IN14 QOITHE WORLD BANK

POLICY PLANNING AND RESEARCH STAFF

Infrastructure and Urban Development Department

Report INUU 1 i

Tlhe Worid 3anK Group's Involvement in

Seatrade Logistics Management

and related

Transport InLrnstiicture and Services

Hans J. Peters

September 1988

General Operational Review ,,

This is a document published informally by the World Bank. The views anointerpretations herein are those of the author and should not be attributed

to The Wond Bank, to its affiliated organizations, or to any incividualacing on their behalf.

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Copyright 1988The World Bank1818 H Street, N.W.

All Rights ReservedFirst Printing September 1988

This is a document published informally oy the World Bank. In order that the informationcontained in it can be presented with the least possible delay, the typescript has not been prepared inaccordance with the procedures appropriate to fcrmal printed texts, and the World Bank accepts noresponsibility for errors.

Tne World Bank does not accept responsibility for tne views exoressed herein, wnich arethose of the author and should not be attributed to the World Bank or to its affiliated oroanizations. Thefindings, interpretations, and conclusions are the resuits of research supported by *he Bank; they do notnecessarily reoreserit off icial policy of the Bank. The designations employed, the presentation of material,and any maps used-in this document are solely for the convenience oi the reader and do not imoly theexoression of anv opinion wnatsoever on the part of the Wend Bank or its affiliates concerning tne iecalstatus ef any countrv, :erriic, GitV, area. or of its autnorities, or concerning .- e deiimitations o.isboundaries or nationai affiliation.

The author is Hans J. Peters, Principal Maritime Speciaiist In the intrastructure and UrbanDevelooment Denartment of the Worid Bank: George Panagakos assisted in comoiiina the data for 'heannexes and Sacine Shive tvyed the manuscrict.

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The World Bank

The World Bank Group's invoivement .n

Seatrade Logistics Management

and related

Transport infrastructure and Seruices

General Operational Review

September 1988

Abbreviations and Acronyms-

AEN = East Asia and Pacific Regional OfficeAPL = American President LinesASEAN - Association of Southeast Asian NationsASP = South Asia Regional OfficeCAM = Country Assistance ManagementCIF = Cost, Insurance and Freight (Term for goods to be sold

on the basis that the seller arranges their seabornetransportation, insurance and delivery to the buyer.)

CON-RO = Container ship which is loaded/unloaded over specialramps by train, trucks or forklifts.

CON-Bulker = Bulk carrier with generally on-deck container carryingcapacity.

DFC = Development Finance CorporationDWT Dead Weight Tonnage (The weight in long tons that a

vessel can carry when fully laden.)EEC = European Economic CommunityEMN/EMENA = Regional Office for Europe, the Mediterranean and the

Near EastEAS - East African Regional OfficeGATT = General Agreement on Trade and TariffsIBRD = International Bank for Reconstruction and Development

(World Bank>IDA = International Development Association_C = International Finance Cornoration24F = International Monetary FundINU = Infrastructure and Urban Development DepartmentINUTD Transport Development Division of !NULAC = Latin America and CaribbeanLCN Latin America and Caribbean Regionai Of flce'DC = Less Developed CountryMTO = Multimodal Transport Operator>5IC = N'Iewiy Industrialized CountryOECD Organization for Economic Cooverataon ana 3eveiopmenz:CR - Sroiect Comnie _on Peport-DM = Phvsicai Distribution HanagementPPAR Project Performance Audit Report?PR = Policy, Planning and Research StaffPRC= Peoples' Republic of C}hinaRO-RO = Roll on/Roll off (Vessel which is loaded/unloaded over

special ramps by train, trucks or forklifts.'TEU Twenty Foot Equivalent Unit (he common uniat used cr

l.ndicatlng the capacity of a container ship or -'erminal.)

UK = United KingdomUNCTAD United Nations Conference on Trade and DevelopmentU.S.A./U.S. = United States of AmericaUS$ = United States DollarWAN = West Africa Regional Office

GENERAL OPERATIONAL REVIEWof the

World Bank Group's Involvementin Seatrade Logistics Management

and relatedTransport Infrastructure and Services

Table of Contents

?age

I. INTRODUCTION AND SUMMARY ......................................

II. INTERNATIONAL DEVELOPMENTS IN SEATRADEAND MARITIME TRANSPORT

A. Seatrade. 5B. Protectionism. 7C. Shipping. 7D. Ports .18

III. ISSUES RELATED TO LDC TRADE LOGISTICS,SHIPPING AND PORTS

A1. Trade Logistics Organization .233. Provision, o ShipDing Ser-ices .. .................... 25C. Port- Management and Development ................... 9D. The Acjustment Process .............................

IV. SEATRADE AND MARITIME INDUSTRY ASSESSMENTSAND SECTOR SUPPORT STRATEGY FORMULATION

A. 1nstizutionai Set-ud and Resnonsibi_7izies ................ . .

,.Pr^-soj-ecz orm i t n i.^. ................................ *. ..D. Sector 'ending Anproacnees.~. roject Formunujaonon.

V. LENDING FOR PORTS AND SHIPPING SINCE 1980

A. The Portfoio. 453. Sector Coverage. 8C. Key Project Features .3D. Project Financing .52E. Conditionalities ......................................... 53

( ii)

Page

VI. PERFORMANCE EVALUATION OF DEDICATED PORT PROJECTS,APPRAISED BEFORE 1980

A. General ................................................... 55B. Economic and Financial Analyses ..... ..................... 58C. Technical Aspects ........................................ 61D. Institutional Aspects ............... I ..................... 62E. Sustainability ............................................ 63

VII. CONCLUSIONS AND FUTURE DIRECTIONS

A. Interpretation of Findings ............................... 553. Strategic Research ....................................... 06

C. Economic and Sector Work ................................. 68D. Lending Approaches ....................................... 70E. Project Superision .71

P. Performance Evauatoon. 7I

EXHIBITS

1. SHIP FINANCING: Why do lenders become more cautious?. 8

2. COST STRUCTURES IN OCZAN TRANSPORT OF 3MPORT ANDXXPORT TRADES: 'What has changed? .............................. !I

3. SELCTING OCEAN CARRIERS: That do shippers value most ? .13

4. RESTRUCTURING IN THE SHIPPING INDUSTRY:TWhat are the causes and effects? ..............................

5'EE Z-MENTS OF PORT SELF-ASSESSMENT. iat tnatters ..

4ORT 3ZLCoT.IN ' -Mac :cuztn c.. ':

7. PROTECTIONISM IN LDC SHIPPING: What are the cost? .28

8. CHANGING PORT aIERARCHIES: The case of ASEAN .31

9. DIFFERENT ROUTES T'O CONTAINERIZATION: Some --DC exoerienc.... 34

lO. SORTS =HITHOUT PROSPECT FzOR IAINLINE STATUS:Are there options to maintain viability? .36

( iii )

ANNEXES

1. SEATRADE, PORTS AND SHIPPING RELATED ISSUESADDRESSED IN COUNTRY ECONOMIC 'WORK

2. SECTOR WORK RELATED TO SEATRADE LOGISTICS MANAGEMENT,PORTS AND SHIPPING

3. PROJECT FINANCED ECONOMIC AND SECTOR WORK

4. DEDICATED PORT PROJECTS UNDER IMPLEMENTATION: Overview

5. PROJECTS WiITH PORT COMPONENTS: Overview

7. NON-PROJECT LOANS AND CREDITS CONTAINING SEATRADEAND MARITIME TRANSPORT RELATED PROVISIONS: Overview

3. DEDICATED PORT ?ROJECTS APPRAISED SINCE 1980: Overview

9. DEDICATED PORT PROJECTS APPRAISED SINCE 1980:Systemic Features

IO. DEDICATED PORT PROJECTS APPRAISED SINCE 1980:Key Loan/Credit Agreement Provisions

12. PROJECT PERFORMANCE AUDIT REPORTS AND PROJECT COMPLETION?EPORTS -OR PORT :%ND SHIPPING RELATED PROJECTS: Overview

15. ?ROJECT 2ERFORMANCE AUDIT REPORTS AND PROJECT COMPLETLONREPORTS F0R DEDICATED PORT ?ROJECTS;Identified Key Implementation Issues

.6AP

ZYec3rnber _986 .

I

1

I. INTRODUCTION AND) STJMMARY

(i) This report provides an overview of changing patterns ininternational seatrade and related logistics management practices.Critical assessments are made of what these changes imply for ports andnational flag carriers in developing countries. The objective is to

establish a forward-looking perspective of adjustment requirements inseatrade logistics, port infrastructure and shipping servicearrangements. At the same time, indications are givren about necessarychanges in Bank group internal sector support policy, operational andprocedural arrangements to enhance the institution's effectiveness inaddressing these issues and in guiding its borrowing countries throughthe required adjustment processes. Consequently, the thrust of thisreport differs from the traditional retrospective approach taken forgeneral operational reviews and concentrates more on a specific area ofconcern which is expected to be crucial in future Bank sector supportefforts.

(ii) Over the last 15 years, international seatrade has beensubject to major fluctuations resulting from the expansions andcontractions of the world economy. Developments in the differentcommodity markets have displayed unsteady trends. All of thesecircumstances posed serious and often intractable problems forindividual countries' trade performance and economic deveiopment.Because of the inherent difficulties of efficiently adjusting to t-.echanging trade environments, many governments nave resorted -o measuresaimed at protecting their trade markets. However, these protectionistmeasures asually imply significant economic and financial cost, andreduced competitiveness or nationaily produced commodities on che worldmarket. Adding to these complexities are the changing prac-tices _nrrade and Industry with egard to the chysical distribution managementor sraded commoditles. 7nventorv control has become an zmDortant :ooi-or -educing :cnai croduc -osi. The zorresponaing managemenziauustmen3 -2re :onver;Ing 'nJa :coDa_ :aue a g_s.aetwor< ov snreaaing -rom :ne _naustta_Lzed countr: es -t tocIr ---i2partners in the developing world. Increasingly sophisticatedelectronic data information systems play a maior role in these moves.

(iii) The developments in international commodity markets andchanging distribution strategies in trade and industry have inducedsubstantial restructuring in the provision and management of maritimetransport. UnDrecedented advances in cargo packaging, handling andtransport technologies have aided Zhese evolutions. The traditionallyorientated maritime industry had to go through painful adjustmentprocesses -and will continue to face this need. In their search fordemand-responsive service arrangements, maritime transport operatorshave introduced new and cost effective service provisions which entailfar-reaching consequences for ports and national flag carriers, as wellas inland transport sy,stems of individual countries. ecause tneInternatIonaz ;n-:?ing .nduszr= aas _een in a situaz_cn or ove:taactt--

2

for many years, service rationalization has led to substantialforfeitures. Restructuring of shipping services has also meant thatmany ports world wide have been confronted with loss of traditionalpatronage, as carriers concentrated on fewer trade routes in order toexploit the scale economies of the newer generation vessels. In viewof declining market shares for their nationaL flag carriers and reducedcargo flows through many of their ports, governments have institutedmeasures to maintain the viability of these national assets. However,in many cases such 'maritime nationalism' has become a dear propositionin terms of its commonly negative effects on seatrade performance.

(iv) It is a hard reality for developing countries that theinternational commodity markets have become! closely integrated, whichrequires of these countries that they have to be very responsive to thespecial requirements of their foreign trading partners. The stablesupply relationships for individual commodities between these countriesand their trade partners in industrialized economies cannot be takenfor granted any longer. Modern technologies and the spreadinginformation networks enable traders to scan the world market forrequired goods in an instant. These developments have led toincreasing competitive pressures among countries and industries. Thosewho constitute the international trade markets have become more andmore demanding, not only concerning price and product quality, but alsowith regard to speedy and reliable product delivery. Thus developingcountries are confronted with the fact that any trading nation intoday's market-is forced to adiust to the trade management practices ofits partner countries, and by imnlication to the practices in theinternationaL transport industry that serves the trade markets. Thecommercial success of any export-oriented industry in a developingcountry depends increasingly on its ability to tie effectively into tr.eemerging international trade logistics service networks.

(v) Given all these international developments, stringentrequirements are thrust uDon developing countries if they want -oremain competitive with their traditional export commodities, but moreim ortant-y i- they -.ant -o score successes -n the drive to divers":r_:neir export oase and to oromote tne devEcocmenz or :nea r icmestz2'ndustries. Since most trade rflows between developing aicindustriaiized countries take piace across ,he seas, the roie oishipping and ports is of particular importance. For both elements ofthe physical distribution network for traded commodities to functioneffectively, not only the requirements of responsiveness to technologychanges and effective facility management have to be satisfied, butequally important, there has to be a regulatory environment that isconducive to stimulating improved systems performance. Ports have toreassess their role and function in the market place, and national flagcarriers need to determine whether they can maintain their viability incomparison with their international competitors. It is most likelythat the insights gained from such market analyses will be insubstantial conflict with national sector policies. All thesecircumstances make it extremely difficult for a developing countrygovernment to ensure efficient conduct of trade while trying topreserve the national aoal of being a provider of shipping and port

3

services. The phenomenon of 'maritime nationalism' is very present indeveloping countries and impedes required system adjustments. Theimplied economic and social cost are usually very significant.

(vi) How effective has the Bank group been in recent years inguiding its borrowing member countries through the required adjustmentprocesses, and what was the outcome of its related support operations?The experience record with Bank group seatrade and maritime sectorsupport operations reflects difficulties in grasping the consequencesof the changing environments in which developing countries' seatrade,shipping and ports have to perform. These problems are not unique tothe Bank but afflict traders and transport operators alike. Thecontinuous restructuring in commodity and shipping markets oroceedsextremely fast and keeps introducing sometimes very fundamental changesin service provisions and operational arrangements. Because it is soimportant to remain effectively tied into the internationai transportservice networks for traded commodities, trade and industry aredevoting substantial resources to market analyses and strategyformulation. Bank activities related to seatrade and maritimetransport embodied limited assessments of the markets in whichdeveloping country shipping and ports are positioned. Their outcomehas therefore often fallen short of expectations. Lending for fleetdevelopment has been restricted to a handful of operations with mixedresults. The quite sizeable portfolio of port projects has largelybeen based on traditional appraisal approaches, focusing narrowly on.he immediate problems of an indivi'dual port. Only in more recentyears. some wider perspectives of seatrade, shipping and national oortsystems management were included. However, :he need for more probingmarket assessments remains.

(vii'~ The key 3ank internai adjustment needs relate to countryeconomic and transport sector work. In the past, the ^ormer has notprovided enough assessments of tzade logistics management practices and-elated -e-ulator-7 regimes in developing countries. 9arzicu arjacritical are reaiistic commodity market grojections and --neir-rans -C-on .. tr ^eaaraue rolumes at C ne 'nd_ ual :zun:z-- `.e_ ---n__n _t-_- ;nas 'seen orovzced. -ii-aour -nese _ruc-aj_y mpor-_.

mnDuts, transport sector work that deait with Dorts and sniDving aasoften been rendered inconclusive. Project formulation has chus zeendeprived of required assessments of the environments in which projectassets would have to perform. -while adjustments were made during theimplementation of some port projects, limited in-house expertise and-he Erequently low resource allocations fEor oro4ect supervisionrestricted effective sector monitoring. The Bank's post-compietionreviews critically lacked 'nvestigations of the changing environmentswhich shaped the outcome of port and shipping projects.

(viii) The need for improving the Bank's institutional understandingof the forces at play in shaping the demand for and the supply of traderelated shipping and port services in developing countries isrecognized. Enhancing the Bank's ability to assess seatrade andmar`t.me industry adjustment recuirements in its borrowing -oun---es-as become key prority. y ssentially reZlecting -ne amDroacaes --ken

4

in international trade and industry circles, a series of marketanalyses, technical assessments, procedural overviews, and regionalimpact investigations are being conducted by ?PR in cooperation withthe regional offices, the IFC and the IMF. Outside sources arecontributing to these efforts. The results of this work will providebasic indications as to how and to what extent developing countryseaborne trade and maritime transport regulations, legislative andinstitutional frameworks, as well as shipping industry and portinfrastructure systems have to be adjusted ln t:he light of observed andexpected market changes, and trends in the international environment.A subsequent Bank sector support strategy will reflect possible optionsand procedural arrangements for preparing and instituting requiredsystem adjustments in developing countries.

5

I1. INTERNATIONAL DEVELOPMENTS IN SEABORNE TRADE AND MARITIMETRANSPORT

A. Seatrade

1. World trade expanded rapidly in the post-war period until1974. Over the years, the seaborne proportion of world trade remainedat a fairly steady range between 20 per cent and 25 per cent, risingfrom about one billion metric tons tbn mtons) in 1960 to 3.25 bn mtonsin 1974. The steep increases in global seaborne trade came to an endwith the oil crisis of 1974. However, after an immediate decline in1975, seaborne trade recovered slowly, reaching a peak of almost fourbn mtons in 1979. That year saw the beginning of a worldwide recessionwith accompanying declines in export and import traffic in most, if notall economies. 3y 1983 global seaborne trade had declined below 1974levels. During the year 1984 the performance of the world economyimproved, which implied recovery in international trade movements.Shipping markets benefitted from the strong upturn in world tradeduring that year. Tnternational seaborne trade declined again, ifslightly, in 1985, despite the moderate increase in world trademovements, but assumed a renewed upward trend in 1986. Graph 1provides an overview of the incidence of global seaborne trade duringthe period 1965 to 1986. As can be seen, the trends for the dry andliquid cargo categories differed at times.

Seaborne Trade DevelopmentInternational

Trade volume (billion mtons)4000

2100H flril 11 r- i

6667686970 71 7" 73 745 76 77 78 79 6 1 2 63 64 86

Year

D_ry C.rgo i { quid Carg Tatai argo

_ OECD GRAPH I

2. It is difficult to adequately forecast future seaborne tradevolumes and growth trends, as they are significantly influenced bycyclical changes in the world economy and the structural adjustmentrcrcesses ~hat tai)e lace in individual countries. Also, 'here

6

continue to be divergent tendencies among different trades, traderoutes and geographical regions of the world. Within the majorcommodities, the volumes shipped vary widely. Trades with some ofthese commodities have experienced unexpectedly high growth trendsrecently (coal and iron ore) whereas the trade volume of othercommodities has shown dramatic declines in some regions of the world(grain, fertilizers, cement). The latter phenomenon is largelyexplained by growing production self-sufficiencies with thesecommodities in several developing countries. However, looking at thevoiume movements of practically any traded commodity over the last 15to 20 years reveals highly unsteady trends of growth and decline.Graph 2 demonstrates this for some key bulk commodities. Moregenerally, in the face of falling demand for oil and declining primarycommodity prices, with implied reductions in export earnings, most OPECand non-oil producing developing countries had to severely curtailtheir imports -a situation that is likely to persist for some time tocome. These developments continue to have a significant impact onseaborne trade flows. In the case of the OECD countries, differencesin economic performance, erratic exchange rate fluctuations, and achanging pattern of competitive advantages in major commodity tradeskeep causing volatility in seaborne trade flows among these countries,and between them and their trade partners elsewhere in the world.Finally, the newly industrialized countries, particularly in the Asianregion, have started to penetrate very aggressively virtually allexport markets with a growing variety of manufactured commodities. Allthese developments imply continuous changes in the structure, thelevel, and the direction of international seaborne trade.

Seaborne Trade of Main Bulk Commodities!nternationai

t Traqe V.1ume IDmillion mtonsl

100

7 o 1L 72 73 74 75 76 77 8 7 9 g0 81 32 83 84 85

Year

i -tron or e 2,-tm Coos :1 3^u,,t iho.H o c GR 2

I S>n¢Ferly GRAPH 2

7

B. Protectionism

3. Deteriorating trade balances and domestic production sectorswith low international competitiveness continue to cause increasingnumbers of governments to protect local markets against imports fromother countries. Import quotas are established, and bilateral tradevolumes are fixed on the basis of reciprocal agreements. There areseveral regional groupings of countries that form more or lessprotected markets through multilateral conventions. Trade among suchcountries is thereby facilitated but commercial interaction betweenthese groupings and the outside world is usually constrained. 'ordeveloping countries which try to reduce their dependence on a fewprimary commodities for export earnings and therefore attemDt todiversify into production of manufactures and other processedcommodities, these effectively prevalent market access constraintsrepresent serious impediments to trade expansion and therefore nationaldevelopment.

