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Doing Business in South African

Ports

– World Bank Study 2015

Prepared by Simone M Smith-Godfrey CSIR/ Built Environment Transport, Systems and Operations Transport and Freight Logistics

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Contents

1. Introduction and Background

2. Costs of Doing Business in Our Ports

3. Our Ports’ Points of Performance

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1. Introduction and Background

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Introduction – What is the Ratio

Decidendi of Ports?

• Ports compete to attract a place in the schedule of the ocean liners.

• Ports compete by investing in new quays, by ensuring good access from the

sea, or by moving new quays closer to the sea.

• Ports try to improve the strategic advantages of ports by improving the

hinterland infrastructure, to ensure that shipments can reach the port and

the hinterland without delay and by ensuring deep-sea access.

• Ports need to decide:

– traditional role of landlord and infrastructure provider

– supply chain perspective by deliberately and pro-actively analyse goods flow developments and adapt an infrastructure with partners in the hinterland and other ports (Notterboom 2004, Robinson 2002)

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Defining the Competitiveness of Ports by

our National Policies

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Port Competitiveness Factors: Location, ownership & management, labour relations, customer base, hinterland network, connectivity

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Port Ranking Methodology

Does reporting on South African Ports take place on this Port Ranking Methodology?

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2. Costs of Doing Business in Our Ports

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World Bank Report – Doing Business in

South Africa 2015: Conclusions

• Long dwell times at port – weak maritime connectivity.

• High inland transport and port costs – expensive logistics

connectivity.

• SA ports perform better than the regional ports but is slower

compared globally – service strategy imbalance.

• 4 SA ports analysis indicates Imports Terminal Handling Time

is around 6 to 9 days – connectivity dislodgement.

• # of Documentation for SA Imports and Exports is high when

compared globally – low connectivity intelligence integration.

• EDI and online document processing is gaining grounds –

progressive connectivity information integration.

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SA’s Weak and Expensive Maritime

Connectivity

Figure and Table Referencing used as per Doing Business in South Africa 2015 – The World Bank Report

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Demonstration SA’s Low Connectivity

Intelligence Integration - Competitiveness

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SA’s Maritime and Logistics Connectivity

Dislodgement

As these are two separate activities, time spent could be run alongside each other, instead of consecutively

Is this an indication of Pre Clearance not achieving its goal?

Is this an indication of Transport Mode Imbalances?

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3. Our Ports’ Points of Performance

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Longstanding Measurement

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% Maritime Connectivity – Based on The Victoria Transport Policy Institute definition of Connectivity, this is defined as the density of connections in sea lane networks and the directness of the transhipment links. The more direct sea lane and transhipment routes are, the higher the Connectivity Index of the Port.

% Logistics Connectivity - The Victoria Transport Policy Institute defines Connectivity as the density of connections in transport networks and the directness of the connecting links. The more direct travel and transit routes are, the higher the Connectivity Index of the Transport Sector.

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Inspection Measurement

Port Intelligence

Measurement

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Linking Ports Costs to Ports Points of

Performance

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Conclusion – Questions Posed

• Where is South Africa in understanding the impact of its

maritime connectivity to its inland logistics connectivity?

• Where is SA in linking its Port Intelligence to its Ports

Points of Performances?

• Is the Cost of Business in Ports linked to the Points of

Performances in our ports?

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Thank you

SSmith1@csir.co.za