FINAL COMMUNIQUE OF THE 13 TH ROUND TABLE CONFERENCE OF PMAWCA MANAGING DIRECTORS

Transcription

1 37 th Annual Council Meeting of the Ports Management Association of West and Central Africa FINAL COMMUNIQUE OF THE 13 TH ROUND TABLE CONFERENCE OF PMAWCA MANAGING DIRECTORS 30 TH JUNE 2015, ABIDJAN (COTE D IVOIRE) Final - Comminique-13th Round Table Conference of PMAWCA Managing Directors- Abidjan-29 to 30 June 15. Page 1

2 I. INTRODUCTION Presided over by Rear Admiral Fogan ADEGNON, Managing Director of the Port of Lomé, the 13 th Round Table Conference of Managing Directors was held as part of the activities of the 37 th Annual Council meeting of the Ports Management Association of West and Central Africa (PMAWCA) from the 29 th to 30 th June 2015 at the Conference hall of Golf Hotel in Abidjan. The main theme of the Conference was Port Transit (ship and cargo) clearance Costs assessing the contribution and responsibility of the various players? The main objective of the conference was to review the state of ports transit cost, identify and analyse the share of the various public and private players that play a role in the port logistics chain and thereby contribute to the total port transit cost in order to inform public opinion and recommend policies and concrete strategies for a better control of the quality and cost of port services so as to make PMAWCA member ports more competitive. Participants at the Round Table include: Managing Directors and heads of delegations of PMAWCA member organisations: Representatives of international, sub-regional and national organisations (International Maritime Organisation, Maritime Organisation of West and Central Africa, World Bank, African Development Bank, Regional Academy for Science and Marine Technology of Abidjan) SOGET, SEFACIL, CMA-CGM, CPCS consultants of Canada, Burkina Faso Shippers Council, Ghana Shippers Authority, Ministry of Transport, Cote d Ivoire, Kenya Maritime Authority, National Shippers Council of Benin, Union of African Shippers councils, MARENDA Project of European Union, Ivorian Association of Freight Forwarders, CODEX Ltd. Representatives of PMAWCA Associate Members and PMAWCA Observers, (IPER, Port of le Havre, SOBEMAP, Port of Marseille, and Multiterminais SA (Angola) ; Representatives of other partner organisations (Afrique Groupe Performance, Tideland Signals, Boskalis, CIC-RELAISE Consult Group, Africa Transtour African Transports Exhibition. II. THE PRESENTATIONS The Round Table Conference was facilitated by sixteen speakers representing the ports, ship owners, freight forwarders, shippers councils, international agencies, private consulting firms and independent experts. The main theme was discussed in four sessions as follows: - Port (ship and goods) clearance costs perspectives and experiences of Port Authorities (Session 1); - The Single Window and Port Community System a necessary tool to reduce port clearance costs (Session 2); - Experiences and perspectives of Private operators (Terminal Operators, Ship Owners, Freight Forwarders, Shippers, and Shippers Councils) - Session 3; and - Some national/governmental efforts to impact the quality of port service delivery and to reduce port transit costs (Session 4). At the end of the presentations, discussions and knowledge shared, the following six (6) findings were made and conclusions drawn: Final - Comminique-13th Round Table Conference of PMAWCA Managing Directors- Abidjan-29 to 30 June 15. Page 2

