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São Tomé e Príncipe: Unlocking Multimodal Logistics Potential

Explore the challenges and opportunities for multimodal transport in São Tomé e Príncipe, focusing on key factors affecting quality and costs. Discover insights into trade patterns, infrastructure limitations, security, facilitation, and legal aspects. Learn about the case of Panalpina and the country's potential as a regional hub with strategic advantages. Find out the necessary steps for improvement in infrastructure, legal frameworks, and technology utilization.

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São Tomé e Príncipe: Unlocking Multimodal Logistics Potential

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  1. MULTIMODAL TRANSPORT AND LOGISTICS SERVICESThe case of São Tome e Príncipe

  2. Sao Tomé e Príncipe Fact Sheet • Situated in the Gulf of Guinea, 300 Km West from mainland, on the Equator • 1001 Km2 • 150.000 inhabitants • Language: Portuguese • Form of Government: Democratic Republic (Independent since 1975) • Main product: cocoa. New developments towards tourism and services

  3. Determinants of Quality and Costs of Transportation • Distance, volume and pattern of trade • Infrastructure • Security and safety • Facilitation • Legal Aspects

  4. Distance, volume and pattern of trade • Exports: 5.000 tons – 6 million USD (mainly cocoa) • Imports: 65.000 tons - 31 million USD (almost everything consumed except fresh agric. products) • Regional trade: 15% of total trade (mainly oil from Angola) • Trade with Europe: 80% of total trade • Higher cost compared to the region(ex. Luanda) Economies of scale not reached

  5. Infrastructure • Port: Depth limitation and obsolete equipment • Airport: Runway in bad state • Telecommunications: Well spread but small bandwidth • Roads network covers whole territory but secondary roads need important maintenance • No railways infrastructure

  6. Security and safety • Reliable Security and Safety conditions due to social peace; no crime • Rare cases of accidents or corruption • Lack of updated regulations and legislation pertaining to these issues

  7. Facilitation • SYDONIA: improves quality, increases control and provides reliable trade statistic information • Lack of updated regulations and legislation related to door-to-door operations • In compensation, Government facilitates procedures • No benefits from free circulation of goods and passengers within CEMAC

  8. Legal Aspects • Multimodal transport not covered by law yet • Commercial Code old and outdated • MT Convention not signed, no laws envisaged yet to cover Multimodal Transport

  9. Conclusions • S. Tomé e Príncipe does not have yet the pre-requisites for development of Multimodal Transport • Small amount of trade, poor infrastructures, inefficient operations of vessels and airplanes, costs surcharges, substantial effect on the cost of living • Comparative advantage in the region: Safety & Security and Facilitation

  10. The Panalpina case • Panalpina offers multimodal transport and logistic services to the oil companies operating in the region • During 3 years, S. Tomé e Príncipe was the company’s logistics center: regional comparative advantage in safety & security and facilitation • Cargo organized to arrive in the country and to be distributed to the oil platforms in the Gulf: treated as cargo in transit • Business amounted to 15% of FE earnings

  11. São Tome e Principe: a potential regional hub • Government’s development strategy: transformation of S. Tomé e Príncipe into a service center for the region • Strategic location • Large and growing regional market rich in natural resources • Country’s social peace and ethnical homogeneity • Expected results: boost in Trade  efficient transport services  Foreign Investment promotion • Recent launching of projects: BOT Deep Sea Port and Airport Renovation

  12. Only if… • Considerable upgrading in infrastructures • Revision and updating of legal framework • Improvement in the use of Information Technology

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