NPA Strategic Plan

26
NATIONAL PORT AUTHORITY MONROVIA, LIBERIA CYRUS L GRAY, JR. M.Sc., M.Sc. - Port Consultant 9/27/2010 STRATEGIC PLAN: A FRAMEWORK DOCUMENT

description

National Port Authority of Republic of Liberia Strategic Plan - A Framework Document

Transcript of NPA Strategic Plan

Page 1: NPA Strategic Plan

 

NATIONAL PORT AUTHORITY MONROVIA, LIBERIA

 

 

 

 

 

 

 

 

 

CYRUS L GRAY, JR. M.Sc., M.Sc. - Port Consultant 9/27/2010

STRATEGIC PLAN: A FRAMEWORK DOCUMENT

Page 2: NPA Strategic Plan

 

 

 

 

 

STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

 

SUBMITTED TO 

 

 

MS. MATILDA W PARKER Managing Director 

National Port Authority Republic of Liberia 

          

September 27, 2010     

i  

Page 3: NPA Strategic Plan

ii  

 CONTENTS________________________________________ 

                        Page 

I. EXECUTIVE SUMMARY          1 1.1 Background              1 1.2 Current Realities          2 

II. FUTURE OF THE NATIONAL PORT AUTHORITY  5 Table 1:  Priority Order of Activities        7 III. IMMEDIATE: Critical            8 

3.1 HR Planning for Retrenched Labor     8 3.2 Re‐Structuring NPA          9 3.3 Constituting Transition Teams      9 

IV. IMMEDIATE: High            10 4.1 Re‐structuring Port Facility Security    10 4.2 Re‐allocating Port Assets        11 4.3 Addressing Dredging & Navigational Aid  11 4.4 Environmental Survey        12 

16 

V. INTERMEDIATE: High            13 5.1 Lease Harmonization         13 5.2 Concession Operations Agreements    13 5.3 Review of all Concession Plans      14 5.4 Policy to License Pilots        14 5.5 Business Development in out ports    15 

VI.  LONG TERM: Low            16 6.1 New Business Opportunity in Freeport 

VII. CONCLUSION              17 Reference  Appendix 1: Pilot Licensing Requirement  

Page 4: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

CYRUS L GRAY, JR. M.Sc., M.Sc. |  1 

 

I. EXECUTIV E SUMMARY

1.1 Back Ground

At this crucial juncture of transition for the National Port Authority, a strategic plan is perhaps the most important instrument to ensure foresight and capture the opportunities rapidly sufficing in the fast improving economic theater in Liberia and the regions surrounding the Gulf of Guinea. The Strategic Plan, in the particular case of National Port Authority, however must be a framework instrument that holds the dynamic character to sway as the chips fall since there are yet many variables, for instance Concessions, that are blare or yet incomprehensible and involve activities in the port area that the Port Authority itself has not fully grasp and does not control.

A realistic Strategic Plan must inculcate all the known variables impacting port existence and operations and must make projections of the unforeseeable on the basis of the best available trend assessments unique to the Liberian situation. Hence the character of an ideal strategic plan must factor the new face of the National Port Authority; that of a landlord in its main port and an operator in the out ports with an openness to accept partnerships even in the out ports if the indicators support such measures.

An ideal Strategic Plan must extract heavily from available research, among them the World Bank’s sponsored research done by Royal Haskoning (2006 Technical Assessment Report and Port Master Plan), CPCS White Papers and other independent port and shipping specific and economic assessment reports that are current and have the tendency to offer realistic relevant information for a port organization undergoing rebirth akin to the National Port Authority of Liberia.

The Freeport of Monrovia is one of the most researched institutions in Liberia. The Strategic Plan for the Freeport must absorb the plans of all the concessions and major users in the port including APMT, China Union, Western Cluster, Chevron and Cemenco so that a realistic view upon which to base management decisions can be established. The formation and deployment of Liberia’s Coast Guard will compel illicit fishing trawler to establish legal presence in Liberia. One can predict that the number and quality of fishing companies will increase in the short to medium term.