4. Another form of protectionism in international trade relatesto the provision of shipping and port services. Many countries areconcerned about solutions to their shipping problems essentially thoseassociated with high and fluctuating freight rates, control byconferences, and the loss of foreign exchange to foreign-owned shippoinglines. In many parts of the world 'maritime nationalism' has becomemore or less pervasive and is sustaining two particularly importanttrends -the first being the rapid expansionary moves to establishnational shinning capacity. and the second, the actions by a number orCountries to control the movement of nazional cargoes not an ; -,nationaL bottoms but aiso through national oorts. As a generaiobservation, protectionist measures in shipping usually carry asubstantial 2-Lement of avoidable cost which under most circumstancesincrease the cost of traaed commodities and thereby under- ne :ne_zcompetitiveness. In order to overcome such disadvantages. .-.any]overnments -esort to subsidizing shirring and -orrs.esrzmate bv GATT experts suggests that in the ]US.A. protect_snist

^oi___es -urrentl-, :osc -bout tS'3 - li'_-:on -er ;-a _ -,7ren ,-e1izr zeasures _rcn -omp.oance :osz were taKen '.zf0 .oacc -

s-milar scale or -os. -was "-ue :or _urope.

C. Shipping

A striking phenomenon is thAt ai:iougn glDbal seaoorne -r__egrew by only 30 per cent between 1970 and 1986, tne size of the worldmercnant fleet has mushroomed bv aimost 100 Der cent durinz the -ameperioa, rising from 340 milLion (mn) DWT to 650 mn D1WT. Tlhisunprecedented fleet growth can largely be explained by surprisinglyoptimistic reactions in the shipping industry (international bankerstalk about a 'casino-type' mentality) to -what appear in hindsight-short-lived expansions in seaborne trade. Visions of a trade bonanzain oil in the eariv 1970s and in other commodities r. the laT '-

?r1ctura-2' shizovnprs to ear'ce -- . fa-:2

8

EXHIBJT ISHIP FINANaNG

Why do lenders bem more cauffos?

The experience in the maritime transport sector for more than a decads has suggested that few shipping companies have managed to combinethe skills of professional operationai management with effective financial control and invesitnent decision-making. The shipping industry has away of confouncing the most thorough academic analysis, partty oecause its essentially fluid and dynamic market structure cannot be containedby the rigidities of purel statistical approaches, but aso because the psychlogial anticipation' factor is usually overiooked or unaeresbmateo.In markets. auct as snipping, the participants do not act iike chess players, out rather liket roulette addicts. They over-react, they respond toirratonal impulses, they take wild cnances, they play hunches, and -most importantty ot all- they assume tnat a winning streak will last indefiniteiyand tnat a prolonged sequence of losses is just about to end. However, a vessel has no intrinsic value without a committed source of cargo at arate sufficient to cover operating, interest and principal cost. Without such a commitment a v,essel is little. more than a cost incurring liability.

E he intemational ocean transoort sector has oeon cnaracterized by massive fieet exoansioris wortd wide dunng the iast 1 5 years. contrasted bva rratic fluctuations and growth trends in sesatrade. As a resuit, many operators expeiencse suostantiai under-utilization of tew acouired tonnageana were tnus unable to serve incurred financial liabiiities. In this connection, the attitude of tle rnajor commercial oanks Is a citical factor. ~ebacklog of ship loan losses has now worked through to the forefront of these banks' profit and loss accounts. There is no doubt that the shiopingnicusttv lies unaer a neavier cloud of susoicion and cisfavor than at any previous time. Commercial bank funcing for soeculative snic curcnases

l s now very hard to cotain, and all but the oiggest defauit situations are receiving more sumrmrary treatment *nan in tne past.

9

compete with each other to finance shipbuilding. These massive fleetexpansion schemes have led to a situation whereby available shipcapacity today exceeds market demand in all commodity trades bysubstantial margins. As a result, seaborne freight rates have declined

substantially; the 1986 international dry and liquid cargo freight rateindices were 26 per cent and 30 per cent below the 1980 levels,

respectively (Graph 3). Owing to these circumstances, there has been aconsiderable deterioration in the financial performance of the

internationaL shipping industry, whose collective debt to commercialbanks is presently estimated to approach USS 80 billion.

Drv and Liquid CargoVariations in Freight Indices

cbarter Freigrtt Indices

225

oo t

I -70 71 72 73 74 75 76 77 78 79 80 8 i2 d3 84 S5 668

t ~~~~~~~~~Year !- ry Cargo -- aquld Cargo

Th,rt,r RaLes: avrsge of 28 rome,.

sOUZt skuopin es ,ncrnalona IRA.4PH _

7he denressed market situation for shipping services and _heresuitant overtonnage orobiem h-ave caused the pr:ces --or newa47din_santi ,econd-nana .naips to dec_,Lne on averace b)v 4) Per cent between 1980-nd 986 x ca-sr cSntrcDut "-r-or C .atcon . * I1

--cr. ,rofaU -. uaing -:aaczzry Presenc.zr exczeas -- e-eabout .) rer cent. As a resuit. aovernmenzs ehat .nave 1nveszed neav4-§:

*n snipyara development are offering ship financing packages at ver-yattractive terms, -which further entices many carriers, especially indeveloping countries, to invest in additional tonnage.

7. Iwnershin jf the e-orld' s merchant fieet cemai ns .eavil4concentrated in the OECD countries '42 per cent). Largely 30 Der cent

of the fleet sails under flags of convenience. The developingcountries own aimost 20 per cent ol the woria fleet, wita cthe majoritybeing registered in the Far East. About eight per cent of the world

fleet is owned and registered in socialist countries. The shippingindustry in most regions is in the process to contain the detrimentaleffects of oversupply through tonnage scrapping, mergers of services,and the introduction of more cost-effective technologies. Some orthese observations aDply particularly to the bulk sector wr.ere

10

operators have resorted in growing numbers to scrapping and acquisitionof second-hand tonnage. As a result, 1986 saw significant increases inscrapping and second-hand prices for bulk carriers since thecorresponding fleet had started to contract. However, there remainmany instances in which individual governments encourage fleetexpansions through subsidy schemes for newbuildings and theestablishment of arrangements aimed at protecting the market share ofnational fleets. A closer look at these practices reveals theinevitable presence of high economic and financial costs, andbankrupties in the shinping industry remain abound. Shipowners in.heir struggle for survival are often willing to carry cargo whichcovers no more than the v;ariable cost.

S. Declining freight rates, fierce competition and the chronicoversupply of ships have forced shipping companies to look for everypossible means to reduce the cost of transporting cargo. Conseauently,the maritime industry has undergone changes of unprecedented dimensionsover the last fifteen years. These changes apply to:

(a) ship, cargo handling and communication technologies;'b) the orgaanization and structure orf shipping services;(c) the integration of sea and land transport; and(d) the role of ports.

9. There continue to be considerable acdvancements in ship designand shinbuilding arrangements, which are geared towards reductions inthe cost of i.tewbuildings, and the operation of ships. During the last-.ree~ decades. the si-e and carry7ng capac-ty of ilquid and ary buikearriers has increased more than tenfold. Maior changes in generalcargo cmanagement have induced the emergence of container ships withever.-increasing dimensions. Developments in engine design and:uc-_ons _-. crew ana ma_.tenance cost -ave contr- uted tc -reater

Žs:lcIenc-T and cost-effectiveness in the rrovis4on of shinning.errmces. :onseauencl-, typical ship operating cost have declinedsubsrant.all' In recent 7ears. -or instance. the TEU-mile onerat-ng

~t cf-e l-lar container sn0s -tult- i n I 982 and 1986 tiffer 3v :j

-:n ersus ; W a~. ' 3. .iowever, tae:oss -r nmocern sn_cs .ave oecome mucn Lilger than those associaaeawita nearlier generation snips. -these developments are caus'ng majorchanges in the decision-making behavior of shipping companies when itcomes -o -leet deployment and expansions. Substantial efficiency gainsin fleet deployment and cargo flow management continue to materialize-:rougn increas-ngly sophisticated electronic data information exchangesystems wwnacn Aave become commonplace in the transzort and freightforwarding industries, that serve international trade markets.

10. Ships designed and built for highly efficient operations withsignificant daily cost structures are critic:ally dependent on timelyavailability of cargo to be carried, and on fast loading and unloadingin ports. These requirements have led to the development of

-~~~~~~~~~~~~~~~~,

EXHIftT2COST STRUCTURES IN OCEAN CARRIAGE OF MPORT AND EXPORT TRADES:

Wha has changed?

Modem purpose-built vessels usually cost in excess of USS 50,000 a day for depreciation, crew, management, ooerations and fuel. They have tobe intensively utilized. that is to be sailing on the high seas while carrying cargo at the highest possible load factor. Any inordinate delay in oortsis very expensive to ship oerators. Generally speaking, a iost hour cosTS somewhere between USS 2.000 and USS 2500. :Differences in cost existamong dfferent types of vesseis but also among different camers, basically ref¶ectng their different corporate management practices. Anexamnple of this observafon is given below for typical Taiwanese and U.S. container operators (reflecting 1984 cost).

U.S. Flag Taviwunese Flag

Capety in Als 4200 2800

Awuml c05t (rnm US)Capital 7.13 4.50Operating (355 days) 5.00 2.20Voyage 5.36 4.40Total 17.49 11.10

Mn TEU-mAesUyeer (2Z days at sea) 510 370CastflPTUne (cm. )

100 per cent utilizaton 3.4 3.070 per cent utilizatoin 4.9 4.3

.'C generai cargo fleets consist mainly of conventional general cargo or oulk vessels and comoination snios that can carry breax ouik carc, and-ontainers. The cost cnaractenstics ot these fleets are mucn aifferent from tnose of the more mooem tonnage ceployed Dy European, J.S anrisome Far Eastem camers. The main reason for these differences relates to technology and management, out also time spent in ports. Because-ne LDC-owned vesses soena mucn time in Dorts they are less productiva tnan the vesseis deoloyed by their inaustnaaized countrv cornoettovsvoical cost of LOC vessels are given oeiow.

^onv. Sma83ulk Comb. Catrier iner io

cooo D ,60 000WT1 *c-E_.

AflullCost (mn USS)Capra 0.9 2.1 6.75Operatis 1.8 2.9 3.33Voyage 1.6 2.4 3.46Totai 4.3 7.4 13.54

Mn TorTdyar 210 410 2016

100percentUtilization 1.9 1.8 0.6770 per cerat Wlization 2.7 2.6 0.96

12

increasingly effective cargo handling techniologies. Imbalances incargo flows among different countries or regions and still widespreadport performance problems, particularly in developing countries, havebecome major impediments for many shipping lines, adversely affectingcapacity utilization and financial performarLce, but most importantlythe cost of seaborne trade. The proportion of shipping and portrelated costs of trade in CIF terms is 16 per cent on average forindustrialized countries and 25 per cent cn average for developingcountries. In several developing countries proportions of up to 45 percent can be observed.

11. An added dimension to the complexities of seaborne tradelogistics management is the fact that cargo delivery standards haveattained increasing importance in recent years. Shippers, that iscargo owners and their contracted agents, have become much morediscriminatory in their demands for ocean carriage. In fact, shippersin growing numbers dictate the packing, routing and transportarrangements for their traded commodities. The maritime transportindustry is faced with the need to adjust to these changing behavioralpatterns. The need to produce export commodities competitively has ledindustries in OECD countries, but increasingly also in severaldeveloping economies, to streamline inventory management and control.Reducing stocks of inputs to production processes have allowed majorcost cuts, but require at the same time highly dependable supplydeliveries. Similar changes in physical distribution management ofmarketed commodities are taking hold in different production sectors.Tn their pursuit of reducing the cost of inventories. trade andindustry keep introducing arrangements which are increasingly directedat supplying required goods 'just in time', that is within a short timespan before the anticipated use in production or sales. In all this,transport becomes more and more an integral part of production andmarketing strategies in industry and trade. :mportant,y, t has to berecognized-that selecting least cost transport options is no longer asure recipe for optimal physical distribution management of tradedcommodities as such options often imply increased inventories andhigher than aecessar-? costs, which, traders Lear, may resuit In ocstales. -he expand4ing Internationai elec:ronic ata _a n a_^-atsn-xchange sys.ems olay a major role in these changing requirements.Graph 4 illustrates the potentiai trade-offs between transportation,inventory and order processing cost. In the wake of thesedevelopments, the commerciai success of export and import markets theindividual countries becomes increasingly dependent on reliable andcost-effective trade logistics management arrangements. Quite clearly,the changing logistics management strategies in trade and industryrepresent the biggest challenge to ocean shipping and will more andmore determine the fortunes of individual carriers.

13

EXH1131T 3SELECTING OCEAN CARRMS.Wett do ahteiu 'aem most?

In rocent survy, a European shipowrwe associaton atempted to a_e re ctanging requirerrwww for ocean carmage of traded commodities

among shippwe. Al t se tim , the shippen' d.cision-ralking cbtra for 3ictng a spefic carirW we to be determined. A synoptical

overww of te survey result is shown below.

Whet ctors do wu corside hnpo sinecig an ocean oamrcrr

Atankn

Carrier Rate tFrequency of Service 2Quality of Service 3^amer Reputaton 4Cormerence UnerNon-Conference Liner6 Ro-Ro ServiceWulty Cellular Service aFeeder ServiceBuik Service 10

8otm quality and comt ,actors errerged as ieawing crrterla wrti almost equal weigrnt. _'amer rates, oamer reputation, quality ano irequency -t

service were all sSected ty a !arge matomy ot reoondertm. Gharactenstics olf !fne selvirO CiAciuaar, teecer. auix ana rne Npe of _arner

-cn1rerence, ier were isa sK,nrficant.

14

Trade-offs between diff. Logistics Costs

DfUar L*ogiUcs Costs

L-ITow Ca

!FOrder Procesang Con

-- - - - - -- - - - - - -- -- - - -- - --------_ --_ ---_ --__ _ _ #

| . - LEAST TOTAL COST CONFIGURATION

Spectrum of System AlternativesP_ .m ~bou"ss. Pr.om= Tr.-upoL .syWna.. L-Ctfrprt.

| F -Spred Or8r Proo-ing GPAPH 4 T,-Sp.d orde P,acet

12. Over the years the highly competitive international shipping

industry has devised a number of arrangements which have enabled costreductions and improved services to its customers. Notable among these

developments are the introduction of cargo unitization, restructuring

in the organizational set-up of shipping services, and the emergence of

intermodalism. However, despite reductions in cost performance. theactual freight rates in container sniDping vary considerabiy among

diferent market segments 'Grapn 5). The key reasons for thesedifferences are to be seen in the influence of conference cartels andother forms of monopolistic industry behavior, as the basic operatingcost oarameters in the orovision of shipping services are essent_al'-the same for all trade routes.

,f asr: .n[ere!Lje .aten f

.Average :jaat Rates i1JS$)80007500 f

650060GOO..

| 4ff00r - f.500 -.

4500 ____-- _______

- 000 f2500 f-:' GO I- I-:. ~- - -- -

20001962 1983 1984 1985 1986

Year

E- -EurpD-FE 'IAtl.otlc Earope-ME : Europe-Sostr .

15

13. The push for the introduction of seaborne cargo unitizationresulted from the increasing cost of labor and the slow rate of break-bulk cargo handling. Today, almost 70 per cent of internationalgeneral cargo is moved in containers. At the same time, there isgrowing evidence that more and more bulk trades are containerized.These circumstances have led to the development of increasinglyefficient container ships or combination vessels (such as CON-ROs andCON-Bulkers), which can carry different cargos in different forms ofpacking at the same time. Obviously, such combination ships addmeasurably to an operator's flexibility in adjusting to the gyrationsin different commodity markets and their associated trade routes.7reight containerization is a common global phenomenon. While the

penetration of containerized trades has reached saturation levels in

most industrialized countries, containerization in most developing

countries continues very rapidly and at steep rates.

14. The need to overcome the problems associated with imbalances

in cargo flows, to minimize empty backhauls, and to maximize capacity

utilization, has induced structural and organizational changes in the

shipping industries. Round-the-world services were introduced by key

container operators. These services are provided by high-capacity

dedicated containerships which limit their calls to regional load

centers connecting with a system of local feeder services. Inevitably,

one has to expect several implications of these trends in the long run

for individual ports, the present organization of international liner

conferences, and local shipping. In the context of these

restracturings, the size of newbuildings keeps increasing. For

nstance, in -he Trans-Paci`ic market th e average size oe

containersnips .has increased from ',200 TE'U (in 1982) to Z,SCO E'U (in

1986). While that market has become something like a trend setter for

the maritime _ndustries, it has to be expected that similar trends willbe _nitiated in other segments of the world market. The ultimate im.act

of the round-the-world services will reflect the success of inas

annroach -o -lner snh nnng ana the lines concerned i.n winning carco.rzaich is oresently still difficult -o judge. The more i:mmediate _mpact

m.e r zs _ai _,enners -o3r a :-4.aor r_qce. 71 sa cut a a -- e

oort exoansion Drolects wniie Dort authorities seek to estabiisna tneiplaces in a new equilibrium and await further overall growth incontainer trar:ic.

15. The container simplified intermodal transfers and allowed aran-d daveiroment of dcor-to-door services, ma:ched by evolutio-s *.

the legal and commercial environments which had previously tended to-reat as separate the different legs in the movement of cargo fromorigin to destination. With the growing volumes of container trades,and greater demand for speed and tight scheduling, it has become

increasingly necessary for the water, road and rail transport systemsto be physically and operationally very closely linked (verticalintegration). Reacting to these changing requirements, keysnternational ocean carriers have reali,red their service pro-.- s4onssust anal a. s-

16

realignments took place outside conference settings. What happened isthat these carriers (particularly of U.S. and Far Eastern origin) haveundergone a transformation from providers of pure ocean transport toproviders of integrated door-to-door services, called multi-modaltransport operators (MTO). In the context of such services, the seatransport link represents only a portion oi total cost (Graph 6).Imaginative management, aggressive marketing and superior serviceprovisions have enabled these carriers to control increasingly largermarket shares, resulting in a trend towards oligopoly in many marketsegments. In Pacific trade the market share of the top ten carriers(in terms of vessel capacity controlled) has increased from 58 per cent(in 1982) to 71 per cent (in 1986). Trends towards increasing capacityof vessels and growing structural linkages with the rest of thecontainer cargo transport network have served to accentuate the demandsplaced on ports, while port authorities in turn are beginning toappreciate their strategic role in the complex, dynamic and capitalintensive sea transport industry.

Through-Transport Cost Composition rTypical Cost incurred- by a MTO in

Trans Pacific Services

Port Terminal Operationsx

Vessei Operations

aand Chassis

[niand Operations Saes and Overhead

2AP2'

17

EXHIBIT 4RESTR1C1JFN IN THE SHIPPING IDOUSTRY:

What am the cauem and ecl?

It was te incursion of Sea-Land (a U.S. cwr1e) across te Atntic in 1968 which frxcd the European response to the fowvment of general cargoin contawnr and immedihaily involved rationalization. The substantal invstment needed in continer ships, container and terminaisdemanded tht the old established optors involv thmevs in pint vrires, cortla and outght mergers in order to achieve the scalesconomlIe afforded by ft nsw order. Ounng the build-uo of container capacity in twe late 1960C and eaily 1970s -mainly the substttion ofconsentional capaCty by converted or purpose-auit contaunear vesseis on mainstream trade routes- the degree of chance was Iimitea by thetradibonal approach to organrzation. VYssel pooling and trae shanrig between lines in consoronal alignment, combined widh the conferencesystem for price ftng and cargo reservation, was seen as necessary means of preserving the status quo.

In the mid 1970s, te traditional shape of liner shijoing began to be distorted by the entry of independent newcomers, mainiy from the Far East.Their awakening coincided with a cnrs in the newbucdling yards and the ready availability of cheap finance which enabied them to build up fleetsof modem, efficient vessels. The impact was immediate. With baseloads of domestically generated cargo, these operator couid uncercut -he

established carriem just where it hun the most on the high paying freight which the conference systems' commocdity-based tanffs perpetuated.The long and blte argumenet aoout rdiability and level ot servce proved difficuft to sustatin when the independents were operating newer, moreeffint shi on compeive, i not MOre frequent scheduls. By the early 1980s, wrth container penetration reaching levels of about 75 per centon average and a perceived maximum of 95 per cent on the mainstream routes, rapid increases in capacity far exceeded growth in trafficvolumes. Rates came under great pressure and the old established lines were largely poweress to compete. Many were saddled with inefficientsteam-powered tonnage less than 10 years old and wrth outstanding debt Further ralbonalizatbon was therefore inescapable and often painfui.Re-engining and jumboizatiom were two strategies designed to restore the competitive advantage, but sail the pressures were excessive.

