Tanzania Ports Authority. Overview and Future of Tanzania Ports Authority
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1 Tanzania Ports Authority Overview and Future of Tanzania Ports Authority
2 CONTENTS 1. INTRODUCTION 2. ROLE OF PORTS 3. CHALLENGES 4. FUTURE OF THE PORTS 5. PHYSICAL INCREASE OF CAPACITIES 6. OPERATIONAL IMPROVEMENTS 7. WAY FORWARD 8. CONCLUSION 2
3 INTRODUCTION 1. TPA was established by the Ports Act No. 17 of 2004 as landlord port authority. It operates a system of ports serving the Tanzania Hinterland and the landlocked countries of Malawi, Zambia, DR Congo, Burundi, Rwanda and Uganda.
4 INTRODUCTION 2. TPA traces its institutional history to commencement of railway construction from Tanga Port in 1893 and Dar es Salaam Port in It later evolved to become the East African Railways and Harbours Corporation ( ); The East African Harbours Corporation ( ); and Tanzania Habours Authority ( )
5 Railway Construction In East Africa Kasese Line (1956) Mwanza Line (1928) Kabalo -Kindu Line Kalemie -Kabalo Line Mpanda Line (1949) Kampala Mainline (1931) Kisumu Line (1901) Mombasa-Nairobi Mainline ( ) Arusha line (1929) Moshi -Voi Link-line (1924) Tanga- Moshi Mainline ( ) Tanga Link Line (1963) Dar es Salaam- Kigoma Mainline ( ) Kidatu Line (1965) Kapiri Mposhi-Ndola- Lubumbashi Line TAZARA Mainline Dar es Salaam Kapiri Mposhi ( )
6 INTRODUCTION 3. It currently performs the role of both a Landlord and Operator with the main function of: Promoting the use, improvement and development of ports and their hinterlands; Entering into contracts for the purpose of delegating the powers of the Authority (through licensing and concessioning ports services). 4. TPA now administers all Tanzania s mainland sea and inland water-way (lake) ports formally under Marine Services Company
7 MAIN & SECONDARY SEA PORTS KAMPALA KIGALI NAIROBI BUJUMBURA DODOMA TANGA Pangani DAR ES SALAAM Bagamoyo MAFIA (Kilindoni) Kilwa (Kivinje & Masoko) Lindi Mikindani MTWARA
8 The Main Lake Victoria Ports Kemondo Bay Nansio Mwanza North & South Ports
9 The Main Lake Tanganyika Ports Kasanga Port
10 ROLE OF PORTS 1. Trade facilitation Over 80% of the trade is sea borne 2. Provide services to domestic and land locked countries Tanzania, Zambia, Malawi, DR Congo, Rwanda, Burundi & Uganda Export/Import trade value US $ 31 billion About 30% of the overall port cargo is transit 3. Transhipment points on sea routes. 4. Catalyst of Value adding activities such as EPZ, EDZ etc. 12/15/
11 ROLE OF PORTS 5. Logistic points for global trade 6. Fishing industry support systems 7. Platform for Cruise Tourism 8. Water fronts Marinas Recreational Areas 9. Environmental Enhancement 10. Provide employment opportunities 12/15/
12 CHALLENGES 1. Ports to provide efficient and cost effective services with an objective to score high in all performance indicators: Services, Output, Utilization Productivity This entails: Shorter cargo dwell time Shorter ships time in the port Capacity utilization: Adequate capacity Optimal utilization economies of scale SOUP Higher quay and yard productivity
13 Case of DSM Port Oil terminal Grain terminal General cargo termina Container terminal 13
14 SERVICE INDICATORS (DSM PORT) Ship turnround time increased to 3.9 in 2008 due to congestion. The situation has now improved to 2.3 days. Ship waiting time has also improved to 5.0 days from 6.9 in year Jan-Sept 2010 Waiting time Turnround Time
15 SERVICE INDICATORS (DSM port) Container dwell time (days/container) Number of dwell time has improved from 25.4 in 2008 to 13.3 in September
16 OUTPUT INDICATORS Number of tons per gang per shift in year 2010 has also doubled compared to year 2000
17 UTILIZATION INDICATORS In general Berth occupancy is around 50%, a sign of better use of resources The average Berth occupancy in has been above 60% compared to desirable level of between 50% and 60%, Above 60% is a sign of congestion.