Planning for the out ports on the other hand will require new fact finding focused on new realities in those regions. There is a need to research the type and scale of economic activities projected in each of the three out ports in order to formulate plans based on the strength of the economic activities relevant to the particular port. Other than concessions granted to Arcellor Mittal, BRE, the oil palm project in the south east, etc the only known variable for which there is concrete information is the timber industry.

Information gathered from the Forestry Development Authority and based on the number of licenses granted to timber companies indicate an annual average production of just around

Page 5: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

70,000 cubic meters of timber. At the current port tariff rate ($10/cubic meter) for handling timber where the port uses its equipment, that production volume will generate US $700,000.00 in tariff per year for all three ports. This does not amount to very much. Therefore the need to conduct additional study of the out ports to discern other areas of economic activities is very relevant at this time.

In view of the cross country rail line between Buchanan and the North Eastern city of Yekepa and the access the line creates to Guinea and Cote D’Ivoire, demand pattern studies for cargo destined for Guinea and Ivory Coast needs to be consider with the possibility of building a container transshipment hub in Buchanan as an option where findings support its sustainability.

This Strategic Plan outline activities for the Freeport of Monrovia based on available information and proposes additional research in all three of the out ports. To acquire a meaningful, implementable Strategic Plan for the out ports, the National Port Authority must commission a study for a minimum duration of ninety days, to be conducted either by myself or another individual or firm fully dedicated to the tasks and adequately supported to carry out a successful implementation of the activities necessary to obtain a Strategic Plan befitting the National Port Authority within the existing framework.

We are pleased to propose a Strategic Plan Project, that when completed will provide the Port Authority with the adequate insight based on actual and real time data relevant to the three out ports rather than a general plan based on existing research, a good part of which is not more than assumption of past years .

1.2 Current Realities

The Freeport of Monrovia, for all practical purpose has been transform from an operating port to a land lord port as a result of all the concessions that have been granted by the Government of Liberia.

The main marginal wharf and all the container and general cargo it handles have been given to the APM Terminals under a twenty-five year concession

The LMC pier usually used to handle rice and cement has been awarded under concession to Western Cluster to handle the export of iron ore.

The Bong Mine Pier and old mining facilities currently used for handling rice, cement, limited iron ore and small feeder crafts involved in coastal trade and or fishing has been granted under concession to China Union to also be developed for the handling f iron ore.

Maine Services has been given to APM Terminals as part of the APM T – NPA Concession.

CYRUS L GRAY, JR. M.Sc., M.Sc. |  2 

 

Page 6: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

The APM Terminal Concession Agreement gives the Port Authority the responsibilities

to do maintenance dredging of the Freeport of Monrovia at an estimated cost of $6m every two; cost of retrenchment of the current work force estimated at U.S $4.8 M; and the cost of procurement and deployment of navigational aid at an estimated cost of $300,000.

There is a large fleet of both functional and dysfunctional vehicles and port handling equipment in the Freeport of Monrovia valued at several million dollars.

The limited timber export out of the Freeport of Monrovia has also been awarded as part of the APM Terminals Concession.

Electronic communication system is un-integrated; primary medium of communication is cell phone.

Electricity is irregular mainly in the operational area, dock offices, and part of main administrative support areas of accounts, procurement and IT.

Several leases falling in the areas granted in concessions have been terminated and will not provide revenue to the Port Authority in the future.

A large portion of port land is being occupied by former tenants and squatters with no current lease agreement resulting in the daily loss of revenue from land lease.

The Oil Jetty remains in a terrible state although a rehabilitation plan sponsored by the World Bank is still in the works.

Six Hundred and sixty-eight employees of the National Port Authority stand to be retrenched as a result of the APM Terminals Concession.

About two hundred (200) new jobs with APM Terminals need to be filled in collaboration with the management of the National Port Authority.

In spite of achieving ISPS compliance, security at the Freeport of Monrovia remains a major challenge; there is periodic report of theft even on board vessels. Access control in the port premises is heavily compromise due to proliferation of access cards in the hands of casual labors, etc and abandonment of access points during the rain or at night. Biometric ID system set up in the port is at best invalidated and applicable on a partial basis. This general condition leaves a false sense of security.

