WAPPP Roundtable: Development of PPP dry ports, key features & challenges (Angola, Egypt & India)

World Association of PPP Units & Professionals Roundtable on the "Development of PPP dry ports, key features & challenges, showcased with examples from different countries (Angola, Egypt & India)" on 7 December 2022

Jointly organized by UNCTAD & WAPPP Port Chapter

INTRODUCTION & BACKGROUND
With over 80 per cent of the volume and 70 per cent of the value of world merchandise trade carried by seaports, seaports are key nodes in the global network of interconnected supply chains and economic interdependency that also serve as catalysts of economic growth and development.
Development of one or more dry ports can be a way to further improve the logistics and supply chain efficiency of a country by reducing congestion at the seaports and improving the reliability of cargo transport between the dry port and shipper/importer, given the dry port facility’s potential proximity to the final market.
Over the last three decades, Public-Private Partnerships (PPPs) have emerged as a mechanism to leverage greater private investment participation in port development. Ports and terminals benefit from the
participation of private port operators, not only in terms of capital contribution, but also in relation to the transfer of expertise and technologies. Private partners are often engaged via the use of port concessions.

The concept of a dry port
The underlying principle of a dry port is to operate as an extension to one or more seaports, where activities such as customs clearance, storage, empty container handling, and various other activities can take place. As a result, yard capacity at the seaports is freed up, thereby realizing additional seaport capacity.
Often, a logistics center is developed adjacent to the dry port, which should have a complementing nature with the dry port activities, where the dry port focuses on the area of intermodal/multimodal transport and handling of cargoes and containers, whereas the logistics center will offer mainly space for warehouses, large-scale logistics and services, and so forth.

Key success criteria for the development of dry ports
For successful implementation of one or more dry ports, the PPP-Unit or other Government Agency needs to consider the following key aspects amongst others:
Each dry port should be well-connected to a seaport with an effective road connection, railway line, or inland waterway, with robust interface agreements in place among various relevant stakeholders (as may be applicable);
Custom clearance should only take place once (at the dry port for both import/ export cargo, as per the bill of lading);
The dry port should offer appropriate competitive advantage (location, hinterland accessibility, services, pricing) as it represents an extra node in the overall supply chain and thus per se includes additional handling activities;
Effective governance structure need to be in place under which the project is to be implemented, and an experienced private partner should preferably manage and operate the dry port.
In case one-stop custom clearance, or some of the other key success criteria, is not effectively implemented, this would effectively reduce its value proposition.

Panelists:
Catarino Pereira, Chairman, ARCCLA (The Angolan Cargo and Logistics Regulatory Agency)
Marcos Martinez, Head of PPP-Advisory Unit, EBRD
Nivesh Chaudhary, Co-founder and Managing Director Infrastructure Advisory, ASCELA
Jesper H. Boll, Managing Director Logistics Value Chain, ARISE


Moderation:
Frida Youssef, Chief of the Transport Section, Trade Logistics Branch, UNCTAD / WAPPP Port Chapter
Erik Wehl, Chair WAPPP Port Chapter