The moves towards evetr greater scale economies at sea have been heightened during the period under review (1980-1986). The pressure tomaintain fixed schedules forced pooling of resources among smaller operators or the building up of large f eets by the independents. So wherecan it all end? Clearly the pressure on rates is not going to be eased in the foreseeable-future. n is by no means certain that there is a lower lirnitat which rates smoilize. Exoerience suggests that operators will continue to be wUiling to offer capacity beiow cost for a while in order to securemarket snare, and the oresenCe of direct and indirect state interests and subsidies in many lines does not orovide grounds for encouragement-

With virtually no leeway at sea, most of the major operators are looking iniand at tne totai distribution chain in an attemot to regain nieir

conorettlve advantAge. With the cost of the deep-sea leg of most major routes bekow 35 per cent of the total, inland distribution, terminal and I

^ontainer handling cost maKe uo the lion s share of the overail door-to-door through transport service biil. However, as tMe concentration Otj

seacome capacrty into a fewer riands is an inescapaale resuit of ine restruc:uring of services, no cost of providing the necessary nlanoinfrastructure -on a scale remotely economic- will furtner add to the pressure for the disnbutmon function tO oe concentratea into a fewer nanos.

n Mie I.S.A., Eurocie and increasingry aiso in otre,r regions of the word, tine traditonal snipoing circles are extending their corocrate 'entures-sano rwith road and rail services. The U.S. samer Amencan President ines iAPL) srves in ail this a certain role moceli for 'e rest Ci tme Yorc-."&o cn ConsisecOe domestic '-'nimd. _-Yi orovslon ciT rairv craat-toccast r,arvices -- Cuc!e stSaC t 'dO tO t eccncri!ts- - - 3

-nainiv Pacific-oaseod oerator in an envisaoe oosruon in terms oi service ana cost. Tne acdition Ot own account roao hauiage capacity ccnmcleTe

ahe picture. Wifn th te nqner paying, irne-sensitive freignts a deliberate sales target, *PL markets its services in the shape of swift, -el arle transittimes. oacked by comrputerzed documentation and cargo-tracking facilities. It is important to note that AP, is progresstveiy extending its tull

.overage services into virtusaiy adl countries aiong Asia's Pacrifc nm. The signals are tnere, anct the competrian makes moves tO follow suit.

The camera' luil service conceot -osica distibution management (POM)- cornes progressrvely into operation, streamlining the entire functionsol croducnon soneduling, warenousing anrd ceiverv. POM aims at tne cest cossible trade-off between .mne anc money rn t'e C:sinoutO,n :t

goods. Significant savings can frequently oe made tay simole lateira thinking, which is often and understandaoly difficult for a shipping manager-vnose every exerience telis nim io stuff as much into a container as cossible. Interesting in this context is that combined sea-air services cnlong-naui rouste are beginning to nse in significance. These services offer faster transit times than the sea only route ano lower cost mnan tne al

air ootion (for example Nonh Europe to Australasia via Singapore at rates 30-40 percent beiow air freight on a 25-day transit).

Despite the increasing concentraton of capacity into the hands of a few, there will certainly remain a niche for the smaller and indepence"loperator, especially on the secondary and tertiary routes. Even on thie mainstream routes, services based on minimum cost port-to-portoperatons will remain to some extent and for some time as necessary facility, mostly in the case of develooing country trades

18

D. Ports

16. The imoortance of seaborne trade to national economies cannotbe understated, and it is no surprise that ports assume considerablestrategic importance in the economies of their respective hinterlands.This is recognized in many countries in the form of financialassistance to port development, direct or indirect, by central orregional governments. It is also common for port authorities to beclosely linked with local government structures. The employment andincome-generating capacity of ports is fully appreciated at all levelsof government, to the extent that port development projects have formedan integral part of important regional development schemes in manyparts of the world. It is this wider economic imperative, probablymore than normal commercial practice, which makes inter-portcompetition so vigorous in many areas of the world and often amongneighboring ports within the same country. In growing numbershinterlands have lost their strict definition for many cargoes, and achoice of ports is increasingly possible, evern across frontiers. Thisphenomenon is largely explained by continuing spatial and servicechanges in economic activities on the one hand, and land transportsystems on the other hand. Added to this complexity is the number ofports whose close proximity makes them direct competitors along thevarious trade routes.

17. One way in which ports in some regions attempt to stay onestep ahead of the competition is to continually modernize and expandfacilities. Much awareness of trends in carrier strategies and shipand cargo handling technology developments is required to enable portmanagers to take demand-responsive decisions for investments andoperational arrangements. The implications of changing servicearrangements derived from such carrier strategies, and equinment:echnology developments for indiv4dual ports are usuaLly profound. T-eavailabllity, to some ports, of funds at less than market rates ot asublic exrenditure has enabled or encouraged -ver7 large nroiects -o 7oanhead under a ziir^erent sort of economic and commerciai scrutiny :.,an-.nat nignt aoniv to private zector prD eCtS of tne ame oagntuae.

._a- 0a'o' 'S 3ecvme -sme Ctinlg Jf a sor- taint -.; z rts I:ecei-'e no orn ,f aevelopment subsidies. -L the same t_me, sootsZaced with the possibility of losing financial support argue tiratassistance is critical in the present period of modernization andexpansion, if their market shares are not to suffer. WJith large andraDid increases in port capacity the need for individual ports toetaan or increase their market share has become critical to their

zcntinued 7iability, ai_nough the administrative and fanancalstructures of some 3orts ailow them to record operating losses for many-onsecutive years. The unpredictable nature or trade flows, anaability of ship operators to change port calls easily, only adds to thepressure on port authorities. Trade volumes and mixes throughlndividual ports are in a constant state of flux due to the dynamicnature of many trades, a fact which compounds the problems for portplanners.

19

EXHIBIT 5THE ELBWENT8 OF PORT SELF-ASSESSMINlT:

What mnat,tus?

For a,ny pon it bd sof u ot iportance to assess from time to time its position in tw mnarket place, how the environment in which it has to perform

ha changed, and what future changes are likely to develop. Such seff-assessment is fundamental for improving service provisions, financial

peilmance, and more generally to ensure effective adaptatk to expected market developments. The prerequisites for formulatng a reiated

management strategy are internal and external appraisals.SERvICS PERFORMANCE OF ACIur!Es

-CUSTOMERS |- SEICPOaT(rIAL (SE*ViCE 0A0S

.E R V i CE S f RFOM Edo)u^

- FViE T E ^R r OGOTEC P IYLj- CSE 040 vi rEs-vCUSTO,,ERS 0CC Ita' S CTRMODITiESSt FOOi TiENiA S Et,

- dE.ENUE ay=f S- CCtOD I r i E sTC T UAL -- SRrViE C r es

- . U IEeuE - .EME,.J ''AAF NE C

i - -ER US r EPOtt . R .;>-.:

-- °EP SiRVICE A I *

I -- JrER -:JSTOMER

I NTERNAL: ___r,___

.PE'''nRS~~~~~~~~~~~~~~~~~~~~PRASL -0 I ho I ALL I

NOS*1!C! CoMMETIVoRS

OMPETiECST 0

MPSO?TOtL- DIQfCT FDMEfTlroRs . rl~~~~~~~~~~~~~^"CI^;cA, :JfCTi .les

tIsios" CONfTITOS *ERPLOY M(T LEOOL oTiCIr?AL :BJECii-.Q\-- ~ ~ ~ ~ ~ ~ ~ ~ ,1.0 xTrTs sfTrs- rD^OsF r71I4" ANO

nQhqATrY iEtAi O If RLL IF '.iA- .N OU, fiRiL4

ROMNOOTITI: IOODi 'CiC D9 0RATE iqDO5, FACINATRE ITS

-- S;ECOSMTs O F AR/cO.P

Il ii( -CNM CAl/ 'SOiO jO jiE,

- COARIUES N sissoisurSN ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ONTRCTo

!._RKFT 51151 YSSvTio iTi- p -CS'E

- .esr' -TIObe |APPRAISALI tE i0t00!tRTochEso

- 5 C:NGLE CSRMOOITY - OE tV0/U~sT

- ^"uE *tMe5 GI5T C S,~~......N4 E UL

-ESTiMaTiON - NE

-iT 'F _ ; ,A.r/'cqop 'i R

-- AAOGLLA 05065 S 9 .

1!A KE Q;AI,'r!Spsos

-- ArOUO : S5MNA::

_C .I500L I r - I

.,-aOT1 -L I- * ITi ^!

-,* , CAL > .. D h OI0

S TEe NA r1OAAt PRA rSAL SC L rPT!STSO

- OJARNECi tOJVEPoFrS- - E - S- PI.ITiCAL/ECONOrlcSL 3LOC /'rO . r

- OUiLOItAA ODIrrEPA ^RAl-lO A

- TER NATiONAL LEGS. OEVE,OPM,NfTS - IAOE.i-5 -OLiMG6 TEC-OLOGIES

.,Po.EmrSOAOODi, A O

- "15 IPONNENi~~~~~~~~~~~~~~~~~~~IO 1;I ,PE

iO-FREIG ATIONAL <EGISLATIO aNo -- SLLEN AT ION AnD NOORnRioN -0R FEGUIAT-10 --- 00,>c,o)S0SIS

a - C04R~~~~~~~~~~"GES it I-I-0 1

6/A.SpSOr1 I SIriLA t I I S or IRuACTs0E

Jpon completion of the internal appraisal the information obtained is used to idertity a port's strengths and weaknesses. This does not mean ttCat

every minute cieficiency is iisteri; rather it is a search tor those strengths and weaknesses that have brought a port to its current position Any

Wuture strategy that is built on one of these strengths has a much higher probaoility of success than a strategy based on a weakness. The

ntormation generated by the external appraisal is used to identify the opportunities and threats that a port does or will encounter Again, ninute

:netaiis are unimportant ratner a 'ew oroad areas in which a oort shouio or snouia not deveiop strategies The ! ;aa 'S -hat c n es ,r_ ._

:xzso,ted wnie tnrraats snould he aver-<g -he warn in c -ho neiecton Ct is es 5 ecen -t - eonc's S-"o - 3 c-a c.l 'r s n and ts

_3caoon-aikers hnere wili be oeoates over strategies solely to exploit an oppowtunory, ma otners tnat oui on a pon s srefngtns. Te sarest

aOwroach is to design stratergies around all four criteria: strengths and weaknesses, noportunities and threats

20

18. The relative position among port is also in a constant stateof change. While there are dominant ports in some regions of theworld, others are making rapid gains, and once dominant ports arelosing their traditional market shares. In the light of all thesedevelopments, ports have to periodically reassess their role andfunction in the market place, and to devise strategies aimed ateffectively adjusting to the changing environments in which they haveto perform. Port administrations are therefore increasingly devoting alarge part of their energies to marketing activities. Such campaignsare these days directed more towards shippers _:han ship operators atleast in the general cargo sector, as the choice of port calls in largemultimodal transport networks is now more at the discretion of theshipper than the _ndividual operator. The campaigns have also becomemore public and possibly more bitter, as trade gains at one port willmore often than not be made at the expense of another port in a regionor even in a particular country.

19. The factors involved in inter-port competition are many andvaried, and often go well beyond the obvious elements of location,facilities, seaward and land-side access, efficiency and charges, toL.nclude inland transport costs, and government policies regarding portdevelopment and transport in general. A principal criterion forshippers and their contracted carriers to use a particular port isincreasingly the turnaround time of ships, and not so much portcharges, given the high daily cost of these ships. Other factorsundoubtedly enter the equation, particularly the extent to which a-partis effectively tied into inland distribution systems. However, in many-egions cargo handling performance is not a major one. Intense inter-nort competition has ensured equally efficient handling, using modernequipment and at very competitive prices, at all the major regionalports. The intense competition among ports generates a steady streamof iggressi.ve )or, tarif- packages and complaints of unfaircompetition, including accusations of under-cutting port chargeszhrough currency :fluctuations, and preferential government assistance,for instance, in the form or interest-rree loans. The Zesult is cratiniDpers ana nan operators are generally receiving excremelv cooa

-a ue cor hez- naymencs -D ports, - nne :ne cor-:s un :urr -re c-f-rn-.ard pressea to maintain their -inancial positions, garticuiarLy -.t.mes of conslaerabie capital expenditure and uncertainty in trane.

20. A degree of excess caDacity in world ports can be consideredadvantageous because of the flexibility available to shippers and theability of ports to absorb rapid changes in cargo volumes and types._asy flow of international trade is thus ensured, but there are -earsthat in many instances available and plarLned port capacity sexcessive. A conmon argument for caDacizy expansions is that shipoperators will not piace their faith in a port which is not abie toprogress in tandem with the company's own development. Other portsfear being left to stagnate if they cannot match the technologicalchanges and increasing vessel sizes. However, there is frequently no'ndication that the growth of national trade will keep pace with thep2anned expansion of port facilities. Nevertheless, the perceived

21

EXHIBe TSPORT SELECTION CF4TSIE

What coun?

Port competbor has intensified ave the iat 25 years. Athough there has always beer rvalry ang port for taffic froM hinteand regions.contanenzation has enlarged and extended ths compettion. The 'through tansoorf ooncept and intermodality frequentty provide exporters andimporters with a greater choice of ports of exit and entry. in this conext, it has to be realized mat th citea for port choice aongx shipper havedrastically cnanged. A recent ss.Jdy of the Atlantic market indicates that the leaionu approaches and purport to explin int-port comptition,including the hinterand concept, are not partcularly helpful. hstead, it became clear that compedng por nmust be viewed from te perpectivesof exportrs and importa. Regarding te selection criht of ship operators that sei trade, it is most important to note that port charges havelot much weigt In thw choice of ports. The forwarders contacted h the stdy did not give much weight to port attibutes in te overall portselection process. Following responses were obtained:

IPont Seleodon CMf Rnf P4rt S mVef QCrMl R_k_!hc at the *iowewNch Of VW of thw a low NWat port sewv4 do youdo youcrme Wporta nt uold 0ilaiawdcond~~~~~~~~~~~~~~oeder nhcnderii .hselecing a Porr?Numoer o1 Sailings I Road and Rail ServicesIniana Fraiqnt Rates 2 Container Faciities2Droximitv ot Port- 3 Tracking SvstemsCongestion 4 Warehousing 4neernmodal Unks 5 Consolidation Services 5Pon rEquioment 5 Heavy lft ServncPan Charges 7 Manhallin9 Yards 7Customs Handling a Bulk Facilitie8ort Securrty )10 Coid Storage Faciities

size ct Port 11

i n oort stjcies. ne efficiency of lacilties nas oeen taken as a factor of consideraisle signrficance in aetermining a ports cornoetitive ooslion.i;urrnermore. a port itef is orten seen to occuoy a central role in ite routing ot commrority ifows. The results ot the study, wnrcn reflect atitudes* rt-tsintv nror Irnrea:o e10e Atlantic marxer. wouJa aooear to incicate that cnaractenstics of pormn thernseives do not control cfntainer 'ows as

-s ne nignt 5uz;oso. ne cacision-maxers 2fnoice ct routes as snaoed by zansoortatin cos; ana service ;-tferernoo_ .a:er *ar,rar.aracsinsscs Ot 3eaoort terminals. 2bviousry pon faacities must n. maintained and uograded wnere necessary, zut trio srtuy suggesss Ilat

iiese imoroverrentr are unuikeiy to nave an effect in divertng traffic to the port. The benefits of facilities improvement are itkeiy to oe realizea 2v!te shipping companies anm oniy indirectty in trade growth.

In orser to gain a berter understanding of inter-port competibon, the location decisions of the shipping lines must be examined. Why sirvice isestaolisned, at which oarts and at wnat level of frequencies are vitai questions. The importance of the shipping lines goes beyond the provision ofrniQpong oarvices. .ne growing role cf many lnes tn providing coor-tc-oor services for customers, maKes it clear trat tme slrooing ccmcanjes

must be raren into account in any consideration of inter-port competition.

22

wider economic and strategic benefits of maintaining competitive portsare likely to continue to motivate investments. The current rate ofworld investment in port capacity appears to be outstripping growth incommodity markets and many of the port expansion and improvementprojects seem to be aimed at retaining existing port customers orattracting those at nearby ports, rather tharL catering for real tradegrowth. On the other hand, the long lead times required for major portdevelopments make it necessary to build-in a significant element ofcapacity above known trade levels. Port developments plans are thusfrequently optimistic in terms of expected throughputs, andconsequently are betting heavily on worldwide trade growth and anindividual port's abillty to attract a share of that trade.

21. The continuous restructuring in the liner trades, and inparticular the high-profile activities of companies involved in round-the-world container services, has led to speculation that ports areentering a phase of more intensive competition and development whichwill result in the emergence of dominant load center ports, to thedetriment of other ports in each region. However, it is by no meansclear whether and for how long ports that have assumed the role andfunctions of load centers will continue to maintain their position,given the volatile trade markets and the highly dynamic internationalshipping industries which serve these markets. Port expansion anddevelopment for container trades is no doubt booming at present, andthis has been matched by the growing emphasis on marketing on the partof port authorities. The development of modern container berths andterminais is very capital intensive, and there are high stakes ridingon the ability of individual ports to attract t:rade, and in the longerterm, on overall growth in world contairLerized cargo volumes.However, ports are to an increasing degree dependent for their own-iability on the health of the shipping industry they serve. Theshipping sector looks likely to be in a state of overcapacity and_.nstabiiity in the near future. The immediate prosoects for individualports vil. therefore be closely linked to the fortunes oz their majorcustomers, and there is a real orospect that some ports will become

-ancial 47ains -ather than ?conormic generators -n 4 9ir es'eCtvereg-ons.

23

III. ISSUES RELATED TO LDC TRADE LOGISTICS, SHIPPING AND PORTS

A. Trade Logistics Organization

22. Export trades in most developing countries have been limitedto a few primary and agricultural commodities for many years,essentially reflecting the economic policies of past colonialadministrations. In fact, much of the transport infrastructure, andoften domestic regulations governing the provision of trade relatedtransport services in a variety of developing countries, still reflectpast trade management practices to a considerable extent. However,these countries have experienced significant fluctuations in the globaldemand for their traditional export commodities, often associated withcontinuing major price declines -developments which exert obviousimpacts on individual countries' economic performance. For these

reasons, most developing countries have as a key element of their tradedevelopment strategies a diversification of their export base. Suchstrategies are normally encouraging the establishment of variouscategories of manufacturing industries. The products coming out ofthese young industries are partially aimed at reducing importrequirements, but are also selectively destined for major overseasmarkets as potential foreign exchange earners.

23. During the period under review (1980-1986), many developingcountries have achieved self-sufficiency in satisfying domesticconsumntion demand, oarticularly for cement. rertilizers and steel.The ;orresponding local industries have matured and search for ways tosell excess production. Riding high on their success in meetingdomestic needs, industry managers take a close look at the

international markets to just4ify further plant exnanslon. However,those who constitute the international markets have become increasinglydemanding, not only concerning price and product quality, but also withzegara :o soeedv and reiiabie product aei_very. rmade promotion anddeveiopment 'n developing countries are therefore cr'tical'y (denenaent

,c_-ct. a 9 ' zU ' ''-z r-onnemenrS-n ncrcuniz-, a;na :naiLen_e at the same -t.e ror .ieve'opang coanxz s;s :zs :endenc'- vithin the industrial sectors in 'estern econcm_e-s njapan zo reduce in-house production of components for various marketedoroducts. The trend among manufacturers in these industrializedeconomies is to relocate the production of components to countries withlower labor cost and other conditions of comparative advantage, such as-utaz-d -ver¢neaa cost and 'ocal currencies that are pegged to the .

dollar. But the location decisions are largely influenced by Logistics-onsiderations. Since the cost Do distribut4on logistics often rangebetween 30 per cent and 50 per cent of the market prices of a tradedproduct, there is an understandable urge within international trade andindustry circles to reduce these cost. The answer usually points toreducing inventories. In order to be able to take advantage of thesetrends, developing countries again face the need to improve deliveryarrangements, in tnis case for such components which they intend toPrdcuce domesticali1.

