Port authorities have not done themselves or the region any favours by allowing harbours to become isolated islands in the economy.Their socio-economic contribution is often overlooked, and they are not supported by a feeling of joint ownership by residents, business and authorities.“As a supplier of jobs, ports do not only serve an economic but also a social function,” through the creation of direct and indirect jobs, say G.S. Dwarakish and Akhil Salim in a paper published by ScienceDirect.However, increasingly strict security and safety regulations mean that the public now sees ports as movement behind a fence, with trucks disrupting the traffic.With some notable exceptions, port management does not see itself as having a role that is greater than turning a profit and earning bonuses.Port development should be part of a coordinated African transportation strategy to ensure efficient use of resources and reduce costs and time at customs, argues the International Monetary Fund in a discussion note.“Instead, investment in quality improvement of port infrastructure and its contribution to the economy are often questioned by politicians, investors and the general public,” write Ziaul Munim and Hans-Joachim Schramm in their study of the “mediating role of seaborne trade”.They add: “Port activity is no longer limited to just cargo handling; logistics service provision in an international context has become a core part of the business.” Port investment has to be tailored to meet the needs of importers and exporters in the region the port serves, they add.Ongoing “structural changes” in the global shipping industry mean that, “before investing millions of dollars in building up or expanding port infrastructure, it is important to understand the extent to which ports impact national or regional economy”.The authors recommend that operators in developing countries focus on improving the quality of the services offered through existing facilities before embarking on major investments in new ports.They can only understand what is needed by consulting with exporters and importers as business partners – which means that they need the buy-in of their customers. A good example of this in action was when the Port Elizabeth Container Terminal brought in two mobile ship-to-shore gantry cranes to handle the volumes that the local citrus industry said it would be exporting in 2020. Hippolyte Fofackis, chief economist and director of research and international cooperation at the African Export-Import Bank, says investment in physical infrastructure is not enough. He writes: “Another type of infrastructure that requires sustained investment and commitment from African leaders during the implementation of the AfCFTA is “soft” infrastructure, especially the development of technical and engineering skills, which are crucial for driving the process of industrialisation and expanding manufacturing output.” In short – it is in the interests of everyone in the region that southern African ports are world class.
