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EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf

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Apia Port has become one of the best performing ports in the <strong>Pacific</strong> and aims to develop<br />

itself as a ‘mini-transshipment hub’ for the region. It currently handles around 1500<br />

containers in transshipment traffic per annum.<br />

Shipping<br />

<strong>The</strong> Samoa Shipping Corporation Limited is responsible for inter-island shipping services. It<br />

is a government owned corporation. It has four vessels, of which two were funded by the<br />

Japan International Cooperation Agency through aid to Treasury, and leased to the Shipping<br />

Corporation. Aside from a commercial operator which provides a ferry service, the Samoa<br />

Shipping Corporation has no competition for services. This is partly due to small scale.<br />

Nevertheless, services are adequate.<br />

Box A.9: Mauritius Port<br />

Mauritius is a small island nation, similar to many <strong>Pacific</strong> countries. Its port previously had<br />

a purely local role, but with reform and a goal to increase “non-captive” traffic, has grown<br />

sharply.<br />

Mauritius expanded its port at Port Louis through a 1989 development plan. In 1996 – 2001<br />

it undertook a project to restructure the port, in conjunction with the <strong>World</strong> <strong>Bank</strong>. This<br />

restricted the role of the Mauritius Port Authority to a landlord port, owning land,<br />

buildings, superstructure and quay cranes, and working through competitive concession<br />

contracts. <strong>The</strong> major concessionaire is the Cargo Handling Corporation Ltd, still a publicly<br />

owned body, although the port authority is no longer a shareholder. A private shareholding<br />

is possible in future.<br />

<strong>The</strong> CHC has substantially improved efficiency and costs, with fewer staff, new working<br />

hours, labor flexibility and productivity. Crane productivity has been up to 19 moves per<br />

hour, which is a reasonably good figure internationally, although it is currently less through<br />

congestion.<br />

<strong>The</strong>re has been significant growth in traffic through the port. It handled 5m tons in 2002-03,<br />

up 11% on the previous year. Containers, 38% of the traffic, were up 50% on the previous<br />

year. Transshipment traffic grew even faster, by 625%, up from 10,174 TEU to 73,389 in a<br />

year. In 2001 it was only 3,874 TEU. This growth is continuing: by the end of December<br />

2003, the transshipment traffic was 102,282 TEU. About half of all container throughputs<br />

are now transshipment traffic.<br />

Container traffic, in terms of total TEU handled, is 246,699, but total throughput is 318,553<br />

(counting both in and out legs of transshipment legs). In 1992, before the productivity<br />

improvements, and before the development of transshipment, only 80,000 TEU were<br />

handled. This growth is such that it is outstripping the capacity of the expansion plan.<br />

Vessel waiting time has increased to 24 hours. A new plan is being developed.<br />

Two new container cranes are being acquired, but by lease rather than purchase, in explicit<br />

recognition of the volatility and risk involved in the transshipment business.<br />

Improving port productivity has borne fruit: three major shipping lines are now using Port<br />

Louis as a transshipment hub – Maersk – Sealand; Mediterranean Shipping Co; and P&O<br />

Nedlloyd/Mitsui. Transshipment trade attracts a significant discount on port charges. Some<br />

transshipment is for regional ports (e.g. on Madagascar and Reunion), but it is also between<br />

intersecting trade lanes: between Africa – Mediterranean – Europe services, and services to<br />

Australia and New Zealand, and between Asia, South Africa, and South America. Mauritius<br />

has seen the potential in its location and built an export product around it.<br />

Source: Castalia<br />

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