Download - TRANSPORT LIBERALIZATION: Maritime Maritime status

TRANSPORT LIBERALIZATION: MaritimeMaritime 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

SADC ports are part of an international networkServices to West Africa (examples)

MidasFrequencyVesselsDurationSmallest vesselLargest vessel

Week1070 days1,700 TEU2,490 TEU

CMA/CGM Midas

CMA/CGM Angola Shutle

Angola ShuttleFrequencyVesselsDurationSmallest vesselLargest vessel

8 Days549 days1,800 TEU2,200 TEU

• Some west coast services use hubs in Europe and the Mediterranean

• Lines include Maersk, OACL-Safmarine, OATL, MSC

SADC ports are part of an international networkServices to East Africa (example)

NYK ServiceFrequencyVesselsDurationSmallest vesselLargest vessel

10 Days550 days400 TEU800 TEU

• MSC operates a service to East Africa using the Salalah hub

• Other lines include Ethiopian Shipping Lines, Messina, H&H lInes, Delmas

NYK

Export corridors are being developed

• Regional rail corridors are being developed in East Africa and West Africa to unlock export potential

• These require co-operation and harmonisation along entire corridors, including across countries

• Africa is rapidly developing as a strategic supply of resources

• Both east and west coast have mineral and other natural resources

Maritime industry developments

• Larger vessels require upgraded infrastructure– Largest 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 status– Improved frequency, service levels– Reduced cost/TEU

• The industry dominated by relatively few international entities– Global terminal operators control 71% of container capacity (includes public

sector operators e.g. PSA)– Top 5 operators control almost 50% of capacity

• Shipping lines are coming off a period in which they incurred severe losses

Key issues

• Ports handle over 90% of import-export cargoes

• Shipping lines are highly mobile

• Port and hinterland capacity has not kept pace with demand throughout the Region

• Congestion 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 sector

• Connectivity– Trade routes

– Hinterland

• Volume

• Infrastructure

• Support services

• Trading environment

• Partnerships

MARITIME TRADE IN SERVICES

Maritime trade in services

• The SADC Protocol on Trade in Services (PTCM) in transportation is expected to reduce or remove barriers that impede the flow of trade between SADC countries

• The 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 Seychelles

• The objective of the PTCM is facilitate an efficient, cost effective and fully integrated infrastructure and operations

• The process is expected to result in request-offers by August and initial offers (including transport) by November 2012

PTIS (maritime) key elements

• Maritime transport is an area of strategic importance to regional economic growth

• Realising the potential of this sector requires harmonised international and regional transport policies and regulations

• It is understood that developing coastal shipping, encouraging joint ventures with the private sector are key components for developing the sector

• Regional co-operation and harmonised tariff structures should not result in uncompetitive business practices

Issues affecting implementation

• The port sector has strong control and influence from government in all SADC countries. The industry often reflects national priorities

• Investment backlogs, inefficient port operations and undeveloped skills are critical factors affecting the industry

• Relatively 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 effort

• SADC 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 company

• Coastal maritime trade is restricted in Angola, Tanzania

• Private sector participation– Only Mozambique has private sector involvement in port authority

functions– All SADC countries support concession arrangements for port

operations– Only 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 country

• Angola

• Democratic republic of the Congo

• Mauritius

• Mozambique

• Namibia

• South Africa

• Seychelles

• Tanzania

Maritime sector profileAngola

Owned Dominated By Comments

Cargo vessels Private International Major lines

Passenger Private International

Ship repair Both Sonagol Private sector participation

Agency and other support

Private Delmas Shipping line affiliates

Authority Public Only provider

Marine Public Regional port authorities

Operations Public Sogester (Luanda)

Depot Private Maersk

Rail Public

• Resources attracting investment , including from China• Strong government influence in the sector

Maritime trade in service environment: Angola

• Current status– Priority given to national economy. Priorities for Angolan companies– Not yet taken binding commitments to WTO– Controlled entry long-distance maritime and access for coastal shipping is limited– Concession and private sector involved in port operations, ship repair– Limited transparency

• Developments– Intention to establish a state owned shipping company may result in

restrictions on foreign vessels

Luanda Port

Maritime sector profileDemocratic Republic of Congo

Owned Dominated By Comments


Passenger Private Local operators Local transport

Ship repair Private Minimal activity


Public SEP (bunkering) Also private shipping agents

Authority Public Onatra Only provider

Marine Public Onatra Only provider

Operations Public Onatra

Depot

Rail Public Onatra

• State-owned Onatra is the dominant provider• Lack of deep water capacity adds time and cost to cargo• Volumes remain low

Maritime trade in service environment: DRC

• Current status– Port revenue used to subsidise other

Onatra divisions– Political climate coming off an unstable

base– Port authority and operations (mostly)

performed by Onatra– Approval required for market entry– Ratio of foreign to national employees

a restriction ( mode 4)

• DevelopmentsRecently joined OHADA to improve legal stability and facilitate regional economic integration

Lack of capacity to progress harmonisation and liberlaisation

Matadi Port

Maritime sector private profileMauritius

Owned Dominant Comments


Passenger Private

Ship repair Private Limited


Private Shipping line affiliates

Authority Public Mauritius Port Authority

Different share-holding by port

Marine Public MPA Outsourced

Operations Public Cargo Handling Corp.

