Growing optimism in Africa’s project sector

A growing appetite for

improved and expanded

infrastructure in Africa

has raised optimism in

the region’s project sector.

According to Deanne de Vries,

senior vice president for Agility

Africa, while oil and gas projects

have for a long time been limited

to Angola and Nigeria, there are

now large-scale developments

all over the continent including

Mozambique, Cote d’Ivoire,

Senegal and Tanzania as well as

Ghana, Kenya and Uganda.

“You are also seeing new routes

to market. For example Uganda

and Tanzania recently signed a deal

for a heated crude export pipeline.

Four West African countries (Cote

d’Ivoire, Liberia, Sierra Leone and

Guinea) are building a cross-border

electricity interconnector for

energy supply,” she said.

All of this means increased

project cargo volumes.

The sector, however, is not

without its share of challenges.

“The vital role of education cannot

be over-emphasised,” said De Vries.

“Project cargo and breakbulk

require expertise. One needs

people to keep track of spending,

transport engineers to correctly

estimate bridge weight restrictions,

health, safety and environment

(HSE) staff to ensure people are

working safely and not harming the

environment, and project managers

to deliver cargo on time and to the

right location.”

Also challenging, she said, was

port and city congestion – along

with bureaucracy.

“This adds significantly to

shipping costs to Africa,” she told

FTW. “The World Bank estimates

that the cost of taking a container

from China to Tanzania is 60%

higher than from China to Brazil,

even though Brazil is on the ‘wrong’

side of South America from the

point of view of

China.”

She said while

ports were

improving and

turnaround times

of project cargo

in particular

was speeding

up, it was still

extremely difficult

to accurately

predict how long

it took for items

to clear customs and the port.

This uncertainty heavily impacted

projects and deadlines.

Inefficiencies, bottlenecks and

corruption remain at the heart of

most of the delays.

But she remains extremely

optimistic about the project and

breakbulk sector. “Infrastructure

is a key enabler to Africa’s growth.

And this requires the expertise of

companies able to deliver project

and breakbulk cargo on time,

on budget, to the right location,

undamaged.

While fixing

existing or

building new

infrastructure

is beyond the

scope of any

one company

or even a single

government,

working together

governments,

companies,

funding

institutions and others can develop

the necessary infrastructure

that will catalyse trade, growth,

investment and development of

existing and new industries,” she

said.

The World Bank estimates

that the cost of taking a

container from China to

Tanzania is 60% higher

than from China to Brazil.

– Deanne de Vries