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Port Managers Association of East and Southern African Conference. 28 November 2011 Swakopmund , Namibia Thoughts on the financing of ports within Sub-Saharan Africa’s transportation networks .

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Port managers association of east and southern african conference l.jpg

Port Managers Association of East and Southern AfricanConference

28 November 2011

Swakopmund, Namibia

Thoughts on the financing of ports within Sub-Saharan Africa’s transportation networks


Slide2 l.jpg

Peter Copley, Transport Specialist, Development Bank of Southern Africa….With great honour and some trepidation….Subject matter more or less the following….

• How to attract investment in our ports?

• Partnership with Government

• Attracting international shipping companies to our ports


How to attract investment in our ports l.jpg

How to attract investment in our ports

  • Society decides

  • Post 1994 South Africa saw great international interest in internal investment

  • This came from then Deputy President Mbeki, highlighting the role of the senior political patron

  • Driven by permanent public servants

  • Supported by project driven private sector champions


How to attract investment to our ports 2 l.jpg

How to attract investment to our ports (2)

  • Post Polokwane, when society elected President Zuma to succeed President Mbeki, the commercialisation/privatisation process appeared to stall

  • Current international PPP interest in Africa is in Nigeria

  • South Africa will have to see what happens in Manguang next May….with the next societal expression of direction

  • To attract international investment you have to show the World that you are investment friendly


Not that it matters too much look to rail as an example l.jpg

Not that it matters TOO much…..look to rail as an example

  • Of the G7, USA, UK and Japan have private sector rail systems (Japan the late comer as the national economy could no longer carry the debt. It took 10 years to take that decision)

  • Germany, Italy and France have state owned rail systems

  • Canada has a private system AND a state owned system

  • 50: 50 split, so there are no right answers

  • Society ultimately decides whether the public or private sector is the predominant source of finance, or PPP’s


Private sector funding emerging markets l.jpg

REGION No OF COST%

PROJECTSUS$m

Latin America38 5 980 48%

Asia20 4 947 40%

Europe 7 1 007 8%

Sub-Saharan Africa 3 102 <1%

Central Asia, Middle East

and North Africa 2 323 3%

12 360100%

PRIVATE-SECTOR FUNDING - EMERGING MARKETS

Regional Distribution

SOURCE: International Finance Corporation - Financing Private Infrastructure Projects, again at the peak


Partnership with government l.jpg

Partnership with Government

  • The Maputo Corridor started (1995) within South Africa’s company and contract law

  • Only followed with PPP legislation in 1998

  • Maputo Corridor now essentially a private sector driven corridor

  • Walvis Bay Corridor Group a true Public Private Partnership

  • We can learn something from that


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Real Gross Fixed Capital Formation by the South African General Government and Public Corporations on Economic and Social Infrastructure, 1946 -2007 (Rm)

PMAESA, Swakopmund


Attracting international shipping companies to our ports l.jpg

Attracting international shipping companies to our ports

  • Safety and efficiency in turn around times!

  • Vehicle carrying vessels are turned around in 4 hours at Maputo vs 24 hours in Durban

  • Which would you choose?

  • Facilitated by effective use of ICT, clearing customs while the vessel is still at sea

  • We need to turn BRICs into BRICS

  • Reflect on China’s balance of payments and the role of coal


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World Oil Production Forecast

Source: Energy Watch Group (2007)


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Current Seminal Documents for Africa

  • ‘The African Infrastructure Country Diagnostic (Study)’:"Africa‘s Infrastructure: A Time for Transformation”: The World Bank, released in 2009

    http://www.infrastructureafrica.org/aicd

  • ‘Infrastructure to 2030’: (ISBN 978-92-64-02398-7 OECD Publishing, May 2006)

  • Amongst many other publications and studies both local and regional, especially regional integration (e g SADC)

PMAESA, Swakopmund, Namibia


The africa country infrastructure diagnostics study backlogs l.jpg

The Africa Country Infrastructure Diagnostics Study backlogs

  • A huge number, of which the backlogs are,

  • 50% energy

  • 25% transport

  • 15% Information and Communications Technology (ICT)

  • 10% water and sanitation


Private sector funding emerging markets13 l.jpg

SUB-SECTOR No OF COST%

PROJECTSUS$m

Power28 5 706 46%

Telecoms21 4 861 39%

Ports 9 222 2%

Pipelines 6 1 092 9%

Railroads 3 117 <1%

Water 2 362 3%

Roads 1 313 2%

12 360100%

PRIVATE SECTOR FUNDING-EMERGING MARKETS

Various Infrastructure Sub-sectors

SOURCE: International Finance Corporation - Financing Private Infrastructure Projects, at the peak