24

24. It is a hard reality for developing countries that theinternational commodity markets have become closely integrated, whichmeans that these countries have to be very responsive to the specialrequirements of their foreign trading partners. The electronic datainformation exchange systems that progressivrely spread throughout theworld economy have enabled international traLders and industry to scanthe markets for required goods, be they primary, semi-finished or finalproducts. The stable supply relationships for individual commoditiesbetween developing countries and theilr trade partners in industrializedeconomies have largely ceased to exist. Much trading is done nowadayson a spot basis. These developments have led to increasing competitivepressures among countries and industries. A producer of, say,chocolate is not concerned from where he receives the cocoa beans, buthis concern is very much centered on arranging for lowest possible costsupplies. A key answer to this concern usually rests with logisticsarrangements. Thus developing countries are confronted with the factthat any trading nation in today's market is forced to adjust to thetrade management practices of its partner countries, and by implicationto the practices in the international transport industry that servesthe trade markets. In other words, the commercial success of anyexDort-oriented industry in a developing country depends more and moreon its ability to tie effectively into the emerging international tradelogistics service networks.

25. Given all these international developments stringentrequirements are thrust upon developing cotntries if they want toremain competitive with their traditional exDort commodities, but moreimpor=antly, if they want to score successes in the drive to diversifytheir exvort base and to promote the development of their domesticindustries. At the same time, these countries have to make substantialadiustments t{o their trade management practices in order to contain'ogistics cost-driven inflation in their domestic trades. Also in the_aZer context, much can be gained from Tiproving the provision of==ansDort serv:ices 'or 1Localiy traded comnmodities. Since most tradeflows between develcoing and industrialized countries take oiace across-. e :eas, "ne ooie or snipping ^na gort - or oar_cular ' ,.p3rtance.

-oc& e iem.ents or te physical f'stribuzion networ; Zor tradec.- cmln.odr ties .3 function efficientli . nor only the recuirements orresponsiveness to technology changes and effective facility managementaave to be satisfied, but equally important, there has to be aregulatory environment that is conducive to stimulating improvedsystems performance.

15. It is particularly the regulatory ana i nstitutionalenvironment in developing _ountries that has tended to imoede tradedevelopment through improved transport services. Protectionistattitudes continue to prevail, and there is the pervasive phenomenon of'maritime nationalism' which are such dear propositions in terms ofreduced international competitiveness of domestically producedcommodities, and inflated cost of imported goods. Thus, primetenteon has to be given to efforts aimed at streamlining the

~ s_on of shipDing service- and m.anagement of oort infrastructure.

25

B. The Provision of Shipping Services

27. Between 1980 and 1986, the world merchant fleet has contracted(Graph 7). A number of traditional shipowners made strategicwithdrawals from mainstream shipping and show little predilection forbuying back into the market, even at current depressed rates. Equityhas been drained from the industry by many years of operating lossesand the prolonged dramatic fall in the market worth of assets, comparedwith their cost of acquisition. The majority of traditionalparticipants in the industry are, therefore, existing on externalfinancing of one kind or another. They often do not have the abilityto stand Sack and examine the shipning markets objectively. Such an

ability can only be based on the possession of substantial liquidresources, which permit investment and disinvestment decisions to bederived from cool market assessment, rather than from the pressing needto generate some cash flow. This general state of affairs is very muchcharacteristic of the LDC shipping industry.

Fleet vs. Seaborne Trade DevelopmentInternational

Trade (bn mtons), Fleet (OOmn DWT)

8,

70 3i 32 83 84 30 86

Year

Cartes tatre. flt,t X Fleet (- tt EcnI - Fleet L-(C.)

ure NCTJ.) '0

28. 'Jnliike the trend indicators for -world fleet Yrowth, thoserepresenting LDC fleets point to steady increases over the last '5

years (Graph 8). The tonnage owned and deployed by develoning^ountr-es increased from around 20 mn DWT in '970 to uns irder _30 .n

DWT in 1986. The most vigorous growth took place in Asia, where

narticularl7 the carriers of the NICs (South Korea. T-aiwan. Hiong Kongand Singapore) have displayed remarkable abilities to find theirinitial niches and to progressively penetrate key shipping markets inlater years. Today, many of these carriers are among the premier

providers of maritime transport services world wide. They own and

operate continuously modernized equipment and have qualified themselvcs

as pioneers of highly efficient service arrangements, su.h as he

sound-the world servces. in almost rornolete contrast, the s- -h.e-

26

industries in many other developing countries are in a permanent crisissituation. Due to relatively low trade volumes in and out of thesecountries and limited competitiveness in the international shippingmarket, LDC fleets are commonly poorly utilized with resulting dismalfinancial performance.

LDC Fleet Development(as Percentage of World Total)

Pereentage (DWT of Merchant Fleet Owned)20

4

191 189 1982 -6 198i66

Year

- DC T-o_e.. Tge. AM.$ ' .e. L&C * .. A_,,

sou2 _loydu. .. .... . ...servic-. GRAPH 8

29. ThIe reason why most developing countries pushed soaggressively into the shipping markets since the early 1970s was theirconcern over invisible trade performance. The contention was -anditilJ. 1 argely remains- that substantia.l and avoidable payments inscarce foreign exchange had to be made to foreign carriers and their'nsurers that cater For LDC trades. The com~monly perceived solution-4as acauisition of own tonnage. in some cases, these decisions werelso Influenced by 3rategic mobilitv considerations. fen, ...

export Z4~: ~nancing w4as avai'ab-e from foreign shipyar~ds, w-4ncencouraged such decision-making.

30. The success in shipping of Asia's NIC maritime industries canbe attributed tu governments not interfering in corporate management,and -notably- the development of service arrangements outside thebounds of liner conferences. The few other cases of some success weresituations in which the sheer volume of national cargo enabled theattainment of relativel'9 hv- igh tonnage utilization among domesticJ-eets, such as in t-he case of PRC and B3raz4l. However, other

countries with large trade volumes, like Inionesia, have failed in

their attempts to enhance the utilization of nationally owned tonnage.The reasons for these failures were manifold, with excessive stateintervention being the most critical. While potentials exist for.-ntegratiLng the shipping lines of neighboring developing countries i-ntoJ40oint sailing schedules -thus improving capacity utilization- the

27

continuing antipathy among governments in some regions has stalled such

possible arrangements. For example, neither Indian or Pakistani shipscall at the other country's ports, making their integration into joint

sailing schedules difficult.

31. Meanwhile, the big European carriers, U.S. operators and FarEastern shipping companies further develop their service networksindependent of LDC indigenous companies, although links do exist in thefeeder sector. These service networks are usually very responsive toshipper demands by providing reliable and high quality, that is timelytransport and delivery of traded commodities. Consequently, thesecarriers dominate more and more market segments. Critical requirementsfor such service provisions are modern equipment, and -progressively-fully coordinated through- transport arrangements. The high level ofinvestment required in terms of ships, equipment and cargo managementsystems makes ocean shipping an increasingly capital-intensivebusiness. These factors have placed many developing countries in a

dilemma over shipping policy. Cheap labor tends to be available butcapital is not. The financial returns on liner shipping during thefirst half of the 1980s are hardly a major attraction. Therefore,opting out altogether and leaving sea transport requirements to be metby cargo-hungry foreign carriers could be a viable option. Questionsof national interest, or even security, usually preclude this approach.As a result, the carriers of developing countries are pitched into theinternational ocean transport market with its high cost of entry,whether they like it or not. However, their stance in this marketremains intrinsically fragile.

32. Being aware of this situation, the governments of fleet owningdeveloping countries have instituted regulations which are gearedtowards maintaining, if not improving the market share of theirnational flag carriers. In many respects, UJNCTAD's Liner Code whichensures a 40 oer cent share of traded commodities to be carried by 'DCeperators, Has encouraged such regulatory moves. Typical protectior.oszarrangements for national flag carriers in develoDing coufltr_es_c__e: -ar:o :ser' atan, creferent-ial cot C:arres, 7rDn 1j2

against :ransshiDmenz. ana conference monopoi'es excluding outslders.I.n 3rder zo enfor_e these provisions, LDC governments in growingaumbers estabLish freight bureaux in their trade partner countries.All cargo destined for an individual developing country has to beregistered in such bureaux which then allocate consignments to nationalflag carriers on a oreferential basis. Since these carriers areusually not well managed and do seldom have modern purpose-builtvessels at their disDosal, their service cost are high and reliability' s oor.

33. These circumstances have a dampening effect on LDC tradeperformance. Potential international trade partners with theirincreasingly sophisticated production and physical distributionlogistics arrangements shy away from commercial interaction withcountries t:nat exert a strong regulatory influence on the prvLs"'Sicf- )ea- -- n O- =r---Xsr4 -r- .r--n T - sIt _ _____

zeactions, ceveiOpang country governments generally resort :o

28

EXHIBIT 7

PROTECTIONISM iN LDC SHIPPNG:What awthe ct?

G3ovemment shipping officials in deveioping countries usually argue that protection of national flag carers is necessary because 1 00 cer cent ofthe freight payments fow to the home baiance of payments account. Actually, less than 20 per cent is gained by a nation (Pakistan for example)that imoorts ships and fuel. The gain represents payments for crew and management. Terminal cost are constant, regardless of flag -barringpreferential charges to national flag carriers.

Venezuela's general cargo freight payments are about USS 800 mn a year. Shipper studies indicate that rates would be one-third lower ifVenezuelan trades and ports were completely open. This means that Venezuelans are paying USS 267 mn more than they should. Outsideshipowners carry 70 oer cent of Venezuela's excorts and imports. Accordingly, USS 187 min 0.70 times 267) of these overcnarges go overseas -a-'egative entry int the balance of payments account. That is a high price to pay for USS 20 mn which the Venezuelan flag carrier may oe aoce tocontribute to the pius side.

It _ _

29

subsidizing their national flag carriers such that they can underbidthe more efficient international competition. What they normally donot realize is that freight rates as carrier selection criterion forshippers have lost much importance in the light of speedy and reliabledelivery requirements. In any case, the implied economic and financialcosts are substantial for those developing countries that aredetermined to remain involved in the ocean carriage of tradedcommodities.

C. Port Management and Development

34. Ports in developing countries usually have a history thatspans considerable periods of time. The reasons for which they wereoriginally established included commercial, strategic, regional andsometimes social development considerations. In all these respects,individual ports have been confronted with change over time. And sinceports are immovable installations, they were compelled to adjust tosuch changes if they wanted to maintain their viability. With no majordevelopment in the organization of shipping over long periods, the fewchanges that took place were orimarily in the land areas surroundingthe ports. However, even such changes did not pose significant threatsto individual ports, which in general, could always count on more orless stable demand for their services.

35. The rude awakening for LDC ports came about in post-war yearswhen- international markets became increasingly competitive, and tradersand industry vere forced to take measures in order to maintain theircompetitive postures. In these efforts, shippers turned to theirtransport operators with more and more stringent demands for cost-e-fective services. The transport operators, in turn, scrambled toaddress the changing demand patterns of their customers. :n t-he wake3z :hese developments, substantial adjustments continue to take place

na -ne structure and organization ot land as well as sea :-ansporz. Asresult, manv -or"s .osr :he snatial hegemony which they always took

i -ltn sr ,--^_a. 'ne oss Qr 3cminance over a onco tradit'onaiA_nter and and tne ongoing restructuring in :he ocean carriage oftraaed commodizces have often caused detrimental effects on t-atficflows and revenue income in many ports. On the other hand, there aresome LDC ports that have experienced unprecedented growth rates becauseof their favorable location along the key trade routes in specificgeographic areas- and because their managers pursued the rightStrategies ror managing and developing facilities. In short, there hasbeen a fundamental transformation of the port systems map in many

eegaons.

36. The resulting shock to LDC ports has been severe, and becausethe restructuring came about so quickly and continues unabatedly, these

ports are still largely trying to sort out what happened and why. Whatmakes this process so difficult is the fact that even the luckier portsthat initially experienced increases in traffic growth often had tosCstopr Sl'vS2cU.¢nt 52.0 ':ntre.en licn res. - rh e 1QPi tS this

30

phenomenon for container traffic. The analysis that produced theinputs to this graph revealed a myth -the common assumption that once adeveloping country starts unitizing its traded commodities, containertraffic will grow incessantly. The explanation has to be sought in thedynamic factors that keep international trade and related transportservice industries changing their organization and networks in theconstant search for cost reductions in physical distribution logistics.

LDC Container Port Traffic Growth1982 - 1985

SamDie Size: 50 Developing Country Ports

Number of Ports

-40 - 0-25-40- -i5 -+ 0 5 to 15 20 25 l0 35 40

Annual Growth Rates (%!

1 1982/83 - 1983/84 19-4/83 -TREND

soQe.: Coins.rizatiom In...LoeM GRAPH 9

37. In many instances, LDC ports have lost out because of theircostl'r and unreliable service provisions, and because there were

naaeauate interfaces with inland distributicn systems. -hrough-transDort operations were thus hardly possible, and modern ships withaigh dail' cost structures refrained from call`ng. None of the manorcarr-ers -who .ncreasingiy dominate the international shiDning markets-ll _ S-si e avs lnd cost that are normal at zany pubiicly owned LDC

38. Developing country governments have become quite sensitiveabout these issues, as they recognize the detrimental effects on tradeperformance and port utilization. But instead of taking necessarycorrective measures aimed at adjusting their port systems to changinguser _emands, they put their emphasis on keeping the status quo ofnational ports. In fact, in many instances scarce public resources are

poured into port develooment schemes in the vague hope that theexDanued and bett-er equinped ports will regain lost traffic. The point

is, however, that modernized port facilities are only part of thesolution. 7niand distribution networks have to be improved and well

rntegrated with a port at the same time. But most importantly, theorganization and management of port operation and cargo handlingservices have to be significantly streamlined. The latter is the

crinc_pal crizerion for winning the confidence of potenttial port users

31

EXHIBIT aCHANGING PORT HIlEARCHIES'

The a f ASEAN.

The most iwportnt dtrrminant for changes in th traditional sot-up of regional port systems has been containenzation. In most Asian LDCsinital respors to cont rion were hardly more than ad-hoc rmeasures adopted to meet short term Crises which arose from the immediatedemands of new shipping technology on port morphology and operatons. In some ports more than others and particularly in Hong Kong, the

major innovatory oenter with its treeweing lissez-faire commercialsm, the lack of rigidities in the economic system fostered such responses.

But much the same can be said of Singapore and the key Taiwanese ports. Hong Kong and Singapore continued to play their historic roles as

entrepots but In the somewhat ditterent context of mainline or load center/feeder pattems initated and sustained by containenzation. With the

increased containerization of trades, changes in ship size and sophisticaton, the load-centering characteristic inherent in the new shioping

technology underlined its potentai for the spatial restructuring of port and shipping networks.

2 v 0 Q;- APAN

The concontratton of 1983 container traffic in Southeast Asia '

and the Far East is shown in the ligure on the right. Within

the ASEAN region Singapore and Hong Kong have been the . 0 AP&A

mraditional mainline ports, sustaining feeder nets from

Thailand, Malaysia, Indonesia and the Philippines. While CHINA K

progressively the key Taiwanese ports (Kaohsiung in

particulari also assumed some importance, Singapore 5EELJNG

clearty has been able to exert its role as key entreoot within TI WAN

the ASEAN system. However, among some regional / - I ! Vi

countres ooposition arose to Singapore's predominance, I _- partcuiarty in Indonesia and Malaysia. These countries saw URPMAA

Singaoore as unnecessarily inhibiting factor in the ci...'qo.'

develooment of their national ports and the movement of R :,. , 7 T7

national cargo througn them. In the early 1980s there <> x Ti_ < ,?i2 PiS -amerged an -indertying politizanon ot nationai port ' -.-....

d:eveiopment strategies wnicn has cnanged the spatial and c -Iunctonai organizatiOn ot the maritime system in tne region. -Several incdonesian and Malaysian ports were substantially PURl .L.A 0

uograded so oe able to act as load centers. So far they have

not deen ante to seriousiv cnallenge Singapore's C N o Acr

dominance However. ncreasing cargo volumes in ail I ac,< >

ASEAN countnes seem to suggest Lnat Singacores practical | NJUNG

:abacitv as transshipment Dort wiil oe reacnea at someLoint. -no Tnat .n eacn regional counttv a load center wii i

.rce 'FS cuest:or ti: -ow , tte iniernaTonal sniconr i-._ _

- ._s;t: 7 c tnese trenas?

What is the possible scenarino for the T990s? For Thailand. the development of the new deep-water port in the Gulf ot Siam, Laem Chacang, 'ill

allow mne cossibilitv of maainine services, in due course, it might then ne expected tnat tne ort ct Eangkok. wth itS wel Oeveloreo feeder rks *o

ngscora and Hong Kong, wi oe eciipsed as Thailand's main container port O,ien mne nitial auvantage cf tnat pcot. 'owvever arn tne ertic:2ncy

j f the feecer ocerations. there may well be a long penod of adiustment. In the Philiopines, te cort of Manila, descite ts relavely high

nrougnouts in the earlv 980s nas remained a leecer po. t 1t nas neen olagued by proolems ot erficiencv tr,at wlSI scn nucantly reouce its ao i v tocapture mainline services. aithougn possibilities exists. in Malaysia. Kelang with its privatzaton will remain the mainline pon for the country 3otn

Penang and Jonore will handle increasing traffic and are likely to deveioo specific linkages Concerning Indonesia, mainline services will at least

devetco to Jaiarta. However, triers is every !ndication at oresent trat feeder services to S,ngaoore nave to some extent only been reolacea by

songer-vaus teeaers from rhong Kong and Kaonsung The Gig unknown tactor n ail tnese assumptions is tne development of rounra-.re-wor |

services. 8y late 1984. Taiwan s carrier Evergreen was using Singapore as its last port westbound to Europe, 'saving called on Hong Kong anda

i'aoi-,ung The arger snios n lOis and otner round-the-world services will seek to minimize the oumber of con,t calls in n-eir cO^2ts *-, 2'-

-I te -%oo,nq onv atm ose crTs wnicn can orer ,en, sgn e-eis c, eficency at acoropriate cost s n-en l,sev n a :e p - "nS -os -e

tt. --eoot "-e n. an - *1, an'rol-e; ^ S,_O in jl<2s'nit ; o1 '.--;- ."scn n- a.lre :.,>c- 1 :.- z'

'zetose is ecnno.oicat eade, Vii .n lact oe saved by a neew round Df innovation tnat restores .t to ts ;lassac oasition of dcminance nrI

soutneast Asia29nI

32

whose sole interest is lowest possible service cost and reliability ofservice provisions. Prerequisite for such arrangements is decision-making freedom for port managers which requires a liberal regulatoryenvironment. In most developing countries, the lack of suchenvironment is at the very core of port problem.s.

D. The Adjustment Process

39. The prime prerequisite for initiating effective systemadjustments is that developing country governments have to be convincedthat efficient ports and shipping and related services are important tothe competitive position of a country's exports as well as the domesticprice of imports. Taking it from there, the next important step is todevelop an understanding of the objectives, strategies and the reasonsfor derived decision-making behavior of actual and potential tradepartners, and in the international transport service industries thatcater for their needs. It is most likely that in many situations theinsights gained from such market analyses are in substantial conflictwith the national goals of fleet maintenance, port development, andemployment generation in the transport sector. But precisely here is,where the hard choices have to be made among economic and socialdevelopment objectives. The issue is that what is considered to bebest for a developing country's maritime transport system and itsemployed labor force is not necessarily always to the advantage of thatnation's exporters and importers.

