Poor port infrastructure could sabotage Africa's mining potential

If Southern Africa wants to reap the benefits of the growing oil and gas finds in the region it is going to have to invest significantly in its port infrastructure. According to Paul Runge, managing director of Africa Project Access, countries need to realise they are not playing in small environments but on the world stage. “The world is not dependent on Africa’s resources. If it is too difficult to access these commodities the big players will simply go to those areas where they can profitably mine. And that includes the oil and gas sector which is increasingly becoming very difficult to separate from traditional mining on the continent.” He said ports in areas such as Mozambique, where major gas finds have been made in the past few years, were going to have to look at increasing infrastructure significantly. “Without ports the resources on this continent are stranded and they are going nowhere. We have to see an increase in port investment if we want to truly benefit from the finds.” According to Runge logistics can only be ignored for so long before investors start walking away. “We have our backs to the wall and we are at a very critical point. We have to invest significantly. He said upgrades at the Port of Walvis Bay, where a dedicated bulk terminal will be constructed, were welcome in light of this. “We have to reach the point where we stop talking about infrastructure required and move into action, delivering what's necessary.” This is the same message Dr Andrew Shaw, an associate director at PricewaterhouseCoopers, recently brought to the Transport Forum while visiting the Port of Walvis Bay where construction of the new container terminal is under way. “Transport and logistics infrastructure are the key to sustaining Africa’s growth,” he said. Southern Africa’s ports in particular are going to have to work hard to up their game. The average waiting time at the Port of Luanda, for example, is 144 hours, and traffic is frequently diverted to Walvis Bay. “African ports are constrained by lack of capacity and low inefficiency. Congestion and poor linkages to hinterland markets constrain efficient logistics,” he said. INSERT & CAPTION Logistics can only be ignored for so long before investors start walking away. – Paul Runge