PMAESA - AFRICAN PORTS/MARITIME CONFERENCE
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1 PMAESA - AFRICAN PORTS/MARITIME CONFERENCE DECEMBER, 2007 INTERNATIONAL CONFERENCE CENTRE VICTORIA, MAHE, SEYCHELLES MARITIME TRANSPORT: REGIONAL INTEGRATION AND INTRA-AFRICAN TRADE 1
2 THE SADC ROAD MAP FOR REGIONAL INTEGRATION AGENDA - Guiding framework SADC Protocol on Transport, Meteorology and Communications (PTCM) The SADC PTCM entered into force in July The Protocol provides for various regulatory and institutional reforms and projects to be implemented in the States. At regional level implementation has been guided by a regional Macro Action Plan while at national level has been guided by Micro Action Plans in each Member State until recently when the RISDP was adopted. 2
3 THE SADC ROAD MAP FOR REGIONAL INTEGRATION AGENDA - Guiding Framework (2) Regional Indicative Strategic Development Plan (RISDP) Provides strategic direction for efficient implementation of the SADC programme of action over a period of 15 years Identifies priority interventions for integration across a range of areas Aligns the overarching long term integrated development goals and objectives with discrete policies and priority intervention areas Enhances and strengthens Inter-sectoral linkages and synergies 3
4 THE SADC ROAD MAP FOR REGIONAL INTEGRATION AGENDA -Guiding framework (3) RISDP Contd.: Transport sector strategic goals: Ensuring better planning, policy formulation and regulation of transport system operations and delivery; Ensuring adequate funding of infrastructure maintenance to achieve cost effective and timeous delivery of services; Liberalising market entry by separating operating and regulatory functions; Ensuring public safety and protection of the environment; and, Widening access to infrastructure services to meet the strategic objective of poverty alleviation. 4
5 THE SADC ROAD MAP FOR REGIONAL INTEGRATION AGENDA - Guiding Framework (4) RISP Contd.: The strategies for achieving the above goals are identified as the following: Increase efficiency and reduce costs of operations; Promote public-private-partnerships in the provision of infrastructure and services; and Liberalise markets to ensure competitiveness and efficiency. The targets with transport are: Liberalise regional transport markets by 2008; Harmonise transport rules, standards and policies by 2008; Recovery of all costs of maintenance of infrastructure by 2008 and full infrastructure investment costs by 2013; and Removal of avoidable hindrances and impediments to the cross-border movement of persons, goods and services by
6 THE SADC ROAD MAP FOR REGIONAL INTEGRATION AGENDA - Guiding Framework (5) The SADC Trade Protocol Trade Protocol provides the basis on which SADC regional integration agenda is underpinned. The targets are as set in the RISDP and SIPO : Free Trade Area (FTA) by 2008; Customs Union (CU) by 2010; Common Market by 2015; Monetary Union by 2016, and Single Currency and Economic Union by 2018 The implementation of the FTA, CU and CM based on the road map re-affirmed by Summit, is expected to increase further the quantum of intra-regional trade, which requires adequate infrastructure to meet the demands of the deepened goods market integration. Protocol on Free Movement of People 6
7 OBJECTIVES OF REGIONAL INFRASTRUCTURE DEVELOPMENT PROGRAMME IN SADC Providing infrastructure support for regional integration, within the context of the regional economic integration agenda; Infrastructure provision for poverty reduction, through enhanced universal access to water supply and sanitation, transport, secure energy sources, communications and ICT, in order to maximise economic development and attain MDGs targets, as the region seeks to address its overarching objective of reducing poverty; Creation of an enabling environment to facilitate investment in infrastructure, through harmonised institutional, legislative and regulatory policy development. 7
8 REVIEW OF THE STATE OF INFRASTRUCTURE DEVELOPMENT IN THE REGION Transport Sector Sector overview transport sector = road transport, rail transport, ports, maritime and inland waterways, as well as air transport. main areas of intervention: transport infrastructure development, harmonisation of policies, capacity building, and transport and trade facilitation. Transport infrastructure development also seeks to support the operationalisation of the SADC Free Trade Area, (2008) Customs Union (2010) and ultimately a Common Market (2015). 8
