Competing despite the continents logistical challenges A mining - - PowerPoint PPT Presentation

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Competing despite the continents logistical challenges A mining - - PowerPoint PPT Presentation

Mar 12, 2024 195 likes •350 views

Competing despite the continents logistical challenges A mining sector perspective Ivan Thuynsma Global Head of Mining Damco Agenda 1 Current logistics challenges 2 Infrastructure projects 3 Africa development framework 4 Current

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A mining sector perspective

Competing despite the continent’s logistical challenges

Ivan Thuynsma Global Head of Mining Damco

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Agenda

September 18, 2014 1

1

Current logistics challenges

2

Infrastructure projects

3

Africa development framework

4

Current & Future port projects

5

Things to consider for future infrastructure projects

6

Closing remarks

7

Q&A

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SLIDE 3

Current logistics challenges

  • Imbalance in trade flows
  • Huge increase in road traffic (negative impact) as a result of lack of rail

infrastructure

  • Limited port terminals (mining)
  • Port congestions
  • Limited collaboration between parties
  • Political influences & agenda’s
  • Bureaucratic administration / customs processes (red tape)

September 18, 2014 2

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Side stepping the challenges

  • Lack of adequate port terminals
  • Balance of trade volumes
  • Reduction is shipping costs
  • Increased shipping frequency
  • Examples:
  • Tanzania / South Africa

Containerization of mining commodities

  • Lack of bulk rail equipment
  • Lack of bulk port handling
  • Reduced investment costs
  • Half Height Containers / Rotatable

spreaders

  • Examples:
  • Mauritania / South Africa

Multi modal solutions

3 September 18, 2014

There is need for purpose build infrastructure The above are not long-term solutions

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Current infrastructure projects in SADC [1/2]

September 18, 2014 4

The recent Regional Infrastructure Development Master Plan (RIDMP) that was published by the SADC community, highlighted the following :

SADC RIDMP Transport Projects per Country

Graph illustrating the nr of projects in the Transport Sector relevant to each SADC country. More than one country can participate in the same project. There are a total of 222 projects in the Transport Sector. 68 43 40 28 26 41 27 67 49 37 44 32 58 53 51 10 20 30 40 50 60 70 80 Number of projects Country

Regional Infrastructure Development Master Plan, Executive Summary, August 2012, http://www.ridmp-gis.org/sadectabs.asp?VERSION=&CORRIDOR=SADEC&TRANS=#

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Current infrastructure projects in SADC [2/2]

  • There is a widening gap in the provision of infrastructure in the

surface transport subsector across the region

  • While roads have somewhat improved in most countries, railway lines

have seen minimal improvement

  • Transit traffic for landlocked SADC will increase from 13 million tonnes in

2009 to 50 million tonnes by 2030 and 148 million by 2040, at an average annual growth rate of 8.2%

  • Total port traffic in Southern Africa will jump from 92 million tonnes in

2009 to 500 million tonnes by 2027

  • Current projects for additional container terminals will most likely only

provide adequate container capacity until 2020; planning for further expansion and/or a new port should commence now

September 18, 2014 5

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Africa’s economical development framework

September 18, 2014 6

Source: ECDPM

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Some of the current port developments in Africa [1/3]

September 18, 2014 7

Luma Port Kenya LAPSSET (Luma Port, South Sudan, Ethiopia)

  • $24 billion corridor project
  • $ 500 million port project (China)
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Some of the current port developments in Africa [2/3]

September 18, 2014 8

Dar Es Salaam Port upgrade (7 berths)

  • $ 200 million

Bagamoyo Port – Tanzania

  • $ 11 billion (China)
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Some of the current port developments in Africa [3/3]

September 18, 2014 9

Durban Dig-out-port South Africa Old Durban Airport

  • $ 10 billion
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Future port developments

Conakry Port, Guinea – Rio Tinto

  • $1 billion
  • Location: South along the coastline from Conakry
  • Capacity: Vessels of up to 250,000 (DWT)

Grand Butu Point, Liberia – Putu Iron Ore (Severstal)

  • Buchanan iron ore terminal
  • Limited information available

Kribi Port, Cameroon – Sundance resources

  • Deep water port
  • Phase 1 of construction started
  • Capacity: Vessels of up to 300,000 (DWT)

Pointe Noire, Congo – Zanaga / Mayoko (Glencore / Exxaro)

  • Due diligence study completed in April 2013
  • Exxaro failed to reach agreement with government regarding required rail & port

development

September 18, 2014 10

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Things to consider for future infrastructure developments

  • Historically port have been

incubators for economic growth

  • Single user vs. Multi user ports
  • Economies of scale
  • Danger of single user ports
  • Rio Tinto Madagascar
  • Logistics network integration
  • Port
  • Rail
  • Road
  • Waterway
  • Financing of infrastructure projects
  • East vs. West
  • Macro economic impact of financing

conditions

September 18, 2014 11

Ocean carrier strategies Trade flows Corridor developments

  • Better collaboration between

countries and government

  • (One) Proper platform to develop

infrastructure with participation of private & public sectors

  • Private sector will need to contribute

to infrastructure funding

  • Locate new ports outside of cities

(Europe & USA)

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Closing remarks

  • Better collaboration between countries and government; and private sector.
  • Proper platform(s) to develop infrastructure with participation of private &

public sectors.

  • Private sector will need to contribute to infrastructure funding to promote

economic growth

September 18, 2014 12

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THANK YOU