The Angolan Government believes that the involvement of the private sector is essential for the
execution of the announced targets for the Transport Sector. The Government is focused on
attracting strategic investors with high financial capabilities and international experience in the
exploration and operation of large-sized transport infrastructures capable of generating value
for the national economies.
Page 18 of 65
3 SEAPORTS SECTOR
3.1 Seaport Activity in Sub-Saharan Africa
Countries in Sub-Saharan Africa (“SSA”) face considerable challenges in the development of their
seaports infrastructures. Africa has been a region that has mainly exported raw materials and
commodities such as oil, non-precious metals, rare minerals, cocoa, fruit and wood. The export
of these goods has been mainly done by sea transport due to the long-distance from the centres
where they are consumed.
As a result, seaport infrastructures play a very relevant part in the supply chains of the SSA
region. Indeed, the size of the region, coupled with the fact that a lot of countries are not
accessible by sea, means that a significant number of seaports have hinterlands, making them
critical for the economic development of the region.
Seaport activity in SSA faces challenges and restrictions that limit its normal functioning and the
economic contribution that it could generate, namely:
• Reduced efficiency in terms of stowage and storage;
• Public control of the companies/seaport management companies limits the
financing capabilities to upgrade/renovate infrastructures;
• Lower cargo volumes compared with other regions of the world;
• Deficiencies or absence of connectivity with other modes of transportation;
• Transport logistics hampered by the current state of road networks and large
distances;
• Need for greater development of road/rail corridors connecting seaports to
hinterlands to ease the transport of goods to other regions.
In terms of capacity, there are currently 10 seaports in SSA that handle volumes larger than
500,000 TEUs annually. The seaport of Durban is undoubtedly the one that handles the largest
volumes, exceeding 2.5 million TEUs per year. The other nine seaports, including Luanda, handle
between 500,000 and one million TEUs annually. It is worth noting that only a few seaports in
SSA are able to operate vessels of the Post-Panamax and Super Panamax categories.
Graph 5 – Largest Seaports in Sub-Saharan Africa in 2017, thousand TEUs handled
Source: Report “Strengthening Africa’s Gateways to Trade” from PwC, April 2018.
Information gathered according to the last information available from seaport authorities.
Another trend recently witnessed relates to the increased trade between China and countries
in SSA. China has been an important importer of commodities (oil, minerals and wood, among
710 690900
621940 860
2 600
520
1 030 910
Page 19 of 65
others) produced in Africa. On the other hand, China has exported manufactured goods to Africa
and has granted credit lines associated with the export of goods and services from China. These
trade transactions have contributed to the development of sea transportation and seaport
infrastructures in Africa.
Angola is the fourth largest economy in SSA, providing significant exporting potential that is yet
to be fully exploited. By other hand, due to its location, Angola could offer an entry point for
international transport to the southern region of the Democratic Republic of Congo (DRC),
Zambia and Botswana, as these countries do not have direct access to the sea.
Figure 3 – Main Seaports and Railway Corridors in Africa
Source: Report “Strengthening Africa’s Gateways to Trade” from PwC, April 2018.
It is against this backdrop that the IFC (from the World Bank group) recently recommended in a
diagnostic study about Angola’s private sector that private initiative should play a bigger role in
the country’s transport sector. In particular, the IFC suggested that the private sector should
have a more relevant presence in those areas that provide greater potential such as sea and air
transport, as these are the most important entry points to the country.
Indeed, there are already several international seaport operators in Africa, with APM Terminals
having a presence in Angola through the operations in the container terminal in the Port of
Luanda and another in the Port of Namibe (both through Sogester):
Table 6 – List of Africa’s Largest Seaport Operators
Operators Seaport Terminals under operation
APM Terminals 13 container terminal concessions: Angola (2), Benin (1), Cameroon (1), DR Congo (1), Egypt (1), Congo (1), Guinea (1), Ivory Coast (1), Liberia (1), Morocco (1) and Nigeria (2)
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Operators Seaport Terminals under operation
Bolloré 12 container terminal concessions: Ivory Coast (1), Cameroon (2), Ghana (1), Nigeria (1), Gabon (1), Congo (1), Benin (1), Sierra Leoe (1) , Togo (1), Guinea (1) and Comoros Islands (1)
Transnet Owner and operator of 16 terminals in 7 South African seaports
DP World 7 seaport concessions in Egypt (1), Djibouti (1), Argel (2), Somalia (1), Mozambique (1) and Senegal (1)
1 concession in the Rwanda logistics centre
ICTS 2 seaport concessions in Congo and Madagascar
Hutchinson Ports 3 seaport concessions in Egypt (2) and Tanzania (1)
COSCO 1 seaport concession in Egypt (20% of the container terminal in the Suez Channel, controlled by APM)
China Merchants Group 1 seaport concession in Togo
Source: Public Information.
3.2 Seaport Infrastructures in Angola
The National Network of Seaports in Angola is currently made of five seaports strategically
located from north to south along the Atlantic coast of the country.
Figure 4 – National Network of Seaports and Railways
Source: National Development Plan of Angola (“PND 18-22”)
The current seaports in Angola include: (1) Port of Luanda; (2) Port of Cabinda; (3) Port of Lobito;
(4) Port of Soyo; and (5) Port of Namibe.
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The country’s National Development Plan 2018-22 (“PND 18-22”) envisages the construction of
three additional seaports, namely the Port of Caio in Cabinda (6) (intended as a container
terminal), the Port of Barra do Dande (7) in Bengo and the Port in Porto Amboim (8).
The Port of Luanda is the seaport that records the largest cargo turnover yearly, as it serves the
most populated city and province of the country, Luanda. The second seaport is Port of Lobito,
which supplies Angola’s Planalto Central region along the Benguela railway.
The Port of Luanda has railway connection to the city of Malange, located inland of the country
at more than 380km from the capital. The PND 18-22 envisages the extension of the railway to
the city of Saurimo and the construction of a railway branch to the border city of Dundo, which
will allow the creation of another transport corridor to the DRC.
The Port of Lobito is nowadays the only seaport that has a railway connection with a border
country to Angola, namely the DRC, therefore offering potential to handle imports and exports
of goods and raw materials from the southern region of this neighbouring country. The PND 18-
22 includes plans to build a railway section that will also allow the connection to the actual
railway infrastructure (CFB) to Zambia.
The EN-100 is the road axis that crosses the length of Angola from north to south along the coast
line and provides access to all the major seaports of the country (Luanda, Lobito, Namibe, Soyo
and Cabinda).
3.2.1. Port of Luanda
The Port of Luanda is located in the bay of the city of Luanda, offering excellent navigability
conditions and for operating sea transport vessels. On the regional front, its location in the
middle of the west coast of the African continent makes the infrastructures of the Port of Luanda
a mandatory stop in the sea routes to the west of the continent.
The port is managed by Empresa Portuária de Luanda, E.P., a public company responsible for
granting concessions to operate the various existing cargo and passenger terminals. Currently,
it is the largest seaport infrastructure in the country, as it is responsible for more than 80% of
the turnover of the cargo transported by sea in the Angolan territory.
The government is considering reforming the Port of Luanda (where most of Angola’s trade
takes place) considering that:
• Stowage activities could be handled by private operators instead of public
companies in order to achieve productivity gains;
• A new master plan will be developed for the Port of Luanda with the aim of giving
more efficient use of the stowage activities and available storage space in order to
reinforce the overall cargo handling capabilities of the seaport infrastructure.
A diagnostic study about Angola’s private sector elaborated by the IFC shows that the average
number of days that a ship stays in Luanda (12) remains high comparing to best international
standards. However, it is in line with other seaports in Africa such as Dakar (13 days), Abidjan
(11 days) or Lome (9 days).
Page 22 of 65
Graph 6 – Average Stay (days) for Ships in selected African Seaports, 2017
Source: IFC diagnostic study on Angola’s private sector.
However, sea freight to Angola is significantly more expensive than to other seaports. For
instance, the sea freight from Le Havre (in northern France) to Abidjan or Dakar is half of the
amount that it is to Angola while for Lagos it is two-thirds of the amount. This is due to several
reasons, such as: (1) lower competition of alternative corridors (Lagos, for instance, competes
with Cotonou), (2) the local costs in Angola are higher, (3) the lower productivity of the stowage,
(4) the informal trade agreements among shipping lines and (5) own country risk.
As a result, there is great potential for improvement in terms of cost efficiency considering that
a significant number of the reasons aforementioned could be resolved with decisions taken by
the Angolan authorities and the involvement/investment of the private sector. These includes
measures to tackle (1) bottlenecks at the seaport, (2) decrease required time for cargo
unloading, provide solutions for the (3) lack of trucks to transport the cargo, (4) road and railway
traffic inland that lead to part of the port of Luanda being used as storage area and, as a result,
requiring the need to resort to dry ports in order to solve these bottlenecks (namely, in handling
empty containers).
Chapter 4 presents a more detailed description of the Port of Luanda.
3.2.2. Port of Lobito
The Port of Lobito is a deep-water seaport with five different types of terminals:
• General Cargo Terminal – not concessioned;
• Refrigerated Containers Terminal – not concessioned;
• Containers in Dry Port Terminal – not concessioned;
• Mining Terminal – not concessioned;
• Support Terminal.
1213
119
Luanda Dakar Abidjan Lomé
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Figure 5 – Map of the Port of Lobito and its Existing Terminals
Among the existing equipment in the Port of Lobito, the following standout:
• 25 lifting cranes with capacity from up 3 to 22 tons;
• One moving crane and 1 lifting crane;
• 44 forklifts;
• Six seaport trucks;
• Other equipment for general cargo handling.
