Unfortunately, according to Samer Akram of Unichem Services Ltd., lubricant blenders could face a severe challenge in obtaining the base oils they need because of the regions inadequate ports. In a presentation at the African Base Oils & Lubricant Conference in Cape Town in November, he reviewed the capabilities of current port structures and their impact on base oil imports. Unichem Services is a Durban, South Africa-based distributor of chemicals and base oils.

Simply put, sub-Saharan Africa ports face numerous problems, Akram said. First, much of the rail and port infrastructure was built for resource extraction rather than to facilitate trade. In addition, he noted, Most ports in the region currently operate at or near capacity and experience delays because of slow clearance processes and poor integration with other modes of transport. Another problem is that landlocked countries in the region lack efficient transportation links with the ports that would enable them to maintain competitive prices for both imported goods and exports to global markets.

Delays at the ports are very long. In 2008, one extra day in port cost more than U.S. $35,000 for a 2,200 TEU (20-foot equivalent unit) vessel and proportionately more for larger ships. Shipping lines have responded by introducing congestion charges, ranging from U.S. $35 per day for a 20-foot container in Durban, South Africa, to U.S. $425 per day in Tema, Ghana, he said.

Delays are often caused by long processing and administration times and by poor handling in congested port areas, as opposed to a lack of basic quay capacity. Making ports more efficient could overcome many of the capacity constraints because handling rates are below international standards, Akram contended.

For example, the Durban container terminal manages only about 18 moves per crane hour, well below the international standard of 25 to 30 moves. Because they operate without government subsidy, he noted, South African ports suffer from under-investment. This type of port strategy inevitably increases transport costs.

Akram contrasted South Africas approach to what he called the landlord port system used in other African ports. The landlord system has been more successful and is better suited to attracting investment by the private sector, he said. In addition, a landlord port structure could draw interest from container line operators and major international terminal operators to help improve efficiency.

Ghana and Nigeria have moved toward the landlord port structure, and several French-speaking countries operate a hybrid model. Akram explained that the hybrid model is called amodiation, where the port authority rents storage space to privately owned, licensed stevedoring companies hired by the shipping lines to handle cargo.

However, development has been slow, and the involvement of efficient private global operators is very low, said Akram. In 2007, the top 20 global terminal operators handled only 16 percent of throughput in Africa, compared with almost 70 percent in other regions of the world. Seven years later, they are handling a little more than 20 percent, he said.

Akram explained that one way to help alleviate the problems at ports was to consider alternative methods of shipping liquid goods like base oils. He compared the advantages and disadvantages of the various methods, including parcel tankers, break bulk cargo vessels, ISO tank containers, drums or plastic containers and flexitanks.

Akram concluded by saying that the best solution for port bottlenecks lies in institutional reform combined with the mobilization of private sector investment and involvement in port service management. One without the other will not work.