‘Development of the Maritime Industry in the Region’

1. East African Private Sector Initiative on Regional Integration ‘Development of the Maritime Industry in the Region’ Speaker: Vassilis Kyriakis – CEng, CMarEng, MIMar Est

2. Advantages of Regional Integration • Closer Trading Links. • Economies of Scale. • Built of Strength and Confidence. • Incentive for the Government. • Stable and Predictable Business Environment. • Synergy as Vehicle for the Integration into the World Economy (Information Exchange). • Collaborated Interest and Benefit Rather than Individual Defense and Advance.

3. Regional Integration in Numbers • Trade within the EAC - Kenya, Uganda and Tanzania - grew from $778Mn in 2004 to over $1Bn in 2006. • Trade within COMESA stood at $7.8Bn in 2007, up from $4.5Bn in 2002. • Trade among countries in Africa as a whole, in 2006, amounted to only 8.9% of their total exports. • 51.2% of all Asian exports, in 2006, went to Asian countries. • 24.3% of all South and Central America exports, stayed within that region.

4. Ways Forward • Synergy between Members of the Regional Private Sector – Open Exchange of Information. • Business Contracts Among Neighbouring Countries - Increase of Business. • Boost Poorer and/or Smaller Countries with very Thin Markets. • Regionally Organized-Trade Supporting-Private Institutions, that Identify/Broadcast Information on Regional Trade / Investment Opportunities.

5. African Shipping - Obstacles Ahead • Non-open Registry Fleet, average age: • 20.5yrs, against 12.2yrs for world fleet. • Main Sea Routes: • Asia / North America (Transpacific); • North America / Europe (Transatlantic); • Asia / Europe – Mediterranean; • Sub-Saharan Africa - 34.5% of the total goods loaded in Africa, or 2.1% of the worldwide cargo (2006). • Sub-Saharan Africa – Loaded Goods 230mln tons vs. Unloaded Goods 70mln tons (2008). • Economies of Scale - Cost to Shipper – Large Shipping Lines vs. Normal Liners.

6. Ports and Regional Trade • Ports - Regional / International Trade Nodes. • Efficiency of Ports: • Level of Trade. • Development of their Hinterlands • Inefficient Ports: • High Trade Cost Imposition. • Import / Export Volume Reduction Hinterland Import Volume Reduction.

7. A STRATEGIC PORT • Location/good Market. At Red Sea, between Far East/Europe/Arabian Gulf/Africa. • Dubai Port World Management. • Ethiopia is a natural hinterland of Djibouti Port. • IT efficient (Maximo, Navis and Sage). • EDI System for Manifest Cargo. • Safe place (CCTV) and secure implementation of ISPS code (Port Access System). • Regular liner services connecting about 200 ports in 71 countries in the world. • Good performance and high productivity. • Good equipment and infrastructure facilities. • Most centrally located port in the COMESA market (population 380 million people) • Modern telecommunication and banking services. • Close proximity to Djibouti FZ with many new companies. 

8. Vessels /Country, Flying National Flag

9. Objectives of a Maritime Co-operation • Harmonized Shipping Policies • - Promoting Regional Fleet. • - Fostering Co-operation Between the Countries of the Region. • Determine Common Positions on International Maritime Policy and Define Strenuous Solutions Through Regular Consultations. • Harmonize / Implement International Maritime Conventions.

10. Objectives of a Maritime Co-operation • Bilateral / Multilateral Co-operation • Between Maritime Administrations • Operational Organizations Maritime Transport. • Maritime Transport / Port Operations Co-operation Between the sub-Regions/Members. • Establishment of sub-Regional and National Shipping Lines / Competitive Fleets.

11. A New Dynamic Player and Hub, in the Global Shipping Industry • Formation of Djibouti Flag (State Registry). • Adopt appropriate National Marine Legislation. • Active Presence in IMO / Adopt IMO Regulations. • Appoint Specialized Bodies for a) Dealing with Flag Matters and b) Surveying /Certification. • Expansion of Maritime Services. • Technical Inspections/Surveys/Management. • Authorization for Certification Renewal (Class, Flag, etc.). • Repairs/Dry Dock (Economical, Social implications).

12. Regional Piracy Map 2010

13. Piracy – Challenge for the Region’s Shipping Development • RISK! High Insurance Premiums. • High Insurance Premium High Transport Cost. • High Transp/n Cost High Product Cost. • Receiver/Supplier seek alternative roots. • Piracy Control Price Control/ GROWTH!

14. "We need to strongly rethink our strategies for development and use regional integration - closer ties among African economies - to promote and strengthen the current low levels of intra-African trade.“ - UN Economic Commission for Africa "The time has come to enlarge our markets.“ - KgalemaMotlanthe

15. Think BIG - The ‘Dubai’ of Africa(?) DUBAI DJIBOUTI 23,200 Km2 864,000 37.2/km2 (space for infra/ture) Desert. Advantages: - Geographical Position. - Port / Regional Trade. - Red Sea Underwater World. - Space for Development. - D.F.Z. • Area: 4,114 Km2 • Population: 2,262,000 • Density: 408.18/km2 • Was: Desert • Grew on: • Geographical Position. • Port / Trade. • Tourism. • Real Estate. • Financial Services.