The mining terminal has a railway connection to the Benguela railway linking Lobito to the
mining regions of the DRC and Zambia.
3.2.3. Port of Cabinda
The Port of Cabinda is located 400km north of Luanda, 220km southwest of Matadi and 200km north of the city of Ponta Negra. It has a population of more than 15 million. The seaport was built back in 1953 while in 1962 it was upgraded to the commercial seaport category. The main cargo handled in the Port of Cabinda after 1953 includes wood, coconut, coffee and minerals. The port also have a passenger terminal. The Port of Cabinda includes the following infrastructures and equipment:
• Two storage facilities of 1,000 squared-meters; • Storage area of 24,357 squared-meters with capacity of 8,000 TEUs, with reinforced
concrete (5,170 squared-meters) and cement (19,187 squared-meters) pavements; • New pier bridge: dock with 110 meters length, 32 meters wide and 5 meters high;
total length of 319 meters (fixed and mobile bridge); pneumatic rubber defenses; gross/net tonnage of 5,017/1,500 tons, dynamic strength capacity of 4,800 tons; 8 bollards, 4 bow anchors of 28 tons, 2 lateral edge anchors of 14 tons and 2 tail anchors of 28 tons;
• Sea access: 2,400 meters long, 80 meters wide and 7.5 meters ZH deep.
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Figure 6 – Map of the Port of Cabinda
The Port of Cabinda welcomed 388 vessels (long-haul, coasting and oil tankers) during 2018,
processing 17,552 containers and 256 thousand tons of cargo.
In 2012, Caioporto SA was founded as a specific vehicle for the development and construction
of the new Port of Caio, with an estimated investment amounting to US$ 800 million. The
company was awarded the financing, planning, projecting, building and management of the port
of Caio under the terms and conditions of the concession agreement signed between a private
entity and the Angola’s Ministry of Transports. Caioporto SA is currently held by the country’s
Sovereign Wealth Fund (Fundo Soberano de Angola).
The project is being developed in two stages, with the first stage of the Port of Caio (located 8
km from the Port of Cabinda) expected to be ready in 2020 in an area of 150 hectares with the
following characteristics:
Page 25 of 65
Figure 7 – Layout of the First Stage of the Future Port of Caio
Length of the wall of the commercial seaport: 630 meters;
Bridge and access pier to the seaport terminal with 2km length;
Access channel: 180 meters high; 15.5 meters deep;
Handling capacity of 60 containers/hour per docking pier;
Docking basin: 200 meters wide; 14 meters deep.
The second stage of development of this project will require the following characteristics: • Docking pier of 1.130 meters long and 16 meters deep (docking of 4 large ships
simultaneously) with capacity to welcome some of the world’s largest ships; • Access channel: 200 meters wide; 18 meters deep.
Figure 8 – Layout of the Second Stage of the Future Port of Caio
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3.2.4. Port of Namibe
The Port of Namibe includes two terminals with the following characteristics:
• Container Terminal:
- Total area of 135 thousand square meters and 875 meters of continuous pier;
- Container storage area of 12,150 square meters;
- Electric cranes throughout the pier;
- Connection to Moçâmedes railway through the mining terminal Saco-Mar
• Mining Terminal: this infrastructure currently works as the main fuel and lubricant
terminal for Sonangol in the southern part of the country. The terminal has a pier
that is 525 meters long and 19 meters deep. It currently handles cargo consisting of
fuel and its derivatives weighing about 300 thousand tons.
Figure 9 – Map of the Port of Namibe and Existing Terminals
Page 27 of 65
This port was recently subjected to modernization works that will allow 30 to 35 movements per
hour. Its standstill capacity was increased from 1,700 to 2,700 TEUs and its refrigeration
connections from 25 to 100 power plugs. These works also included the rehabilitation of 240
meters of the pier and paving the existing container park.
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3.3 Angolan Seaport Sector in Numbers
The volume of cargo handled in the ports of Angola has been gradually decreasing since the year
2014 at an average annual rate of -13.9%.
In recent years, the volume of cargo handled in the ports of Angola reached its peak in 2014,
reaching 18,289 thousand tons, of which 71% were handled in the Port of Luanda, 16% in the
Port of Lobito, 7% in the Port of Namibe and the remaining 6% handled between the Ports of
Cabinda, Soyo and Amboim.
Graph 7 – Cargo Volumes Handled in the Ports of Angola between 2012 and September 2019
Source: Research and Strategic Planning Bureau, Ministry of Transports of Angola
In 2018, the total volume of cargo handled in Angola reached 10,042 thousand tons. Although
the drop in cargo handled was witnessed in all of the country’s seaports, the decreasing trend
was more pronounced in the largest seaport, Luanda (CAGR -14.6%) and in the smaller seaports
such as Cabinda, Soyo and Amboim (combined, CAGR -27.2%). The declines were not as
significant in the Port of Lobito (CAGR -10.9%) and in the Port of Namibe (CAGR -7.4%).
This performance meant that the Port of Luanda, which clearly remains as the main seaport for
entry and exit of cargo in Angola, had a lower share of the total cargo handled in the country
(69% in 2018). It also meant that the smaller seaports reached a combined total of less than 3%
of the handled cargo. On the other hand, the Ports of Lobito and Namibe, which in 2014
accounted for 23% of the total goods handled in the ports of Angola, were responsible for 28%
of the total goods handled by Angolan seaports.
Between January and September 2019, 7,311 thousand tons were handled in the ports of
Angola, with 71% handled in the Port of Luanda.
54% 56%
71%
65%67%
71% 69,3%71%
24%23%
16%
16%
16%
16% 18%
19%
12%
13%
7%
11%
9%
8% 10%
8%
3%3%
2%
3%
3%
3%3%
2%
5%
4%3%
2%
2%1%
2%2%
1%
3%
3%
2%
11,638
13,078
18,289
11,852
9,36610,717
10,042
7,311
2012 2013 2014 2015 2016 2017 2018 Jan. - Sept.2019
Luanda Lobito Namibe Cabinda Amboim Soyo
Page 29 of 65
3.4 Regulatory Framework of the Seaport Sector in Angola
The maritime-seaport sector in Angola is governed by Law 27/12 of 28 August, denominated
“Lei da Marinha Mercante, Portos e Actividades Conexas” (“Law of Merchant Navy, Seaports and
related Activities”). This law regulates all activities developed in the maritime and seaport
jurisdiction areas, in the scope of the sectors of the merchant navy, recreational maritime
activities and nautical sports and of seaports, in connection and integrated with transports and
logistics activities.
The Instituto Marítimo e Portuário de Angola (IMPA) (or Maritime and Seaport Institute of
Angola), with its Organic Statute approved under Presidential Decree n: 328/14, 29 December,
acts as sector regulator, under the supervision of the Ministry of Transports. It exercises its
competences in the fields of merchant navy, recreational navy and nautical sports, seaports,
navigation and maritime security, economic activities in the scope of marine sectors, rivers, lakes
and seaports, as well as supervises and regulates activities developed in this sector.
It is also worth highlighting Law n: 9/98, 18 September, of the Seaport Domain, that aims to
define the framework of the seaport public domain, establishing the need to elaborate a Master
plan for Seaport Management, as well as a legal framework of the works and activities of
individuals in the areas of seaport jurisdiction.
Decree n: 53/03, of 11 July, approves, the Seaport Exploration Regulations, containing the
fundamental rules to be observed in the management/utilization of Seaports in Angola.
3.4.1 Regulatory Framework of Seaport Concessions
Under Law n: 11/13 of 3 September – Lei de Bases do Sector Empresarial Público (Basic Law for
Public Sector Enterprise), the Ports in Angola are formed of Public Enterprises governed by their
own legislation, with patrimonial, administrative and financial autonomy. Their revenues are
collected through the implementation of the Seaport Tariff Regulation (Combined Executive
Decree n: 323/08 of 16 December, complementing Combined Executive Decree n: 19/09 of 12
March) to the services provided to the clients involved in the transport and logistics chain.
In the case of Luanda, the Empresa Portuária de Luanda, E.P. (EPL), in the exercise of its
competences in the management, administration and seaport authority (Decree n: 26/98, of 14
August, that approves the Organic Statute of the EPL), acts as Licensing Entity, in the scope of
signing of seaport Concession Contracts. EPL also grants other legal and private entities the
exploration of the activity area and associated services with seaport activity, always under the
applicable legislation, namely the Lei dos Contratos Públicos (Law of Public Contracts), Law n:
9/16, of 16 June, that sets the legal regime for the elaboration and execution of those contracts,
and Decree n: 52/97, of 18 July, about the General Basis for Seaport Concessions, that defines
the general regime applicable to concessions of this nature.
3.4.2 Others
Legislation about environmental matters in the exploration of seaport infrastructures:
a) Law n.º 5/98, of 19 June –Lei de Bases do Ambiente (Environmental Law);
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b) Decree n: 51/04, of 23 July – about Environment Impact Assessment;
c) Decree n: 59/07, of 13 July – about Environment Licensing;
d) Presidential Decree n: 194/11, of 7 July – Regulations about Environmental Damage
Responsibilities;
e) Presidential Decree n: 141/12, of 21 June – Regulations to Prevent and Control Pollution
of National Waters;
f) Presidential Decree n: 190/12, of 24 August – Regulations about Waste Management;
g) Decree n: 1/10, of 13 January – about Environmental Audits;
h) Resolution n: 49/ 05, of 3 October – Stockholm Convention about Solid Organic
Pollutants;
i) Resolution n: 14/17, of 28 March – United Nations Convention about Climatic Changes
(Kyoto Protocol);
j) Resolution n: 41/01, 21 December – Membership to the International Convention for
the Prevention of Pollution by Ships (Convention MARPOL 73-78).
