‘Development of the Maritime Industry
in the Region’
East African Private Sector
Initiative on Regional Integration
Presen...
Advantages of Regional Integration
• Closer Trading Links.
• Economies of Scale.
• Built of Strength and Confidence.
• Inc...
Regional Integration in Numbers
• Trade within the EAC - Kenya, Uganda and Tanzania -
grew from $778Mn in 2004 to over $1B...
Ways Forward
• Synergy between Members of the Regional
Private Sector – Open Exchange of Information.
• Business Contracts...
African Shipping - Obstacles Ahead
• Non-open Registry Fleet, average age:
– 20.5yrs, against 12.2yrs for world fleet.
• M...
Ports and Regional Trade
• Ports - Regional / International Trade Nodes.
• Efficiency of Ports:
–Level of Trade.
–Developm...
• Location/good Market. At Red Sea, between Far East/Europe/Arabian Gulf/Africa.
• Dubai Port World Management.
• Ethiopia...
Vessels /Country, Flying National Flag
1. Harmonized Shipping Policies
- Promoting Regional Fleet.
- Fostering Co-operation Between the Countries
of the Region.
...
Objectives of a Maritime Co-operation
4. Bilateral / Multilateral Co-operation
– Between Maritime Administrations
– Operat...
A New Dynamic Player and Hub, in
the Global Shipping Industry
• Formation of Djibouti Flag (State Registry).
– Adopt appro...
Regional Piracy Map 2010
Piracy – Challenge for the Region’s
Shipping Development
• RISK! High Insurance Premiums.
• High Insurance Premium High Tr...
"We need to strongly rethink our strategies
for development and use regional integration
- closer ties among African econo...
Think BIG - The ‘Dubai’ of Africa(?)
DUBAI
 Area: 4,114 Km2
 Population: 2,262,000
 Density: 408.18/km2
 Was: Desert
...
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East African Private Sector Initiative on Regional Integration Presented by Vassilis. K & A. Elmi

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East African Private Sector Initiative on Regional Integration
‘Development of the Maritime Industry in the Region’
Presented by Vassilis. K & A. Elmi

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East African Private Sector Initiative on Regional Integration Presented by Vassilis. K & A. Elmi

  1. 1. ‘Development of the Maritime Industry in the Region’ East African Private Sector Initiative on Regional Integration Presented by : Vassilis Kyriakis & A. Elmi.Ahmed
  2. 2. Advantages of Regional Integration • Closer Trading Links. • Economies of Scale. • Built of Strength and Confidence. • Incentive for the Government. • Stable and Predictable Business Environment. • Synergy as Vehicle for the Integration into the World Economy (Information Exchange). • Collaborated Interest and Benefit Rather than Individual Defense and Advance.
  3. 3. Regional Integration in Numbers • Trade within the EAC - Kenya, Uganda and Tanzania - grew from $778Mn in 2004 to over $1Bn in 2006. • Trade within COMESA stood at $7.8Bn in 2007, up from $4.5Bn in 2002. • Trade among countries in Africa as a whole, in 2006, amounted to only 8.9% of their total exports. • 51.2% of all Asian exports, in 2006, went to Asian countries. • 24.3% of all South and Central America exports, stayed within that region.
  4. 4. Ways Forward • Synergy between Members of the Regional Private Sector – Open Exchange of Information. • Business Contracts Among Neighbouring Countries - Increase of Business. • Boost Poorer and/or Smaller Countries with very Thin Markets. • Regionally Organized-Trade Supporting-Private Institutions, that Identify/Broadcast Information on Regional Trade / Investment Opportunities.
  5. 5. African Shipping - Obstacles Ahead • Non-open Registry Fleet, average age: – 20.5yrs, against 12.2yrs for world fleet. • Main Sea Routes: – Asia / North America (Transpacific); – North America / Europe (Transatlantic); – Asia / Europe – Mediterranean; • Sub-Saharan Africa - 34.5% of the total goods loaded in Africa, or 2.1% of the worldwide cargo (2006). • Sub-Saharan Africa – Loaded Goods 230mln tons vs. Unloaded Goods 70mln tons (2008). • Economies of Scale - Cost to Shipper – Large Shipping Lines vs. Normal Liners.
  6. 6. Ports and Regional Trade • Ports - Regional / International Trade Nodes. • Efficiency of Ports: –Level of Trade. –Development of their Hinterlands • Inefficient Ports: –High Trade Cost Imposition. –Import / Export Volume Reduction Hinterland Import Volume Reduction.
  7. 7. • Location/good Market. At Red Sea, between Far East/Europe/Arabian Gulf/Africa. • Dubai Port World Management. • Ethiopia is a natural hinterland of Djibouti Port. • IT efficient (Maximo, Navis and Sage). • EDI System for Manifest Cargo. • Safe place (CCTV) and secure implementation of ISPS code (Port Access System). • Regular liner services connecting about 200 ports in 71 countries in the world. • Good performance and high productivity. • Good equipment and infrastructure facilities. • Most centrally located port in the COMESA market (population 380 million people) • Modern telecommunication and banking services. • Close proximity to Djibouti FZ with many new companies. A STRATEGIC PORT
  8. 8. Vessels /Country, Flying National Flag
  9. 9. 1. Harmonized Shipping Policies - Promoting Regional Fleet. - Fostering Co-operation Between the Countries of the Region. 2. Determine Common Positions on International Maritime Policy and Define Strenuous Solutions Through Regular Consultations. 3. Harmonize / Implement International Maritime Conventions. Objectives of a Maritime Co-operation
  10. 10. Objectives of a Maritime Co-operation 4. Bilateral / Multilateral Co-operation – Between Maritime Administrations – Operational Organizations Maritime Transport. 5. Maritime Transport / Port Operations Co- operation Between the sub-Regions/Members. 6. Establishment of sub-Regional and National Shipping Lines / Competitive Fleets.
  11. 11. A New Dynamic Player and Hub, in the Global Shipping Industry • Formation of Djibouti Flag (State Registry). – Adopt appropriate National Marine Legislation. – Active Presence in IMO / Adopt IMO Regulations. – Appoint Specialized Bodies for a) Dealing with Flag Matters and b) Surveying /Certification. • Expansion of Maritime Services. – Technical Inspections/Surveys/Management. – Authorization for Certification Renewal (Class, Flag, etc.). – Repairs/Dry Dock (Economical, Social implications).
  12. 12. Regional Piracy Map 2010
  13. 13. Piracy – Challenge for the Region’s Shipping Development • RISK! High Insurance Premiums. • High Insurance Premium High Transport Cost. • High Transp/n Cost High Product Cost. • Receiver/Supplier seek alternative roots. • Piracy Control Price Control/ GROWTH!
  14. 14. "We need to strongly rethink our strategies for development and use regional integration - closer ties among African economies - to promote and strengthen the current low levels of intra-African trade.“ - UN Economic Commission for Africa "The time has come to enlarge our markets.“ - Kgalema Motlanthe
  15. 15. Think BIG - The ‘Dubai’ of Africa(?) DUBAI  Area: 4,114 Km2  Population: 2,262,000  Density: 408.18/km2  Was: Desert  Grew on: – Geographical Position. – Port / Trade. – Tourism. – Real Estate. – Financial Services. DJIBOUTI  23,200 Km2  864,000  37.2/km2 (space for infra/ture)  Desert.  Advantages: - Geographical Position. - Port / Regional Trade. - Red Sea Underwater World. - Space for Development. - D.F.Z.

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