CYRUS L GRAY, JR. M.Sc., M.Sc. |  3 

 

Page 7: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

According to International and World Bank benchmarks, the Freeport of Monrovia

should, under a landlord port authority arrangement, retain only 50 employees, excluding security and fire prevention, based on the cargo volume being handled by the port.

In order to address the lists of activities in the two groups aforementioned, a Strategic Plan dividing mitigation into three implementing units based on order of priority is established.

CYRUS L GRAY, JR. M.Sc., M.Sc. |  4 

 

Page 8: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

CYRUS L GRAY, JR. M.Sc., M.Sc. |  5 

 

II. FUTURE OF THE NATIONAL PORT AUTHORITY

In December 2007, the Government of Liberia (GoL), represented by the National Port Authority (NPA) and the Ministries of Finance and Justice, the World Bank (WB), the Government of the United States (USG) and the United Nations Mission in Liberia (UNMIL), signed a Memorandum of Understanding (MoU) envisaging a rapid implementation of a Public‐Private Partnership (PPP) for major port operations in the Freeport of Monrovia, in effect to concession of the Freeport of Monrovia. Upon commencement of the Concession, the NPA shall withdraw from the cargo handling operations and Marine Services that are incorporated in the Concession and assume the posture of a Landlord port authority.

Assuming that the legal framework to concession the Freeport of Monrovia is irreversible, the National Port Authority will exercise the following functions and assume the following obligations as a Landlord Port:

1. Lease out and collect revenue for port developed and undeveloped land. 2. Maintain the ship basin up to 12 cubic meters through regular maintenance dredging 3. Provide navigational aids including light and buoys. 4. Set guidelines for environmental protection and monitor compliance 5. Regulate the use of port premises by concessionaires and all port users based on agreed

framework(concessions) and elements of domestic and international law 6. Assume final authority for the security of the port premises in keeping with national and

international port facilities security regulations 7. Provide harbor master services and licensing of all port pilots 8. Develop new business opportunities as part of port development without prejudice to

existing concession.

Before the Freeport of Monrovia Concession sets in there are certain transitional activities that need to be decided and implemented by the port authority with respect to the Freeport of Monrovia. They include:

1. The handling of labor issues related to the displacement of the 657 strong work force of the Freeport of Monrovia when the concession sets in.

2. The review of APM Terminals Pre-take over obligations to ensure that both Concessionaire and Concessionaire Entity have fulfilled the respective obligation required under Article II and III of the Concession Agreement

3. The restructuring of the Port Authority so as to be relevant for its new and untested role as a Landlord port in Monrovia.

4. The handling of fleet of functional and dysfunctional vehicles and equipment currently in possession of the Freeport of Monrovia.

Page 9: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

5. The handling of watercraft, tug and pilot boats and the materials and staff of the Marine Service Department, in view of the outsourcing of the services to APM Terminals.

6. Deciding over the role, number of personnel and form of security to be deployed in the Freeport of Monrovia and the operating procedures to institute.

CYRUS L GRAY, JR. M.Sc., M.Sc. |  6 

 

Page 10: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

Table 1: PRIORITY ORDER OF ACTIVITIES

ORDER

INTENSITY

DESCRIPTION

IM

ME

DIA

TE 

Critical

HR planning for retrench Freeport labor and compensation issues Re-structure of new National Port Authority reflective of new role as a landlord Port; and work with APM Terminals to fill new positions with qualified NPA employees Constitute Staff and equip a Transition Team Specific for APMT Concession

Highest

Re-structuring Port Facility Security Re-allocation of Port equipment and Material assets not being transfer to Concessionaire Address the Dredging and Provision of Navigational aid by Port Authority Conduct Environmental Survey of Concession Area Prior to Effective Date.

IN

TE

RM

ED

IAT

E

High

Harmonize leases and capture leasehold in all Freeport property to ensure appropriate revenue from leases Meet with each concessionaire to determine nature and scope of relationship and enter into operating agreements to ensure rights of all parties are protected. Review and provide oversight for plans of each individual concessionaire to ensure they comply with general requirements of the port management and are paying appropriate royalties and leases. Formulate policies for issuing Licenses to Port Pilots to ensure that boat operators and engineers are qualified and properly vetted for security reason. Developed Plans for business activities in all three out ports.