The fundamentals from a point of view of the oecd l.jpg

The fundamentals from a point of view of the OECD

  • OECD Publication ‘Infrastructure to 2030’

  • Amongst 15 policy recommendations:

    • ‘The governments of the World can no longer afford to provide necessary infrastructure unaided. There HAVE to be PPP’s’

    • ‘Infrastructure is long term in nature and its provision is necessary irrespective of political persuasions’

    • ‘Asset management is as important as new capital investment’

    • (Recognise climate change, rising sea levels and extreme events)


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Road Network Links: Current Quality and Potential Significance (West - Southern Africa Link Enlarged)


South africa s logistic competitors source pwc germany new spokes new hubs l.jpg

South Africa’s logistic competitors:(Source: PWC Germany ‘New spokes, new hubs’)

  • China Logistics Performance Index 3.49 (#27)

  • South Africa Logistics Performance Index 3.46 (#28)

  • Turkey Logistics Performance Index 3.22 (#39)

  • Brazil Logistics Performance Index 3.20 (#41)

  • India Logistics Performance Index 3.12 (#47)

  • Mexico Logistics Performance Index 3.05 (#50)

  • Russia Logistics Performance Index 2.61 (#94)

  • South Africa’s World Competitiveness Ranking (#54)


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SADC Intra Regional Traffic movement (1996)……2011?

PMAESA, Swakopmund


Thank you l.jpg

Thank you


Contact details l.jpg

Contact Details

PMAESA, Swakopmund, Namibia


Slide20 l.jpg

Peter Copley, Transport Specialist, Development Bank of Southern Africa….With great honour and some trepidation….Subject matter more or less the following….

• A broad background to funding of transportation of infrastructure in general

• What lessons have we learned?

• Putting these lessons into some focus for the future


Current seminal documents for africa22 l.jpg

Current Seminal Documents for Africa

  • ‘The African Infrastructure Country Diagnostic (Study)’:"Africa‘s Infrastructure: A Time for Transformation”: The World Bank, released in 2009

    http://www.infrastructureafrica.org/aicd

  • ‘Infrastructure to 2030’: (ISBN 978-92-64-02398-7 OECD Publishing, May 2006)

  • Amongst many other publications and studies both local and regional

PMAESA, Swakopmund, Namibia


The world bank s africa s infrastructure backlogs l.jpg

The World Bank’s ‘Africa’s Infrastructure backlogs’

  • A huge Number, of which the backlogs are,

  • 50% energy

  • 25% transport

  • 15% Information and Communications Technology (ICT)

  • 10% water and sanitation


Chasing moving targets l.jpg

Chasing Moving Targets

PMAESA, Swakopmund


Slide25 l.jpg

Average Economic Rates of Return (% per annum) on World Bank supported projects: 1974 –92 (Quoted from ‘World Development Report 1994’, The World Bank, Washington DC)

The water related rates are financial, not economic, rates of return

PMAESA< Swakopmund


The fundamentals from a point of view of the oecd26 l.jpg

The fundamentals from a point of view of the OECD

  • OECD Publication ‘Infrastructure to 2030’

  • Amongst 15 policy recommendations:

    • ‘The governments of the World can no longer afford to provide necessary infrastructure unaided. There HAVE to be PPP’s’

    • ‘Infrastructure is long term in nature and its provision is necessary irrespective of political persuasions’

    • ‘Asset management is as important as new capital investment’


Slide27 l.jpg

‘The governments of the World can no longer afford to provide necessary infrastructure unaided. There HAVE to be PPP’s’

  • A questionable statement?

    • With emerging markets currently showing better growth opportunities and return than mature markets, funding is flowing into the emerging economies BUT change is constant and cyclical.

    • South Africa had a window of opportunity immediately post 1994 and SANRAL availed itself of that opportunity with the Maputo Toll Road, the N3 and the Bakwena Toll Road, together with two prisons.

    • That opportunity changed with Polokwane and the deep pockets of the private sector investment community are currently looking in Africa to Nigeria.


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13 rail concessions had been awarded by mid-2005 and there have been a further two since then.

  • Kenya/Uganda and Tanzania have both been awarded and are scheduled to commence in 2006.

  • Sizarail (DRC) was ‘cancelled’ following a change in government

  • Ressano Garcia was cancelled in late2005

  • Transgabonais was cancelled in 2003 and is being temporarily operated by the losing bidder.


