ATHENS PROGRAMME Stijn Koshari & Tom Van der Voorde KU Leuven – Chemical Engineering

ATHENS PROGRAMME  Port hubs ◦ What is a port hub? ◦ Criteria for choosing a port hub ◦ Consequences of being a port hub ◦ Port hubs worldwide  Port hubs in Africa ◦ An overview ◦ Major problems ◦ Port evolution in Africa  Case study: Nigeria ◦ Competition to become West Africa’s major hub ◦ Realisations  Conclusion 2

ATHENS PROGRAMME ◦ What is a port hub? ◦ Port hubs worldwide ◦ Consequences of being a port hub ◦ Port hubs worldwide 3

ATHENS PROGRAMME 4 This Day Live. 29 April PORT HUBS

ATHENS PROGRAMME  Good intermodal transport possibilities  Optimal geographical location ◦ Minimal deviation ◦ Ability to serve a large number of small markets 5PORT HUBS

ATHENS PROGRAMME  Good intermodal transport possibilities  Optimal geographical location ◦ Minimal deviation ◦ Ability to serve a large number of small markets  Port operation & services ◦ Low cost ◦ Reliability ◦ Technological advancement ◦ Regulations and rules  Regional solidity ◦ Safety (e.g. piracy) ◦ Political stability and corruption free ◦ Natural disaster low risk zone 6PORT HUBS

ATHENS PROGRAMME  Increased port activity  Investments of major shipping and terminal companies  Job creation  Economic growth  Financial benefits due to taxes  Cheaper goods in port’s country  International power a 7PORT HUBS

ATHENS PROGRAMME  Increased port activity  Investments of major shipping and terminal companies  Job creation  Economic growth  Financial benefits due to taxes  Cheaper goods in port’s country  International power  But: social and environmental pressure 8PORT HUBS

ATHENS PROGRAMME 9PORT HUBS

ATHENS PROGRAMME 10 Wang, C. and Wang, J PORT HUBS

ATHENS PROGRAMME 11 Wang, C. and Wang, J PORT HUBS

ATHENS PROGRAMME ◦ An overview ◦ Major problems ◦ Port evolution in Africa 12

The most important African trade hubs 13 ATHENS PROGRAMME AFRICA

ATHENS PROGRAMME 2008 Lagos: 3-10 Mln ton Singapore: 515 Mln ton Rotterdam:421Mln ton Houston:192Mln ton 14 ATHENS PROGRAMME AFRICA

ATHENS PROGRAMME 15 Example CMA-CGM AFRICA

ATHENS PROGRAMME 16AFRICA AICD

ATHENS PROGRAMME  Big imbalance 17AFRICA AICD

ATHENS PROGRAMME  Big imbalance  Infrastructure and accessibility ◦ Low road and railway development and maintenance ◦ Old fashioned vehicles and vessels ◦ Low reliability ◦ Under equipped ports 18AFRICA

ATHENS PROGRAMME  Big imbalance  Infrastructure and accessibility ◦ Low road and railway development and maintenance ◦ Old fashioned vehicles and vessels ◦ Low reliability ◦ Under equipped ports  Capacity constraints  Larger dwell times and higer costs 19AFRICA

ATHENS PROGRAMME  Regional instability 20AFRICA

ATHENS PROGRAMME  Regional instability - corruption 21AFRICA

ATHENS PROGRAMME  Competition to become Africa’s biggest hub  Trend to solve some major problems 22AFRICA

ATHENS PROGRAMME ◦ Competition to become West Africa’s major hub ◦ Realisations 23

ATHENS PROGRAMME 24NIGERIA AICD

ATHENS PROGRAMME  Privitization ◦ Shift from the service port system to the landlord port model ◦ Financial plans  Improvement of port accesses, both road and rail, to optimize intermodal movements 25NIGERIA

ATHENS PROGRAMME  Privitization ◦ Shift from the service port system to the landlord port model ◦ Financial plans  Improvement of port accesses, both road and rail, to optimize intermodal movements  Plan and develop the port infrastructure  Increase of performance to acceptable levels, reduced congestion  Port security 26NIGERIA

ATHENS PROGRAMME 27  Plans for new Lekki (Lagos) deep water ports NIGERIA

ATHENS PROGRAMME 28

ATHENS PROGRAMME  Although interest in port hub development, Africa’s ports lag behind other world regions  Huge effort necessary to improve efficiency, but potential rewards are compelling  Case Study: Nigeria ◦ Privatization initiatives have been a success ◦ Port performance still impeded by wider issues:  port marine and landside access  modernize customs  corruption 29CONCLUSION

ATHENS PROGRAMME Questions? 30

ATHENS PROGRAMME 32

ATHENS PROGRAMME 33 Wang, C. and Wang, J EXTRA SLIDES

ATHENS PROGRAMME 34 ADBG. (November 2012). EXTRA SLIDES

ATHENS PROGRAMME 35EXTRA SLIDES

ATHENS PROGRAMME 36 AICD EXTRA SLIDES