3 1. Total port transit cost for the clearing of ships and cargoes which has an impact on the high cost of living originates from several public and private players in the port logistics chain. Therefore, any attempt to control or reduce this cost in the port would not accomplish its objective if it does not include the contribution of each one of the players involved. There is therefore the need a profession organization with the regulatory and political authority that will regulate and supervise the service quality and pricing of the services provided by the various players in the port sector. In this regard, the Port Authority is naturally better positioned to assume the role of this professional supervisory organization. 2. The Port Authority, being the spokesperson of the government and skilled with the expertise to better manage the port sector, does not often possess the regulatory and political power to oversee the quality of services provided and pricing of the various players in the port sector. For example, in all PMAWCA member countries, the Customs Administration is independent of the Port Authority. In some countries, it is government Ministries that issue and renew the licences of port service operators such as stevedoring companies, freight forwarders and shipping agents, whereas it is the Port Authority that is equipped with the expertise to supervise the operations of these bodies to ensure they provide good quality at reasonable costs. As a result, these port service providers have free hand to increase rates without any recourse to the Port Authority. There are several cases where the Customs Administration has also without recourse to the Port Authority, fixed their work schedules and imposed new operating procedures without any consideration of the consequences of these actions on transit time, congestion, demurrage, lost time and total cost of clearing goods through the port. Each State should therefore provide their Port Authority with the regulatory and political power to supervise operators in the port sector including the issuance and renewal of licences to operate in the port, supervision of the quality of services tariffs applied by each of the operators. In this regard, the Customs department in each port should also operate within the port s regulations and should adhere to decisions pertaining to working hours and all other measures aimed at facilitating faster, cost effective and efficient clearance of goods and ships through the ports. 3. In ports where infrastructure and other facilities are not adapted to the traffic growth to accommodate ships and goods, many consequences arise including congestion and longer transit times thereby making port transit cost become unnecessarily high. The result is that because all costs borne by any port service provider as a result of poor port infrastructure are passed on to the cargo owner/shipper which are paid through freight, freight forwarding charges, terminal handling charges and storage and delivery charges. Unfortunately, financing of port infrastructure is so expensive that port authorities usually cannot usually do it alone. Governments should therefore assist Port Authorities by financing the development of basic port facilities and infrastructure such as dredging, construction of access channels, roads, railway tracks, etc, while promoting private public partnership in a win-win situation in the port sector. This will allow the port authorities to better adapt the ports to traffic and user needs. 4. The multiplicity of various players imposes multiple formalities in the Customs clearance process of both imported and exported goods. The consequence results in higher costs due to the delays in the process, congestion of quays and port terminals, and the payment of illegal fees aimed at speeding up the formalities. To cope with this anomaly, the Single Window system remains the most appropriate tool to demystify and simplify the goods clearance procedures and processes through the ports. However, being a tool of change and reform with the aim of modernising the administrative management and clearance of goods, the fact remains that often times players do not voluntarily accept the Single Window system. Experience has shown that one of the crucial conditions for the success of the single window system is a political commitment at the highest level backed by a legal instrument that will compel each player to join and conform to the requirements of the system. Final - Comminique-13th Round Table Conference of PMAWCA Managing Directors- Abidjan-29 to 30 June 15. Page 3

