African ports and terminals are increasingly attracting international attention – and investment in the sector is growing.The continent has seen a massive increase in port infrastructure investment since the mid-2000s. A myriad of plans and proposals for the construction or upgrades of ports is currently on the table, says Duncan Bonnett, a partner at Africa House, adding that ports have attracted investment across the continent, not only in southern Africa.“Along with the increased interest in port development, we are seeing far more global port operators take an interest in African ports. The move towards using private operators at ports is definitely on the rise, and this bodes well for the ports sector as it increases competition and improves efficiency.”Bonnett said in the port sector governments were increasingly seeing the benefit of passing port operations onto international experts rather than trying to do it themselves. “If we look back to the start of the century, just about every utility on the continent was state-run – from water and electricity to ports, roads and railways. Today, at least 90% of telecoms revenue is privately generated, and in the port sector, it is a trend that is following suit. More and more countries are opting to have their ports run by private companies.”He said in Angola the new government was clear that they were not in the business of running airports and ports and railways, and concessions were immediately introduced. “What makes these concessions work is that they involve long periods of up to 30 years, piquing private sector interest. Namibia has also been very proactive in maintaining a good balance between state-owned entities that are functional and operational and a proactive private sector.”Bonnett said while the move to private sector involvement in the ports and terminal sector was not always immediately realised, the case of Mozambique was a good example of why more countries were opting to use the world’s best port operators instead of trying to do it themselves. “Mozambique initially kicked and screamed, but the performance of DP World, Grindrod and Cornelder at their ports has made them realise the benefit. There is no denying that these private companies created a far more competitive environment in the Mozambican port sector, while volumes have steadily increased under their watch. The government has realised the value, and now actively encourages private operators in their port sector.”Speaking to Freight News, Bonnett said interest by some of the most prominent port operating companies in the world was also not expected to decrease. “There are some pretty big companies entering the African port space and taking up positions. It is important to remember these global companies want to make long-term commitments – they are not looking at concessions of five years but rather at 20 to 30 years. They also have the muscle to make a difference and really boost port performance.”According to Bonnett, the increased interest in developing new ports and expanding existing port infrastructure would only heighten the interest of global port operators.