International Conventions about Maritime Security and Seaport Management prevailing in Angola:
a) African Charter on Maritime Transportation;
b) United Nations Convention on Sea Law;
c) International Convention of 1952 for the unification of certain rules relating to Arrest of
Sea-going Ships;
d) International Convention of 1969 on Civil Liability for Oil Pollution Damage;
e) International Convention of 1971 for the Prevention of Pollution from Ships and Protocol
of 1978 MARPOL1978
f) International Convention of 1972 about Container Security, amended CSC-72;
g) International Convention of 1990 on Oil Pollution Preparedness (OPRC90);
h) International Convention of 1990 on Oil Pollution Response and Cooperation (OPRC90);
i) International Convention of 1992 on Civil Liability for Oil Pollution Damage;
j) International Convention of 1992 on the Establishment of an International Fund for
Compensation for Oil Pollution Damage FUND PROT 92 or FUND92;
k) International Convention of 1996 on Liability and Compensation for Damage in
Connection with the Carriage of Hazardous and Noxious Substances by Sea;
l) International Convention of 1973 for the Prevention of Pollution from Ships (“MARPOL
73/78”);
m) International Convention to Safeguard Human Life at Sea (SOLAS1974 and respective
protocols);
n) International Convention for the Unification of Certain Rules of Law with respect to
Collisions between Vessels;
o) International Convention on Maritime Search and Rescue - SAR79;
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p) Convention on the International Regulations for Preventing Collisions at Sea
(COLREG1972 and respective amendments from 1981);
q) International Convention for the Unification of Certain Rules of Law with respect to
Collisions between Vessels (1910);
r) Protocol of 1992 that amends the International Convention on Civil Liability for Oil
Pollution Damage (“CLC1969”);
s) Protocol of 1992 that amends the International Convention on the Establishment of an
International Fund for Compensation for Oil Pollution Damage (“FUNDO”);
t) Protocol of 1996 that amends the Convention on the Prevention of Marine Pollution by
Dumping of Wastes and Other Matter;
u) International Regulations of 1972 for Preventing Collisions at Sea (“COLREGS”),
amended in 1981.
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4 PORT OF LUANDA
4.1 General Description
The Port of Luanda is located in the harboured bay of Luanda under the coordinates: 8º 47’ S
latitude and 13º 14’ E longitude. The existence of Ilha do Cabo provides natural and excellent
protection against maritime tides and swells in the region, allowing the bay to have optimal
conditions to manoeuvre and dock vessels.
The port has 2,738 meters of docking pier. The maximum draft of the approach channel is 9.5
meters. The depth is bigger along the quay, varying between 10.5 meters and 12.5 meters,
except in the cabotage terminal, where the draft ranges from 3.5 meters to 5.5 meters.
The docking pier is split into 7 terminals and a logistics platform that supports the oil industry:
Figure 10 – Map of the Port of Luanda and Terminals1
The seaport infrastructures in Luanda are under the responsibility of Empresa Portuária de
Luanda E.P. (“EPL”). EPL is a public company whose mission is to plan, manage, regulate, oversee
and promote the Port of Luanda ensuring (1) the security of people and goods, (2) economic,
social and environmental sustainability and (3) seaport infrastructure services in Luanda.
The social objective of EPL includes:
International trade and cabotage services in the country;
Loading and unloading of goods and respective storage;
Ancillary service provider to the cargo and navigation operations;
1 Does not include Shipping Terminal
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Control and supervision of installed or to be installed industries within the port
area, in all that is related with the security and efficiency of port operations;
Environmental protection.
The Port of Luanda is managed under a Landlord Port regime. The EPL currently has five
concessioned Terminals, with four of them in public service regime and one in private regime
dedicated to supporting the oil industry, all of them operating 24/24 hours per day.
Table 7 – Terminals and Concessionaires of the Port of Luanda
Quay Area Concessionaire Concession
Deadline
Passenger Terminal
46.15 meters 4,090 sqm IMPA n.a.
General Cargo Terminal
(GCT)
900 meters (depth: 5.5m-10m)
80,000 sqm Multiterminais 20 years
(2005-2025)
Multivalent Terminal
(MVT)
536 meters (depth: 10m)
178,641 sqm Unicargas EP 20 years
(2005-2025)
Container Terminal (CT)
550 meters (depth: 10.5m-12.5m)
142,467 sqm Sogester SA 20 years
(2007-2027)
Multipurpose Terminal (MT)
610 meters (depth: 12.5m)
229,100 sqm Concession terminated
(Soportos SA)
Cabotage Terminal
7.80 meters (depth: 3.5m)
n.a. Inoperative Terminal
Oil & Gas Terminal
2.064 meters (depth: 12.5 m)
1,597,544 sqm
Sonangol EP 25 years
(1995-2020) Source: EPL.
4.2 Main seaport infrastructures
4.2.1 Passenger Terminal
The passenger terminal is managed by Instituto Marítimo e Portuário de Angola (Maritime and
Seaport Institute of Angola). It has an area of 4,090 sqm and three pier bridges with each having
docking capacity of two ships such as catamaran.
4.2.2 General Cargo Terminal (GCT)
The General Cargo Terminal (GCT), concessioned to Multiterminais, is intended to handle liquid
and solid bulk and cereals. It has an embankment area of 80,000 sqm and a coasting pier of 900
meters with depths that vary between (-5.50 m) ZH and (-10.50 m) ZH. A mill industry was built
inside terminal facilities.
The terminal has capacity to handle cargo in bulk or bagged from vessels that have their own
crane. It does not have its own storage facilities, except for cereals, meaning that the cargo
loading and unloading operations have to be done directly from and to the trucks.
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Table 8 – List of Existing Equipment in the General Cargo Terminal
Existing Equipment in the Terminal Qty Maximum Capacity
Mobile Crane 1 30 tons
Mobile Crane 1 40 tons
Mobile Crane 1 80 tons
Reach Stacker 4 45 tons
Gooseneck 4 60 tons
Tugmaster 8 40 tons
Forklift 11 3 to 37 tons Source: Logistics Capacity Assessment (LCA), World Food Programe.
Multiterminais is the company responsible for operating the GCT and results from a partnership
between the Angolan company Copinol and NileDutch Africa Line.
The company employs a total of 527 workers. It has one maritime access and three land
accesses.
4.2.3 Multivalent Terminal (MVT)
The Multivalent Terminal is intended to operate simultaneously general and container cargo.
The terminal has an area of 178,641 sqm of embankments and a coasting dock of 536 m. It has
depths of (- 10,00 m) ZH and the quay is adapted for stowage operations from RO-RO ships.
Table 9 – List of Existing Equipment in the Multipurpose Terminal
Existing Equipment in the Terminal Qty Maximum Capacity
Reach Stackers (Kalmar;Terex) 13 45 tons
Tugmaster 15 30 tons
Trailers 6 30 tons
Semi-Automatic Spreaders 19 20 a 40 tons
Forklift 6 30 tons
Source: Logistics Capacity Assessment (LCA), World Food Programe.
The terminal has a covered area of 10,500 sqm for storing palletized cargo and 60 electric plugs
for refrigerated containers. The outside embankment has a storage capacity up to 3,000 TEUs
(full) and also has a car park with maximum capacity of 600 units.
The average productivity of the terminal is 13 TEUs/hour.
It has one maritime access, one emergency access and one land access that connects with the
port hinterland.
Unicargas is the concessionary company of the MVT and it is a public entity that is under the
supervision of the Ministry of Transports of Angola. Besides the seaport operation, Unicargas
also provides road transport services through its own fleet.
This terminal employs a total of 325 workers.
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4.2.4 Container Terminal (CT)
The Container Terminal is intended to handle only goods that are inside containers. This terminal
is concessioned to Sogester and occupies an area of 142,467m2 of embankments and a coasting
dock of 550 meters with depths that vary between (-10,50 m) ZH and (-12,50 m) ZH.
The terminal has an average productivity of 50 containers/hour and a storage capacity of 4,620
TEUs (full) and 5,000 TEUs (empty), with 400 electric plugs for refrigerated containers.
It has one maritime access, one emergency access that connects to other terminals and two land
accesses.
Table 10 – List of Existing Equipment of the Container Terminal
Existing Equipment in the Terminal Qty Maximum Capacity
Mobile Crane 3 104 tons
Tugmaster 17 50 tons
Reach Stacker 5 45 tons
Empty Container Handler 3 n.a.
Forklift 1 n.a.
Spreaders 10 n.a.
Source: Logistics Capacity Assessment (LCA), World Food Programme
Sogester also has two second-line terminals located in Panguila and Via Expresso. The Panguila
terminal has an area of 45 hectares with 400 electric plugs for refrigerated containers. The Via
Expresso terminal has 14 hectares and 380 plugs for refrigerated containers.
Sogester is a partnership between the multinational company APM Terminals (51%) and GEFI
S.A (49%).
The terminal employs a total of 752 workers.
4.2.5 Multipurpose Terminal (MT)
The Multipurpose Terminal is intended to simultaneously operate general and container cargo.
Concessioned to Soportos until recently, it occupies an area of 229,100 m2 of embankments,
with a coasting dock of 610 m with an average depth of (-12,50 m) ZH.