9 REVIEW OF THE STATE OF INFRASTRUCTURE DEVELOPMENT IN THE REGION Transport Sector (2) SECTOR OBJECTIVES Integration of regional transport networks to be facilitated by the implementation of compatible policies, legislation, rules, standards and procedures; Elimination or reduction of hindrances and impediments to the movement of persons, goods, and services; Broad based investment to develop, preserve, and improve viable strategic transport infrastructure within an investor-friendly environment generating adequate returns; Optimal utilisation of public and private financial, human and other resources and the effective allocation of existing scarce resources; Improved diversity of services and provision of services on a competitive bid basis through the promotion of fair and healthy competition between service providers in terms of transparent, flexible, predictable and streamlined regulatory frameworks; Focused investment in joint human resource development programmes, research and development projects and technology transfer initiatives; Effective environmental management with due consideration of relevant international and regional conventions; etc 9
10 REVIEW OF THE STATE OF INFRASTRUCTURE DEVELOPMENT IN THE REGION Transport Sector (3) The SADC Regional Trunk Road Network (RTRN): depicts minimum road network developments required to facilitate effective operationalisation of the SADC corridors as well as provide adequate overland transport linkages amongst the SADC member States. National component also documents for each Member State, proposed road network requirements for each country. SADC member States working together to develop trans-boundary road linkages which span across the region on a North-South basis as well as on a coast to coast basis, to ensure choice of ports by landlocked countries on both the eastern and western sea-board. 10
11 REVIEW OF THE STATE OF INFRASTRUCTURE DEVELOPMENT IN THE REGION Transport Sector (4) RAILWAY MAP OF SOUTHERN AFRICA LUANDA LOBITO CONGO NAMIBIA KINSHASA ANGOLA ZAIRE VICTORIA FALLS ZAMBIA LUSAKA PLUMTREE TANZANIA HARARE ZIMBABWE MALAWI BEIRA KENYA MOCAMBIQUE BLANTYRE MOMBASA DAR-ES-SALAAM NACALA The network beset with challenges of deferred maintenance, inefficient service provision and consequently poor viability that has seen traffic shifting from road to rail in the last 15 years. WALVISBAAI WINDHOEK BOTSWANA BEITBRIDGE GABORONE JOHANNESBURG LÜDERITZ MAPUTO SWAZILAND SOUTH AFRICA LESOTHO DURBAN RICHARDS BAY SALDANHA CAPE TOWN PORT ELIZABETH EAST LONDON 11
12 REVIEW OF THE STATE OF INFRASTRUCTURE DEVELOPMENT IN THE REGION Transport Sector (5) Ports and Inland Waterways The SADC ports are linked to the interior by the Regional Trunk Road Network (RTRN) and the Inter Regional Railway Network (IRRN) Expected to have the capacity adequacy and efficiency levels that ensure cost effective trans-shipment of goods onto and off the ships, off and onto road and rail for imports exports and imports respectively. The SADC ports should ultimately meet the capacity requirements of imports and exports. To this effect, a regional programme on port rehabilitation, expansion and modernization is underway in member States. A number of countries, among them South Africa and Mozambique, are looking at developing new ports to relieve congestion on existing ports, as well as concessioning of ports to private sector operators. Once the capacity challenge has been addressed, the issue of efficiency will be primary and after this has been achieved to prescribed standards, the improved performance of ports in total freight logistics should strengthen the region s competitiveness in global trade and markets. The current estimated investment gap for ports and inland waterways in Southern Africa is estimated at about US$15 billion. 12
13 REVIEW OF THE STATE OF INFRASTRUCTURE DEVELOPMENT IN THE REGION Transport Sector (6) SADC Overview of Transport Corridors 13
14 REVIEW OF THE STATE OF INFRASTRUCTURE DEVELOPMENT IN THE REGION Transport Sector (7) SADC CORRIDORS MAP The map illustrates the pattern of transport/trade corridors as well as development corridors juxtaposed to the transport networks. As their names often suggest, most of the corridors link a port to its hinterland. Priority corridor infrastructure development projects have already been identified and have been included in the NEPAD Short Term Action Plan and include the Lobito, Trans Cunene, Trans Caprivi, Shire Zambezi Waterway, Mtwara and Nacala corridors. 14
15 CHALLENGES REGARDING INFRASTRUCTURE IN SADC AND AFRICA IN GENERAL Port/Maritime Sector Institutional and Regulatory Framework: Port Management models: Landlord Port Model Service Port Model Concessioning to the private sector key container facilities Independent regulation of ports Attraction of Finance: Institutional reform is key to opening the gate for private sector investment Infrastructure Development: Capacity transhipment shortfalls A port is only as good as its interfacing infrastructure (road/rail) 15
