'Strong management more important than equipment'

IMPROVED INFRASTRUCTURE doesn’t necessarily lead to better overall port operations. That’s the view of Ram Mahidhara, infrastructure department director for sub-Saharan Africa at the International Finance Corporation (IFC), who told delegates at last week’s African Ports and Harbours Congress in Sandton that simply upgrading port infrastructure did not necessarily lead to enhanced operations. Mahidhara believes that regulatory procedures, customs clearance and document preparation are strong hindrances to improved port operation. “In South Africa there are multiple levels of interference that lead to delays and problems. The mounting paperwork needs to be smoothed out as it’s currently the biggest stumbling block to port developments.” Some 50% of worldwide seafreight transport time is consumed by regulatory procedures, said Mahidhara. According to the Organisation for Economic Co-operation and Development, if the average seafreight transit time for exports was reduced by 9.2 days, an increase of $2.3 trillion in global trade could be achieved. Ultimately, investing in equipment is necessary, but it’s not sufficient. “The key to port operations enhancement lies in improving procedures, reducing risk and ensuring that strong management exists to hold everything together.”