40. Other critical factors come into play in this difficult andoften painful process. One is that international ocean transport takesplace in an essentially regulation-free environment. Observableshinning market trends with increasing independent actions by the moreaggressive ocean carriers point to the inescapabie fact that thetraditional protective umbrella of Liner conferences is Likely tocollanse before long. International shipping will thereforeprogressively turn into an open area where friee competition will setthe -ules. One can exnect that the resultant benefits for trade areprohably going -o be substantial, but the consequences for -ne snapping_nuus7rr are that only the fittest will survive. n addition,compe-ition between carriers from different countries -and also betweenports- is often heavily distorted through access to low interestcapital and substantial subsidy schemes availabie to carriers andports in some countries, while not available or to a much lesser extentto those in other countries. All these circumstances make it extremelydif-ficult for a developing country government to ensure efficientconduct of trade while trying to preserve the nat-onal goal of being aprovider of shpping and port serv-ices.

41. What are the basic ingredients of commonly required maritimetransport system adjustments in developing countries for improvingseatrade performance? They include:

(a) integrated and coordinated sea and land transportInfrastructure and services;

33

(b) integrated and standardized cargo handling facilities andequipment;

(c) streamlined communication networks for organizing cargoflows and transport service arrangements;

(d) coordinated administration and management of all servicesinvolved in controlling and handling the flow of tradedcommodities;

(e) harmonized trade and transport service documentation; and(f) clarity of liability responsibilities.

42. As regards sea transport, there are various options formaintaining the participation of aational interests ir. the ocean

carriage of traded commodities without causing undue detriments to thelocal economy. Bareboat chartering serves to limit doubtful capitaloutlays in the uncertain shipping market. With the likely continuationof overtonnage in different segments of the international shippingindustry, this proposition has gained a special attractiveness. Inaddition, national flag carriers of developing countries would be welladvised to seriously investigate every opportunity for joint serviceswith the more experienced and better established internationalcarriers. In particular, there is the wide open area of feederservices which has become so important in the context of emerging loadcenters and the resultant hub-spoke shipping arrangements. With theirlocal and regional market knowledge, LDC shipping interests are

especially well suited to assume the function of feeder operators.Should the decision remain to go alone, much imagination and managementtalent will be reauired to establish a market niche. Critical will bethe choice of cost-effective equipment, and the establishment ofrequired servica and operations support networks -all of which is goingto cost dearly.

43. The situation with Dorts is more difficult, given theirimmovabilit7. Clearly, each port has to assess its future role and'-nct4on Ln the changing environments of trade and transport. 3ased on3uc!l assessments. strategies aave to be elaborated concerning t-szanagement > ran-zar_on &nd cuture Oe-;el oOmeno --ih ~m ^,..9^ _S33 S

are _e-~ -o oom Large. _abor- ztensive opt_ons are pract_'cabi ne_n

In cases -wnere they do not interfere -with the user requirements or

efficient cargo packing, handling, and fast ship turn-around. There isnot much hope that ports will be able to sustain their traditionallylarge labor forces, if they want to remain competitive. Also, there isthe requirement that managers look beyond the perimeters of their ports-inland- zo arrange car effective intearat'on wit'h he s_rtacetransport networks. This need is possibly the most difficult task as

-he required ctanges are generally outside the management contzol ofport administrations. For ports that appear to lose their traditionalrole as multi-purpose facilities, there are ways to specialize in thehandling of individual commodities or services.

44. There seems to be a growing importance of privatization as ameans of either developing and operating new port infrastructure, or of-c_ievtng oreater oroductiviL-7 than os sossible _:nder curr-en

34

EXHIBIT 9OIFERENT ROUTES TO CONTAJNERIZATIOW

Sore LDC expee.

Contiol oft e container fleet is spread somewhat patchily across the globe. U.S., European and Japanese shipowners led the first wave ofcontainership acquition, to be pOked later by a second wave of largely non-traditional carriers. Thus today, outside the OECD members and the

East blc. Taiwvan, PRC, South Korea, Singapome, Hong Kong, plus arguably Malaysia and the Arab gulf oil exporting countries have to beconsidered as fUlly-fledged members of the container eite. This leaves Central and South America, cetain Asian nations, and pretty much thewhole of Africa as a breeding ground for the third wave. It is interesting to observe the different routes to containerization taken by the countries in

these regions.

Conditons in the princpai Europe-South America trades are clearly highty favorable to me joint vnture approach to containenzation.Widespreao cargo ailocation schemes mean that the non-conference sector is minute, leaving camers enmeshed in complex webs of loacing and

discharge rights. Some regional operators nave tenred to follow the traditional evolutionary route into tne fully ceilular ousiness by acquiring tneir

own tonnage and operating it within joint ventures in association with the fleets of their more developed trading partners. Although

containerization initiaily got under way in a serious fashion on the East coast, the first fully fledged consortium appeared on the West coast run inthe shape of Eurosai, combining olivian, Chilean and Ecuadorian carers with Outch and Genman partners. Containerization of the East coast

has been a rrore graduai aftair where Dutch, German and French camers took the lead, including some joint scheduling with Braziiian private

operatos. This accumulation of container carrying power has left the nationai lirne of Argentina, Brazil and Unrguay somewhat out in the cold.

However, al three countres pursue strategies of developing generally intra-Amefican service arrangements with their national flag camriers. 'Nhile

Brazil has opted to go ceiluiar, partially with converted vessels, Argentina and Uruguay lineS basically continue to operate multi-purpose carriers

with a strong conventional emphasis. In all this, there is some reliance on the charter marketl but overall, South American liner companies have

become more involved in conEtiner vessel ownership than, for instance, their counterparts in South Asia.

The countries of the Indian sub-continent face a special array of obstacles to the development of their container-carrying ffeet5. The crincipal

cargo generators in the region -India and Pakistan- are relatively unrestricted markets. Sril anka and Bangladesh, however, do maintain cargo-

allocation schemes. Geographical factors have contributed to foreign competiton for the region's cargo. The proximity of Pakistan and Westndia to the Arab~Gulf makes the instituon of regional feeders a viable opbon. Intematonai camers transshio to feeders in the region. Virtuattvfrom the advent ot containenzation ;n this part of tne world in the early 198i0s. Indian shipping industry sources have comoiainea acout trie

creaming carried oUt Oy orelgn container lines, leaving only low-value cargo for the domestic carriers. Following from there, the three principalIndian carfers have pursued different strategies. Copying from the successful foretgn camer service arrangements, they have set up atransshioment operation through Soain. Concerning their fleets, they continue to rely heavily on the tramp containership market for suitablevessels witn wnich to uograce their liner services. ndeed, the tramp fleers existence enabiec emergent operators to deoloy mocern, nianfcluaii'. ;tonnage without the necessity to commit scarce investrent resources. which promises to do more than whole sheaves of weil-intenoeci

rnternational conventions. Sn Lankas national line was among the pioneers of containerization in the region. Although the companv cvns alumoer o? relativelv smali contaminer snips. its deep-sea commitments nave increasingiy osen met oy cnanereo tonnage. he PaKistan Na;cnai

* hiloing Corporation nas also turned to the charter market for containerzecd tonnage.

nr Southeast Asia. naonesia nas fa,ied to follow up its initai ventures into containenzation on its own account. eocrapnv ana. Oceeo. <inc_i

ogic ;fsist on ieedering is tar-flung ports througn Singapore. ne central point of tne main East-West liner trade axis. he Inoonesian Goverrremrtried to crevent tnis througri tght controls over cargo aliocations. aided by the presence of a strong conference set-up. This system now acosars

to be on the verge of breakdown, foilowing more recent liberalization of foreign trade. The chailenge for Indonesian container operators i5 todevelop purpose-ouiit tonnage and to introduce ehiective arrangements for feedering. Elsewnere, oeveiopment in the deep-sea sector is mixed.Philippine flag carriers continue to operate conventional muti-purpose tonnage.

The comoarativetv more prosperous states ot West Africa also remain aeterminedly mutti-purpose in pnilosopny -the inevitaOle consequence at

trie strong conventional element in their exoort traoes. However, the container-carrying capacities of tne combo tonnage aeoioyed is on a risina

renat. _ameroon. Gacon, ne ivory Caast. Nigeria and Togo have taken steos to equip tneir new muiti-purpose tonnage with significant containeruptakes. Moreover, new national carriers are still emerging, like the Liberian carrier Providence Shipping Corporation, that worlk on a chaher oasis

with Eurcoean conference partners.

A combination of commerciai pressures and national maritime aspirations will undoubtedly force many of the LDC lines along the all-cellular route ;

sooner or later The continuing presence of a significant fleet of modern, handy size container vessels available for charier may well enable some

to follow a relauvely low-nsk route into the fully cellular business This, in turn, could work against the more tracitionai ioint venture apcroach to

nternationai container snicoing.

35

arrangements in existing LDC ports. In most of Asia, for example,private operation of port facilities is being seen as necessary anddesirable alternative after a long period of state domination andcontrol of port sector operations. Hong Kong, Malaysia and Thailandare good examples of substantial port efficiency gains achieved throughprivatization. If privatization means greater efficiency andproductivity, then a privately operated facility is likely to provemore attractive to shipowners and the users of ocean transport than onethat is bogged down with red tape. Also, if privatization involveslarge, highly integrated corporate structures, large firms or multi-nationals, then it is probable that a facility will be developed withstrong links into efficient shipping networks. Thus, the opportunitywith Drivatization is the development of new and efficient terminalswhich could change the pattern and structure of existing cargo and shipmovements.

45. Finally, the efficiency of LDC shipping and port services inmeeting the demands of trade and industry is substantially dependent onthe conduct of customs clearance services, freight forwarding, and onharmonized documentation. Effective cargo insurance arrangements areanother critical factor. The importance of these elements of tradefacilitation is generally underestimated in developing countries. Muchcorrective action has to go into streamlining these arrangements. Thequestion now is: how effective has the Bank group been in recent yearsin guiding its borrowing member countries through these requiredadjustment processes, and what was the outcome of its reiated supportonerations?

36

EXHIBIT tO T

PORTS WITHOUT PROSPECr FOR MAJNUNE STATUS:Are tie, o00 lo ftakmhi iw~

Speciaizaton is one way for small ports to survive. In nearty all cases, smnaller ports do or can provide a service to local enterpnses within theirsurrounding hinterands. in effect a personal reationship usually exists between shipper and port operator, a relationship which is often long-standing, and which frequently dictates the workings of the port facility. Unlike their larger counterparts which depend heavily on thestandardization of components and equipment in order to target worid wide markets, small scaie operations develop according to their ownneeds and to the needs of individual customers. Concentration on these needs, comtined with an awareness of their own physical andcommercial limitations, is the key to generating healthy profits. Many smatler oorts without hope of making it into mainline status in Europe (e.g.UK-Bristol, Flixborougn and Watchet Oenmark-Aabenra. Bomnolm), in the U.S. (particularly the Gulf ports), and piaces like New Zealand le.g.Gisborne) have followed this route to their own advantage. Lessons are to be leamed for LOC ports in similar circumstances.

There is no universal equipment requirement or managerial approach that can be applied to smaUl port operations. The only generalization tnatcan be made is that ail smaller facilities operate according to their own unique circumstances. in many cases, cider ana tecnnically outmode j-nachinery is orien elficienm enougn to matcn the reQuirements of tne ooeraDon as a whoie. i-uite trequenry, sDecial eauipment can be ieased

After equiement the most imporant consideration for successfui smail port operations is the organizaton of labor. Through tne emplovment ofiftexibie, non-unionized work forces, smaUl ports are asle to capture a share of the marxet Dy orfenng an ali-in negobabie service to smaller scaieshippers.

37

IV. SEATRADE AND MARITIME INDUSTRY ASSESSMENTSAND SECTOR SUPPORT STRATEGY FORMULATION

A. Institutional Set-up and Responsibilities

46. Between January 1980 and December 1986, several Bank workunits were involved to varying degrees in analyzing the seatrade andmaritime industry sectors in borrowing countries, and in theformulation of appropriate sector support strategies. They included:

(a) for sector analyses:- the regional transportation divisions;- the country programs divisions;- the Transportation Department;- the Country Policy Department; and- the Economic Analysis and Projections Department.

(b) for sector related lending:- the regional transportation divisions;- the Industry Department divisions;- the IFC Engineering Department;- the regional energy divisions; and- the regional education divisions.

47. Matters related to seatrade and associated maritime Industryserr4ces were periodically covered through country economic work by the

countrv programs divisions and the Country Policy Department, with

occasional assistance from the regional transportation divisions. T'eTransportation Department was responsible for assessing trends andissues in the maritime industries and for establishing appropriatepolicy and operational guidelines for Bank sector support. Theregional transportation divisions were, in turn, responsible fordetai_ed sector work to establish the basis for formulating sectorsupnort strategies in each country. Finally, the Economic Anai7sis ana

-- _ c:ln Depar-ment deal: -X77th l obal seabcrne :race :crec-sts =2

~-szamating future shipping tariff developments.

48. Sector related iending included dedicated port and shippingprojects, as well as lending operations with port or shippingcomponents. The bulk of sector lending operations was formulated,prepared and monitored by the regional transportation divisions. The

naustr-y epartment _ visicns dealt -w-th bulk commodity -ransoortationprojects which often included shipping services and special marinererminais. The 7FC Engineering Department was responsibie forassessing the technical aspects of lending operations which coveredshin accuisition and operations, shipbuilding facilities and the

construction of sDecial marine terminals. The regional IDF divisionswere involved in financing ship acquisition, terminal and shipyarddevelopment through special lines of credit provided under DFC lendingoperations. The regional energy divisions became frequently involvedrn '-.e devebsorment of soeiial marine termna3ls for fuels

38

required for power generation. Finally, the regional educationdivisions occasionally addressed manpower riequirements and associatedtraining needs in the maritime industries and administration, as partof their lending for human resources development.

B. Country Economic Work

49. Out of 412 country economic reports prepared between January1980 and December 1986, 44 dealt inter alia with aspects of seabornetrade, maritime transport services and infrastructure. The regionaldistribution of sector relevant economic work was as follows:

RECION: ESA WAN AEN ASP E)N LCNNUMBER OF REPORTS: 10 7 11 6 5 5

More detailed indications about the individual countries and sectortopics covered by economic work are given in Annex 1. The types andfrequency of sector topics covered in all pertinent country economicreports is shown in Table 1.

50. Economic Reports with a good and broad general treatment ofmost relevant sector issues covered following countries: Argentina,Burma, China, Korea, Papua New Guinea and Turkey. Relativelycomprehensive analyses of shipping issues were prepared for Argentina,Cape Verde, China, Korea, the Maldives, the Solomon Islands andTurkeyr the same observation applies to port issues in Argentina,Aruba; 3enin, Cameroon, India, Morocco, Papua New Guinea and Zaire.Good assessments of intermodal and transshipment trends are availablefor Aruba, Benin, China, Guinea-Bissau, Nepal and Turkey. Among thegrowing number of Public Investment Reviews, there are a few whichprovide good analyses of capital outlays for ports and shipping inArgentina, Haiti, India, Mexico, Morocco, Nigeria, Peru, Thailand andQai:e.

-s Lmoorrant to note -nat only about ern oer cent of ail-ountry eccnomic renorts dealt with issues related to seaborne tradeand related maritime transport services and infrastructure. while amajority of economic reports addressed matters regarding tradedevelopment and necessary facilitation measures (trade legislation,monetary, fiscal and financial considerations, incentive schemes,instruments geared towards controlling import and export flows), theytended to c^mpletely *gnore associated maritime transport issues andimpediments created by inadequately managed infrastructure andservices, rigid regulatory regimes, and inflexible institutions. Inshort, there was a missing analytical link between ;rade andtransport. Furthermore, as can be inferred from Table 1, there wasver7 little treatment of current-day trends irL the organization of themaritime industries, such as containerization, load centering andtransshipment. Instead, the limited attention given to the maritimesector was largely focussed on port management and development.However, even the better assessments did not encompass wideroevelopmenrs in -he internationai s.._ping industry \load centering,feeder services).

39

TABLE 1

SEATRAOE, PORTS AND SHIPPING

RELATED ISSUES ADDRESSED UNDER COUNTRY ECONOMIC WORK

(Documented between Jan 80 and Dec 86)

TOPIC FREQUENCY

PORT MANAGEMENT 24

PORT INVESTMENT 21

PORT DEVELOPMENT 12

OCEAN SHIPPING MANAGEMENT 12

OCEAN SHIPPING INVESTMENT 12

COASTAL/INTER-ISLAND SHIPPING MANAGEMENT 10

OCEAN SHIPPING DEVELOPMENT 9

OCEAN SHIPPING SERVICES S

PORT PRICING S

COASTAL/INTER-ISLANO SHIPPING SERVICES S

COASTAL/INTER-ISLANo SHIPPING INVESTMENTS 5

CARGO MANAGEMENT 6

INTERNATIONAL ACCESS (LOAD CENTERING) 5

C0ASTALjINTER-ISLAND SHIPPtNG OEVELOP4ENT 4

WARIT:ME ,RANSPCRT REGULATIONS 3

INTERMODALISM 3

SHIPYARD DEVELOPMENT 3

SEABORNE TRADE DEVELOPMENT 2

T RANSSHrPMENT 2

CONTAINERIZATION 2

SHIPYARD 4ANAGEMENT 2

PORT PLANNING 1

COASTAL/INTER-ISLAND SHIPPING PRICING 1

MARITIME TRANSPORT SUBSIDIES 1

40

52. There were no assessments recorded of subsidy requirements inthe national port and shipping industries. Public sector investmentreviews which provide information about port and shipping outlays byindividual governments did rarely include assessments of theappropriateness of planned port and shipping development schemes. Noinformation was provided on recurrent cost financing requirements inthe maritime industry; the same applies to the financial performancesof these industries. All facts considered, cotmtry economic reports intheir present form provide only very limited substance for improvingtrade related maritime transport.

C. Transnort Sector 'Work

53. Out of 134 transport sector reports which were preparedbetween January 1980 and December 1986, 88 dealt with various aspectsof ports and shipping in individual countries, and sometimes countrygroupings. The regional distribution of sector relevant reports was asfollows:

REOION: ESA WAN AEN ASN EMN LCNNUMBER OF REPORTS: 13 28 10 8 12 17

The higher number of reports recorded by the West Africa Region reflectsthe regional practice of periodic sector updates for each country in theform of sector memoranda which were usually less comprehensive and-probing than sector work in the other regions. More detailed indicationabout -.ne individual countries and relevant topics covered by sector workare given in Annex 2. The types and frequency of topics covered in allpertinent transport sector reports is shown in Table 2.

54. -ransport Sector Reports which providie a good comprehensivetreatment of the maritime transport system covered following countries:3angiadesh, Chile, Indonesia, Jamaica, Korea, Malaysia, Nigeria,?akistan, Sierra Leone, Sri Lanka and Thailand. Relatively broadMal.ses Df shiLping _ssues are ava-lable for Bangladesh. Brazil, Clhile.a.donesia, Jamaica, Korea, Malaysia, Pakistan, Sierra Leone and Tha_land.

s-ecial shinning study was preoared 'or u-rkey. The West Africa Region-ommissioned a multi-country liner shipping survey to assess the impactof developments in seaborne trade and associated shipping in theMauritania-Gabon range. This study has produced valuable insights intothe elements at work in West African shipping, and their implications for_ndi4vduai regional countries. A similar effort was carried out in the.atin America and Carribean Regional Office, aimed at assessing thedevelopment of container trades along the Pacific coast of South America.

55. Good analyses of national port systems and related issues havebeen nrenared for Brazil, Chile, Colombia, Ethiopia, Jamaica, Malaysia,and Pakistan. Special port sector surveys were carried out in Liberiaand in Nigeria, and several dedicated port development studies wereprepared for Korea. Explicit treatment of intermodal and transshipmentdevelopments and issues was more limited. The most comprehensive work-4as _arreu out tn the Latin American and Caribbean Region in the form

41

TABLE 2

SEATRADE LOGISTICS MANAGEMENT, PORTS AND SHIPPING

RELATED ISSUES ADDRESSED UNDER TRANSPORT SECTOR WORK(Documented ,etwoon Jan 80 and D-c 8e)

TOPIC FREQUENCY

PORT MANAGEMENT Se

PORT DEVELOPMENT 38

MARITIME SECTOR INVESThENT 38

OCEAN SHIPPING 29

CARGO VANAGEMENT 22

COASTAL/INTER-ISLANO SHIPPING 21

SHIPPING MANAGEMENT 21

PORT PRICINa 20

SEASORNE TRADE 20

CONTAINERIZATION l8

TRADE DEYELOPMENT :8

'4ARITT.ME SECTOR REGULATION :

SHIPPING OEVEL.OPMENT '2

TYPICAL COST OF SERVICES 10

INTERMODALISM S

PRIVATIZATION S

TRANSSHIPMENT S

SHIP8UILDING AND REPAIR 2

MARITIME SECTOR SUBSIDIES 2

42

of regional surveys of intermodal transport in specific countrygroupings. Good analyses of these topics have been prepared for Chile,Colombia, Jamaica and Malaysia.