LO

NG

T

ER

M

Low

Explore new business opportunities in the vicinity of the Freeport of Monrovia without infringing any existing rights and laws; development of Fishery pier, cool storage and processing facility

CYRUS L GRAY, JR. M.Sc., M.Sc. |  7 

 

Page 11: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

CYRUS L GRAY, JR. M.Sc., M.Sc. |  8 

 

III. IMMEDIATE : CRITICAL

3.1 HR Planning for Retrenched Freeport Labor and Compensation The first casualty of port privatization is additional unemployment. There is no going around this

and certainly there are not sufficient ready positions to be filled by employees who will likely be

affected by privatization. The focus at this time is to determine the terms on the basis of which

employees will be paid off in keeping with NPA policy and Liberia Labor Law. The CPCS

Human Resources Report (8/2009) offers two legal options:

1. Pay one and half (1.5) months per year of service plus the USD grant of 1,000,

amounting to a total payoff of US $ 3,024,642.50 and

2. Pay two (2) months per year of service plus the USD grant of 1,000, amounting to a total

payoff of $3,730,773.75. Both scenarios include 25 percent income tax.

It is recommended that a crack team of non-NPA employees, preferably board members be

brought together to assess this critical fact of retrenchment and using the World Bank sponsored

CPCS Human Resource Report as a framework decide on which measure to take as a matter of

urgency to prepare for and address the inevitable payoff of the workers

It is also recommended that, in lieu of the Port Authority’s limited financial capability, a formal

request based on management’s approved formula for employees’ payoff be submitted to the

World Bank representatives in an effort to seek funding to cover some or all of the financial

requirements for the retrenchment of port employees. The Concession is their brain child; they

have a moral responsibility to make it succeed.

Page 12: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

3.2 Re-structure New National Port Authority reflective of new role as a Landlord Port; and work with APM Terminals to fill new Positions with qualified NPA Employees

The restructuring of the National Port Authority to reflect its new reality is of a critical nature at

this time. Our recommendation is to constitute a team made of only senior management, Deputy

Managing Directors and Comptroller, and with the aid of a competent outside HR firm local or

international endeavor to design a new National Port Authority Structure with appropriate terms

of references reflective of the new role of the organization. The exclusion of middle managers

and line employee is cardinal to the success of this endeavor since it will prevent the natural

imposition of their bias being that they will be directly affected by the decisions to be made.

Again the CPCS HR Report (8/2009) can be used as a framework document, if not the basis of

the new NPA structure. It offers very good perspective on the structuring of the National Port

Authority, akin to ports with similar responsibilities around the world.

3.3 Constitute Staff and Equip a Transition Team Specific for APMT Concession

There are very stiff requirements for both APM Terminals and the National Port Authority that

must be fulfilled before the execution of APM T –NPA Concession. Article II (Effective Date

and Terms) and Article III (Condition Precedent) spells out respective duties of both parties. In

view of the critical nature of those requirements and considering their extreme importance as

pre-requisites, it is recommended that the Port Management urgently constitute a Team of at

least three well grounded experts to deal exclusive with transitional matters and advise

management. The Team so form shall be adequately staff with competent office assistants and be

provided with the logistics commensurate for the critical tasked it is expected to perform.

CYRUS L GRAY, JR. M.Sc., M.Sc. |  9 

 

Page 13: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

CYRUS L GRAY, JR. M.Sc., M.Sc. |  10 

 

The team shall upon its formation begin a thorough evaluation of all preliminary requirements

for both APM Terminals and the Port Authority and shall be the point of contact for the Port

Authority on all issues related to the APM Terminal-NPA Concession until such time that

management select the two key personnel to serve on the Transition Committee in keeping with

Appendix 2 (2.1).