The terminal has one sea access, one land access that connects with the hinterland of the port
and one access that connects to the Oil & Gas Terminal.
This terminal employs 725 workers.
More details about the Multipurpose Terminal will be provided in Chapter 5.
4.2.6 Cabotage Terminal
This terminal is intended for commercial cabotage activities, as soon as the construction and
equipment works to support its operations are concluded. The Cabotage Terminal has the
following premises:
A coastal front of 260 meters long (under construction);
An embankment of 27,650 m2;
Page 36 of 65
Premises for Piloting, Towing and Mooring services with 1,080 sqm (EPIBAL and
EPINOSUL);
A warehouse with an area of 2,250 sqm (half concessioned to Logistics).
Page 37 of 65
4.3 Operational Activity Performance of the Port of Luanda
4.3.1 Vessel Traffic in the Port of Luanda
Throughout 2018, 3,719 vessels docked in the Port of Luanda, with 555 of these being long-haul
vessels and 3,164 supply boats mostly related to the oil industry. Relatively to the previous year
of 2017, the total number of vessels docking in the Port of Luanda fell by 422 while, since 2015,
the number of vessels dropped by an average annual rate of 17%.
Table 11 – Vessel traffic in the Port of Luanda (number of ships)
Type of Vessel 2015 2016 2017 2018 1st S 2019 CAGR (15-18)
Long-haul 900 732 633 555 302 -15%
Cabotage 5,662 3,890 3,511 3,164 1,726 -18%
Total 6,562 4,622 4,144 3,719 2,028 -17% Source: EPL.
The frequency of arrivals of long-haul vessels in 2018 stood at 1.5 vessels/day, which
represented a decline of 12% relatively to the previous year.
In terms of cabotage vessels, the frequency of arrivals was 10% lower in relation to 2017, with
the number of arrivals standing at 8.7 ships/day.
The lower frequency of vessels arrivals to the terminals of the Port of Luanda was largely justified
by the slowdown in the Angolan economy and the decreasing activity in the oil sector that
followed the sharp drop in international oil prices. This led to a strong reduction in the level of
imported goods and the transport of oil and its by-products by sea.
The terminal that supports activity in the oil sector is the main responsible for the vessel traffic
in the Port of Luanda, accounting for 85% of total traffic in the port in the last four years.
Graph 8 – Vessel Traffic per Terminal (number of ships)
Source: EPL.
Excluding the terminal that supports activity in the oil sector, the terminal with the most vessel
traffic in the last two years was the Multipurpose Terminal, with 297 and 246 vessels in 2017
and 2018, respectively.
The Navigation Agencies with the highest traffic of long-haul vessels in 2018 were Niledutch with
68 vessels, Maersk with 63 vessels and Panalpina with 49 vessels. In the previous year (2017),
102 198186
5,752
306 1853106
163
3,963
316
2162 102 99
3,572
2971252 99 75
3,232
246 1530 66 52
1,758
121 1
GCT MVT CT MT Oil & GasTerminal
Cimangola
2015 2016 2017 2018 1st Sem. 2019
Page 38 of 65
Niledtuch was again the Navigation Agency with the largest traffic of long-haul vessels (134
container vessels), followed by Maersk with 82 vessels and MSC with 72 vessels.
Table 12 – Traffic of Long-haul Vessels by Navigation Agency
Agents
General Cargo
Container Vessels
Ro-Ro Vessels
Other Vessels
TOTAL
2017 2018 2017 2018 2017 2018 2017 2018 2017 2018
All Brokerage 0 0 0 1 0 0 0 0 0 1
AMT 2 0 0 0 0 0 0 0 2 0
ANNA 14 4 2 1 0 0 0 0 16 5
Bolloré Ports 14 12 20 7 13 9 2 1 49 29
CMA CGM 0 5 64 37 0 6 0 0 64 48
GAC 8 3 0 40 2 0 1 0 11 43
GARI 0 0 0 0 0 0 0 1 0 1
GETMA Shipping 25 12 0 0 0 0 0 0 25 12
Grimaldi 0 0 0 0 31 11 0 0 31 11
Hull Blyth 12 24 0 0 4 2 0 1 16 27
Kuena + Nagel 7 4 0 0 0 10 0 0 7 14
Kremlin 1 7 0 0 0 2 0 0 1 9
Leman 0 3 0 0 0 0 1 1 1 4
Maersk 0 0 82 63 0 0 0 0 82 63
Manubito 0 0 0 2 0 0 0 10 0 12
Marine Serv 0 0 0 0 0 0 0 0 0 0
Megalog 0 0 0 0 0 0 0 0 0 0
MSC 0 0 72 31 0 0 0 0 72 31
Naiber 5 2 19 11 0 0 0 0 24 13
Niledutch 0 4 134 64 0 0 0 0 134 68
Orey 26 21 3 14 10 2 0 0 39 37
Panalpina 0 3 0 46 0 0 0 0 0 49
Prodiaman TNB 0 17 0 3 0 6 0 2 0 28
Secil Marítima 1 0 0 0 3 0 0 0 4 0
Seatrade 24 6 2 0 0 0 6 2 32 8
Senamar 4 1 0 0 0 0 0 0 4 1
Sharaf 0 11 0 0 2 6 3 3 5 20
Supermaritime 3 4 0 0 0 0 5 5 8 9
Strurrock 1 1 0 0 0 4 0 1 1 6
SNMA 0 0 0 0 0 0 1 0 1 0
TLC 4 5 0 0 0 0 0 1 4 6
Total 151 149 398 320 65 58 19 28 633 555 Source: EPL.
Page 39 of 65
Table 13 – Traffic of Long-haul Ships by Navigation Agency (1st Semester 2018 vs. 1st Semester 2019)
Agents
General Cargo
Container Vessels
Ro-Ro Vessels
Other Vessels
TOTAL
1S 18 1S 19 1S 18 1S 19 1S 18 1S 19 1S 18 1S 19 1S 18 1S 19
All Brokerage 0 0 0 0 0 0 0 0 0 0
AMT 0 0 0 0 0 0 0 0 0 0
ANNA 4 5 1 0 0 0 0 0 5 5
Bolloré Ports 6 7 7 2 9 5 0 1 22 15
CMA CGM 0 0 34 41 0 0 0 0 34 41
GAC 3 0 0 0 0 0 0 0 3 0
GARI 0 0 0 0 0 0 0 1 0 1
GETMA Shipping 12 10 0 1 0 0 0 0 12 11
Grimaldi 0 0 0 0 11 8 0 0 11 8
Hull Blyth 7 1 0 0 2 2 0 1 9 4
Kuena + Nagel 4 2 0 0 0 0 0 0 4 2
Kremlin 0 0 0 0 0 0 0 0 0 0
Leman 0 0 0 0 0 0 1 26 1 26
Maersk 0 0 26 35 0 0 0 0 26 35
Manubito 0 0 0 0 0 0 0 0 0 0
Marine Serv 0 0 0 0 0 0 0 0 0 0
Megalog 0 0 0 0 0 0 0 0 0 0
MSC 0 0 31 24 0 0 0 0 31 24
Naiber 2 1 12 15 0 0 0 0 14 16
Niledutch 4 0 37 53 0 0 0 0 41 53
Orey 20 18 2 2 2 5 0 0 24 25
Panalpina 0 0 0 0 0 0 0 3 0 3
Prodiaman TNB 0 0 0 0 0 0 0 0 0 0
Secil Marítima 0 0 0 0 0 0 0 0 0 0
Seatrade 7 14 2 0 0 0 2 0 9 15
Senamar 1 4 0 0 0 0 0 0 1 4
Sharaf 0 0 0 0 6 3 2 1 8 4
Sontrânsitos 0 1 0 0 0 0 0 0 0 1
Supermaritime 1 1 0 1 0 0 3 4 4 6
Strurrock 0 0 0 0 0 0 0 0 0 0
SNMA 0 0 0 0 0 0 0 0 1 0
TLC 2 3 0 0 0 0 0 0 2 3
Total 73 67 150 174 30 23 8 38 261 302 Source: EPL.
Comparing the first semester of 2019 with the homologous period leads to the conclusion that traffic increased by 41 vessels, representing an increase of 15.7%. This resulted from the 25 increase in the number of refrigerated vessels from Leman, 12 more vessels from Niledutch and the 9 additional vessels from Maersk. On the other hand, the biggest drops in the arrival of vessels were from Bolloré, CMA CGM and MSC Shipping (a drop of 7 vessels each).
Page 40 of 65
Graph 9 – Vessel Traffic in the Port of Luanda by Navigation Agency (2016 – 1st Semester 2019)
Source: EPL.
4.3.2 Passenger Traffic
In 2018, the number of passengers registered in the Port of Luanda reached 85,415 passengers,
of which 84,098 were transported in vessels related to the oil & gas industry and only 1,317
passengers were related to long-haul vessels.
Data from the last three years shows that the number of passengers dropped 6% in 2017 from
the previous year, but recovered significantly following an increase of 31% in 2018. It is worth
noting that the 2017 drop was essentially due to the marked fall in the number of passengers
from cruise ships, as these dropped from 13,539 passengers to only 456 passengers.
The number of passengers related to activity supporting the oil industry is still the main reason
behind the passenger traffic in the Port of Luanda. This number has been increasing in the last
three years, rising from 55,738 passengers in 2016 to 84,098 passengers in 2018. This represents
an increase of about 150% in two years.
During the first half of 2019, the number of passengers stood at 47,302, of which 98% relate to
operations in the oil sector and only 2% were passengers from cruise ships.