18 PRODUCTIVITY INDICATORS Measure the effectiveness and efficiency of the terminal operations Crane productivity has been around 21 moves in 2010, 1 New SSG operational since Sept 2010
19 CHALLENGES 2. Capacity to cope with increasing container traffic leading to Port and ship congestion. 44% of total throughput is containers 1/3 port capacity is for container handling Past Perfomance growth rates per annum Cargo Type Per Port Containers 13.5% Dar es Salaam 9.5% Liquid Bulks 4.5% Tanga 11.6% Dry Bulks 21.2% Mtwara -11.0% Break Bulk -0.5% 19
20 CHALLENGES 3. Infrastructure/superstructure constraints - to cope with increasing traffic, thus increasing demand for: Wide and deeper channels berths with deeper draft Dedicated facilities Specialized equipment Additional land space for expansion 20
21 CHALLENGES 4. Shipping technological changes: - Ships are growing bigger in sizes. Port are required to dredge the channels and berths and to procure equipment to handle big ships. 140 to 190 m 1st Generation (1960 to 1970) Converted vessels 500 to 1,000 TEUs Draft = 9 m 200 to 225 m 2nd generationgeneration Cellular Containership (1970 to 1980) 1,500 to 2,500 TEUs Draft = 10 m Dsm port capacity 240 to 290 m 3rd Generation (1985) Cellular, Panamax 2,500 to 3,500 TEUs Draft = 12 m 275 to 300 m 4th Generation (1988) Post Panamax 3,500 to 5,000 TEUs Draft = 12.5 m 300 m 5th Generation (1996) Ultra Large Ships 5,000 to 6,000 TEUs Draft = 14 m 320 m+ 6th Generation (1998) Mega Ships 6,000 to 7,000 TEUs Draft = 14.5 m 7th Generation Ultra-Mega Ships 6,000 to 10,000 TEUs 12/15/ m Draft = 15.0 m 21 Tanzania Ports Authority
22 CHALLENGES 3. Ineffective inland transport system Rail Transport Container Cargo cleared by rail has collapsed Poor intermodal arrangements No Looping Crosses port roads Road Connectivity Poor port access road (duel carriageway extends to one gate only) Single lane roads in port environs No truck parking facilities City Congestion and long truck-turnaround time Problems of existing infrastructure layout in the port and environs Designed prior to the introduction of modern handling needs (Containers, Dry Bulk) Poor gate and intersection arrangements Poor zoning arrangements and uncoordinated development in port environs (peri-port land) 22
23 CHALLENGES 6. Demand to Improve efficiency and productivity Increase efficiency and productivity of the port services Reduce dwell time to 5 days currently at an average of 13 days for import containers Improve ship productivity - ship turn-round 7. Security and safety issues. Maintain compliance to ISPS code 8. Care for Environment Requirement to have waste reception facilities and emergence responce plans Potential impact during construction or during operational phases Impacts to be mitigated (and / or compensated) Environmental impact assessment required for port expansion projects
24 FUTURE PROSPECTS 1. Economic growth of the countries using our Ports GDP s expected to grow between 6% 9%. 2. Political stability in the landlocked countries. i.e. DRC Congo, Rwanda and Burundi 3. Development of mining activities in the region: Copper mining in Zambia & DRC Nickel mining in Tanzania 4. Major Expansion program of local industries Cement factories etc 5. Hinterland logistics improvements Traffic diverted to our ports Projects in the pipelines: Isaka/Kigali/Kenza/Msongati Railway Arusha/Musoma Railway Tanzania Ports Authority
25 POTENTIAL DEVELOPMENT SITES IN DAR ES SALAAM
26 ACTION: INCREASE PHYSICAL CAPACITY CONTAINER TRAFFIC Development of 2 additional berths - Berth 13 &14 - Dar es Salaam Port Increase capacity to handle containers up to 1.0 mil TEU s by 2018 Feasibility study completed and EIA certificate issued Financing negotiations in progress Project to start in 2011
27 ACTION : INCREASE PHYSICAL CAPACITY - Bulk Liquid Cargo Development of New Multi-Products Single Point Mooring (SPM) Project Commenced in October Month Construction Period (US$ 60 million) SPM Facility to Handle 6 million tons per annum KOJ TIPER TAZAMA NPS 36 Onshore Pipeline TPA NPS 36 Offshore Pipeline
28 ACTION : INCREASE PHYSICAL CAPACITY INCREASE CAPACITY FOR CARGO LOGISTICS Development of new port access roads, parking areas and gates Port Connectivity and Land-Use Studies Commenced with funding from TradeMark EA (DFID)
29 ACTION: INCREASE PHYSICAL CAPACITY INCREASE CAPACITY FOR CARGO LOGISTICS Development of large ICD/CFS at Kisarawe The proposed site is located about 25km west of the port Feasibility study funded by the World Bank
30 ACTION: INCREASE PHYSICAL CAPACITY INCREASE CAPACITY FOR CARGO LOGISTICS Potential Benefits: Increased seaport capacity and productivity; Reduced congestion at the ship-to-shore interface; Reduced city congestion; Lower environmental impact; Improved asset utilisation for the port, road and railway transport providers; Improved transport productivity, intermodal capacity and lower transport costs; Improved hinterland access Enhanced competition between rail and road transport; Becomes a pole of attraction for value added industries and new industrial development; Improved land use planning; Freed up space on waterfront land for the continued development of the dry and liquid bulk trade.