Slide29 l.jpg

‘Infrastructure is long term in nature and its provision is necessary irrespective of political persuasions’

  • The Maputo Toll Road is now in its 15th year of operation; the N3 in its 13th; and Bakwena in its 11th. No social unrest. No community violence…..provided there are alternatives (egMalelane and Parys with no alternatives).

  • South Africa HAS two PPP prisons which were built in 2000 and which are referred to in very good terms by the Inspector of Prisons, Judge van Zyl. Despite this the Minister has scrapped the next round? Why? The market gets confused by conflicting signals and people stop buying.

  • Second round of PPP interest in South Africa appears to be coming from the success of Maseru Hospital.

  • Long may it last in the legal and procurement framework which has now been established by the PPP Unit of the National Treasury


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‘Asset management is as important as new capital investment’

  • On a recent 3 000 km road trip from Gauteng to Lusaka the ONLY road maintenance I saw being performed was on the PPP Bakwena Toll Road (Polokwane to Tshwane) and by a trader outside of his shop near Livingstone.

  • Reality is that providing, operating and maintaining infrastructure IS expensive…..and necessarily needs to be on-going.

  • A fundamental rule is that you will spend the same again in maintaining infrastructure over the life of the asset, if it is to be kept functional.

  • In broad terms this means that road provision costs are about 2 to 3 times what we would like them to be….and the same with rail….and the same with electricity…..and I presume the same with water and sanitation.

  • With communications we just pay! We are prepared to pay R2,60 per minute to talk on a cell phone but we aren’t prepared to pay R0,53 per minute to use an urban toll road? (The utility of time?!)


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Road Network Links: Current Quality and Potential Significance (West - Southern Africa Link Enlarged)


The world bank s africa s infrastructure backlogs32 l.jpg

The World Bank’s ‘Africa’s Infrastructure backlogs’

  • A huge number, of which the backlogs are,

  • 50% energy

  • 25% transport

  • 15% Information and Communications Technology (ICT)

  • 10% water and sanitation


What is the single fundamental issue l.jpg

What is the single fundamental issue?

  • I submit that the single issue is whether these backlogs should be addressed by public or private funds, or a combination of both through Public Private Partnerships, commonly known as PPP’s


Private sector funding emerging markets34 l.jpg

SUB-SECTOR No OF COST%

PROJECTSUS$m

Power28 5 706 46%

Telecoms21 4 861 39%

Ports 9 222 2%

Pipelines 6 1 092 9%

Railroads 3 117 <1%

Water 2 362 3%

Roads 1 313 2%

12 360100%

PRIVATE SECTOR FUNDING-EMERGING MARKETS

Various Infrastructure Sub-sectors

SOURCE: International Finance Corporation - Financing Private Infrastructure Projects, at the peak


Private sector funding emerging markets35 l.jpg

REGION No OF COST%

PROJECTSUS$m

Latin America38 5 980 48%

Asia20 4 947 40%

Europe 7 1 007 8%

Sub-Saharan Africa 3 102 <1%

Central Asia, Middle East

and North Africa 2 323 3%

12 360100%

PRIVATE-SECTOR FUNDING - EMERGING MARKETS

Regional Distribution

SOURCE: International Finance Corporation - Financing Private Infrastructure Projects, again at the peak


Slide36 l.jpg

Real Gross Fixed Capital Formation by the South African General Government and Public Corporations on Economic and Social Infrastructure, 1946 -2007 (Rm)

PMAESA, Swakopmund


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Understanding the types of PPPs applicable totransportation projects

  • BOT’s; BOOT’s; EPC’s; EPCM’s are possibly there to confuse us

  • Fundamental is that there can be a procured PPP, from a body of government, or an unsolicited PPP proposal, which has to be handled in terms of the law

  • SANRAL an example of a body with a policy on unsolicited bids

  • Fundamental to match the technicalities of the proposal with the finances available

  • You CAN’T and don’t want to print money


The spectrum of ppps l.jpg

The spectrum of PPPs

Public

control

Private

control

Degree of private sector control of assets

Design-Build-Finance-Operate

Often broadly defined as concessions

Build-Finance-Operate-Transfer

Lease-Develop-Operate

Turnkey Operation

Operations & Maintenance

Outsourcing municipal vehicle fleets and services such as garbage collection, tendered bus services

Water and Wastewater Facilities

Lease of municipal land

South African Toll Roads, Gautrain

Development of cellular phone network


Experience from south africa s toll roads l.jpg

Experience from South Africa’s Toll Roads

  • Entered into before PPP Legislation was in place

  • 30 year wholly private sector concessions which have changed hands now twice in about 12 years

  • 20 investors each at about ZAR 100 m each


Strategic road network of south africa sanral 2005 l.jpg

Strategic road network of South Africa (SANRAL: 2005)


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Who are the investors?

