TRANSPORT LIBERALIZATION: Maritime Maritime status

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TRANSPORT LIBERALIZATION: Maritime Maritime status. CONTENTS. Global Maritime overview Maritime trade in services overview Maritime trade in services by country Key issues and recommendations Way forward. Maritime sector overview. - PowerPoint PPT Presentation

Transcript of TRANSPORT LIBERALIZATION: Maritime Maritime status

  • TRANSPORT LIBERALIZATION: MaritimeMaritime status

  • CONTENTSGlobal Maritime overviewMaritime trade in services overviewMaritime trade in services by countryKey issues and recommendationsWay forward

  • MARITIME SECTOR OVERVIEW

  • SADC ports are part of an international networkServices to West Africa (examples)CMA/CGM MidasCMA/CGM Angola ShutleSome west coast services use hubs in Europe and the Mediterranean Lines include Maersk, OACL-Safmarine, OATL, MSC

    MidasFrequencyVesselsDurationSmallest vesselLargest vesselWeek1070 days1,700 TEU2,490 TEU

    Angola ShuttleFrequencyVesselsDurationSmallest vesselLargest vessel8 Days549 days1,800 TEU2,200 TEU

  • SADC ports are part of an international networkServices to East Africa (example)MSC operates a service to East Africa using the Salalah hub Other lines include Ethiopian Shipping Lines, Messina, H&H lInes, Delmas

    NYK

    NYK ServiceFrequencyVesselsDurationSmallest vesselLargest vessel10 Days550 days400 TEU800 TEU

  • Export corridors are being developedRegional rail corridors are being developed in East Africa and West Africa to unlock export potentialThese require co-operation and harmonisation along entire corridors, including across countriesAfrica is rapidly developing as a strategic supply of resourcesBoth east and west coast have mineral and other natural resources

  • Maritime industry developmentsLarger vessels require upgraded infrastructureLargest container ship is the Maersk Triple-E class (18,000 TEU)Largest container vessel to call in Durban (MSC Sola - 11,660 TEU)Ports aspire to hub statusImproved frequency, service levelsReduced cost/TEUThe industry dominated by relatively few international entitiesGlobal terminal operators control 71% of container capacity (includes public sector operators e.g. PSA)Top 5 operators control almost 50% of capacityShipping lines are coming off a period in which they incurred severe losses

  • Key issuesPorts handle over 90% of import-export cargoesShipping lines are highly mobilePort and hinterland capacity has not kept pace with demand throughout the RegionCongestion and delays result in higher costs to cargo owners (missed calls, surcharges, etc.)An under-developed maritime sector constrains economic growth

  • Factor that support a successful maritime sectorConnectivityTrade routesHinterlandVolumeInfrastructureSupport servicesTrading environmentPartnerships

  • MARITIME TRADE IN SERVICES

  • Maritime trade in servicesThe SADC Protocol on Trade in Services (PTCM) in transportation is expected to reduce or remove barriers that impede the flow of trade between SADC countriesThe maritime sector for this study includes vessel operations (sea freight and sea passengers), and supporting services for maritime transport, namely WTO codes 7211, 7212 and 745**Maritime countries within SADC are the Democratic Republic of the Congo(DRC), Angola, Namibia, South Africa, Mozambique, Tanzania, Mauritius and the SeychellesThe objective of the PTCM is facilitate an efficient, cost effective and fully integrated infrastructure and operationsThe process is expected to result in request-offers by August and initial offers (including transport) by November 2012

  • PTIS (maritime) key elementsMaritime transport is an area of strategic importance to regional economic growthRealising the potential of this sector requires harmonised international and regional transport policies and regulationsIt is understood that developing coastal shipping, encouraging joint ventures with the private sector are key components for developing the sectorRegional co-operation and harmonised tariff structures should not result in uncompetitive business practices

  • Issues affecting implementationThe port sector has strong control and influence from government in all SADC countries. The industry often reflects national prioritiesInvestment backlogs, inefficient port operations and undeveloped skills are critical factors affecting the industryRelatively low volumes limit the ability of SADC maritime nations to negotiate service and price advantages with large international carriers Creating capacity and requires large-scale investment. Skills development also requires investment and co-ordinated effortSADC countries are at different levels of implementation regarding international maritime regulations and conventions

  • Liberalisation status (maritime)No maritime states currently restrict foreign flagged vessels. Angola is considering a state-owned shipping companyCoastal maritime trade is restricted in Angola, TanzaniaPrivate sector participationOnly Mozambique has private sector involvement in port authority functionsAll SADC countries support concession arrangements for port operationsOnly Mozambique has an initiative to privatise marine services. South Africa considers this an option