31 ACTION : INCREASE PHYSICAL CAPACITY New port at Bagamoyo Feasibility study completed June 2010 Linked with EPZ project Construction planned to start in 2012/13
32 ACTION: INCREASE PHYSICAL CAPACITY New Port at Mwambani Tanga Regional project, to serve the Great Lake Region To be linked with a railway line project to Musoma Feasibility study expected to be completed in 3rd Quarter of Construction expected to commence in year 2013
33 ACTION: INCREASE PHYSICAL CAPACITY VEHICLE TRAFFIC Development of Multi Storey car park DSM Port o PPP Project, negotiation with prospective partner completed o Capacity to handle 8,000 vehicle o To operate as cargo freight station 33 o Construction to start /15/2010
34 ACTION: INCREASE PHYSICAL CAPACITY Procurement of Container and General Cargo Handling Equipment SSG RTGs 34 Mobile Harbour Cranes Reach Stackers Conveyor systems Various Cargo handling gears
35 ACTION: OPERATIONAL IMPROVEMENTS Reducing dwell time. More use of ICDs for container storage Use of CFS for motor vehicle storage Facilitation of direct delivery for import cargo Improve cargo clearance process to facilitate quick cargo off-take from the port Improve turnround time of trucks/wagons in the port. Dwell time awareness campaign Enhance auction of overstayed cargo (21 days cargo) Computerization of General Cargo terminal and harmonization of cargo clearance system in collaboration with other stakeholders 35
36 ACTION: OPERATIONAL IMPROVEMENTS Reducing ship waiting time (i) Improve quayside productivity for: General cargo and container vessels Acquisition of appropriate equipments Reliable power supply Introduction of vessel and yard planning software system 24/7 gates operation Oil terminal Adherence operational modalities as agreed with oil companies on pumping rate, more receiving lines and minimum parcel size per call. 36
37 ACTION: OPERATIONAL IMPROVEMENTS Reducing ship waiting time (cont..) (ii)improve Marine services: Replace old marine crafts Recruit Marine personnel e.g. Pilots. Improvement of cargo clearance Automate cargo clearance processes Introduce booking system for cargo delivery Harmonize working hours with other stakeholders Facilitate direct delivery of cargo 37
38 ACTION: OPERATIONAL IMPROVEMENTS To improve security and safety Improve controls of access into the port and operational areas. Draw up traffic flow pattern in the port for motor vehicles and people. Install integrated security systems. Acquire additional patrol boats. 38
39 OTHER DEVELOPMENTS DAR ES SALAAM WATER FRONT BOT Project Shops & Restaurants Cruse Ship Facilities, Marina Conference facilities Cultural facilities and theaters Office accommodation 12/15/2010
40 WAY FORWARD 1. Demand for port capacity will grow and require significant increase in capacity 2. There will be continued demand for investment in port/terminal infrastructure. 3. The Port future strategic initiatives will be to increase capacity, improve service and accommodate future growth. 4. The competitive edge of the port will be its ability to deliver a seamless service throughout the supply chain and into the hinterland 12/15/
41 WAY FORWARD 5. Limited public financial resources Public Private Partnership (PPP) is the most promising vehicle for port investments. 6. Expansion of port capacity should always cope with the expansion of inter-modal infrastructure. 7. Development in infrastructure (rail and road) in all Corridors is necessary to enhance ports capacity. 12/15/
42 CONCLUSION We believe that prosperity of any nation comes from trade and most trade is facilitated by efficient ports. No doubt that improvements in port performance will fast track Africa's economic development. Our conference theme this year. The Malaysia Prime Minister Dr Mahathir had once stated that No matter how information technology advances, the world trade cannot be materialized without ports. TPA is committed to ensure that our ports deliver to the entire local and regional economies. 12/15/
43 12/15/
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