  • Contractors are the equity investors

  • Thereafter FNB, Standard, Nedbank, ABSA as 8 year lenders

  • Thereafter RMB, Standard Merchant, Investec as 12 year lenders

  • Thereafter Old Mutual, Sanlam, Mine Officers’ Pension Fund, Mine Employees’ Provident Fund, SASOL Pension Fund as 15 year lenders

  • and Public Debt Commission, DBSA/EIB as 20 year Lenders.


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How is this being modified as we go forwards?

  • Gautrain’s Special Purpose Group (10% of equity)

  • Reya Vaya’s 526 taxi drivers and operators

  • Government Employee’s Pension Fund owns 60% of JSE, which is in the World’s Top 20

  • Transnet currently looking for ZAR100 to 300 bn (Euros 10 to 30 bn)

  • Will they get it?


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Vertical PPP’s?

  • This does open a door to ‘vertical PPP’s’ recognising that PPP’s are NOT fixed instruments. They are living businesses which run for the duration of the asset and quite possibly for longer. They are tradeable commodities.

  • Equity investors; commercial banks; merchant banks; pension funds; DFI’s; Governments all have horizons. Recognise them and use them.

  • We don’t have to look at the entire life of the asset to make a single successful PPP.

    • (Interesting to reflect on Anglo PLC and the Chilean State miner at present)


13 rail concessions had been awarded by mid 2005 and there have been a further two since then44 l.jpg

13 rail concessions had been awarded by mid-2005 and there have been a further two since then.

  • Kenya/Uganda and Tanzania have both been awarded and are scheduled to commence in 2006.

  • Sizarail (DRC) was ‘cancelled’ following a change in government

  • Ressano Garcia was cancelled in late2005

  • Transgabonais was cancelled in 2003 and is being temporarily operated by the losing bidder.


Putting the partnerships in ppp how to ensure best practice in ppp projects l.jpg

Putting the partnerships in PPP: How to ensure best practice in PPP projects

  • The World remains of differing opinions

  • G7 rail systems equally split between private and public ownership

  • Recognise that reality and recognise fundamental need against fundamental constraints of affordability

  • Recognise the term of ‘Public Private Partnerships’ and be true to that term


Sadc intra regional traffic movement l.jpg

SADC Intra Regional Traffic movement

PMAESA, Swakopmund


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Road Network Links: Current Quality and Potential Significance (West - Southern Africa Link Enlarged)


Slide48 l.jpg

The rail networks of sub-Saharan Africa are capable of carrying 23 million tonnes per annum. They currently carry 3,5 million tonnes.


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Applying lessons from successful BOT /PPP processes

  • Three way institutional linkage

  • Top level political patronage

  • Ongoing public sector leadership

  • Clear set of rules

  • Ongoing private sector leadership

  • Reality in costing and in revenue streams

  • Consistency in application of the rules, including taxation


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Where to from here?

  • Basic thresholds of sustainable PPP’s, from 4 000 vpd for road; 300 000 tonnes per annum for rail; 3 m tonnes per annum for ports; 250 000 passengers per annum for airports, with proven growth

  • Think in terms of BRICs and the reality of southern Africa

  • A fundamental need to think regionally.


The ports of sub saharan africa l.jpg

The Ports of Sub-Saharan Africa

  • Djibouti, Mombasa, Dar es Salaam (incl Tanga, the lakes and Mtwara)

  • Pemba, Quelimane, Nacala, Beira, Maputo

  • Richards Bay, Durban, East London, Nqura, Port Elizabeth, Mossel Bay, Cape Town, Saldahana

  • Luderitz, Walvis Bay

  • Namibe, Lobito, Luanda, Benguela, Pont Noire


Slide52 l.jpg

DEVELOPMENT CORRIDORS AND SDIs IN THE SADC REGIONShowing the Current and Potential Regional Corridor Traffic FlowsCurrent / Medium Term Potential in million tonnes per annum, year 2000

Great Lakes Region Import Export Vols

1.6 / 2.4 mtpa

Agriculture

Lake Tanganyika Transport, Mpulungu

0.1 / 0.3 mtpa

LOBITO Dev. Corridor

0 / 1.0 mtpa

Manganese

Copper

TAZARA Dev. Corr.

