Port Transit Costs
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Jean-Philippe Paquin Ports & Marine Practice Leader June 29 th, 2015 Abidjan, Côte D’Ivoire Port Transit Costs Presentation to the 13th Round Table Conference of PMAWCA
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Transcript of Port Transit Costs
Jean-Philippe PaquinPorts & Marine Practice LeaderJune 29th, 2015Abidjan, Côte D’Ivoire
Port Transit CostsPresentation to the 13th Round Table Conference of PMAWCA
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• Large number of ports– Essential gateways
• Limited land access– Source of congestion
• Every port wants to be a hub…
A continent served through ports
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An unforgiving equation for African ports
INHERENT CAUSES• Transhipment• Cargo Imbalances
OPERATIONAL CAUSES• Low Productivity• Congestion delays
TRANSACTIONAL CAUSES• Filing Delays• Almost 100% Customs
Inspection
BEHAVIORAL CAUSES• Voluntary Dwell
Time
+
+ +
= High port transit costs
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• North Africa is close to Europe-Asia trade route– Strong competition for transhipment ports
• Sub-Saharan Africa off major trade routes– Many containers are transhipped
Growing, but not there yet… means transhipment
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An unforgiving equation for African ports
Cargo Imbalances
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An unforgiving equation for African ports
Low Productivity
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Countries Ghana Nigeria Tanzania Kenya
Offloading $180 $130 $140 $160*
Wharfage $79.50 8300 NGN ($42) 1.6% a.v. $105Handling for customs -- 3000 NGN ($15) $90 $120**
Storage $5 to $25 (3 to 8 days)
$60 to $110(9 to 15 days)
$60 to $160 (3 to 8 days)
$180 to $430 (3 to 8 days)
Removal -- $32 $100 $165
Indicative total $270-290 $280-330 $400-490 $700-950
Port Transit Costs in Africa are significantTypical costs for 40’ import container
* Lowered if the container is assigned to an ICD** + Survey fee of $100
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• Other charges including pilotage, berth occupancy, mooring and various vessel charges, which, once spread over the number of TEUs on the ship, amount only to a few dollars
• Shipping agent, clearing agent and freight forwarders all have their own charges, which can add up…
Other players add up other charges
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If we tried to “spread the blame”…
INHERENT CAUSES• Transhipment• Cargo Imbalances
OPERATIONAL CAUSES• Low Productivity• Congestion delays
TRANSACTIONAL CAUSES• Filing Delays• Almost 100% Customs
Inspection
BEHAVIORAL CAUSES• Voluntary Dwell
Time
+
+ +
= High port transit costs
25-30%
40-60% 25-40%
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• Ports are an interface between sea and land– Not a destination– Not a storage facility
Ports reach the capacity of their connections
Need to improve
• Customs Processes• Rail Capacity• Marine Waterways Capacity
(where available)• Implementation of Corridors
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And the best is yet to come
Source: BBC
What we see
What we will get!(eventually)
• Ports in Africa will be facing challenges– Draft/Capacity– Productivity
Leading to– Port extensions?– Greenfields?
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Stretching already strained capacities
Port extensions Greenfields• Build upon existing
• Lower development risks / delays
• Capital efficient
• Limited capacity increased
• Long gestation (ever heard of vaporware?)
• Heavy capital requirements
• Large (and lumpy) capacity increase
• Everybody wants to be a hub…
CPCS Corporate Profile
Specializes in formulating infrastructure development solutions for public and private sector. Seeks to make transport infrastructure projects a reality, and focus on facilitating sources of investment and in improving the efficiency and effectiveness of transit networks worldwide.
CPCS has completed over 1000 assignments in over 80 countries for governments, international financial institutions, private investors, transport operators and industry associations.
CPCS is headquartered in Ottawa Canada, and has offices in the US, Kenya, Uganda, Nigeria, Bridgetown, and India.
CPCS is comprised of 80 staff and includes market analysts, economists, financial analysts, former transport sector executives, infrastructure engineers, institutional specialists, transport sector lawyers, and project managers.
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– Grouping of Canadian and African port authorities and infrastructure and services advisory firms
– Platform for the exchange of ideas for the sustainable development, financing and implementation of port infrastructure and services across the African continent
– Facilitate access to Canadian capability, contracting mechanisms and financing/insurance products
CPCS - Initiating CollaborationP 4 Alliance Ports Public Private Partnerships (PPPP)
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Questions and Discussion
Jean-Philippe PaquinPorts & Marine Practice [email protected]: +1 613 237 2500 | F: +1 613 237 4494 | www.cpcs.ca