15
41
35
24
16
53
25
3
90
29
48
63
31
13
68
37
49
217
49
64
82
72
24
134
39
169
57
110
118
78
31
123
35
180
0 50 100 150 200 250
Bolloré
CMA CGM
Maersk
MSC
Naiber
Niledutch
Orey
Panalpina
Other Agents
2016
2017
2018
1st Sem.2019
Page 41 of 65
Graph 10 – Passenger Traffic in the Port of Luanda (2016 – 1st Semester 2019)
Source: EPL.
4.3.3 Cargo Traffic
The total volume of cargo handled in the Port of Luanda reached 7,081 thousand tons in 2018,
representing a decline of 8% relatively to 2017. This drop completely offset the 7% growth
recorded in 2017 when it reached 7,703 thousand tons.
Table 14 – Cargo Volume Handled by Type of Goods (2016- 1st Semester 2019)
(thousand tons)
Type of Good 2016 2017 2018 1st Sem. 2019
Liquid Bulk 17 0 2 8
Solid Bulk 820 501 741 269
Fractioned General Cargo 881 801 715 279
Container General Cargo 5,471 6,400 5,624 3,112
Total 7,190 7,703 7,081 3,669 Source: EPL.
The container general cargo is the type of cargo more typically handled in the Port of Luanda,
accounting on average for 80% of the total cargo handled in the port. As was the case with the
total volume of cargo, the amount of container general cargo also recorded an increase in 2017
(+17%), followed by a decline in 2018 (-12%), although not completely offsetting the growth
recorded in 2017.
In terms of the other goods, the volume of cargo handled posted a decline of about 15%
between 2016 and 2018.
When comparing the first half of 2019 with the homologous period, the total volume of cargo
handled saw a 15% increase on the back of the robust performance in container cargo (+25%).
55,738
64,905
84,096
46,476
13,539
456 1,317 826
2016 2017 2018 1st Sem. 2019
Cabotage (Support Oil Industry) Cruises (Long-haul)
Page 42 of 65
Table 15 – Cargo Volume Handled by Type of Goods (1 Semester 2018 vs. 1 Semester 2019)
(thousand tons)
1st Sem. 2018 1st Sem. 2019 Var. (%)
Liquid Bulk 0 8 100%
Solid Bulk 363 269 -26%
Fractioned General Cargo 323 279 -13%
Container General Cargo 2,495 3,112 25%
Total 3,180 3,669 15% Source: EPL.
In terms of the goods handled by seaport terminal, the Multipurpose Terminal has been the one
that has handled the largest volume of cargo, namely 3,044 thousand tons in 2018. The
Container Terminal came in second, with 2,500 thousand tons handled in 2018. The combined
volume for the two types of terminals (Multipurpose and Container) stood at 5,544 thousand
tons, accounting for 78% of the total cargo handled.
Table 16 – Cargo Volume Handled by Terminal (2016 – 1 Semester 2019)
(thousand tons)
Terminal 2016 2017 2018 1 Sem. 2019
GCT (Multiterminais) 443 658 521 234
MVT (Unicargas) 299 222 349 193
CT (Sogester) 2,058 2,697 2,500 1,374
MT (Soportos) 3,196 3,572 3,044 1,679
Support Base to Oil Industry 188 151 154 65
Cimangola 1,006 403 513 33
Total 7,190 7,703 7,081 Source: EPL.
The cargo volume handled in the Multipurpose and Container Terminals declined 12% during
2018 from the previous year. However, it stood 6% above the level recorded in 2016.
In terms of the first half of 2019 and its homologous period, the Multipurpose Terminal recorded
the highest nominal increase (an additional 373 thousand tons handled) while the Multivalent
Terminal saw the largest percentage increase (53%).
Table 17 – Cargo Volume Handled by Terminal (1 Semester 2018 vs. 1 Semester 2019)
(thousand tons)
1st Sem. 2018 1st Sem. 2019 Var. (%)
GCT (Multiterminais) 262 324 24%
MVT (Unicargas) 126 193 53%
CT (Sogester) 1,156 1,374 19%
MT (Soportos) 1,306 1,679 29%
Support Base to Oil Industry 75 65 -14%
Cimangola 254 33 -87%
Total 3,180 3,669 15% Source: EPL.
Page 43 of 65
4.3.4 Container Traffic
In the last seven years, container traffic reached its peak in 2014 with a total of 743,976
containers handled in the Port of Luanda. Since then, and due to the crisis that has affected the
Angolan economy in following years, the number of containers handled in the Port of Luanda
has been declining, reaching its lowest level in 2016 with 401,894 containers (-49% comparing
to 2014 numbers).
In 2018, the number of containers handled reached 445,357 units, representing an increase of
15% from 2016, but nearly 40% below the level recorded in 2014.
Graph 11 – Container Traffic in units (2012 – 1st Semester 2019)
Source: EPL.
A similar evolution took place when analysing the performance in terms of container traffic
measured in TEUs during the same period. The year of 2014 saw the peak in terms of container
handling with 1,055,302 TEUs. In 2018, the containers handled stood at 620,054 TEUs, about
41% lower than in 2014. The lowest level, however, occurred in 2012 with 378,872 TEUs.
Graph 12 – Container Traffic in TEUs
Source: EPL.
Just as was the case in terms of goods handled, the Multipurpose Terminal was also the one that
recorded the highest reading in terms of TEUs. In 2018, the Multipurpose Terminal handled
312,910 TEUs and was the only one that saw a decline from 2017 (-19%).
378,872
912,898
1,055,302
753,286
541,346
683,548620,054
331,161
2012 2013 2014 2015 2016 2017 2018 1st Sem.2019
Page 44 of 65
The second largest terminal in terms of container handling in the Port of Luanda is the Container
Terminal that handled 268 thousand TEUs in the last two years.
In total, the Multipurpose and Container Terminals accounted for more than 90% of the
containers handled in terms of TEUs in the Port of Luanda.
Graph 13 – Container Traffic in TEUs by Terminal
Source: EPL.
The total number of containers handled in 2018 reached 445,357 units, nearly 9% below the
491,675 units recorded in 2017.
In terms of the relative performance during the first half of 2019 and its homologous period,
there was an increase of 24.1% and 16.8% in the Multipurpose Terminal and Container Terminal,
respectively. Both account for 95% of the total number of containers handled in the Port of
Luanda during the first half of 2019.
Graph 14 – Container Traffic in TEUs by Terminal (1st Sem. 2018 vs 1st Sem. 2019)
Source: EPL.
27,525 31,264 14,700
267,057 268,910
144,803
385,382
312,910
170,062
3,584 7,446 1,596
2017 2018 1st Sem. 2019
MVT CT MT Oil & Gas Terminal
15,349 14,700
123,933
144,803137,084
170,062
1,764 1,596
1st Sem. 2018 1st Sem. 2019
MVT CT MT Oil & Gas Terminal
Page 45 of 65
Table 18 – Container Traffic by Terminal and type of Container
Source: EPL.
Full Empty Total Full Empty Total
10 0 0 0 0 0 0 -
20 6,818 6,203 13,021 8,451 7,975 16,426 26%
40 3,864 3,388 7,252 3,966 3,453 7,419 2%
Sub-total 10,682 9,591 20,273 12,417 11,428 23,845 18%
10 0 0 0 0 0 0 -
20 53,681 46,440 100,121 54,508 48,680 103,188 3%
40 47,977 35,491 83,468 46,225 36,636 82,861 -1%
Sub-total 101,658 81,931 183,589 100,733 85,316 186,049 1%
10 0 0 0 0 0 0 -
20 110,279 71,005 181,284 90,681 55,687 146,368 -19%
40 57,205 44,844 102,049 44,694 38,339 83,033 -19%
Sub-total 167,484 115,849 283,333 135,375 94,026 229,401 -19%
10 1,621 988 2,609 1,619 808 2,427 -7%
20 1,332 296 1,628 749 289 1,038 -36%
40 161 82 243 1,991 606 2,597 969%
Sub-total 3,114 1,366 4,480 4,359 1,703 6,062 35%
10 1,621 988 2,609 1,619 808 2,427 -7%
20 172,110 123,944 296,054 154,389 112,631 267,020 -10%
40 109,207 83,805 193,012 96,876 79,034 175,910 -9%
Total 282,938 208,737 491,675 252,884 192,473 445,357 -9%
Container
Year 2018
Total (Load + Unload)Total
Change
Year 2017
Total (Load + Unload)Terminals
MVT
CT
MT
Oil & Gas
Terminal
Total
Full Empty Total Full Empty Total
10 0 0 0 0 0 0 -
20 9,309 5,336 14,645 6,818 6,203 13,021 -11%
40 4,609 2,820 7,429 3,864 3,388 7,252 -2%
Sub-total 13,918 8,156 22,074 10,682 9,591 20,273 -8%
10 0 0 0 0 0 0 -
20 48,787 33,037 81,824 53,681 46,440 100,121 22%
40 31,447 21,276 52,723 47,977 35,491 83,468 58%
Sub-total 80,234 54,313 134,547 101,658 81,931 183,589 36%
10 0 0 0 0 0 0 -
20 92,216 68,680 160,896 110,279 71,005 181,284 13%
40 44,673 35,243 79,916 57,205 44,844 102,049 28%
Sub-total 136,889 103,923 240,812 167,484 115,849 283,333 18%
10 1,365 739 2,104 1,621 988 2,609 24%
20 1,486 440 1,926 1,332 296 1,628 -15%
40 334 97 431 161 82 243 -44%
Sub-total 3,185 1,276 4,461 3,114 1,366 4,480 0%
10 1,365 739 2,104 1,621 988 2,609 24%
20 151,798 107,493 259,291 172,110 123,944 296,054 14%
40 81,063 59,436 140,499 109,207 83,805 193,012 37%
Total 234,226 167,668 401,894 282,938 208,737 491,675 22%
Total
ChangeContainer
Year 2016 Year 2017
Total (Load + Unload) Total (Load + Unload)
Total
MVT
CT
MT
Oil & Gas
Terminal
Terminals
Page 46 of 65
5 MULTIPURPOSE TERMINAL OF THE PORT OF LUANDA
5.1 Description of the different relevant activities developed in the Terminal
Historically, the technical and commercial exploration of the MT has been developed in the
scope of a concessioned public service. This means that the Seaport Operator (Concessionaire)
explores the seaport infrastructure by providing general and non-discriminatory services to all
potential users, subject to the respective regulatory control by the EPL (Grantor) and other
seaport authorities.