0.5 / 1.5 mtpa

Zambia Import/Export plus Transit 1.6 / 4.0 mtpa

Forrestry

Copper

Zimbabwe Import Export plus Transit 4.0 / 8mtpa

Coal

NACALA Dev. Corr.

0.3 / 0.8 mtpa

Agriculture

Coal

Botswana Inports Exports Plus Transit 1.5 / 2.0 mtpa

Steel

Chrome

Alternative road route from Zambia

Coal

BEIRA Dev. Corridor

2.0 / 5.0 mtpa

Walvis Bay Dev. Corridor

2.0 / 3.0 mtpa

Manufactured Goods

MAPUTO Dev. Corridor

3.0 / 6.0 mtpa

Coast-to-Coast Corridor

0.2 / 1.0 mtpa


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Options practiced in SADC


Slide54 l.jpg

DBSA : N-S CORRIDOR TO GREAT LAKES REGION: DEFINITION OF NORTH-SOUTH CORRIDOR

Kisangani

Kampala

Kisumu

Lake transport operated by AMI/TARC, functioning well

Lobito Corridor - Benguela Line, closed at present. Distance to Copper Belt longer than routes to Dar es Salaam and Beira

Nairobi

Lake Victoria

Kigali

Kindu

Mwanza

Lake tranport by ferry on Lake Tanganyika – ports to be upgraded

Bujumbura

Mombasa

Kinshasa

Mombasa

Pointe-Noire

Kigoma

Ilebo

Kikwit

Dodoma

Matadi

Kalemie

Dar es Salaam

Kidatu trans-shipment facility. Changeover from 1067mm gauge to 1000mm gauge (TARC)

Road connection between Kafue and Lions Den. Shorter than rail route through Bulawayo by more than 800km

Dar es Salaam

Lake Tanganyika

Mpulungu

Luanda

Kamina

Mbeya

Kidatu

Malange

Kasama

Kolwezi

Lake Malawi

Tenke

Possible new 130km rail link from Kasama to Mpulungu

Alternative road route from Botswana to Zambia – new railway under consideration

Lobito

Lubumbashi

Huambo

Ndola

Chipata

Tazara Railway system 1067mm

Kapiri Mposhi

Lilongwe

Trans-Caprivi Corridor Final surfaced road section now completed

Menongwe

Nacala

Nacala

Namibe

Lusaka

Tete

Sena railway line, closed at present. Only regional railway connection to Malawi and Nacala Corridor

Kafue

Blantyre

New Bridges over Zambezi

Lions Den

Kariba

Sena

Harare

Trans-Kgalagadi / Walvis Bay Transport & Development Corridor

Victoria Falls

Beira Development Corridor

Bulawayo

Beira

Beira

LEGEND

Windhoek

Beira Port: the shortest distance by road / rail from Ndola / Lubumbashi by approximately 600km

Position of North-South Corridor

Beitbridge

Walvis Bay

Gobabis

Main Rail Routes - operational

Pretoria

Gaborone

Main Rail Routes - non operational

Maputo

Maputo

Johannesburg

New Beitbridge to Bulawayo railway (BBR)

Main Road Routes

Gauteng

Luderitz

Main River / Lake Routes

Richards Bay

Maputo Development Corridor

Main Centres & Ports

Durban

Alternative railway routes from Gauteng to Bulawayo: Botswana and BBR routes

0 500 1000km

Saldanha

East London

Cape Town

Port Elizabeth

Africonsult / Giersing Rose Mar 2001


A closing word on china l.jpg

A closing word on China

  • From Dr Lucy Kaukin’s doctoral thesis on trade between Angola and China

  • Africa accounts for 4% of China’s trade

  • Trade balance heavily in favour of Angola

  • And in fact SADC trade balance with China is still in SADC’s favour

  • Hence China is working to bring about balance but it is not the only solution as most Chinese money stays in China


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World Oil Production Forecast

Source: Energy Watch Group (2007)


Transport energy efficiency l.jpg

Transport Energy Efficiency

Source: http://openlearn.open.ac.uk/file.php/1697/t206b1c01f49.jpg


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Comparative modal energy efficiencies

  • Rail is 3 to 5 times more fuel efficient than road

  • Water is 100 times more fuel efficient than rail

  • Where is our coastal shipping?


Thank you59 l.jpg

Thank you!