4 Each State/government should therefore pass law to approve the establishment of the single window system that compels every player/operator involved in the customs goods clearance and port transit process to join the system and operate according to its requirements. 5. With regard to the landlocked countries, the clearance cost of clearing their goods transiting through the seaports of neighbouring countries has been rendered much more expensive by several factors, principal among which is the erroneous imposition of value added tax (VAT) on transit goods in the ports, whereas this tax should be charged once and only at the country of final destination and consumption of the goods. Each Government and Port Authority should therefore take immediate steps to cease the charging VAT on goods transiting through their ports to and from the landlocked countries. 6. Some countries have already established Single Windows, whiles others are still at the preparatory phases of establishing this system. Governments and Port Authorities of countries that have already established the Single window system should review the operations of the systems in order to further improve their performance and utility. For those countries which are still preparing to set us these systems, the Government and Port Authority should accelerate the process of establishing the single windows and ensure their efficient operation. Governments should also ensure that by law, participation should be compulsory for all players involved in the port goods clearance process. III. MEASURES TO BE TAKEN TO CONTROL PORT CLEARANCE COSTS In view of the significant impact of port clearance costs on the competitiveness of ports and by extension, the cost of living of the citizens of any country, the Round Table made the following recommendations and proposed measures to be implemented by the State, Port Authorities and International organisations in order to control port cargo and ship clearance costs and the quality of port services : A- At the State Level, Governments should: Assist the Port Authority in the financing of major port infrastructure in order to enable the ports to constantly adapt and meet the modern requirements of maritime traffic (for ships and goods); Equip the Port Authority with regulatory power backed by political support to supervise the operations, service quality and pricing of the various players in the port sector. This should include the mandate to issue and renew operational licences as well as supervise the service quality and tariffs of the various operators in the sector including stevedoring companies, shipping line agencies, freight forwarders, dock labour companies, etc. Customs operations in the ports should also adhere to port regulations regarding working hours and all other measures aimed at simplifying the clearance of goods and ships through the ports; Pass laws to support the establishment of the single windows system for trade and port goods clearance with linkages to the landlocked countries, and making it compulsory for all key players in the port sector to comply with the operations of this system; Ensure the immediate cessation of the charging of VAT by authorities in the ports on goods in transit to and from the landlocked countries. This tax is a consumption tax and should be paid only once at the country of final destination/consumption of the goods. This tax which is currently being paid at the port level and also at the final destination which is the landlocked countries, results in double taxation, which is to the detriment of economies of these countries ; Promote the establishment of Observatories to monitor bad practices (illegal charges, delays, etc) in the port goods clearance process in order to identify defects, propose solutions and ensure the timely resolution of problems and disputes that arise in relation to Customs and port clearance of goods. Final - Comminique-13th Round Table Conference of PMAWCA Managing Directors- Abidjan-29 to 30 June 15. Page 4

5 B- At the Ports Level, Port Authorities should: Work to ensure that port infrastructure and services are constantly adapted to the needs and growth of cargo and ships traffic. This should be done through a win-win public-private partnership arrangements; Revise laws establishing Port Authorities to give Port Authorities the regulatory powers to better supervise all players in the port sector in order to oversee the quality of port services and the tariffs applied by the various operators ; Promote the creation of single window port clearance systems which should be linked to the landlocked countries in order to facilitate Customs and port clearance procedures of goods. This would reduce cargo clearance times and cost borne by ship owners and the shippers. Ensure the creation of port observatories to monitor goods clearance documentation and charges in order to ensure the timely intervention and resolution of any disputes that may arise; Strengthen the capacity of key port players, and ensure the continuous availability of qualified labour to enable them adopt best practices in port operations in order to contribute to a reduction in the cost of port goods and ship clearance; Promote consultation, dialogue, and cooperation among the various players in the port sector and to sensitise them on common port development policy. This approach will enable the port authority to enlighten and obtain the buy-in of each player about the vision of the port. At Sub-Regional and International levels (PMAWCA, UCCA, etc); PMAWCA and UCCA should work to establish an observatory of surcharges and other illegal fees imposed by shipping lines and agencies, backed by a consultative mechanism that will help to address all difficulties and challenges related to port transit costs; Pursue partnerships with relevant agencies (IMO, World Bank, African Development Bank, African Union, ECOWAS, ECCAS, MOWCA etc) to conduct research on transit cost, bottlenecks to trade facilitation, as well as for capacity building of ports and key players in the trade facilitation and maritime transport field. This will help ports to serve their customers better and reduce cost of doing business; PMAWCA should sustain the organization of the Round Table conference as an annual forum for consultation and exchange of topical issues of concern to the port sector, and to ensure proper follow-up and implementation of recommendations of the various Round Table conferences. Each PMAWCA member Port Authority should take necessary measures to submit the conclusions of this Round Table Conference to their Government, follow up on necessary actions to implement these recommendations, and to provide an outcome report to the PMAWCA Board of Directors by December Done in Abidjan (Republic of Cote d'ivoire), June 30 th June 2015 THE ROUND TABLE Final - Comminique-13th Round Table Conference of PMAWCA Managing Directors- Abidjan-29 to 30 June 15. Page 5