IV. IMMEDIATE : HIGH

4.1 Re-structuring Port Facility Security

Existing port security regime in the Freeport of Monrovia must be revisited in order to tailor a

new system to the reality of a port with multiple concessions, considering that each

concessionaire may opt to hire its own security in their concession area. The ultimate responsible

for security in the port area is the port authority. All concessions in the port environment will be

required to have complied with the terms of both the Uniform International Code for Transport

of Dangerous Goods (IMDG) and the ISPS Code. The Port Facility Security Officer (PFSO) will

oversee coordination with and between all compliant facilities in the port. There is automatically

a need for a new and more relevant Port Facility Security Plan.

The additional responsibilities and the high standards that most foreign concession will bring to

bear in the port will require a PFSO and team that are well versed with the provisions and

application of various international transportation security regulations and that consistent staff

training and drills be conducted to sharpen the skills of the security personnel.

It is therefore strongly recommended that persons earmarked for leadership in the security

apparatus hold the best available qualification. It is also recommended that access point to the

Page 14: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

port facility be tightly controlled but without undue interruption to the appropriate flow of people

and cargo.

4.2 Re-allocation of Port Equipment and Material Assets not being transfer to Concessionaire

As the Port Authority moves closer to the handover of operations to the APM Terminals a

comprehensive inventory of all materials, equipment, etc is imperative. Functions such as marine

services, container and general cargo operations, handling equipment maintenance and some

clerical activities may become redundant because of the APM Terminal Concession.

Management must begin to determine and decide what uses it may wish to put the displaced

materials just as it considers the issue of retrenchment. From conservative estimates, the NPA

owns in excess of two million dollars in container handling equipment alone. It’s two most

valuable container handling equipment, Kalmar Reach Stackers given recent rehabilitation, are in

great condition and may have a life span of more than five (5) years.

The two tug boats and a pilot boat although having some technical problems still hold substantial

value. Management must begin to determine what to do with the materials to be made idled by

the 25-year concession. It is recommended that the relevant department conduct a complete

inventory of all the assets of the Port Authority as a matter of urgency and make said report to

management on or before the 30th of October, 2010; in order to enable management make the

appropriate decisions.

4.3 Address the Dredging and Provision of Navigational aid by Port Authority

According to Article 7.20(d) of the APM Terminals-NPA Concession Agreement, the Port

Authority is responsible for dredging the Freeport of Monrovia and for maintaining the

CYRUS L GRAY, JR. M.Sc., M.Sc. |  11 

 

Page 15: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

appropriate depth over the life of the concession. The cost of dredging over the life of the

Agreement is estimated at over $US 6M every two years. This amount does not include dredging

of the out ports which are not covered under this concession.

The current revenue base makes it nearly impossible to dredge the port before the coming of the

concessionaire. It is therefore recommended that management make a formal request to the

World Bank and other partners in this concessionaire to secure funds to cover at least the first six

years of dredging. An evaluation of two options for dredging, the purchase of a Dredger and the

Leasing of one on a per case basis, may be expedient before such request for assistance is made.

The costs and deployment of navigational aid is put at around $300, 000.00. It is our

recommendation that management allocate funding from its own sources to demonstrates that

where the obligations falls within is ability to supply funding, it is will to do so.

4.4 Conduct Environmental Survey of Concession Area Prior to Effective Date

Article 4.05 in the APM Terminal Concession requires the concessionaire to conduct an

environmental survey prior to effective date. This exercise is intended to reestablish the

environmental condition of the concession area so as to serve as a reference point when

determining the condition under which the concessionaire leaves the premises at the end of the

concession period. There is a need for the Port Authority to conduct its own Environmental

Survey to validate that of the Concessionaire. It is recommended that a competitive bid be

tendered to acquire the services of a reputable Environmental Firm to be contracted to conduct

environmental survey prior to the effective date.

CYRUS L GRAY, JR. M.Sc., M.Sc. |  12 

 

Page 16: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

CYRUS L GRAY, JR. M.Sc., M.Sc. |  13 

 

V. INTERMEDIATE: HIGH

5.1 Harmonize Leases and Capture Leasehold in all Freeport Property to ensure appropriate Revenue from Lease Fees

Harmonize lease policy and execute a comprehensive lease renewal scheme to ensure that all

occupants of port property that have been designated for lease hold current agreement and have

no ambiguity in terms of their obligation to pay their bills. When being implemented the scheme

shall include representative from the Technical Department to ensure that Lease Agreements

include obligation for payment of utility where applicable.