56. The quality of transport sector work as a whole and relatedtreatment of ports, shipping and waterborne trade has improved markedlyover the last few years. Also, the fact that 66 per cent of alltransport sector reports deal to varying degrees with matters relatedto maritime transport suggests growing appreciation of the importanceof ports and shipping for national development. It is surprising,however, that only limited work on the maritime industries and seabornetrade has been carried out for archipelagic countries, which are, afterall, particularly dependent on maritime transport infrastructure andservices. Conversely, as a special point of observation: the issuesof multi-country trade movements and sea access by land-lockedcountries have been particularly well covered in a series of 18 sectorreports.

57. There remains a definite need to assess the actual andexpected effects of restructurings in international seaborne trade andshipping, as well as of changing ship and cargo handling technologiesin specific geographical regions. Such regional impact analyses appearto be necessary before judging whether port systems and shippingdevelopment and management arrangements in a particular country areappropriate. Generally, assessments related to maritime transport andseaborne trade, as they were included in individual -transport sectorreports, critically lacked this broader perspective, and are thereforeof limited utility. A notable omission irn transport sector reportsrelates to determining the likely effects of alternative port andshipping development and management schemes on regional development(trade, industry, agriculture). Little work has been done onenvironmental issues created by ports in general, particularly as-regards land use development in metropolitan regions surrounding ports.

S8. 'he most critical shortcoming of transnort sector renorts in

:neir treatment of seaborne trade and maritime transnort _s the veryscant'i reference go regulations anc a, c--icai assessment o. .heexisting reguiatory regimes which govern ports, shipping and tradelogistics management. Similarly, there was generally only *ery cursorytreatment of subsidization practices in the port and shipping sectorsin individual countries. Importantly aiso, there is a relative absencein transport sector reports of assessments related to trade logistics-management practices in individual countries, including inter aliafreight forwarding, warehousing and customs procedures. Finally,transport sector reports provide little guidance for projecting thegrowth of import and export trades, which is a crucial oarameter forport and shipping development decisions despite prevalent volatilities-which have to be accepted as inevitable. As the broader indicationsrelating to trade growth should be provided by country economicreports, the above observation seems to suggest lack of effectivelinkages between country economic and transport sector work in thisctrntext.

43

59. A potentially valuable source of information relating totransport sector issues, and therefore also for analyzing problems inthe port and shipping sectors, is project financed economic and sectorwork, carried out as part of transport projects. In 1985, the regionaltransportation divisions reported 252 ongoing project financed studiesof this nature; an overview is given in Annex 3. Overall, 70 of thesestudies related to ports, shipping and multimodal transport. A sampleof eight port projects revealed that two-thirds contained major pricingstudies. Transport planning studies were included in 40 per cent ofall sector projects; one-third of these related to the planning ofseveral modes or intersectoral issues, and two-thirds to improveplanning within a particular mode. Noteworthy in this generalconnection was the Maritime Sector Development Program in Indonesiawhich was based on sector studies covering the entire spectrum of theport and shipping industries, and included trade logistics managementissues. These studies were financed under three different Bank lendingoperations; their findings and recommendations led to most exceptionalsector liberalization measures. However, the required Bank manpowerinput to effectively guide all these studies was substantial. To thecontrary, most of the project financed economic and sector workreceived only limited Bank supervision, which has generally hadnegative effects on the quality and final outcome of these efforts.

D. Sector Lending Approaches

60.t~ A notable trend in port lending over the last few years hasbeen the expansion of project scopes from dealing with only one port tothe treatment of entire national port systems. Thus an increasinglycommon feature of port projects is the presence of three and more keyports in a particular country. Realistically, it was felt thatdesirable changes in port development and management practices could beeffected only by dealing with an entire national maritimei.nfrastructure system. Whi'e there were 0o cases actually labeiled assector loans, several of the more recently anDraised port projects are-rogram-Y7pe operations based on a . me slioz :r o ez uareo nnvestmenr:3.

S1. The Tndustry Department divisions which dealt with mining,cement and fertilizer development projects became increasinglyconcerned with bulk commodity distribution constraints in individualcountries. Driven by this concern, special commodity distribution(fertilizers, coal) projects were prepared for several countriesthroughout the world. These projects typical'-y dealt with allapproDriate modes of transport and distribution management, logisticsand procedures. Special marine terminals and shipping services werecommonly major components of such projects. However, most of theseprojects, despite their program configuration, had limited sectoralconditionalities, nor did the effectiveness of the policy initiativesappear to depend on linkages with broader Bank transport sector supportstrategies. The only dedicated shipping project appraised recentyears was IFC sponsored and related to commercial strategies of oneoperator only (Tndia - Great Eastern Shinping Company Pro-ect). Allother port or shipping lending was in the form of subcomponents in

44

projects concerned with different aspects of country development. Thetransport policy content of such components was therefore very limited.

E. Project Formulation

62. As a clear observation, there were emerging trends to linkport lending operations to broader country development strategies andto general policy concerns. Some of the newer type port projects(Indonesia - National Ports Development) included other vital elementsof the maritime industries and seaborne trade logistics management. Itcan be expected that intermodal aspects will feature more prominentlyin future projects; treatment of these important facets of moderntransport is still limited. Importantly, however, it is encouraging tonote that towards the end of the review period, increasing numbers ofport projects were based on system approaches which took into accounteconomic performance and trade trends, as well as prevailingregulatory, public administration and private sector environments, anddevelopments in the shipping industry. Indications are that growingnumbers of port projects will deal with facility modernization as afirst priority, rather than with measures aimed at relieving congestion-the classical objective in the past. Asset maintenance, systemmanagement and sector policy reforms are also likely to appear moreprominently than in earlier generation Bank projects.

63. Less obvious remain, the links between project formulation,country economic and transport sector work. In many instances of portprojects these links were not clearly established. However, it remainsarguable whether this fact is due to limited attention given byappraisal teams or to the lack of guidance provided by economic andsector work. The answer to this question is presumably in the middle_f the argument. Importantly, there is a clear need to moreeffectively integrate the Bank internal dialogue and staff interchangesamong different work units when it comes to specify economic, sectorand oroiect formulation work, in carrying out the respective tasks anddiscussing relevant findings and -ocomi.endations. An undeniablyoositiVe impact on port project formuiations has come about througn ,he_.nstruction issued by PPD's Director of iJuly 1984, which requires thespelling out of a rationale for Bank involvement in a proposed project.This requirement has forced Bank staff, responsible for projectformulation, to carefully rationalize the approach and the objectivesproposed for a new lending operation.

45

V. LENDING FOR PORTS AND SHIPPING SINCE 1980

A. The Portfolio

64. The proportion of general transport lending in total Bank

lending by .egion between January 1980 and December 1986 is shown in

Table 3 below. Indications are also given of the proportion of port

and shipping-related lending in total transport sector Lending during

the same period.

TAB, L 3

PERCENTAGE SHARE OF GENERAL TRANSPORT. PORTS AND SHIPPING LENDINGIN TOTAL BANK LENOING OPERATIONS(Between Jan. 1980 and Dec. 1988)

TRANSPORT VERSUS TRANSPORT LENDINGIZEGTDN ALL OTHER SECTORS PORTSISHIPPING HIGHWAYS RAILWAYS AVIATION

{ ESA 9 8 86 27 0

! WAN 10 10 74 15 1

AEN 19 22 84 14 0

ASN 12 12 21 87 0SUJN 18 26 86 9 0ILCN 32 4 83 29 4

65. AN total of 170 lending operations were under imDLementationwhich related in varying degrees to ports and shipping. There were 64

dedicated port projects with following basic orientations:

- 37 single port improvement schemes;- 22 multiple general purpose port improvements schemes;- four new special bulk terminals; and- one new generai purpose port.

An overview of all these dedicated port projects, country be country,is given in Annex 4.

66. Of the 46 projects in different sectors which included port

components, the various types (with frequency of occurrence indicated)of such -onponenrs -'er? is follows:

46

- unspecified special terminals (14);- coal terminals (6);- fertilizer terminals (6);- grain terminals (5);- fishing harbors (5);- inter-island ports (5);- petroleum terminals (2);- ore terminal (1);- cement terminal (1); and- cruiseship terminal (1).

An overview of all these projects with port component is given in Annex5.

67. There were 36 projects with shipping-related components, whichcovered following topics (with frequencies of occurrence indicated):

- ship finance (17);- shipyard development (11);- fishing fleet development (11);- shipping services (9);- merchant fleet rehabilitation (3)1- seafaring personnel training (2); and- coastal shipping (2).

An overview of all these projects with shipping components is given inAnnex o-.

68. Out of the 80 non-project lending operations (structuraladjustment loans/credits, and sector adjustment loans/credits) approvedby the Board between 1980 and 1986, 27 contained inter alia provisionsrelated to seaborne trade facilitation and associated port and shippingservices. The different categories and frequencies of these provisionswere as follows:

- seaborne trade management (1C0;

- port management (6);

- shinpping services (4);- port infrastructure development (3);- inland waterways transport (3);- shipbuilding (2); and- maritime sector management (1).

An overview of all these non-project lending operations with seabornetransport and trade-related orovisions is given in Annex 7.

69. The regional distribution of lending operations related toports and shipping, under implementation between January 1980 andDecember 1986, is shown in Table 4.

47

TABLE 4

RECIONAL DISTRIBUTION OF PROJECT, COUNTRY ECONOMIC AND SECTOR WORK

RELATED TO SEATRADE LOGISTICS MANAGEMENT, PORTS AND SHIPPING

(Between Jan.1980 and Doc.1988)

RECION

GLOBAL ESA WAN AEN ASN EMN LCN

............... (Number of Operations).

A. PROJECT WORK

Dedicated Port Projects 84 8 12 13 1B 15 10

Projects with Port Compononts 46 3 7 18 3 8 8

Projects with Shipping Compon. 38 .2 1 11 9 8 7

Non-Proj-ct Lending 24 11 3 1 6 2 2

Suotota I 170 24 23 41 28 31 26

3. COUNTRY ECONOMIC WORK 44 10 7 11 8 6 5

C. RANSPORT SECTOR 1ORK 88 13 28 ' 3 :2 17

TOTAL 302 47 68 82 40 48 47

I~~ ~~~~~ - = __ __ ==

48

70. As can be inferred from Table 4, the highest concentration ofseaborne transport and trade related lending operations was in the EastAsia and Pacific Region. Including economic and sector work, thisregion accounted for most maritime sector specific activities in theBank. The almost equal number of total sector activities in WesternAfrica is not very relevant, given the sector work practices in thatregion. The numbers of seaborne transport and trade-related lendingoperations in all other regions were fairly similar.

B. Sector Coverage

71. This section deals essentially with sector management anddevelopment approaches adopted under dedicated port projects which wereappraised between January 1980 and December 1986. The characteristicsof port projects appraised during the 1970s are analyzed in Chapter VI.No attempt was made to elaborate on the orientation of projects withport and shipping components. These projects are generally pursuingdevelopment objectives for other sectors in the respective nationaleconomies (agriculture, industry, etc.), and their principal strategic,policy and management orientations are accordingly. Their seabornetrade and maritime transport components are usually of enclave natureand have little policy or management content.

72. A notable exception were the three dedicated shipping projectswhich were under implementation during the first half of the 1980s,i.e.,-the Philippines - First Shipping Project, Indonesia - SecondShipping Project, and India - Great Eastern Shipping Company Project .These three projects were the remnants of aL very limited shippingproject portfolio the Bank and IFC have had since their establishment.Both the Indonesian and Philippines operations were essentially aimedat improving domestic inter-island fleets and had limited policycontent, which was essentially geared towards changes in ship safetystandards and their enforcement. The main thrust was on providinginancial mechanisms for ship acquisition (mostly second-hand tonnage).

Eren witn tnis limited nolicv orientation, thle Philippines operation:ailed to meet its objectives, as shipping companies were reluctant to

use loan proceeds for ship financing because they had to assume foreignexchange risks. Thus a substantial portion of the loan had to becancelled in the end. The Indonesian project succeeded in several waysin that it contributed to a rejuvenation of the inter-island fleet andfurther solidified special local banking arrangements for ship mortgagefinancing and ship leasing operations. The Great Eastern ShippingCompany Project in India is an IFC operation and is purely commerciallyoriented, no broader sector issues were addressed.

73. Between January 1980 and December 1L986, 34 dedicated portprojects were appraised; their regional distribution is shown below.

REGION: ESA WAN AEN ASN EMN LCN

NUMBER OF PROJECTS: 6 7 8 3 5 5

49

An overview of these projects is given in Annex 8. Graph 10 providesdetails on the costs and lending amounts involved. There are wide

Dedicated Port Projects(appraised betwen

Jan. 1980 and Dec. 1986)

Appraised Cost Loazo/Credit Amounts

I US$. million

9500

1200-900 --.

300

FSA WAN AEN ASN EMN LCN

Regional OfficeSours. toes Douments GRAPH 10

variations among the 34 new dedicated port projects concerning thetreatment of system-wide issues, including the organization andregulation of maritime transport and seatrade. Table 5 summarizes thefrequency in which such systemic assessments and related improvementprovisions feature in the design and implementation set-up for theseprojects. A more detailed overview of the systemic features of eachappraised dedicated port project is given in Annex 9.

TABLE 5

SYSTE11IC FEATURES OF DEDICATED PORT PROJECTS(Appraissa between Jan. 1980 and Dec. '988)ITOPIC FREQUENCY

TRADE DEVELOPMENT 18

CONTAINERIZATION TRENDS 16

SHIPPING DEVELOPMENT 9

TRANSSHIPMENT ISSUES 9

LABOR ISSUES 7

INTERMODAL ISSUES 7

PRIVATIZATION 8

MAJOR INSTITUTIONAL REFORMS 5

MAJOR POLICY REFORMS 1

50

74. Interpretation of Table 5 suggests that emphasis on sectorregulation and management wase limited. Although assessments of tradedevelopment featured occasionally, they tended to be rather narrowlyfocussed and did not encompass broader international marketdevelopments. An interesting feature is the treatment of labor issuesassociated with port improvement schemes in the EMENA region, whichreflects a regional management instruction to this effect. Most ofsuch improvement schemes entailed sometimes substantial laborredundancies.

75. Projects with a good systems approach and broad sectorcoverage included: Indonesia - National Ports Development Project,Madagascar - Ports Rehabilitation Project, and in the Philippines -Third Ports Project. Noteworthy because of their good and explicitlinks with more or less rational national and sector developmentstrategies are the National Ports Developmenit Project in Indonesia,the Port Modernization Project in Somalia, and the Third Ports Projectin Turkey. There are a few projects with well built-in provisions insupport of multimodal transport development, including: China - ThreePorts Projects, India - Nhava Sheva Port Project, Korea - Pusan PortProject, Malaysia - Port Kelang Project and Thailand - Bangkok andSattahip Ports Projects. Transshipment considerations arepragmatically reflected in the above-mentioned projects in China,Indonesia, Korea and Turkey, as well as in the following lendingoperations: Haiti - Port Development Project, Panama - Second PortProject, and Senegal - Dakar Container Port Project.

C. Key Project Features

76. The key features of the 1980-86 generation of dedicated portprojects are summarized in Table 6, including an indication of theirfrequency of occurrence. A detailed account of these features,oroiect by project, is given in Annex 10. Thie frequency distributionof the key proiect features clearly noints to the fact. that a maioremchasis :n most new port projects is on rehabilitation anaimprovement of existing facilities. In many of the Bank's borrowingcountries port infrastructure is in a poor state of repair, largeiydue to inadequate maintenance arrangements. It is thereforesurprising to note that maintenance improvemients needs are addressedin a very limited number of projects only. On the other hand, byencouraging approaches geared towards bttter utilization of existingfacilities the Bank has been instrumental in containing planned portinvestment schemes in several countries. Especially noteworthy inthis context are the National Ports Development Project in Indonesia,and the ?ort Kelang Project in Malaysia. In the case of the onlyproject supporting the development of a completely new port (India -Nhava Sheva Port Project) the Bank could through prudent advice inducemajor cost-reducing changes in port layout and development phasing.

77. Environmental impact assessments of measures to be takenunder port projects have remained rather limited and often did notinciide :he potentially broader issues of dangerous cargo handling,

51

land access, and, more generally, the effects to be expected on landuse in surrounding urban areas. A notable exception to thisobservation is represented by the Nhava Sheva Port Project in Indiaand the El Dikheila Port Project in Egypt for which thoroughenvironmental impact analyses were prepared.

78. While emphasis in most projects was given to improving themanagement of individual ports (reflected by the high incidence oftechnical assistance and staff training to this effect), there are theencouraging signs of increasing awareness among Bank sector staff ofthe need to formulate broad strategies for developing and managingnational port systems. Preparatory efforts for such strategyformulation were included in several new port projects (Table 6).However, it is imperative that these strategies be based on

TABLE 8

KEY TECHNICAL FEATURES OF DEDICATED PORT PROJECTS

(Appraised between Jan. 1980 and Dec. 1988)

TOPIC FREQUENCY

TECHNICAL ASSISTANCE IN PORT MANAGEMENT 21

CONTAINER FACILITIES IMPROVEMENT 20

PORT REHABILITATION 17

PORT EXPANSION 14

MAJOR TRAINING 14

CARGO HANOLING CAPACITY IMPROVEMENT

PREPARATION OF MARITIME INFRASTRUCTURE DEVELOPMENT SCHEMES 9

SPEC:AL 3ULX 7ERMINAL DEVELOPMENT 7

PREPARATION OF PORT SYSTEMS MANAGEMENT SCHEMES d

PORT IMPROVEMENT S

LAND-SIDE ACCESS IMPROVEMENT 5

DEVELOPMENT OF INTERMODAL FACILITIES 5

PORT MAINTENANCE IMPROVEMENT 3

PORT UTIL-TIES IMPROVEMENT 3

SEA-SIDE ACCESS IMPROVEMENT 3

SHIPPING SERVICE IMPROVEMENT 3

PREPARATION OF CARGO UNITIZATION SCHEMES 2

NEW MULTI-PURPOSE PORT 1

52

assessments of country external developments; in international tradeand shipping. More than usual Bank guidaLnce is required in theconduct of these efforts, and there is the! explicit need for wellestablished Bank sector support strategies, based on realisticanalyses of trade and shipping markets and required sectoral policychanges through the Bank's economic and sector work.

D. Project Financing

79. The Bank group has provided a substantial share in financingthe cost of the 64 dedicated port projects under implementation duringthe period 1980 to 1986 (roughly 40 per cent of total project costs onaverage). However, there was also considerable financial supportprovided by other institutions in various forms of cofinancing. About12 per cent of the cost of all Bank-sponsored port projects werecofinanced. Among the 28 cofinanciers, 17 were bilateral, eightmultilateral, and three were commercial banks. Supplier credits andbarter trade arrangements featured in two projects. For details onfinancing arrangements for each of the 64 projects underimplementation refer to Annex 4. A synopsis of the project financing

arrangements is given in Table 7.

TABLE 7

FINANCING ARRANGE!IENTS FOR DEDICATED PORT PROJECTSUNDER IMPLEMENTATION

(Between Jan. 1980 and Dec. 1988)

RECIONGLOBAL ESA WAN AEN ASN EMN LCN

..................... (US3, miilion).

TOTAL PROJECT COSTS 8434.4 318.4 S87.7 1821.7 1003.7 2370.1 5S4.3

| IBRD/IDA/IFC 2868.7 126.1 202.2 717.4 411.0 885.7 338.3

COFINANCING 787.8 80.9 275.1 11.0 117.1 249.3 34.4

LOCAL FUNDS 3007.9 109.4 90.4 893.3 475.6 1255.1 184.1

% LOCAL FINANCING 47 36 18 55 47 53 33

53

S. Conditionalities

80. The loan documents for the 34 dedicated port projects whichwere appraised between January 1980 and December 1986 reflect anoverwhelming concern with the financial management of ports.Conditions related to financial management arrangements and financialperformance targets feature most prominently in loan/credit and projectagreements. Similarly high in the conditionality ranking are limitsimposed on new sector investments and consultative arrangements betweena borrower and the Bank regarding planned port investments. Table 8provides an overview of the type and frequency of special port projectconditionalities reflected in corresponding loan documents. A detailedaccount of the key conditionalities for each project is given in Annex11.