16 CHALLENGES REGARDING INFRASTRUCTURE IN SADC AND AFRICA IN GENERAL (2) Performance: Congestion is a major problem roadblock to progress more often leading to congestion surcharges by shipping lines Cost: High costs due to: Technical: Inadequate capacity Poor facilities Poor management systems/structures Poor maintenance Structural Poor planning Inability to match supply to demand Lack of enterprise culture Institutional Lack of regulation Use of outdated pricing Monopoly 16
17 CHALLENGES REGARDING INFRASTRUCTURE DEVELOPMENT IN SADC AND AFRICA IN GENERAL (3) The region no doubt faces challenges relating to infrastructure availability and development, which among others, include: Poor infrastructure condition in most member States to varying degrees. Countries like DRC, Angola and Mozambique emerged from civil strife during which infrastructure was destroyed, and require customised infrastructure rehabilitation and modernisation programmes. Deferred maintenance in infrastructure obtains in most member States, due to varying resource capacity. High cost of infrastructure development against a backdrop of inadequate resources, poor cost recovery from users and low infrastructure utilisation thresholds Member States priority affected by competing demands, socio economic services and imperatives like health (HIV/AIDS), food security, and putting infrastructure in back seat. The need to create an adequate enabling environment and institutional framework for private sector investment. Inefficient use of existing infrastructure due to poor logistics and other bottlenecks (e.g. border posts delays). Low level of private sector participation in financing and management of infrastructure. 17
18 Adverse Effects of Poor Infrastructure in the Region High cost of doing business resulting in poor trade and investment competitiveness on global scale. Poor access to raw materials and markets, adversely impacting on supply side constraints. Negative impact on implementation of the facilitation of Trade Protocol and the Protocol on Facilitation of Free Movement of Persons. Poor competitiveness of SADC products on international markets and high costs of landing products from international markets adversely impacting on welfare of SADC nationals. Ineffective implementation of the SADC economic integration process (namely the Free Trade Area, Customs Union and Common Market). Poor access by the bulk of the population (especially rural population) to transport, energy, ICTs and water infrastructure impacting negatively on attainment of MDGs targets as espoused by the United Nations Suppression of tourist arrivals from source markets and resultant low receipts from tourism. Relatively low investor confidence and increased trade diversion from the region. 18
19 SADC STRATEGY AND WAY FORWARD TO ACCELERATE INFRASTRUCTURE DEVELOPMENT (1) Institutional Development The Project Implementation Cycle and Role of Member States Step 1: Identify a regional project (regional project defined as one that involves 2 countries for regional integration purposes) Step 2: Formulate a project proposal Step 3: Develop an MOU amongst all countries involved to convince SADC region and partners on the level of interest and participation on the project (e.g. Kazungula Tripartite MOU involving Botswana, Zambia and Zimbabwe) Step 4: Council approves the project Step 5: SADC Secretariat liaises with partners to source funding for such projects (e.g. the Kazungula Bridge and Westcor Project) Step 6: Project feasibility, financial engineering and design is undertaken Step 7: Project is marketed through SADC Secretariat, NEPAD etc for investment Step 8: Member States play the principal role with the Secretariat facilitating. 19
20 SADC STRATEGY AND WAY FORWARD TO ACCELERATE INFRASTRUCTURE DEVELOPMENT (2) Project Preparation, Development and Packaging Removal of Political Blockages Regional Development Fund Thematic ICP Groups on Infrastructure Development Special Programme on Infrastructure Development for Angola, the Democratic Republic of Congo, Madagascar and Mauritius Inter Regional Cooperation in Infrastructure Programmes in East and Southern Africa The Role of SADC Subsidiary Bodies in Infrastructure Development Other Implementing Agencies 20
21 Thank you very much for listening!! Mapolao R Mokoena (Ms) Senior Programme Manager Transport Infrastructure and Services Directorate SADC Secretariat mmokoena@sadc.int 21
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