TRANSPORT LIBERALIZATION: Maritime Maritime status by cKJ3212f

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

CMA/CGM Midas                                 Midas
                                              Frequency         Week
                                              Vessels           10
                                              Duration          70 days
                                              Smallest vessel   1,700 TEU
                                              Largest vessel    2,490 TEU

                                              Angola Shuttle
                                              Frequency         8 Days
                                              Vessels           5
                                              Duration          49 days
                                              Smallest vessel   1,800 TEU
                                              Largest vessel    2,200 TEU
CMA/CGM Angola Shutle
                                           • 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 network
Services to East Africa (example)

NYK                                         NYK Service
                                            Frequency         10 Days
                                            Vessels           5
                                            Duration          50 days
                                            Smallest vessel   400 TEU
                                            Largest vessel    800 TEU



                                          • MSC operates a service to East
                                            Africa using the Salalah hub
                                          • Other lines include Ethiopian
                                            Shipping Lines, Messina, H&H
                                            lInes, Delmas
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 profile
Angola
                                               Owned       Dominated By        Comments
                               Cargo vessels    Private     International   Major lines
                               Passenger        Private     International
                               Ship repair     Both        Sonagol          Private sector
                                                                            participation
                               Agency and      Private     Delmas           Shipping line
                               other support                                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                      Luanda Port

• Developments
    – Intention to establish a state owned shipping company may result in
      restrictions on foreign vessels
Maritime sector profile
Democratic Republic of Congo

                                               Owned        Dominated By         Comments
                               Cargo vessels    Private      International    Major lines
                               Passenger        Private     Local operators   Local transport
                               Ship repair     Private                        Minimal activity
                               Agency and      Public     SEP (bunkering)     Also private
                               other support                                  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)                     Matadi Port

• Developments
   Recently joined OHADA to improve legal stability and facilitate regional economic
   integration
   Lack of capacity to progress harmonisation and liberlaisation
 Maritime sector private profile
 Mauritius
                                                       Owned        Dominant         Comments
                                       Cargo vessels    Private   International    Major lines
                                       Passenger       Private
                                       Ship repair     Private                     Limited
                                       Agency and      Private                     Shipping line
                                       other support                               affiliates
                                       Authority       Public     Mauritius Port   Different share-
                                                                  Authority        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           Port Louis
      approval (some areas restricted to
      nationals)
• Developments
    — Initiative to concession the container terminal is being revivied
Maritime sector private profile
Mozambique
                                                   Owned       Dominant        Comments
                                   Cargo vessels   Private   International   Major lines
                                   Passenger       Private   MSC
                                   Ship repair     Private                   Small dock
                                                                             facilities
                                   Agency and      Private                   Shipping line
                                   other support                             affiliates
                                   Authority       Mixed     CFM             Different share-
                                                                             holding by port
                                   Marine          Public                    Outsourced
                                   Operations      Mixed     DP Ports
                                                             Grindrod
                                   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
                                               Maputo Port
      foreign staff

• Developments
    — Increasing focus on governance to improve transparency
Maritime sector private profile
Namibia
                                                   Owned       Dominant        Comments
                                   Cargo vessels   Private   International   Major lines
                                   Passenger
                                   Ship repair     Public    Namport         Namport
                                                                             operates dock
                                                                             facilities
                                   Agency and      Private                   Shipping line
                                   other support                             affiliates
                                   Authority       Public    Namport         Only provider
                                   Marine          Public    Namport         Only provider
                                   Operations      Public    Namport         Containers
                                                   Private   Grindrod        Mainly 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                                  Walvis Bay Port

• Developments
    ― Corridor initiatives to promote regional co-operation
    ― Planned container expansion considering private investment
Maritime sector private profile
South Africa
                                                     Owned       Dominant        Comments
                                     Cargo vessels   Private   International   Major lines
                                     Passenger       Private   MSC             Seasonal
                                     Ship repair     Private   SA shipyards,   TNPA owns dry
                                                               Dormac, ++      dock facilities
                                     Agency and      Private   Bidvest,        Shipping line
                                     other support             Grindrod, ++    affiliates
                                     Authority       Public    Transnet        Only provider
                                     Marine          Public    Transnet        Only provider
                                     Operations      Public    Transnet        In all sectors
                                                     Private   Grindrod,       Mainly dry bulk
                                                               Bidvest, ++
                                     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
                                            Ngqura Port
       ( mode 4)
• Developments
   — Transaction advisor appointed for Ngqura Container Terminal. Also enquiry
      for new dig-out port in Durban
   — Revised maritime policy being drafted
Maritime sector private profile
Seychelles
                                                   Owned       Dominant        Comments
                                   Cargo vessels   Private   International   Major lines
                                   Passenger       Private
                                   Ship repair     Private                   Small
                                   Agency and      Private                   Shipping line
                                   other support                             affiliates
                                   Authority       Public    Seychelles     Only provider
                                                             Port Authority
                                   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      Port Victoria
        once no suitable Seychellois application
• Developments
   — Seychelles is currently negotiating accession to WTO. GATS schedule
Maritime sector private profile
Tanzania
                                                     Owned       Dominant        Comments
                                     Cargo vessels   Private   International   Major lines
                                     Passenger       Private                   Seasonal
                                     Ship repair     Private                   Small scale
                                     Agency and      Private                   Shipping line
                                     other support                             affiliates
                                     Authority       Public    TPA             Only provider
                                     Marine          Public    TPA             Only provider
                                     Operations      Mixed     TICTS           Containers
                                                     Public                    Mainly 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                                  Dar Es Salaam Port


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

								
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