The public service exploration (according to the wording of the latest Concession Contract)
includes the following activities:
a. Execution of all loading, unloading, maintenance and storage operations, related to
docked vessels and respective cargo, providing all technical and human means;
b. Maintenance of embankments, facilities and equipment of the MT;
c. Ensure the compliance of existing legal and regulatory provisions in the premises of the
MT, in what concerns the preservation of the premises, water management and
environmental protection.
The concession of public service excludes those activities related with movement and security
(docking, mooring, unberthing), which are of the sole responsibility of EPL.
It is worth noting that the MT has been used mostly for containerized cargo handling operations,
although it is also authorized and able to operate simultaneously both general cargo and
containerized cargo.
5.2 Description of the main infrastructures and equipment
The MT is inserted in a piece of land with a total area of 229,100 sqm, that is an integral part of
the seaport complex of the Port of Luanda. The MT is delimited in the north by the Atlantic
Ocean, in the south, east and west by the Oil & Gas Terminal, explored by SONILS – Sonangol
Integrated Logistics Services, Lda.
The total area of the MT is divided into the manoeuvre zone (next to the docking pier), the
container storage area, a workshop area and the truck manoeuvre and parking area.
Access to the Terminal is made through the public road (Estrada do Cacuaco), which is asphalted
and in good conditions.
Page 47 of 65
Figure 11 – Map of the Multipurpose Terminal
5.2.1 Docking pier
The docking pier of the MT is 610 meters long, with an average depth of (-12,50m) ZH, that
allows the docking of large-scaled vessels, such as container carriers like Panamax. The pier is
currently in a good structural situation.
The pier protective fenders installed on the wall of the pier are cone-shaped with a steel panel
covered with high density polyethylene (UHMWPE) on the outside that reduces traction when
touching the hull of the vessels. These fenders currently present some signs of wear and tear
that is recoverable.
The docking pier of the MT has installed TEE-HEAD pier heads, all of which are operational and
only need protective painting. The service ladders of the pier are destroyed.
5.2.2 Embankment
The embankment of the MT covers 229,100.00 sqm that includes an area continuous to the
docking pier that is reserved for ship stowage operations (manoeuvre zone), a reserved area for
container storage and a third manoeuvre and parking zone for trucks with about 17 thousand
square-meters.
The MT container park has a maximum simultaneously storage capacity of 15,000 TEUs, allowing
the stacking of full containers up to five levels. It is also equipped with a fuel pump with a
maximum storage capacity of 128 thousand litres of diesel.
In the manoeuvre zone next to the docking pier, the embankment’s approach slab presents
gradual flattening. There were 24 large-sized holes located in the container storage area that
are clearly signalled, which hampers cargo handling operations.
5.2.3 Dry Port of Mulemba
The Dry Port of Mulemba (DPM) will not be an asset to include in the framework of the future
Concession. This is an asset held by the old concessionaire Soportos in partnership with an
Angolan group, Grupo GEMA. In case the future operator wants to keep using this terminal as a
support to the seaport operation of the Multipurpose Terminal, it will have to negotiate the
commercial terms and conditions with its current proprietor.
Page 48 of 65
The DPM is located 16km from the MT and there is an asphalted road connection in good
conditions between the MT and Bairro da Uíge that is 6 km away from the second-line terminal.
Accesses from here are not asphalted and require recurrent maintenance works.
The DPM has a storage capacity of 14,000 TEUs, with 286 connections for reefers containers.
The supply of electricity is done through the public network and the supply of water through the
transport of water containers.
The second-line terminal of Mulemba is equipped with a fuel supply pump with a storage
capacity of 123 thousand litres of diesel.
5.2.4 Equipment
Cargo Handling Equipment
The MT has seven mobile seaport cranes of the German brand LIEBHERR, all operational and
fully functional. The LIEBHERR cranes have existing maintenance contracts with the brand, in
which was not set up a deadline for termination. Instead, these contracts can be terminated
upon a three-month prior notice.
Figure 12 – LIEBHERR cranes and Pier Area
Source: CAC.
Moreover, there are two more seaport mobile cranes of the brand Gottwald that are currently
broken down and inoperative, without a set timeframe or expectation of recovery following the
diagnosis that was made.
The table below presents a summary of some of the technical characteristics of the existing
mobile cranes of the MT:
Page 49 of 65
Table 19 – List of existing Mobile Cranes in the Terminal
# Brand Model Maximum Capacity
Manufacture Year
Current Condition
1 LIEBHERR LHM 400 104 ton 2006 Operational
2 LIEBHERR LHM 400 104 ton 2012 Operational
3 LIEBHERR LHM 400 104 ton 2012 Operational
4 LIEBHERR LHM 550 144 ton 2013 Operational
5 LIEBHERR LHM 550 144 ton 2013 Operational
6 LIEBHERR LHM 550 144 ton 2014 Operational
7 LIEBHERR LHM 550 144 ton 2014 Operational
8 GOTTWALD Inoperational
9 GOTTWALD Inoperational
Source: Technical Reports of the Management Committee of the Multipurpose Terminal.
The equipment used to handle the containers inside the terminal (designated as “handling
equipment”) include mostly reach stackers, tractors and respective trailers and forklifts. It is
worth noting that, in general, all of this equipment is currently in good technical conditions with
the exception of the seaport tractors fleet that show significant signs of wear and tear.
The table below presents the existing equipment in each of the locations:
Table 20 – List of existing Handling Equipment in the Terminal
Type of Equipment
Brand Qty Maximum Capacity
Manufacture Year
Location Current
Condition
Reach Stacker TEREX 16 45 tons [2008-2017] Multipurp. Terminal
2 broken-down
Automatic Spreaders
BROMMA / STINNIS
29 50 a 60 tons [2007-2015] Multipurp. Terminal
9 broken-down
Seaport Tractors
SINOTRUCK 20 [2007-2012] Multipurp. Terminal
2 broken-down
Trailers CIMIC/QT 31 [2007-2012] Multipurp. Terminal
6 broken-down
Empty Forklift SANY 3 Multipurp. Terminal
All broken-down
Telescopic Forklift
MANITOU 1 Multipurp. Terminal
Broken-down
Forklift 3 Ton. MANITOU 1 3 tons Multipurp. Terminal
Operational
Forklift 5 Ton MANITOU 1 5 ton
Multipurp. Terminal
Operational
Forklift 8 Ton BERGMAN 1 8 ton
Multipurp. Terminal
Operational
Forklift 16 Ton BERGMAN 1 16 ton
Multipurp. Terminal
Operational
Reach Stacker TEREX 8 45 ton [2008-2017] Dry Port
Mulemba 1 broken-
down
Page 50 of 65
Type of Equipment
Brand Qty Maximum Capacity
Manufacture Year
Location Current
Condition
Telescopic Forklift
MANITOU 1 Dry Port
Mulemba Operational
Trailers CIMIC/QT 2 Dry Port
Mulemba Operational
Empty Forklift SANY 1 45 Ton BCA - Kikolo
Operational
Reach Stacker TEREX 1 45 Ton [2008-2017] BCA - Kikolo
Operational
Source: Technical Reports of the Management Committee of the Multipurpose Terminal.
Fleet of Light Vehicles
The fleet of light vehicles includes 57 units, as detailed in the table below:
Table 21 – List of existing Light Vehicles in the Terminal
Vehicle Description Qty Current
Condition
TOYOTA COASTER (mini-bus) 1 Operational
TOYOTA Land Cruiser 13 Operational
TOYOTA Land Cruiser Prado 1 Operational
TOYOTA Prado 7 Operational
TOYOTA Hilux 6 Operational
TOYOTA RAV 4 5 Operational
CHEVROLET-N300 4 Operational
HYUNDAI Tucson 8 Operational
MITSHUBISHI Pajero 2 Operational
TOYOTA Fortuner 1 Operational
HYUNDAI Santa Fe 1 Operational
MITSHUBITSHI Canter 2 Operational
ISUZU Plateau 1 Operational
NISSAN Hardbody 1 Operational
RANGE ROVER 1 Operational
Source: Technical Reports of the Management Committee of the Multipurpose Terminal.
Electricity generators
The MT also includes several diesel-electric generators. Eight diesel-electric generators of
several brands (DEMO, MILLER, and PERKINS-2500) are located in the Multipurpose Terminal
and are operational.
Four generators of the brand CATERPILLAR, two generators of the brand SDM and one of the
brand MILLER are located in the Dry Port of Mulemba. There is only one generator that is
inoperative of the brand CWOERMAN that is located in the second-line terminal. These
equipment are not included in the set of assets to be transferred to the Concessionaire.
