Africa’s port investment hopelessly behind demand curve

African ports will have
to significantly increase
investment if there is to be
any hope of meeting future
container capacity demand.
With demand estimated
to increase to around 130
million TEUs by 2050,
the current
rate of
investment
and
development
is far too
slow.
According
to Frank
Luisman, a
director at
Maritime &
Transport
Business
Solutions,
existing
capacity
currently stands at
approximately 30 million
TEUs – and the first wave
of expansion will increase
the continent’s capacity to
35 million.
“But that means there
will be a capacity gap by
2030 of nearly 65 million
TEUs, requiring a second
wave of expansion.”
He said while several
projects had been identified
across the continent that
would improve capacity,
there were still concerns
around whether these
would serve
the growing
demand.
“Africa
will have
the capacity
to handle
35 million
TEUs in
the coming
decade if all
the current
projects are
completed
along with
those still in
the pipeline,”
he said. “Currently there are
114 port projects that have
been identified of which 57
are container projects.”
He said not all these
projects were already under
way and many were still in
the planning phase.
“What we can accept is
that cargo demand will
continue to grow in Africa.
If the predicted population
growth continues there will
be an increased demand for
containers on the continent
and volumes will grow.”
Luisman said this
indicated a clear need
for sucessful port public
private partnerships
(PPPs). In light of the
growing demand and
the expected shortfall in
capacity there was very
little room for error and
PPPs offered the best
chance of success, he
added.
“Also private parties are
better positioned to handle
specific risks, while PPPs
also reduce the burden
on public budgets that
don’t have the ability to
finance large-scale port
projects. PPPs also improve
operational performance of
terminals.”
INSERT
There will be a
capacity gap by 2030
of nearly 65 million
TEUs requiring a
second wave of
expansion.
– Frank Luisman
CAPTION
The Port of Nacala … African ports will need to significantly
increase investment to meet future container capacity
demand.