5.2 Meet with each Concessionaire to Determine Nature and Scope of Relationship

A peculiar nature of some of the concessions approved by the Government of Liberia that has

impact on port property has been the exclusion of the Port Authority in the formulation of legal

framework and negotiation. The net effect for the port has been a scenario where a

concessionaire is granted the use of land in the port believing that he has no obligations to the

port outside of the signed concession with the Government.

In view of this omission and in order to protect the rights of the port granted under the law

creating the National Port Authority, the use of port property by every concessionaire must be

review with guidance from the Ministry of Justice, with the aim of effecting the signing of an

Operation Agreement where it does not exist to ascertain that appropriate benefits for use of port

property is accrued to the port authority.

Page 17: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

5.3 Review and Provide Oversight for Plans of each Concessionaire to ensure they comply with general requirements of the Port Authority and are paying appropriate royalties and leases.

Request and review Master Plans of all concessionaires inside of port property to ensure that

their plans do not contravene any of the requirements and expectations of the Port Authority.

Verify that each entity is fully aware of its obligation under the law and in keeping with the

rights of the Port Authority to collect leases for use of all port lands. There has been ambiguity,

especially in the case of China Union, that has left the concessionaire with the impression that

payment to the Government of Liberia without any credit or consideration for the Port Authority

was the extent of their financial obligation under their concessionaire. In lieu of any concession,

whatsoever, the port authority is entitled to lease fee for the use of port land; this is a right

protected by the Act creating the National Port Authority.

5.4 Formulate Policies for issuing Licenses to Port Pilots to ensure that boat operators and engineers are qualified and properly vetted for security reason.

One of the areas of controversy when negotiating the APM Terminals concession was the

security implication of out sourcing of marine services. In order to uphold the Port Authority’s

ultimate responsibility for security in the port facility, it is the practice that all pilots employed in

the marine services department are vetted and licensed by the Port Authority through the offices

of the Harbor Master and in collaboration with the Seaport Security and Joint Security Agencies.

. The licensing process is designed to ensure that the pilots meet or exceed the requirements for

Security Clarence that reduces the vulnerability occasioned by the employment of someone

representing security risk in the port area. A copy of the requirements for application of

employment on pilot and tug boats in the Houston Ship Channel is included as Appendix 1.

CYRUS L GRAY, JR. M.Sc., M.Sc. |  14 

 

Page 18: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

Similar requirement suitable to Liberia can be developed to have the effect of minimizing

security risk the employment of pilots.

5.5 Developed Plans for Business Activities in all three out ports

Economic activities in the three out ports of Buchanan, Greenville and Harper, outside of right

granted to Arcelor-Mittal and BRE have been at the minimum. The chief operational activities

controlled by the Port Authority at all three ports have traditionally been in the handling of

timber. Based on the number of Licenses issued by the Forestry Development Authority, timber

to be handling by the port will peak at 70, 000 cubic meters by the third year and grow at the rate

of 5% every year.

Even at a conservative estimate of 100,000 cubic meters every year and with the current tariff

(when port uses her own equipment) of $10 per cubic meter, annual income across all three port

will height at US $1m per year. This amount and the activities that produce it are hardly enough

to sustain any significant growth in the port work force in the medium to long term view.

There may be areas of business that can be explored and developed for future growth in the

ports. One such area is the development of a container transshipment hub to serve the Guinea

and Cote d’Ivoire via the Buchanan to Yekepa rail corridor. Another potential area of growth

may be the palm industry in the south east.

It is therefore recommended that a 90-day comprehensive study be commissioned with the

following objective:

CYRUS L GRAY, JR. M.Sc., M.Sc. |  15 

 

Page 19: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

CYRUS L GRAY, JR. M.Sc., M.Sc. |  16 

 

1. Validate the volume of timber products projected to transit the out ports in Buchanan,

Greenville and Harper and potential business development opportunities that may be

derived from the handling and movement of timber products over the next five years.