TABLE 8

SPECIAL CONDITIONALITIES IN LOAN DOCUMENTS

FOR DEDICATED PORT PROJECTS(Negotiated bStweon Jan 1980 and Doc 1986)

TOPIC FREQUENCYi

FINANCIAL MANAGEMENT ARRANGEMENTS 23

FINANCIAL PERFORMANCE TARGETS 23

OPERATIONAL PERFORMANCE TARGETS 1C

LIMITS ON NEW INVESTMENTS 12

-RAINING ARRANGEMENTS 3

:N1STITUT:ONAL ARRANGEMENTS 3

PORT OPERATIONS MANAGEMENT 3

PORT MAINTENANCE 3

MARITIME INFRASTRUCTURE OEYELOPMENT 3

SHIPPING IMPROVEMENTS 3

NI_AFFING ARRANGEMENTS 2

CUSTOMS PROCEDURES

PORT SYSTEMS MANAGEMENT 1

54

81. Beyond financial management and to some considerable degreeoperational performance concerns, there are only, limited conditionalityprovisions in port loan documents regarding other vital elements ofimproving system performance and management. Striking is the lowincidence of agreements on improving maintenance and proceduralprocesses of moving cargo through a port (e.g., customs procedures).Possibly reflecting the limited treatment in economic and sector work,regulatory reforms are almost totally absent in loan documents.Although almost 50 per cent of the loan document:s for all port projectsappraised between 1980 and 1986 contain operationai performance targetsas a means of measuring the effectiveness of project initiated changes,there are very few cases which provide for correspondingly requiredadjustments in the organizational and procedural set-up for portoperations management.

55

VI. PERFORMANCE EVALUATION OF DEDICATED PORT PROJECTSAPPRAISED BEFORE 1980

A. General

82. For the purpose of this general operational review, completionreports (PCRs) and performance audit reports (PPARs) for 36 dedicatedDort projects -were reviewed. For an overview of the projects refer toAnnex 12. These projects were appraised and largely implemented duringthe 1970s. During that decade developments in the world economy wereparticularly volatile (oil crises, high inflation, steep increases ininterest rates) which caused colossal gyrations in international tradeand associated commodity flows. The volume and composition of porttraffic was thereby significantly influenced on a global scale. As aparallel development, containerization of seaborne trades, particularlyin developing countries, progressed at an unexpectedly rapid pace. Allthese factors have had a considerable impact on the 1970s generation ofBank-financed port projects and entailed significant implementationproblems, as well as difficulties for the respective borrowingcountries and their executing agencies.

83. In the face of these developments, and with the benefit ofhindight, a point can be made about :he relevance of the originalobj ectives and applied design and management philosophies of theseprojects. The adopted phasing of many Bank supported port developmentschemes also became questionable. While it could be reasonably arguedthat many of the post-appraisal developments in trade and shippingcould not have been fully foreseen at the time of appraisal. the firstyears' impiementation experience with severai port projects appraisedafter i980 freauencty manifests similar problems arising frominsu_r_`cenr market development projections. These -irctmistances seem

-onfir ::.e nore fundamental issue in 3anK ;or: or ec- ap

rerlecting the ineffective integration of 3ank economic, cransoortsector _nd Dort lending work has to be stressed, as an essentia;prerequisite for establishing realistic market trend assessments, whichis such a vitally important analytical basis for future lending insupport of port development and management.

'34 . Apart from the axogenous factors which inflaenced port projectimolementation and the outcome of these projects, there were severaloer-vasive oroiecz issues with no apparent causai re`araonship toexternal developments. One of the more prominent issues remains staffoveroptimism with regard to project implementation timetables. Almost85 per cent of all projects required time extensions, half of them morethan three years (Graph 11). Table 9 provides a synopsis of otheridentified issues, and the frequency of their occurrence. For adetailed account of these issues, project by project, refer to Annex13. Manv of these identified `ssues have also emeroed under oroiects

56

TABLE 9

IMPLEMENTATION ISSUES IDENTIFIED FOR 36 BANK FINANCEDDEDICATED PORT PROJECTS

(Appraised during the 1970s)

TOPIC FREQUENCY

IMPLEMENTATION TIME VARIATIONS 29

TRADE/TRAFFIC DEVIATIONS 28

PROJECT COST VARIATIONS 24

PROJECT SCOPE/CONTENT CHANGES 22

ERR VARIATIONS. .20

FACILITY DESICN 12

FINANCIAL TARGET VARIATIONS 9

CONTRACTOR PERFORMANCE 8

INSTITUTIONAL ASPECTS 8

TECHNICAL ASSISTANCE/CONSULTANTS PERFORMANCE 7

LOCAL COST FINANCING 5

PROCUREMENT S

RAINING ARRANGEMENTS 4

PORT OPERATIONS 4

COVENANT COMPLIANCE 4

FINANCIAL MANAGEMENT 3

REGULATIONS I

l-----

57

which were appraised after 1980. It appears therefore justified tocall these issues endemic; they need to be carefully taken intoconsideration when designing future port projects.

Anatomy of Dedicated Port ProjectsThat wax the rime Record?

Delays (Xage ot exiected CompL Times)

80M70

10

0ZSA *AN AEN ASN EIN LCN Compo-t. RatIng

Regional OfficeI Srou: Pro}et Campicn= andi

SPoMt PtrIOtMCn AUdlt ROP5f GRAPH 11

85. The identified project implementation issues have hadconsiderable impacts on final project cost and timetables. Frequently,the effect of one issue was compounded by the existence of other issuesat the same time. Again, the experience with projects appraised after1980 points in the same direction in several ways. Graph 12 depictsthe status of project cost variations and completion time delays or

Dedicated Port Projects(under impiemenLaLlon between

Jan. 1960 and Dee. 1986)

Appraised Coat 1 Actual/Expected Cost

2800

2400 ----- - .... ...-

2000

1800

4200rn I :_

3S A 'sAN AEN SN EYN RCN

Regionall OfficeI sou: superœn<a Repc ~~~GRAPH 12!

58

projects under implementation between 1980 and 1986. Project costvariations were partially due to rate of exchange fluctuations, andoften because of substantially lower than originally expected pricesfor civil works and equipment supplies.

86. The substantial cost reductions recorded for projects in theEast Asia/Pacific and EMENA regions are partially explained by changesin major projects, and the reasons for thesie changes deserve specialmention. Tn EMENA it was the cancellation of the Port of Jijel Projectin Algeria which caused most of the reductions in overall regional portproject costs. This project was to establish a bulk terminal for ironore supplies to a steel mill. However, the originally assumed marketdemand for steel did not materialize, and the project was cancelled.The lessons to be learned here again point to the need for realisticmarket analyses in the case of port projects. In the Asia/Pacificregion another symptomatic problem caused a high percentage of overallregional port project reductions. The case in point was the Bangkokand Sattahip Port Project in Thailand. The rational approach tonational port systems development adopted under the project wasundermined by successful dealings of other financers with theGovernment of Thailand, whose main interest was promotion of capitalintensive development schemes, attractive to contractors and suppliersin the country of these financing sources. It is important for theBank tc appreciate that the pursuance of port rationalization schemesin its borrowing countries may be impeded by other financing sourceswhose sector support strategies are essentially based on commercialcrituria. This reality is likely to become more and more prevalent inview of contracting markets for construction and equipment supplyservices.

87. Among the 36 port projects reviewed, there were seven projectswith relatively minor problems, but an equal number of projects withmajor implementation problems was identified. Table 10 orovides anoverview.

B. Economic and Financial Analyses

88. The outcome of more than 80 per cent of all port projectsreviewed was influenced by commonly substantial deviations fromoriginal trade and associated vessel traffic projections. Theoriginally estimated economic rates of return in 60 per cent of allcases became therefore questionable. In most of these cases the post-

completion recalculations produced lower rates of return than thoserecorded in the corresponding appraisal reports. Retrosnect:vely,several Bank supported port projects have thus been marginal inachieving originally established economic objectives. The fewprojects, for which higher than originally estimated economic rates ofreturn were registered, benefitted from unforeseen steep increases incontainer traffic.

89. The complexity of seaborne trade and ship traffic development-eauires substantial flexibility in economic analyses for port

59

TABLE 10

IMPLEMENTATION RECORD OF SELECTED DEDICATED PORT PROJECTS

(Appraised during the 1970s)

1. PROJECTS WITH MINOR IMPLEMENTATION PROBLEMS:

- Bonin: Cotonou Port Project

- Burma: Second Port Project

- Haiti: Port Development Project

- Mauritania: Nouadhibou Port Project

- Nigeria: Second Lagos Port Project

- Pakistan: Fourth Karachi Port Project

- Panama: Fishing Port P2roject.

2. PROJECTS WITH MAJOR IMPLUMENTATION PROBLEMS:

- Algeria: Bethiona Port Project

- Korea: Second Ports Project

- PaKistan: Third Karachi Port Project

- Philippines: Second Ports Project

- Spain: Second Ports Project

- Turk-y: Ports Rehabilitation Project

- Yugoslavia: Port of Bar Projects.

I ._ _ _ _ _ _ _ _ _ _ _ _ _ _ _

60

projects. While the unforeseen dynamism of the maritime industries canbe cited as an unwieldy element of such analyses, much of thesedevelopments could have been more realistically reflected in theeconomic rationalization of port projects. The appraisal reports formost of these projects included economic analyses which were in essencepoint estimates, based on a limited set of cost and benefit parameters.Normally, some sensitivity testing to determine the robustness of thepoint estimates was done by percentage variations of the cost andbenefit parameters. Clearly, these analytical approaches are oflimited value in the face of the volatile developments in trade andshipping. The economic outcome of several port projects attests to

this observation. Instead, there is a strong requirement to introducemore risk analysis in the economic evaluation of port projects whichwill enable simulation of the effects of changes in key projectparameters in probabilistic terms. Aside from the exogenous factors,modern cargo handling arrangements in ports have increased theoperational parameters affecting port productivity manifold, whichmakes a deterministic treatment of all these variables essentiallymeaningless. To justify improvements to the container terminal inTanjung Priok (Indonesia - National Ports Development Project), a ccst-benefit simulation matrix including more than fifty variables had to be

established.

90. Relatively few financial performance problems under portprojects were reported. Only about 30 per cent of all projfectsreviewed displayed variations in originally agreed financialperformance targets. under some port projects comuarativeiy highinancial returns materialized. These circumstances suggest thatapproaches taken for improving financial management under port nrojectsare generally sound and pragmatic. However, also in this context, theeffects of developments in the shipping industry and cargo managementwill have to be carefully assessed. For instance, modern cargohandling arrangements may imply reductions in port revenues by enablingshorter storage times. Tn some cases, distortions in the orovision o`norz services were induced through concentrating on cost-based -_rif scharged -or the use of new or improved facilities while Leav_-g -nepricing for already existing installations -which were not included ina project- as before. It can be expected that increasing inter-portcompetition will lead to more and more situations where localgovernments or port administration will reduce port user charges inorder to contain waning demand for specific ports. The incidence ofsuch actions is growing, both in industrialized and develoningcountries (e.g. Indonesia and Singapore), and some of the Bank financedport projects have already been afflicted. The observed reductions inport charges are often below the level of the actual cost of orovidingservices in individual ports. But there are the strong indicationsthat the levels of charges for port services play an increasinglysubordinate role in the carriers' attitudes and practices when it ccmesto selecting ports of call. All these developments suggest a need for afresh look at financial management options for ports in differentoperational environments, as part of broader corporate strategies, andwithin the context of national trade and maritime sector objectives andpolicies.

61

91. An intriguing question is why such a relatively high proportionof projects revealed less than expected economic rates of return whileattaining and sometimes surpassing the planned financial performancetargets. There are cases where the Bank financed investments weremarginal when measured by the economic rate of return but the borrowingentities' other assets yielded very high financial returns. Presumablya case could be made that the marginal financial returns of the newassets would also have been low. But project completion reports did notpresent it that way, nor did appraisal reports treat the economic andfinancial analyses accordingly. Is the explanation analytical weaknessor are there more fundamental issues at stake? Whatever the case, theseobservations seem to suggest a need for greater interaction bet-ween theeconomic and financial analyses for port projects. Arguably, in somecases these discrepancies may point to important policy issues to be

resolved.

C. Technical Aspects

92. About one third of all reviewed port projects encounteredproblems related to design provisions for civil works. Most of theseproblems were due to inadequate pre-design field investigations, suchas 'hydrographic and geotechnical surveys. This situation wasaggravated in many cases by the fact that det*ailed engineering had notbeen completed at appraisal stage whereby scrutiny of the designprovmsions by comDetent Bank staff was rendered impossible. Tn somecase-s, desDize the evidence and long-term character of technicalissues, projects were out forward without adequate analysis of costingdifficulties and without formulation of possible alternative approaches'a.g., Somalia - Fourth Port Project). The necessary design changesoften caused considerable project cost and implementation timeincreases. Conversely, tihe non-availability of detailed engineeringdesigns at appraisal has resulted in substantial overestimates of thecost Of ci'vJ works, reflected by lower than expected bid prices in the--se -ev!-era, proiects. -n a aumber or _nstances loan/credit amountscould thus be considerably reduced or aad to be cancelled upon proiectcompletion. The need to enforce more strictly the OMS requirementregarding substantiai completion of detailed engineering at the time ofproject appraisal is therefore obvious. On the other hand, there is anongoing debate among responsible Bank sector staff about theadvisability of keeping port development options under a projectsomewnat f'lexible in view of the volatilities and uncertainties intrade and shipping markets. The issue is a real one and deservesfurther exploration.

93. Procurement or contractor performance issues have been limitedto a few cases and show no common causes. Interesting however is thehigh incidence of cases where changes had to be instituted in projectscope and composition. These changes largely affected technicalprovisions, such as port layouts, storage facilities, and equipmentacquisition. About 65 oer cent of all projects had to be subjected tosuch changes. 'he fact that these adjustments were made isencouraging, as they were generally reactions to changing trade and

62

traffic environments in individual ports. This demonstrates increasingalertness and flexibility among project staff, and effectiveinstitutional responsiveness by the Bank when it comes to identifyingand implementing desirable port project adjustments in the light ofchanging economic and operational environments.

D. Institutional Aspects

94. Institutional progress under port projects has been mixed.The 1970 generation of port projects, which was reviewed for thisgeneral operational review, was relatively lean with regard todesirable organizational, procedural and regulatory changes. Thissituation has changed under many port projects appraised after 1980. Afew general comments on institutional performance under the reviewed 36

port projects are nethertheless pertinent. Port authorities generallyrepresent old established hierarchies with well entrenched practiceswhich are both difficult to overcome. While it is relativelystraightforward to ensure that Bank financed civil works are of goodtechnical quality, it is much more difficult, especially when comparedwith the assumptions put forward in the appraisal reports, to changeprevailing attitudes with regard to operational and administrativepractices. In a wider sense, there is a strong need to have commitmentto the institution of necessary reforms both with the borrowinggovernment and the project executing agency. Lack of such commitmentor political constraints can critically impede the pursuance ofnstitui-on-building objectives under a project. The PortsRehabilitation in Turkey suffered from these realities. In Pakistan,the capital investments made under the Third and Fourth Karachi PortProjects did not yield full benefits because originally agreed stafftraining was not regarded by the local authorities as a matterrequiring urgent attention. More effective Bank internal arrangementsfor monitoring project induced training schemes are required.

95. The concept and the procedural details for institutionalreorms were commonly prepared by consultants or through other forms ortechnical assistance. Several of these institutional reform programschemes were not in accord with political realities, and failed toappreciate that such reforms are necessarily a long-term process. Acommon institutional concern with most port projects is the limitedauthority of port administrations. However the establishment ofautonomous port authorities generally requires sweeping public sectorreforms. Even more complicated is the introduction of port managementdecentraiization, away from rigid administrative regimes imposed bycentral governments. The latter objective features much morefrequently in earlier generation sector lending operations. Efforts tothis effect were fairly disappointing under many of the reviewedprojects, especially under the Ports Rehabilitation Project in Turkey.

96. The frequent use of ccnsultant studies aimed at establishingthe basis for policy reforms or institutional change, and theiroutcome, raises the issue on how to best manage this process. Althoughstudies were sometimes carried out competently, their findings did

63

often not lead to significant and desirable modifications ofestablished practices. However, more importantly, the quality ofconsultant work and corresponding Bank supervision are to be seen askey issues. This concern was strongly raised in the Fall 1986 ProjectImplementation Review. In a contribution to this review by the EMENARegional Office it was noted that the office had 166 current studies inits portfolio, and that nine out of the 17 consulting groups providingpolicy and planning advice, were rated as unsatisfactory.

97. The attitude of a borrower is crucial for the success oftechnical assistance. Often, undue attention to the cost of consultantservices by an executing project agency has resulted in less effectiveconsultants being chosen, as in the case of technical assistance underthe Ports Rehabilitation Project in Turkey. Early correction of suchtendencies require effective Bank supervision. However, an emergingissue is the 4ncreased workload of Bank staff arising from the changedpattern of lending. Much more realistic assessments of staff inputswill be needed, instead of the application of standard coefficients, ifthe quality of Bank port projects is to be maintained. This argumentbecomes even more powerful in consideration of the growing trend to gofor large country-wide and sector type lending operations, whichusually include a wide array of policy initiatives and institutionaldevelopment components. Following from the above observations, it isapparent that the effectiveness of institutional development studiesdepends on whether they were properly made and supervised and onwhether there was sufficient follow-up. A good example of positiveeffeets in this regard was the Cotonou Port Project in 3enin.

98. At the end of these considerations, a sDecial comment on theeffectiveness of loan covenants regarding institutional reforms appearsfitting. There is continuing evidence of loan covenants and conditionscovering port projects which were formally agreed without -inhindsight- the wholehearted concurrence of the borrower, and in the end-were -.erefore not observed (e.g., Pakistan - Karachi Port Projects).:t seems that in such instances there was too much rel4ance on lega'l_nstruments to -s rtfct measures th5c a Dcrrower may -.ave eur.nndUor poli_tcaly7 nazardous to impiement, and thus did not adhere tonegotiated covenants and conditions, either in total or in part. Thisobservation points to the need to establish firm understandings aboutthe root causes of institutional problems and to devise in consultationwith the borrowers phased action plans for instituting reouiredreforms. Such action plans may entail several consecutive sector'end_ng operations -the importance lies in the need to have a jointlyagreed ana feasible strategy.

E. Sustainability

99. A point in closing: there is the ever present and crucialquestion whether project induced arrangements for managing andoperating an individual port or a national port system can be sustainedin the long run. Important parameters of this eauation are continuousmarket-responsive ana cost-effective port development pianning, ana cne

64

generation of sufficient cash flows. Sustainability of port managementand development strategies introduced under a specific lendingoperation, requires continued maintenance and efficient operation ofphysical assets, the adoption of appropriate technologies, effectiveinstitutional arrangements, and an ongoing favorable policyenvironment. External developments (trade, shipping) which are beyondthe reach of an individual project may result in a post-completionbreakdown of some or all project induced arrangements, thus curtailingsustainability. A similar point can be made about the effect ofchanging government attitudes regarding the protection of nationaltrade and shipping.

100. Quite often it is the international trade and shippingcommunity that does not react in its port selection behavior as it wasassumed during project formulation. There have been countlessexperiences of ports world wide that attest to this observation. Suchports have been left in the awkward situation of being overbuilt andunderutilized, with substantial cashflow problems -all of which makesthem heavy burden for the owners. A good case in point is the newcontainer terminal in Malta, which was built as special purposefacility (without Bank involvement) to act as; load center for theWestern Mediterranean. To date, the terminal has not seen a singlecontainer ship and serves as parking Lot for offshore drillingplatforms -to generate at least some revenues. For a small countrylike Malta, such a wrongly guided investment, which cost a staggering'JS$ 240m, is a very serious financial liability. Cursory evidencewith some port development schemes which were sponsored by the Bank,suggests that inappropriate asset maintenance after project completionled to loss of patronage and thus reduced traffic flows. However, norecords could be identified in the Bank or the IFC, which would reflectassessments of project port performance several years aftercomDletion. One can assume that such assessments; would be instrumentalln providing valuable inputs to the design of future port managementand develo`ment support operations by the Bank group.