Contact details60 l.jpg

Contact Details

ESASTAP/CSIR/COST/Dept Science and Technology Conversation, CSIR


South africa s logistic competitors l.jpg

South Africa’s logistic competitors

  • China Logistics Performance Index 3.49 (#27)

  • South Africa Logistics Performance Index 3.46 (#28)

  • Turkey Logistics Performance Index 3.22 (#39)

  • Brazil Logistics Performance Index 3.20 (#41)

  • India Logistics Performance Index 3.12 (#47)

  • Mexico Logistics Performance Index 3.05 (#50)

  • Russia Logistics Performance Index 2.61 (#94)

  • South Africa’s World Competitiveness Ranking (#54)


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Port of Maputo – Traffic Handled (‘000tons)


Slide64 l.jpg

CFM PORT TRAFFIC


Recent history of maputo port l.jpg

Recent History of Maputo Port

  • Pre 1975 handled approx 14 million tonnes per annum

  • Post 1975 dropped to 3 million tonnes per annum (Limpopo and Goba Rail lines)

  • Post Nkomati Accord increased to 8 million tonnes per annum

  • One year later dropped back to 3 million tonnes due to inadequate security

  • British aid accordingly financed a fence!

  • 80% of Mozambican foreign exchange came from freight passing through the three corridors

  • Circa 1980 World Bank appointed Parisbas to advise Mozambique Government on how to privatise its ports

  • Circa 1990 RFP’s were invited (at US$20 000 each) and twelve parties took documentation

  • Five responded, including Mersey, Lisconti and Skanska


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Maputo Port 2006


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Evaluation and Negotiation

  • Quite quickly MPDC were accorded preferred bidder status….

  • And negotiations continued for 10 years!

  • Fundamental was the need by MPDC to acquire both port authority and port operator status with effective inland service (road AND rail)

  • Equally fundamental was the need for Mozambique to negotiate long and hard (precedent for both Beira and Nacala)

  • In the interim MPDC operated as management agents for CFM

  • Slowly moving back to 6/80 million tonnes with a target of 15 million tonnes in 2010

  • As Skanska was an equity partner SIDA (Sweden) requested the DBSA to act as lead arranger for the DFI’s

  • This augments the commercial arrangers who were in this case SCMB

  • Arrived at a 15 year concession in a ratio of approximately 50:50 equity to debt


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Overview of Financial Package

  • Equity investors want 17% pa on investment over 5 years

  • Commercial Banks want about 15% over 8 years

  • Merchant Banks about 12% over 12 years

  • Pension Funds about 10% over 15 years

  • DFI’s (Development Finance Institutions) take a 20 year view


Role of the dfi s in financing business l.jpg

Role of the DFI’s in Financing Business

  • Direct investment in projects through term loans

  • Credit enhancement through innovative structures, risk assumption and guarantees

  • Ability to mobilise additional funding from third parties

  • Strengthen the capacity of the borrower to implement and manage the project by providing technical assistance

  • Policy and knowledge sharing and advice

  • Facilitation of public-private-partnerships

  • Support for black economic empowerment by funding sustainable BEE initiatives and partnerships with indigenous business operators

  • Development of local capital markets in order to provide access to local currency to offset exchange rate risk, access to long-term capital and increase investment alternatives

  • Thus far not necessary to draw down on DBSA debt due both to slower development than anticipated and as supplier credit and equity have been sufficient to meet what has been necessary


Order of re development l.jpg

Order of re-development

  • 1996 Maputo Toll Road

  • 1998 Mozal and reintroduction of motor cars

  • 2000 Return of the commercial banks

  • 2002 Return of advertising

  • 2004 Return of builders and painters

  • 2005 Final signing of Maputo Port 15 year concession


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Rail and port network of South Africa (Adapted from Barnard, D 2003 & National Ports Authority, 2004)


1995 port infrastructure 2005 l.jpg

1995 Port Infrastructure 2005


Maputo 1995 l.jpg

Maputo 1995


Maputo 2005 l.jpg

Maputo 2005


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Ongoing support and possible future

  • Maputo is primarily a niche port (cf Durban at 56 million tonnes, Richards Bay at 120 million, Saldanha at 26 million and Cape Town at 18 million tonnes)

  • Dredged depth currently constrained to 9 metres (cf international need for 12 m or 16 m)

  • Need for continuous dredging, still done by CFM

  • Quantum leap necessary if throughput were to go higher than 15 million tonnes per annum

  • Absolute need for rail improvement and for one stop border

  • Also an example for other African ports (eg Mombassa, Dar es Salaam, Luanda, Egypt, West Africa AND South Africa)


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