Depot

Rail

• Cargo Handling Corporation is a government owned operation• Private firms handle oil tank farms, fertiliser, flour, cement, etc.

Maritime trade in service environment: Mauritius

• Current status– No current concessions for authority and

port operations– Private sector currently excluded form

container operations and other designated general cargoes

– o Private sector currently excluded form container operations and other designated general cargoes

– o Foreign equity ownership subject to approval (some areas restricted to nationals)

• Developments— Initiative to concession the container terminal is being revivied

Port Louis

Maritime sector private profileMozambique



Passenger Private MSC

Ship repair Private Small dock facilities



Authority Mixed CFM Different share-holding by port

Marine Public Outsourced

Operations Mixed DP PortsGrindrod

Depot Private

Rail Public

• Mozambique has regional port authorities, each with a stake held by state-owned CFM

• Port services provided by authority and operators

Maritime trade in service environment: Mozambique

• Current status– Concessions for authority and port

operations– Cabotage by coastal vessel limited to

national individuals / companies– Regulations that prevent ownership of

land are restrictive– Regional transit bond guarantees – New Labour Law restricts the hiring of

foreign staff

• Developments— Increasing focus on governance to improve transparency

Maputo Port

Maritime sector private profileNamibia



Passenger

Ship repair Public Namport Namport operates dock facilities



Authority Public Namport Only provider

Marine Public Namport Only provider

Operations PublicPrivate

NamportGrindrod

ContainersMainly dry bulk

Depot Private

Rail Public

• Namport provides both authority and operations functions• Trans Namibia corridor seen as an opportunity for growth

Maritime trade in service environment: Namibia

• Current status– State owned entity Namport engaged

in landlord and port operations– Some private terminal operations– No foreign company may provide

towing services– Access by foreign nationals remains

difficult

• Developments― Corridor initiatives to promote regional co-operation― Planned container expansion considering private investment

Walvis Bay Port

Maritime sector private profileSouth Africa



Passenger Private MSC Seasonal

Ship repair Private SA shipyards, Dormac, ++

TNPA owns dry dock facilities


Private Bidvest, Grindrod, ++

Shipping line affiliates

Authority Public Transnet Only provider

Marine Public Transnet Only provider

Operations PublicPrivate

TransnetGrindrod, Bidvest, ++

In all sectorsMainly dry bulk

Depot Private SACD, ++

Rail Public Transnet

• Transnet is the dominant provider in the sector• Extensive private sector involvement in shipping (non-local), ship repair, agency and

port terminal (non-container) operations

Maritime trade in service environment: South Africa

• Current status– State owned entity controls ports

and engaged in port operations– Competition in bulk, general

purpose cargoes– Policy and regulations to

encourage private sector participation

– Restrictions on foreign employees ( mode 4)

• Developments— Transaction advisor appointed for Ngqura Container Terminal. Also enquiry

for new dig-out port in Durban— Revised maritime policy being drafted

Ngqura Port

Maritime sector private profileSeychelles



Passenger Private

Ship repair Private Small



Authority Public Seychelles Port Authority

Only provider

Marine Public SPA Only provider

Operations Public SPA

Depot

Rail

• Seychelles competes with Mauritius, Madagascar, Reunion for passenger volumes• Shallow draft except for Mahe Quay (9.5m – 11.5m)

Maritime trade in service environment: Seychelles

• Current status– State owned entity controls ports and

engaged in port operations– Foreigners require permission to own

land – Investment in port infrastructure a

reserved strategic area – permission subject to conditions

– Restricted and strategic areas limits competition and limit attractiveness to foreign investors

– Gainful Occupation certificate issued once no suitable Seychellois application

• Developments— Seychelles is currently negotiating accession to WTO. GATS schedule

Port Victoria

Maritime sector private profileTanzania



Passenger Private Seasonal

Ship repair Private Small scale



Authority Public TPA Only provider

Marine Public TPA Only provider

Operations MixedPublic

TICTS ContainersMainly dry bulk

Depot Private

Rail Public

• Transnet is the dominant provider in the sector• Extensive private sector involvement in shipping (non-local), ship repair, agency and

port terminal (non-container) operations

Maritime trade in service environment: Tanzania

• Current status– State owned entity controls ports and

engaged in port operations– Container terminal (TCITS) has been

concessioned– Only Tanzanian ships in coastal trades– Restrictions on foreign equity

ownership (60% in listed companies)– Increasing cost of permits for foreign

workers

• Developments— Fair Competition Act to promote effective competition— Extensive port and hinterland developments planned

Dar Es Salaam Port

KEY ISSUE AND RECOMMENDATIONS