Page 51 of 65
Information Technology
The existing seaport management software in the MT is Winport, where the management of the
loading and unloading of cargo from container ships is made, as well as the entry and exit of
registered containers in the terminal concierge, temperature monitoring of reefers containers
and other physical devices, such as weighing equipment and equipment to control the access of
people to the terminal (tourniquets).
Table 22 – List of IT Equipment
IT Equipment
Multipurp.T. D.P.Mulemba Terra Verde Total
Computers 152 31 42 225
Printers 73 15 22 110
Telephones 58 14 25 97
Servers 14 7 6 27
Switches 23 3 6 32
Routers 3 2 0 5 Source: Technical Reports of the Management Committee of the Multipurpose Terminal.
5.2.5 Water and Electricity Supply
The supply of water is ensured by the extension located in the adjacent terminal belonging to
SONILS. The supply of electricity is ensured by a group of generators located in the SONILS
terminal, although these are managed by a third party.
The process of installing the connection of water and electricity supply to the public network in
the MT is currently ongoing and will be done through the respective installing entity, namely
EPAL and ENDE. The Grantor will be responsible for this process.
5.2.6 Security and CCTV Equipment
The MT has 16 qualified security personnel from Direcção de Segurança e Ambiente (Security
and Environment Department) that have security and supervision roles in all the perimeter of
the premises, such as monitoring the CCTV equipment, verifying documentation in the entry and
exit of goods to and from the terminal, control the access of terminal personnel and third parties
and intervention in case of entry of non-authorized persons.
The CCTV system is operational and includes 36 cameras (30 fixed and 6 mobile) located in
strategic locations of the terminal that allow the permanent monitorization of the premises.
There is also a system to control the access of people to the terminal (tourniquets), but it is
currently inoperative. The security personnel also have 28 communication radios and 11 mobile
phones, all of which are operational.
The terminal premises is not fenced in all of its perimeter, with some locations being fenceless.
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5.3 Description of the current labour force
The labour force of the MT has a total of 725 employees, according to information disclosed in
the payroll map from October 2019. The Grantor plans to transfer these employees to the future
Concessionaire Company.
The labour force structure includes mostly men (676 men and 47 women) and the average age
is 39 years.
Graph 15 – Age and Gender Distribution of the Labour Force
Source: CAC.
Regarding the work experience of the labour force, the average number of years of experience
in the company is 6.2 years with a significant number of employees being affiliated since the
start of operations of Soportos.
The majority of workers in the MT finished Secondary School (59%) followed by High School
(23%). It is worth noting that 40 employees have an academic degree (Bachelors or College
Degree) and 79 employees do not have any literary (“unspecified”).
6
27
14
1
0
60
368
186
55
7
20-30
31-40
41-50
51-60
+60
Male Female
Page 53 of 65
Graph 16 – Literacy of the Labour Force
Source: CAC.
In terms of organizational structure, the labour force is currently organized as follows:
Graph 17 – Labour Force by Department
Source: CAC.
The monthly cost of the current labour force reached 266,122 thousand kwanzas, with 60% of
these representing base salaries paid to employees and the remaining 40% representing
subsidies. The subsidies paid include mainly those for transportation, food, attendance and
related with performance.
79
16
163
427
436
0
50
100
150
200
250
300
350
400
450
Undefined PrimarySchool
High School SecondarySchool
BachelorDegree
GraduateDegree
2
3
3
4
6
7
8
11
13
15
16
19
20
20
22
25
31
32
41
47
49
88
90
153
Container Maintenance, Repair and Cleaning Dep.
Litigation Dep.
Projects & Comercial Dep.
Insurance Dep.
Treasury Dep.
Human Resources Dep.
Accounting Dep.
Tugboat Sector Dep.
Stationery and Heritage Dep.
Baplie/Baypan Dep.
ICT Dep.
Health & Safety Dep.
Private Institutions Comercial Dep.
Transhipment Dep.
Supervision Container Tracking Dep.
Internal Works Dep.
Operations & Supervision Dep.
Equipment & Machine Dep.
Mangement Board Secretariat
Security Dep.
Craine Operations Dep.
TEREX Operations Dep.
General Maintenance and Technical Assistance Dep.
Container Tracking Dep.
Page 54 of 65
The monthly base salary varies between a minimum of 128,139 kwanzas and a maximum of
804,083 kwanzas. Including subsidies, total remuneration ranges between 199,851 kwanzas and
1,078,411 kwanzas.
Graph 18 – Minimum and Maximum Monthly Salary, Base and Total, in Kwanzas
Source: CAC.
128,139199,851
804,03
1,078,411
Base Monthly Remuneration Total Monthly Remuneration
Min Max
Page 55 of 65
5.4 Operational Activity Performance of the Multipurpose Terminal
Vessel traffic in the MT recorded significant growth between 2013 and 2015, with an average
annual growth rate of 19.9%. This growth was largely due to the start of the concession contract
with SOPORTOS, that required the execution of investments for the expansion of the handling
and storage capacity in the Multipurpose Terminal. It is worth noting that, during this period,
the seaport operation turned out to be more efficient with an average ship stopover declining
from 3.73 days in 2012 to 1.32 days recorded in 2015.
Table 23 – Vessel Traffic Performance in the Multipurpose Terminal
Vessel Traffic 2012 2013 2014 2015 2016 2017 2018 1S 19
CMA CGM 0 0 5 1 35 51 72 40
Maersk 0 0 0 0 3 10 11 7
MSC 0 0 11 14 56 70 58 24
Niledutch 40 61 57 44 26 56 75 52
Other Agents 108 121 199 247 207 134 37 13
Total 148 182 272 306 327 321 253 136
Growth Rate 23.0% 49.5% 12.5% 6.9% -1.8% -21.2%
Avg. Stopover (days)1 3.73 3.14 2.16 1.32 1.35 1.79 1.41 1.99 1The calculation for the average stopover took into consideration the vessel arrival and departure dates.
Source: Statistics supplied by SOPORTOS. CAC Analysis.
In the period between 2016 and 2017, vessel traffic in the MT remained stable (between 320
and 330 vessels welcomed annually), despite the increase in demand for seaport services from
internationally renowned navigation agents such as CMA, Maersk and MSC. Niledutch has been
a regular client of the seaport services provided by the MT, since 2012.
The year 2018 saw a significant decline of 21% in vessel traffic in the MT relatively to the previous
year. This was due to the marked drop in oil prices that negatively impacted the performance of
the Angolan economy and, as a result, the amount of imported goods.
Considering the data reported for 2018 alone, it is worth noting that the average daily arrivals
to the terminal stood at 1.5 vessels. The average stopover time (loading/unloading) for the
container vessels stood between 1 and 1.8 days.
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5.4.1 Container Cargo
The performance of container cargo handled from 2012 to the end of the first half of 2019 is
displayed in the graph below:
Graph 19 – Performance of Containers Handled in TEUs (2012 – 1st Semester 2019)
Source: CAC.
Historically, the handling of full containers is mostly performed in the unloading operations of
the vessels, with this cargo classified as imports in Angola.
Graph 20 – Relative Performance of Unloading and Loading Operations in handling of Full Containers, in % (2012 – 1st Semester 2019)
Source: CAC.
On the other hand, the handling of empty containers is mostly done in loading operations,
despite the increasing importance in terms of unloading operations witnessed in recent years.
54.2% 53.0%
60.0%55.2% 56.6%
58.3%57.6%
61.3%
45.8% 47.0%
40.0%
44.8%43.4%
41.7%
42,4%
38.7%
281,751298,732
460,557
361,449320,778
385,382
312,434
170,062
2012 2013 2014 2015 2016 2017 2018 1º S. 2019
Full Empty
Page 57 of 65
Graph 21 – Relative Performance of Unloading and Loading Operations in handling of Empty Containers, in % (2012 – 1st Semester 2019)
Source: CAC.
It is worth noting that the Transhipment (“TBT”) operations have represented on average
(between 2012 and 2018) 27.7% of the handling of full containers, 0.2% of the handling of empty
containers and, on aggregate, 16% of the total handling of containers. The annual performance
of this data is described in the graph below.
Graph 22 – Relative Performance of the Transhipment Operations in Cargo handling, in % (2012 – 1st Semester 2019)
Source: CAC.
During the year 2018, the average productivity ratio for stowage operations (loading and
unloading) of containers ships stood at 70 TEUs/hour.
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5.4.2 Non-container Cargo
The handling of non-container cargo has been residual during the last years of operation of the
MT when compared with the annual volume of container cargo. The handling of solid bulk was
recorded at an early stage of the previous concession, but these were discontinued after the
third quarter of 2014.
Graph 23 – Performance of the Handling of Non-container Cargo in the Multipurpose Terminal (2012 – 1st Semester 2019)
Source: CAC.
341
43
0 0 0 0 0
199
48
125
72
n.d. n.d.
77
2013 2014 2015 2016 2017 2018 1º S. 2019
tho
usa
nd
s o
f To
ns
Bulk Cargo General Cargo
Page 59 of 65
5.5 Historical Economic Indicators of SOPORTOS
The exploration of the Multipurpose Terminal during the period 2013-2018 was concessioned
to SOPORTOS S.A. The economic indicators of the activity developed by SOPORTOS is presented
below. However, it is worth noting that this data represent not only the exploration of the
Multipurpose Terminal, but also other activities related to the seaport activity of the
Multipurpose Terminal.
