4.  AFRICA AND MIDDLE EAST

PLANS TO DEVELOP WEST AFRICAN DEEPWATER PORT

Investment company Lonrho Africa has unveiled plans to create a Singapore-inspired deepwater port in west Africa.  The project involves expansion of the Luba Freeport in Equatorial Guinea to handle the world’s largest tanker and container vessels.  There are plans for a depth of 18m for Luba.  Jurong Primewide, part of Singapore’s Jurong International Holdings has been appointed to plan and design the expansion.  Long term development plans will be drawn up together with a short-term feasibility study as the basis for an immediate start to construction. The needs of the growing oil industry in the area have been cited as a driving factor for the development of such a port.  Lonrho Africa sees its vision as helping to establish Luba as a regional hub for the west coast of Africa.

SOUTH AFRICAN PORTS TO RECEIVE STATE INVESTMENT

South Africa’s state-owned company Transnet controls transport in the country through its subsidiaries, the National Ports Authority (NPA), South African Port Operations (Sapo) and rail operator, Spoornet.  Transnet is due to make a major investment in new container handling equipment for all ports as the first step towards improving productivity and to bridge the gap until terminal expansion projects are completed.  It is also working on relieving congestion. South African Transport and Allied Workers Union (SATAWU) successfully staved off an attempt to privatise ports some years ago by arguing successfully the economic and social case for nationally run ports. In a recent interview with Cargo Systems, the Sapo general manager of the container section dismissed the idea of port privatisation but did not rule out public-private partnerships (PPP). He said, “I don’t believe that it’s to the country’s advantage to privatise.  Once you start the process, you can’t stop it.”  “PPP may work but I don’t believe total privatisation is the way forward, particularly in industries which are strategic to the growth of the country.  I think a partnership is better but it must benefit both Transnet and the partner.” 

SYRIA CONCESSION GOES TO PHILIPPINES-BASED OPERATOR

ICTSI has been awarded a 10-year concession with an option for another 5 years to operate the newly privatised Tartous Container Terminal in Syria.  It will pay the port authority a fixed yearly and variable fee per teu handled and is due to invest US$37m in terminal improvements and equipment over the concession period.

APMT SIGNS 25 YEAR DEAL ON AQABA

At the end of July, the Aqaba Development Corporation signed a joint venture agreement with APM Terminals to manage, operate and expand the Aqaba Container Terminal in Jordan for a period of 25 years.  The aim is to achieve an ultimate annual capacity of 2.4 million TEU.  Earlier in the month, it was reported that Aqaba’s main port was to be relocated to the industrial zone in the southern port area to free up prime coastal land and allow for expansion of port capacity.  A masterplan drawn up by the Aqaba Special Economic Zone Authority sees the duty-free zone as a regional hub for business and leisure.  Jordan’s only sea port is to be broken up into separate business units to be offered to bidders, mainly on a joint venture basis using the public private partnership model.  These units include the container terminal (mentioned above), a ferry terminal, marine services, a grain terminal, general cargo and ro-ro berths, and an industrial terminal for phosphate, potash and fertiliser exports.

5.  AMERICAS & THE CARIBBEAN

DP WORLD SHOWS INCREASED INTEREST IN REGION

DP World has been granted a 30 year concession to develop and operate a new container terminal in the southern zone of the Port of Callao, Peru.  It will own 70% of the development company through P&O, while the balance will be held by the Unimar group of companies, the local partner.  Callao is the largest and fastest growing port on the west coast of South America.  As mentioned earlier, ITF affiliate, FENTENAPU is fighting privatisation of the port.  The company is also investing US$100 million to expand facilities in Buenos Aires and is looking to invest in a new mega port and to develop three free zones in Argentina.  DP World Chairman, Sultan bin Sulayem revealed these plans after talks with the Argentinian Minister of Planning and Public Utilities and the Transport Secretary.  The company is also reported to have big plans for it’s facility in Caucedo, Dominican Republic, where it hopes to turn over 1.9 teu annually at the end of a 5-phase growth period.  DP World also owns a 50% interest in cargo-handling operations in Puerto Cabello, Venezuela.  The company assumed control of port operations there when it bought CSX World Terminals.

DP WORLD’S VANCOUVER EXPANSION

DP World also announced in July its intention to expand its P&O terminal in Vancouver.  The expansion, expected to be completed in September will make the facility 40% larger than it is.

PROJECTS TO BOOST CARIBBEAN TRANSSHIPMENT

The Association of Caribbean States based in Trinidad is looking to boost transport and trade in the region.  Two projects – a port and maritime database, and a map of maritime routes in the greater Caribbean - are expected to have the potential for encouraging the growth of transhipment hubs.  The maritime database is to provide extensive information on the various ports in the region, enabling ship owners to judge where the best facilities are and which ports are the best choices for transhipment.  The database would eventually be available on the internet offering wide access.

INTER-MODAL ALTERNATIVES TO PANAMA CANAL AND US WEST COAST PORTS

Before leaving office, president Vincente Fox made a special presentation to rail and port investors on the development of a ‘dry canal’ between the ports of Salina Cruz on the Pacific and Coatzacoalcos on the Gulf of Mexico.  The government was seeking to attract investment in container terminals on either side of the Tehuantepec Isthmus which is the narrowest point between Mexico’s Pacific and Atlantic coastlines as well as in the state railway that links both ports.  Hutchison is reported to have expressed interest in developing facilities at Coatzacoalcos although some operators remain sceptical of the scheme.  US rail company Kansas City Southern started a daily service on its NAFTA rail service from Lazaro Cardenas on the Mexican Pacific coast to Loredo, Texas in June.  The government and the company want to take advantage of the booming trade between the USA and Asia by offering an alternative to the Panama Canal and US West Coast.

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