  • MARITIME TRADE IN SERVICE BY COUNTRY

  • Maritime trade in services by countryAngolaDemocratic republic of the CongoMauritiusMozambiqueNamibiaSouth AfricaSeychellesTanzania

  • Maritime sector profileAngolaResources attracting investment , including from ChinaStrong government influence in the sector

    OwnedDominated ByCommentsCargo vesselsPrivateInternationalMajor linesPassengerPrivateInternationalShip repairBothSonagolPrivate sector participationAgency and other supportPrivateDelmasShipping line affiliatesAuthorityPublicOnly providerMarinePublicRegional port authoritiesOperationsPublicSogester (Luanda)DepotPrivateMaerskRailPublic

  • Maritime trade in service environment: AngolaCurrent statusPriority given to national economy. Priorities for Angolan companiesNot yet taken binding commitments to WTOControlled entry long-distance maritime and access for coastal shipping is limitedConcession and private sector involved in port operations, ship repairLimited transparency DevelopmentsIntention to establish a state owned shipping company may result in restrictions on foreign vesselsLuanda Port

  • Maritime sector profileDemocratic Republic of CongoState-owned Onatra is the dominant providerLack of deep water capacity adds time and cost to cargoVolumes remain low

    OwnedDominated ByCommentsCargo vesselsPrivateInternationalMajor linesPassengerPrivateLocal operatorsLocal transportShip repairPrivateMinimal activityAgency and other supportPublicSEP (bunkering)Also private shipping agentsAuthorityPublicOnatraOnly providerMarinePublicOnatraOnly providerOperationsPublicOnatraDepotRailPublicOnatra

  • Maritime trade in service environment: DRCCurrent statusPort revenue used to subsidise other Onatra divisionsPolitical climate coming off an unstable basePort authority and operations (mostly) performed by OnatraApproval required for market entryRatio of foreign to national employees a restriction ( mode 4)

    DevelopmentsRecently joined OHADA to improve legal stability and facilitate regional economic integrationLack of capacity to progress harmonisation and liberlaisationMatadi Port

  • Maritime sector private profileMauritiusCargo Handling Corporation is a government owned operationPrivate firms handle oil tank farms, fertiliser, flour, cement, etc.

    OwnedDominantCommentsCargo vesselsPrivateInternationalMajor linesPassengerPrivateShip repairPrivateLimitedAgency and other supportPrivateShipping line affiliatesAuthorityPublicMauritius Port AuthorityDifferent share-holding by portMarinePublicMPAOutsourcedOperationsPublicCargo Handling Corp.DepotRail

  • Maritime trade in service environment: MauritiusCurrent statusNo current concessions for authority and port operationsPrivate sector currently excluded form container operations and other designated general cargoesoPrivate sector currently excluded form container operations and other designated general cargoesoForeign equity ownership subject to approval (some areas restricted to nationals)

    DevelopmentsInitiative to concession the container terminal is being reviviedPort Louis

  • Maritime sector private profileMozambiqueMozambique has regional port authorities, each with a stake held by state-owned CFMPort services provided by authority and operators

    OwnedDominantCommentsCargo vesselsPrivateInternationalMajor linesPassengerPrivateMSCShip repairPrivateSmall dock facilitiesAgency and other supportPrivateShipping line affiliatesAuthorityMixedCFMDifferent share-holding by portMarinePublicOutsourcedOperationsMixedDP PortsGrindrodDepotPrivateRailPublic

  • Maritime trade in service environment: MozambiqueCurrent statusConcessions for authority and port operationsCabotage by coastal vessel limited to national individuals / companiesRegulations that prevent ownership of land are restrictiveRegional transit bond guarantees New Labour Law restricts the hiring of foreign staff

    DevelopmentsIncreasing focus on governance to improve transparencyMaputo Port

  • Maritime sector private profileNamibiaNamport provides both authority and operations functionsTrans Namibia corridor seen as an opportunity for growth

    OwnedDominantCommentsCargo vesselsPrivateInternationalMajor linesPassengerShip repairPublicNamportNamport operates dock facilitiesAgency and other supportPrivateShipping line affiliatesAuthorityPublicNamportOnly providerMarinePublicNamportOnly providerOperationsPublicPrivateNamportGrindrodContainersMainly dry bulkDepotPrivateRailPublic

  • Maritime trade in service environment: NamibiaCurrent statusState owned entity Namport engaged in landlord and port operationsSome private terminal operationsNo foreign company may provide towing servicesAccess by foreign nationals remains difficult

    DevelopmentsCorridor initiatives to promote regional co-operationPlann