6.  AFRICA AND MIDDLE EAST

MOMBASA PORT TO REMAIN IN PUBLIC HANDS 

The container terminal at Mombasa is to remain in government hands.  The Ports and Ships Maritime News quotes the Minister of Transport as saying, "We have found the push for privatisation to be unnecessary, unjustified and counterproductive".  An inter-ministerial committee was appointed last year to look into the concessioning of the terminal in Kilindini harbour and recently came up with recommendations that it remain in government hands.  The Kenyan Dockworkers Union had strongly opposed the proposed privatisation of the port and mounted an effective campaign against such a move.  Nevertheless, as pointed out in Issue 5, the Japanese Bank for International Co-operation is apparently financing a review and update of a feasibility study carried out in 2000 on additional container-handling capacity at Mombasa, which would involve the construction of new container berths and stacking areas.  The implications of this needs to be analysed. 

INLAND CONTAINER DEPOTS FOR DAR ES SALAAM?

Local shipping industry players have called for more inland container depots to help relieve congestion at Dar es Salaam port in Tanzania.  The Tanzanian Shipping Agents Association told the Tanzanian Daily News that private operators apart from Tanzania International Container Terminal Services should be given extra scope to operate inland container depots to raise the port’s competitiveness and to ease port congestion.  The Infrastructure Development Minister is reported to have said that the Tanzania Ports Authority would welcome applications from other companies to provide such services, but no one had come forward with a proposal. 

HUMAN RIGHTS GROUP CALLS FOR LABOUR RIGHTS IN UAE

Human Rights Watch (HRW) has called on the United Arab Emirates to revise a draft labour law to include the right to collective bargaining, and demanded harsher penalties for companies that abuse worker rights, according to the Financial Times.  HRW's Middle East Director has said the labour law fails to meet international standards of protection for the 700,000 construction labourers, mainly from the Indian subcontinent and China.  It should be noted that there are also a substantial number of migrant workers in the port sector.  The official UAE news agency is reported to have said that the HRW report does not accurately reflect either the progress that has been made in addressing the issues at hand or the seriousness with which the government was dealing with these issues.

7.  EUROPE

DUBAI WORLD CONSIDERS RUSSIAN INVESTMENT

The Vice-Chairman of Dubai World, owner of DPW, has held talks with the Russian Transport Minister with a view to investing in that country.  Apparently, it is considering building an inland port and a special economic zone in the outskirts of Moscow.  The minister is quoted as saying, “We wish to see Dubai World companies such as DP World and Jafza represented prominently on Russia’s industrial map”.  ‘Jafza’ is the Jebel Ali Free Zone, Dubai’s international business hub.

ALGECIRAS LEADS IN THE MEDITERRANEAN BUT TANGIERS COULD CHANGE THINGS

For the second year running, in 2006, Algeciras in Spain held on to its position as the Mediterranean's leading container port.  According to International Freighting Weekly, it handled 3.24 million teu, just ahead of Gioia Tauro in Italy, which had a throughput of 2.9 million teu last year.  APM Terminals runs the Juan Carlos 1 terminal in Algeciras and the port has a longstanding and close relationship with the Maersk shipping group.  The terminal is going through a major upgrade to increase its capacity and to enable it to cope with the new E-class Maersk mega containerships.  A large majority of Algeciras's container traffic is transhipment, which makes it vulnerable to competition and changes in shipping line strategies.  APM Terminals is also due to open its new terminal in Tangiers later this year.  Eurogate and CMA CGM  will operate the second terminal in Tangiers, due to be completed in 2008. Tangiers will be a direct competitor to Algeciras.  According to the report, there is a general belief that Maersk will use the opening of the Tangiers terminal to reduce its dependence on Algeciras as a western Mediterranean hub port.  If so, there could be a significant drop in overall volume, which has made the Algeciras Bay port authority increasingly keen to boost direct import/export container flows to offset this potential risk.

UK PARLIAMENTARY COMMITTEE VOICES CONCERNS OVER PORTS POLICY

The House of Commons Transport Select Committee has released a report on the UK’s port industry following interviews with senior port, shipping and transport figures over the past few years.  Amongst other things, the Committee considers UK ports to be too valuable to be exposed to the unregulated whims of international capital.  It believes that the government must be clear about the circumstances in which the threat to UK national interest would trigger intervention in the market.  It hopes that such a mechanism would never have to be used, but believes that it must be there.  The Committee has expressed its concern that the ownership of UK ports by foreign companies, particularly those with no experience of owning and managing ports may create instability within the industry.  According to Cargo Systems, the report is separate from the UK government’s ongoing port policy review which is due to be published later on in the year.  However, the UK Transport Minister has indicated that the Transport Select Committee’s findings would be taken into account by the Department of Transport.

Port Industry Update is available in a number
of languages.  Please see the ITF website:
http://www.itfglobal.org/ports/bulletin.cfm
PIU contact: Sharon James, Dockers’ Assistant
Secretary (james_sharon@itf.org.uk; tel: +44
2079409310; fax: +44 2079409275)