2. Evaluate the market demand and supply chain pattern in the Guinea Forest Region and

the Region of Western Ivory Coast and explore the feasibility of developing a

transshipment hub in the Port of Buchanan to support the flow of dry and liquid cargo

into those regions using the Arcellor-Mittal Buchanan to Yekepa rail corridor.

3. Evaluate other business opportunities that support growth in the port sector in all three

port , for example the oil palm industry and the Putu Project

We are pleased to propose a Strategic Plan Project. When completed the findings will provide

the Port Authority with the adequate insight based on actual and real time data relevant to the

three out ports on the basis of which projection for future growth of the National Port Authority,

especially in the three out ports, can be established and pursued .

VI. LONG TERM: LOW

6.1 Explore New Business Opportunities in the Vicinity of the Freeport of Monrovia without infringing existing Rights and Laws; Development of Fishery Pier, Cold Storage and Sea Food Processing Facility

A definite area of potential growth in the Freeport of Monrovia is Fisheries. Two factors lend

credence to this assertion.

1. As the Liberia coast guard is strengthen and assumes control over the patrol of Liberia

huge Exclusive Economic Zone of 70,000 (200 X 350) square miles of Atlantic Ocean

Resources, the large fleet of illicit fishing trawlers operating in Liberia’s coastal waters

will be compelled to establish legal presence and business activities on Liberia’s shore.

Page 20: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

2. The inevitable takeover of the Bong Mine Pier by China Union will displace the small

fleet of fishing vessels and feeder ships calling the berth their home.

In anticipation of rapid growth in this sector in view of the aforementioned, the Port Authority

must consider:

Rapid development of a fishing and feeder pier, preferably along the North Break Water

Construction of a large cold storage and sea food processing facility in the Freeport of

Monrovia to support the export of sea food products.

CYRUS L GRAY, JR. M.Sc., M.Sc. |  17 

 

Page 21: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

Conclusion

This Strategic Plan is based on management request to build on the 2006 Royal Haskoning

Master Plan for port activities for the next five years and to create a HR Strategy for employment

growth of 1250 personnel over the next five years in all the four ports of the National Port

Authority Network. Plans must be based on raw data analyze to make certain assumptions. The

duration and term of our current contract and the number of urgent task we have been engage

could not support information gathering sufficient to draw up a five year HR Plan required to

project the employment target. Current realities and existing research does not support

significant growth in the size of the Port Authority and the number of employees.

On the contrary, the growth is focused in the private sector. Naturally becoming a Landlord port

depicts the reduction in activities and number of direct employees. There are however other

potential areas of growth in the out ports that have been recommended for addition studies

On the whole this Strategic Plan is a framework document that looks at present critical issues and

proposes the roadmap on how to engage and address those issues appropriately in the interest of

the National Port Authority. The role of the Port Authority for the most part is providing the

enabling environment for private capital to stimulate the growth in the port sector and the

economy.

CYRUS L GRAY, JR. M.Sc., M.Sc. |  18 

 

Page 22: NPA Strategic Plan

September 27, 2010  [NPA STRATEGIC PLAN: A FRAMEWORK DOCUMENT 

 

CYRUS L GRAY, JR. M.Sc., M.Sc. |  19 

 

Reference

Technical Assessment Report-Final (2006), Royal Haskoning, World Bank Sponsored

Port Master Plan Report (2006), Royal Haskoning, World Bank Sponsored

Survey Report (2006), Royal Haskoning, World Bank Sponsored

Report of Site Inspection (2007), Shanghai Hangdao Coastal &marine Engineering Co.

NPA revised Unedited Financial Statement (January 1 – December 31, 2009)

CPCS Human resource Report (2009), CPCS, World Bank Sponsored

CPCS Institutional Framework (2009) CPCS, World Bank sponsored

Draft of APM Terminal /NPA Concession Agreement, August 2010

Page 23: NPA Strategic Plan
Page 24: NPA Strategic Plan
Page 25: NPA Strategic Plan
Page 26: NPA Strategic Plan