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• The last three years have seen significant activity in privatisation and concessioning in Cote d’Ivoire, Ghana, Togo, Nigeria, Cameroon and Angola.  Bolloré and Maersk have been dominant in the region and this has been strengthened by recent terminal concessions.  Between them, the two companies have secured contracts in Abidjan, Tema, Apapa/Lagos, Doula and subject to a court judgement, Luanda.  The implication of this is that all the major terminals from Dakar to Luanda will be operated by the two companies.  Bolloré acquired Delmas, an important player in the West Africa liner market for nearly 130 years in 1991.  The Bolloré group was itself recently bought by CMA CGM.  The acquisition was completed early this year.  CMA CGM is already involved in a consortium building a new container hub in Lome, Togo.  Concerns have been raised over the fact that these companies are also major shipping line operators.
  
  
• Grindrod, the South African shipping group which has expanded into logistics and port and terminal operation, announced in April its acquisition of a 12.24% share in Maputo Port, Mozambique.  The Maputo Port was concessioned in 2002 to a private consortium of European companies including Mersey Docks, a UK-based company. Grindrod acquired its share from the European shareholders, diluting their respective interests. The Port concession is for an initial 15 year period with a further 10 year optional period. The Mozambican government holds a 49% share in the Maputo Port Development company (the port concessionaire), the balance of 51% being held by the private consortium of which Grindrod is now part.  Last year Grindrod acquired the Namibian-listed African Portland Industrial Holdings Ltd (API), the owner of Matola Coal Terminal in Maputo Port and the Walvis Bay Coal Terminal, giving it strategic footholds in the bulk trade in Southern Africa.  If proposals for a trans-Kalahari railway to link the Guateng province in South Africa to Walvis Bay via southern Botswana are realised, control of the Walvis Bay terminal will prove particularly important as Botswanan coal exporters are thought likely to opt for that route for all European-bound cargo

7.  EUROPE

• In March, the European Commission withdrew its proposed Directive on Market Access to Port Services.  Dubbed ‘Ports Package 2’ (PP2) the proposal was strongly opposed by European trade unions with the support of ITF affiliated dockers’ unions around the world.  However, there are indications that the Commission may be taking a more ambitious approach, which in its view aims to respond to an increase in maritime traffic and a risk of saturation of port capacity.  The ETF and ITF therefore remain vigilant over the possibility that the proposals we opposed may be repackaged in a new proposal for legislation.  Transport Commissioner Jacques Barrot attended an ETF Executive Committee meeting on 28 March during which Manfred Rosenberg, president of the ETF Dockers’ Section welcomed the withdrawal of the PP2 by the Commission.  He commented that this decision avoided the explosion of potential conflicts over a crucial issue.  He asked the Commissioner to unveil his intentions towards European ports and to highlight actions to be taken by the Commission in the near future.  He concluded by affirming that European dockers would fight against every future initiative which aimed to undermine their working conditions and weaken trade unions’ presence and actions in ports.  The Commissioner indicated that before taking any further initiatives, consultations with all the concerned stakeholders would be launched. 
  
  
• Following the work stoppage protest against the PP2, Sweden's national ports organisation Sveriges Hamnar was reported to have called for a change in the law to prevent 'political strikes' that only hurt third parties.  "We think political strikes that are aimed at legislation are unreasonable; there must be a change in this respect," managing director Peter Jeppson told a newspaper even though he admitted that there were many flaws in the draft Directive. The organisation is reported to be working with the European Sea Ports Organisation to press this issue at the EU.  "It is unbelievable that the [dock workers'] union has the right to take up industrial action that only hurts a third party, that is our member companies and their customers," Jeppson said in a statement, according to a report by Fairplay Daily News.
  
  
• Speaking at the recent Containerisation International’s Global Shipping Conference, Contship Italia chief executive Cecilia Eckelmann-Battistello said the growth in size of containerships would lead to more hub ports, especially in regions like the Mediterranean that were more spread out than northern Europe.  In the Mediterranean, total volumes are forecast to grow from around 35m teu last year to 54m teu in 2010. In her view, in northern Europe, growth in transhipment cargo will depend on a port’s location. River ports such as Bremerhaven and Hamburg would probably see a drop in hubbing activities due to position. Coastal ports like Wilhelmshaven, where Contship Italia’s affiliate Eurogate has the concession along with APM Terminals, would be able to attract more because of the shorter deviation from main shipping routes.
  
  
• German classification society Germanischer Lloyd (GL) has approved building plans for a 13,000 teu container vessel.  No orders have been placed yet for the new Hyundai Heavy Industries (HHI)/GL design but according to the managing director of GL, ‘considerable interest has already been expressed and its just a matter of time before someone brave enough takes the plunge.’  The driving force is considered to be the economies of scale offered.  However, the risk is also great especially with uncertainty over cargo growth keeping pace with available tonnage in the coming years.  There are also considerable operational constraints.  The main problem is expected to be turning circles in port.  The port would also need to have gantry cranes big enough to reach across 21 containers on deck.
  

To contribute to the PIU, please contact Sharon James, Dockers’ Section (james_sharon@itf.org.uk; fax: +44 2079409275).