Graph 24 –Operating Revenue performance of SOPORTOS between 2013 and 2018
Source: SOPORTOS Annual Reports, between 2013 and 2018.
Page 60 of 65
5.6 SWOT Analysis
In terms of a SWOT analysis, the following aspects standout that may impact the Multipurpose
Terminal:
Table 24 – SWOT analysis of the Multipurpose Terminal
Opportunities Threats
Geographic location of Angola as a potential gateway to the DRC, Zambia and Botswana
Commitment of the State in modernizing seaports and improving seaports infrastructures
Export development plan (PRODESI), covering sectors like agribusiness and manufacturing that will generate more traffic in seaports
Development of intermodal logistics platforms should benefit seaport activity
Population growth (3% yearly) and development of a middle class will benefit trading and transportation flows in the medium/long-term
Recovery of the Angolan economy should increase seaport activity
Import reduction plan (PRODESI)
Competition/reaction from other terminals
Masterplan of the Port of Luanda and new land-use plan of the city of Luanda
Lack of dredging of the port by EPL prevents traffic of large-scale vessels
Existing foreign exchange restrictions (but in the process of being resolved)
Strengths Weaknesses
Financially well balanced conditions of the MT (infrastructure, workforce and equipment)
Established and regular contact with client portfolio (overseas and domestic)
Structure of the labour force / experienced management team of the MT (ex-Soportos)
Own maintenance and technical assistance
Potential for expanding the concessioned area (adjoining areas to Sonils)
Seaport tariffs USD denominated
Need for infrastructure investment (slab, holes, fenders) and equipment renewal (tractors and trailers)
Lack of container gantry cranes
Lack of scale does not allow economies of scale and efficiency gains
Difficulties in managing stock of consumables and spares
Future concessionaire may have to find a solution for a dry port alternatively to the Dry Port of Mulemba.
Considering the external backdrop and internal aspects, the Multipurpose Terminal operation is
globally an attractive investment opportunity, with potential to overcome risks/threats that may
be presented.
6 SUMMARY OF THE TENDERING PROCEDURE
The main terms of the tender procedure are the following:
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Table 25 – Summary Table of the Tender Procedure
Item Description
Adjudicator Entity Empresa Portuária de Luanda, E.P.
Type of Tender The tender is public, intended for companies or group of
companies with proven experience in the activity subject to the
tender
The start of the Public Tendering Procedure was formalized
through Presidential Order n: 164/19 of 27 September
Tendering Objective Adjudicate, by celebrating a concession contract for the public
service of managing and exploring the Multipurpose Terminal of
the Port of Luanda
Proposals Delivery Date
30 March 2020
Clarifications Deadline
Request: until the last third of the deadline granted for the
presentation of proposals
Answer: until the end of the second third of the deadline
granted for the presentation of proposals
Provisional Bond USD 250,000.00
Appraisal Criteria Current Value of the Grantor Remuneration calculated in
accordance with paragraph a) of article 17 of the Tendering
Program (70%)
Technical Appraisal elements (30%):
o Investment plans to be done by the Concessionaire (50%)
considering the following criteria:
Total investment in projects/works and equipment
proposed by the bidders, to be done during the
Concession period
Percentage of local content of the proposed
investments
Adequacy of the proposed investment plan to the
expected traffic volume
o Adequacy of the terminal organization plan (25%)
o Adequacy of the training and professional development of
the human resources allocated to the Concession (25%)
Negotiation and Award of the Proposals
The bidders whose proposals are ranked first and second shall
be selected for the negotiation phase
Following the negotiation phase the selected bidders shall
present their final proposals.
Page 62 of 65
7 SUMMARY OF THE SPECIFICATIONS
The main terms of the specifications are the following:
Table 26 – Summary of the Specifications
Item Description
Grantor Empresa Portuária de Luanda, E.P.
Concession Term 20 years
Guarantee Equivalent to two years of Fixed Rent
Tariff Regulation The Concessionaire will charge, for payment of the uses and
services that it is authorized to provide, tariffs to be fixed within
the maximum tariffs limit established in the Port Tariff
Regulation of Angola, the Concessionaire being allowed to make
commercial discounts
In accordance with the current legislation the tariffs are fixed in
USD
Rents of the
Concession and
Payments to the
Grantor
The Concessionaire shall pay to the Grantor the following rents:
o On the date of signature of the Concession Agreement, the
Concessionaire shall pay to the Grantor the amount defined
in point 1 of the annex to Appendix VI of the Tender
Program which cannot be lower than of USD 100 million nor
higher than USD 150million
o A Fixed Annual Rent of USD 3 million
o Variable rent calculated by the product of the application
of the containerized unit rates of each echelon in the
submitted proposal, which may not be lower than the
minimum unit rates for each echelon in Appendix VI, Table
A of the Tender Program, by the number of TEUs handled
listed in Table B of that Appendix and which may not be less
than 300,000 TEUs per year. The overall amount of TEUs
allocated to each echelon shall be divided between overfill
and outbound or inbound cargo, for the respective unit
rates given in Table A. This distribution shall be based on
the respective ratio of each category to overall amount
observed each year; plus
o Variable rent calculated by the product of application of the
general or special unit load rates, by the respective annual
quantities moved in tons, both of which appear in Table C
of Appendix VI of the Tender Program; plus
Page 63 of 65
Item Description
o Variable rent determined by the product of applying the
special rate unit rates set out in Table D of Appendix VI of
the Tender Program, by the amount of general cargo
moved annually in number of vehicles
Both fixed and variable rents will be updated annually based on
American CPI
Assets assigned to the
Concession
Assets assigned to the Concession are considered to be the port
infrastructure and port equipment, as well as all rights related
directly or indirectly to the Concession, all being identified,
including their status, in Appendix VII of the Tender Program
Conservation,
Maintenance and
Development of The
Concession
The Concessionaire shall comply with the Concession
Investment Plan, submitted with the Tender
The Concessionaire is responsible for the construction, repair
and conservation of the works that make up the establishment,
as well as the installation and/ or repair of the equipment
necessary for the execution of the Concession Contract
Concession’s
Personnel
The Concessionaire shall assume the integration of all Workers
identified in Appendix VIII to the Tender Program and which will
constitute Appendix to the Concession Agreement. The
Concessionaire shall also ensure the seniority of the
workstations of each of the Workers concerned and all other
rights and obligations that fall under the terms of the
employment contracts currently in force between them and the
Grantor
Restoring the
financial balance
The Concessionaire shall be entitled to the restoring of the
financial balance of the contract only in the following cases:
o Modification imposed by the Grantor of the
Concessionaire's obligations that directly results in an
increase in expenses or a loss of the Concessionaire's
revenues;
o Causes of force majeure as defined in the concession
agreement, unless the contract terminates as a result
thereof;
o Legislative changes of a specific nature that directly result
in an increase in expenses or a loss of revenue from the
Concessionaire;
o When the right to the restoration of the financial balance is
expressly provided for.
Page 64 of 65
Item Description
Force Majeure Events Acts of war, hostilities, riots, civil war, rebellion or terrorism,
blockades, embargoes, strikes and labour conflicts
Blockade of access to the Multipurpose Terminal that extends
for more than 30 consecutive days
Pests, epidemics, earthquakes, severe floods, fire, storms or
other natural cataclysms
Any legislative change introduced in Angola that prevents the
Concessionaire from fulfilling obligations under the Concession
Concessionaire’s
Events of Default
Non-compliance with public service obligations under the terms
of the contract
Repeated disobedience to the Grantor's determinations in the
exercise of its supervisory function
Transfer, subcontracting or assignment of the Concessionaire's
contractual position without prior authorization from the
Grantor
Failure to comply with judicial or arbitration decisions related to
the concession
Failure to provide or replenish deposits within the terms and
time limits provided for
Failure to provide the information required by the
Concessionaire
Non-payment of fines
Obstruction of sequestration or intervention in case of serious
emergency
Delay in fulfilling assumed investment obligations for a period
exceeding one year
Non-replacement of the amount of the deposit by the
Concessionaire
Presentation of the Concessionaire to insolvency or declaration
of the Insolvency of the Concessionaire by the Court
Deviation from the object of the Concession
Abandonment of the construction, conservation or operation of
the Concession
Obstruction to Sequestration
Sequestration of the concession for the maximum period legally
provided for
Refusal or impossibility of the Concessionaire to resume the
Concession following sequestration
Repetition, after the resumption of the Concession, of the
situations that motivated the sequestration
Occurrence of serious deficiency in the organization and
development by the Concessionaire of the activities
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Item Description
concessioned, in terms that may compromise their continuity or
regularity under the conditions required by law and the
Concession Agreement
Failure to comply with or seriously defect the Concessionaire's
human resources obligations, in particular the obligations
regarding safety, health and hygiene at work
Condemnation of the Concessionaire for any offense that
seriously affects its professional reputation or prevents it from
engaging in any of the activities concessioned
Any fraudulent activity intended to harm the public interest
Redemption The Concession may be redeemed when justified in the public
interest, provided that one third of the term of the concession
has elapsed, upon written notice to the Concessionaire with at
least 6 months advance notice.
Sequestration The Grantor may assume the management of the Concession if,
due to the fact attributable to the Concessionaire, the cessation
of the activity is imminent or occurs a serious disruption that
jeopardizes the operation of the concession.
Contractual Fines The concession agreement will set out contractual fines in case
of failure by the Concessionaire to comply with or defective
fulfilment of any of their obligations arising from the concession
agreement or from determinations issued by the Grantor
Settlement of
Disputes
Negotiations
Arbitration
Applicable Law Angolan