Shipping lines in the driving seat as ports lose power

Ports in southern Africa need to collaborate if they are to stand a chance against the alliances being formed by shipping lines and the changes this brings to container traffic. According to Aruna Bunwaree Ramsaha, deputy director general for the Mauritius Ports Authority, global demand for containers is continuing to increase – in Africa as well – but shipping lines are the controlling role-players. “Ports in former times were more powerful than shipping lines or ship operators as they were terminal points. Nowadays we are nodal points, simply one link in a chain and the shipping lines are far more powerful than ports – particularly in the container transport industry,” she said. “If a port cannot deliver what the line wants, it simply leaves and takes the traffic with it.” She said the demands were clear – faster turnaround times, infrastructure to allow for bigger vessels, better equipment and improved service delivery. “Ports will have to work to deliver these requirements but as a region we are going to have to work together so that we are not upgrading and improving infrastructure at the expense of another port.” She said southern Africa was expected to grow and transhipment hubs would therefore be required, but not all ports could be these hubs. “Regional ports are going to have to engage more to ensure that the right infrastructure is being created at the right points to ensure we are an effective region and not individual ports with capacity,” she said. “To deliver on the requests we are getting from shipping lines ports are going to have to invest in infrastructure, equipment and staff. There is no point having 5-star infrastructure but lousy service. Globally there is a move towards the privatisation of container handling operations and as ports we are going to have to start looking into this.” She said port investment to respond to growing container trade and shipping line demand would have to be approached from a regional perspective to ensure long-term results. INSERT & CAPTION If a port cannot deliver what the line wants, it simply leaves and takes the traffic with it. – Aruna Bunwaree Ramsaha