65

VII. CONCLUSIONS AND FUTURE DIRECTIONS

A. Interpretation of Findings

101. Not surprisingly, the experience of Bank group seatrade andmaritime sector support operations reflects difficulties in graspingthe consequences of the changing environments in which LDC seatrade,shipping and ports have to perform. It is not surprising because quiteubiquitously, everybody in the world who is involved in theseactivities (producers, traders, shippers, transport service managers,port administrators, and governments) find it increasingly difficult toadjust to these changing environments in an efficient, that is cost-

effective manner. In the wake of such deliberations, many mistakes arecommitted. Investments are made, sometimes too early, sometimes toolate, and more than often in excess of what is really needed. Hostcumbersome in all this is the right choice of technology, andmanagerial and operational arrangements. There are just too manyfactors at play that shape the demand for and the supply of seatraderelated physical distribution services. Any trade or industry managerwill admit that they are devoting more and more resources to marketanalyses and to the development of responsive trade logistics

management strategies. Preparing their technical staff for effectivelydealing with these requirements assumes in this 'context a vitalimportance.

'02. 'hat is true for the actors on the scene is also true for the

Bank. The Bank's institutional understanding of the nature and effects

of the factors affecting the conduct of seatrade and related maritimetransport services in its borrowing countries is still rudimentary.

Past limited resource allocations for related broader marxetassessments, and scarcity of staff with necessary sector knowledge andexoerience account for much of this situation. As a resuit, sectorsupport oDerations have been formulated with a generally too narrow^ocus on zne Immediate oroblems of oort 3vstems management. -he smal'

.-,nunber of ..enaing operations in supporz or _'C sr.ipping .ave -a--2contributed to the 3ank's ability to effectively address mariLimetransport provided by its borrowing countries in the rapidly changingenvironments of demand for such services, and the continuousrestructuring in the international maritime industries. Since allthese matters -and as this report has amply demonstrated- are of suchvital importance for developing countries, the question is: what shouldbe done in order to improve the 3ank group's ability to advise itsborrowing countries on the right course of action?

103. Looking at the common problems in international seatrade andmaritime transport circles, and -indeed- of the Bank in sectormanagement, development and support formulation, the following issuesand needs can be singled out:

(a) forecasting of developments in commodity and relatedseatrade mar`hets;

(b) watching and interpreting trends in physicaldistribution management practices of trade and industry;

66

(c) keeping up with advances in trade related transporttechnologies and their effect on cargo management;

(d) assessing the causes and effects of restructuring ininternational shipping, inclucding intermodal through-transport service arrangements;

(e) understanding the problems and the impacts of changesintroduced in the general area of trade facilitation(such as document harmonization, insurance andliability, credit arrangements, and customsinvolvement); and

(f) developing an appreciation of the effects ofprotectionist policies in individual countries, and ofinternational conventions on the conduct of seatrade.

104. Each of the above issues is likely to entail a considerablescope for investigations, as the actual. and potential futureinteractions between trade and transport markets, commodity suppliersand producers, shippers and consignees are becoming more and morecomplex, and also more sophisticated. ImportarLtly, there can be hardlyany distinction between associated system adjustment requirementsconfronting the industrialized and developing countries. At best onecan argue about the level of degree and phasing in either case. Theresults of such investigations should provide! basic indications as tohow and to what extent developing country seaLborne trade and maritimetransport regulations, legislative and institutional frameworks, aswell as shipping industry and port infrastructure systems have to beadiusted in the light of Observed and expected market changes, andtrends in the international environment. A Bank sector supportstrategy is needed which reflects possible options and proceduralarrangements for preparing and instituting required system adjustmentsi-n developing countries. Such a strategy has also to provide guidanceand set out a conceptual framework for evaluating the various economicand social effects which can be expected to result from pursuing thediffefrent oDtions.

3. Strategic Research

105. Much of the concern aired in this general operational reviewabout the effects of changing international trade and transport marketson shipping and ports in developing countries is shared by a variety ofpublic and private sector institutions world wide. These institutionsare involved, either by mandate or because of particular interest, inanalyzing implications of such market changes for developing countries,eiejr seaborne trade ana maritime industries. w weaith of data and

background information is thus available, if fragmented and dispersedover a wide spectrum of places. Obviously, the nature and extent ofavailable analyses and data quite often reflect the particular interestand political attitudes of those who commissioned such work. Given thevolatile trends in commodity markets and rapid changes in theinternational transport and freight forwarding industries, there is the,nevitable fact that study findings often lose relevance and accuracywithin reiatively short time spans. Accordingly, there is a commonly

67

accepted need for periodic updates, and sometimes expansions of theoriginal scope of investigations.

106. In addition to internationally available market analyses,there are several Bank internally generated seaborne trade and relatedshipping trend assessments. Corresponding references are madethroughout this report. Parallel to these regional efforts, the formerTransportation Department commissioned a few broad basedinvestigations, such as a review of coastal shipping developments andpotentials, and port pricing practices and options. Flowing from theseefforts, there has been a gradual emergence within different parts ofthe Bank of awareness and anaiytical understanding of some of theimplications of rapid trade and maritime transport market changes for

some regional country groupings and a few individual developingeconomies. However, the need for broader strategic sector overviews,probing market assessments, and policy analyses to guide Bank seabornetrade and maritime transport support activities has become increasinglypronounced, i.e., demand-driven, as related requests have beenformulated in growing numbers by regional staff.

107. In response to the generally perceived need for strategicguidelines and the analytical weaknesses identified in this generaloperational review, the Transport Development Division in PPR's

Infrastructure and Urban Development Department (INUTD) has initiated aresearch program which is meant to address seaborne trade management

and related maritime transport sector issues. This research draws

substantially on the outputs of ongoing pertinent work in .he FJN

Regional Commissions, UNCTAD, GATT, the EEC, OECD, and the

.nternational Chamber of Commerce. Several dedicated research

institutes provide contributions, and -very importantly- a few

international transport operators, trading houses and freight

forwarders assist in these efforts. Special arrangements have been

made with different work units in the Bank's regional offices to

provide inputs to specific investigations. It is expected that a major

nronortion of required background investigations wi'l materiai-ze_zrcugn ?ppropriatil Driented _ountry economic ana -ransport sector

work. Attempts are maae to include in studies or technical assistance

under new and relevant projects, components that will provide feedback

to the research efforts. The Port Kelang Project in Malaysia and thePort Technical Assistance Project in Brazil are good starters in this

direction.

1G8. ?PR's research into seaborne trade and maritime transporttrends and issues forms part of a more global effort which is aimed atanal7zing trends in trade logistics organization and management, andrelated adjustment requirements for national transport systems. The

objective is to assess the changing practices in trade and industryconcerning production logistics and physical distribution managementfor traded commodities. These efforts include market analyses,

technical assessments, procedural overviews, and developing countryspecific investigations. The latter are case studies which will focuson trends and issues in particular country groupings or selectedindividual economies. The findings under the different research tasks

68

will form the basis for strategy papers which will represent guidelinesfor dealing with the identified issues in trade and transport markets.Concerning seaborne trade and maritime transport, the researchaddresses inter alia the issues of load centering and feeder ports,development strategies for port systems and individual ports,centralized versus decentralized port administration arrangements,comparison of public and private management options for ports, andrelated different financial policies. In the general area of shipping,the focus is on questions relating to the role and function of nationalflag carriers, development and management strategies for feederservices, coastal and -where applicable- inter-island shipping.Importantly, the associated imnlications for adjustments in regulatoryand institutional regimes are being analyzed.

109. Parallel to the research which is aimed at assessing theconsequences of changing environments in which national port systemsand shipping industries have to perform, special investigative effortsare under way in the more traditional areas of port management. Portmaintenance remains a major issue in most developing countries withmaritime infrastructure, and requires prime attention. Another keyresearch activity addresses therefore potential options for improvingmaintenance arrangements in ports. Labor redundancy problems arefrequent corollaries of port management improvements schemes; they arepolitically sensitive and thus difficult -to handle. Under a separatearrangement, there has been a review of the experience with differentlabor redeployment schemes in industrialized countries and nowcontinues to address possible options for dealing with these issues indeve-loping countries.

110. No doubt, the time dimension of these research efforts is bynecessity considerable and will entail a period of almost 30 months(through December 1990). However, during the intervening months,ndividual tasks will be completed and the associated findings wil'become available to guide countr7 economic, transport sector andoroiect formulation work. To facilitate regional seaborne trade andmarit=me transport support onerations in the meant.me. a 73erencElibrary is being established in INU. This library will contain .orconsultation, trade and transport market anaiyses, technicai anaprocedural overviews, and regional impact analyses of changes inseaborne trade and maritime transport, as they have been prepared byvarious other organizations (GATT, the International Chambers ofCommerce and Shipping, UN Regional Commissions, UNCTAD, universities,research institutions, and private sector entities), and within theBank. ?ending the availability of specific research findings, a fewgeneral directions for future country economic, transport sector andproject work should be followed.

C. Economic and Sector Work

111. The importance of country economic work has been stressed inthe context of required macro assessments of international commoditymarkets and the role of the actual and projected import and export

69

trades of a borrowing country in these markets. Also, the need forbroad assessments of individual developing countries' efforts todiversify their export base, and of the prospects of succeeding withthese efforts has been demonstrated. An integral part of suchassessments should be the identification of existing institutional,regulatory and procedural impediments to trade development. Concerningcountry internal trades, economic work should provide assessments ofthe relationship between emerging regional development patterns(population distribution and deveiopment of key economic activities,like industry and agriculture), and the changing demand for and supplyof essential commodities. It is also important to determine the likelyeffects of increasing domestic production of specific commodities onfuture import requirements. Not only will import requirements diminishfor selected commodities, but it can be expected that once a countryhas achieved self-sufficiency with such commodities, it will try tosell excess production in off-shore markets as part of a broader exportdiversification policy.

112. Realistic assessments of international and domesticcommodity markets are essential requirements for projecting trade flowsin regional and country specific settings. The past and currentpaucity of such assessments in the Bank has resulted in seriousmisjudgements of trade flows to be expected in national ports. Giventhe potentially high economic and financial cost for many developingcountries of maintaining deep sea line-haul ports and national flagcarriers to serve international freight markets, the need to assess thezorresponding consequences tar individual borrowing countries _sobv-ous. These consequences include the performance of invisibletrade, and subsidy requirements of national support schemes for portsand shipping. INUTD has recently completed an investigation into theorder and magnitude of issues involved. Country economic work shouldestablish a macro-economic framework that will govern the developmentand management of national ports and flag carriers. The effects ofthese policies have to be measured against country economic management-nd oerformance. -t is very 1.ikely that such efforts will demons.rate-ne need -"or substantia3 2nanzes in maritime sector strazegies _-. -i-noorrowing countries.

113. Transport sector work related to national port and shippingindustries needs to start with overall assessments of current andfuture trade flows, to be provided through country economic work.Similarly, the overall evaluation of trade management practices andrelated oroblems in individual countries should be covered in future bycountry economic reports. An important input to transport sector work-4ill be evaluative assessments of the economic as well as financialcost and benefits of national port and shipping policies in individualborrowing countries. Within the framework of the broad macro-economicassessments of trade development and national maritime policies,transport sector work should focus on possible measures to enhance theefficiency of maritime transport systems in serving actual andprojected trade flows. Corresponding analyses should cover: systemdevelopment planning, system management, system regulations, and svstemtinancing.

70

114. System development planning has to incorporate necessaryadjustments in the role of national ports and flag carriers in theirinterplay with other regional ports and international shipping. Theemerging trends of load centering and complementary feeder ports andshipping services will be an essential element of such planning.Importantly also, intermodal transport development and the specialrequirements for national sea and land transport networks and serviceswill be vitally important parameters to be considered. Possiblemeasures for improving system management will have to take account ofthe implied requirements of selected system development strategies.There are the necessary adjustments in institutional arrangements andprocedural practices which are often cumbersome and too rigid foreffective adjustments to changing ship and cargo handling technologies,as well as growing intermodalism. In many cases, efforts to improvesystem management will have to dwell on the issue of decentralizationand privatization of port administrations and shipping services. Atthe same time, there is an increasing need to address the otherelements of trade logistics management, e.g. freight forwarding,customs services, insurance and credit facilities.

115. The most critical gap to be filled through transport sectorwork are impact analyses of the prevailing regulatory regimes thatgovern the provision of maritime infrastructure and shipping servicesin individual borrowing countries. More than inefficient institutionaland procedural practices in many of these countries, it is frequentlythe rigidity and obsolete orientation of sector regulations that impededesirable system adiustments and necessar7 reforms in national port andshiipixg industries. Likewise, progress with the introduction of'ntermodal transport arrangements is thereby generally constrained.Finally, there is the question of system financing which is heavilyinfluenced by selected strategies for system development andmanagement, but also determines the thrust of such strategies to aconsiderable extent. In fact, system planning, management andinancing should be closely integrated. Essential elements of the^-nancing complex are pricing for port and shipping services, costreccvery, denreciation policies, and subsidy schemes.

D. Lending Approaches

116. Given the strong interdependencies among seatrade, ports,shipping and -as a new dimension- intermodalism, maritime sectorlending operations appear to be ideal candidates for program-typelending. However, the immediate feasibility of sector loans/credits orof sector adjustment lending approaches is inhierently limited in manyborrowing countries, as their absorptive capacities are still severelyconstrained. Instead a sector support strategy should be establishedfor individual countries, taking lnto account their readiness forinstitutional reform and policy change. Within the framework of such astrategy, individual lending operations should be formulated andcontain appropriate conditionalities for progressive sector managementadjustments. In many instances, the timing of such reforms may spanseveral successive lending operations. Future intiating briefs and

71

appraisal reports for projects in support of maritime infrastructureand services improvement should provide explicit descriptions of thestrategic approach taken.

E. Project Supervision

117. This general operational review has clearly established thefact that with their increasing complexity, policy and institutionalreform orientation, port projects require substantial Bank supervision.Similar arguments can be put forward in the case of other lendingoperations in support of trade development, shipping and intermodaltransport. There is more than usual guidance requirement throughcompetent staff to ensure effective preparation and subsequentimplementation of policy and management reforms. In many countrydepartments, the present CAM allocations and available experiencedprofessional staff for the supervision of these projects appear farfrom adequate. To establish a reasonable basis for required projectsupervision, future appraisal reports should spell out correspondingrequirements. It is commonly the appraisal team that has the mostintimate knowledge and appreciation of country internal constraints andadministrative complexities which are likely to affect progress withpolicy reforms and institutional change. Ideally, however, legislativemeasures enabling institutional and policy reforms should have beentaken before project start, and a project should serve as a mechanismfor implementing these reforms. But such approach usually entailsneces-sary Bank staffing and budget provisions for project preparationwhich exceed common resource allocation by substantial margins. Theinitiating project briefs for proposed future maritime sector lendingoperations should elaborate on the potential trade-offs between?ossible approachles for guiding and monitoring required sector reforms,and an early Bank internal decision is needed on how to proceed.

P. Performance Evaluation

'13. the present system or project ̂ ompietion and performance auditrenorts has served its purpose reasonably well. However, the insightsfacilitated by these reports are intrinsically static, as they lookinto the past. In future, more emphasis ought to be given tosuccessful lending operations for port and shipping development. Animportant feedback for regional staff will be assessments of:ircuimstances and events which have contributed to project success.Also, these reports should give a more comprehensive evaluation of theeconomic environments in which project imnlementation took place.Presently, project performance evaluations tend to focus too narrowlyon the technical details of individual projects. While these detailedassessments are necessary, it is equally, if not more important tounderstand how changes in trade flows, port and shipping managementaffected the outcome of specific maritime sector lending operations.For a better appreciation of the forces at play in maritime sectormanagement in individual borrowing countries, a longer term post-project-complezion performance perspective is desirable, at least on a

72

selective basis. Such perspective would enable an assessment of thesustainability of certain measures introduced uader a specific project,such as operations improvements, maintenance arrangements, and resourcemobiliiation. The short time elapsing between project completion andthe preparation of the corresponding performance audit report does notallow sufficiently realistic inferences in this respect.

* *

*

General Operational Reviewof the World Bank Group's Involvement in

SEATRADE LOGISTICS MANAGEMENT

and related

TRANSPORT INFRASTRUCTURE and SERVICES

A N N E X E S

It I

SEA lilolE. ralu A) SflPIN HtI,ATWV ISSuES AI"MSSED IN COI.TRY ECONOMIC WORW(douura.l.d b.t..*n JIn 1960 snd DG. 1986)

LASIERN Aft) SOIJlUtI4 AFRICA REGION

_..__ ......._,.__ _....._ ___, ........__,_ ._,,_,................_ ____-.....__.._____._-___ _cc____X====............................. -------- ----- -----..............- - -...... ........ .... _=.=.__==.c__.=.sc_...;.X.Rapurt h TOPICS COVERED 1 II

liNo. Coaaatry Raport ritl. Data 1 2 3 4 6 8 7 B 9 10 11 12 13 14 1I 16 17 18 19 20 21 22 23 241

|| 1. MADAGASCAR Currant Ecojoiic Sit.-tiou a'S 10/84 I K I X XlII| Pro.p.cts ..... IIII.... I bIfl 2. NAOACASCAM Rovi. of fublic Ina1at,Lt r a.. 11/84 I IC | X XX

II 3. ROZAIIOitE An ltruductorl Loa--..iu S-r,-y 06/8,6 I IC S X X X

1 4. RWANDA Rl.-,-t Econocac sa S-c,-a.l 06/83 I S XII OsnDuvflant. and Currant .....

II policy lusty.. I

gI ... I tIl 5. SWANI InA.tanj fur EaZiaoai- St.,il,zt-oa 02/82 I X llII sa.d Structural Ch.ngs I

II 6 TANZAIA Coortry Econo_ic M- .orauS- 08/84 I K IIIII

7 LC2AIIA Coayntry Econoaac M.rsndu. 02/82 | X

S . UGCANDA Prnas To.rvds R.coa.ar sad 06/6 i | XI| Pro..pst. for D.a.lo#...tc t

9. ZAIRE R...,. Econocic sad Sect-ral 12/82 | X X X X llO.l-oj nt. and curr- nt Ic I Il

i 10. ZAIRE Nagic,,.l Dsa.lo..u PrAl 06/84 I lll.alasof a Th. Io Kisu

II I ………………………… I)~~~~~~---- - --- - - - -- - - - -- - - -- - - - -- - - - -- -- - -- - - -- - - - -- - - - -- - - -II l 1 2 3 4 6 6 7 6 9 10 11 12 13 14 16 18 17 I8 19 20 21 22 23 24 11

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II R.vort I ropica Cua.t'a 11 III RNo Countay Hapoat Titl. Oat. 1 2 3 4 5 6 7 0 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 II

I 1. BENIN Croa.tty Ecoaanic MOa.uratd 03/84 I X x X I1

II 2 CAMIEUHON Oaaaloaant Planning Is s. 08/84 x x x U3 CAPE VERDE Ecoy.tnaan Da-alop.-nt in -nai 04/80 I XX x

II ~~~~~A-clipslsgn I

4 CAPE VERDE Economic Situ-tion a-d fu-ap-ta 01/865 j X XX

|S. 04HANA Pri f tiaforPubl.61.i..ul .a ve/65 I X X X X K XI I II

6. 6JUIN4EA-8ISSAU An Introdoctory b.--t E-t--c Hpu,ort 06/82 | x X X ll

II 7. NIGIRIA A Raitac. of thi. Publi Vout r t r 1 ra., 10/83 | X X X X X Xe

1 2 4 5 6 7 8 9 10 11 12 13 14 16 16 11 18 19 20 21 22 23 241

1/ R.f.r to fold ut rl ' 3

I I I

SEAlRADe, vui AiMu SkiiPPING REI.ATWD ISSUES AIAA4ESSM IN COIMIRY ELONOtIC ~WOW

EAST ASIA A140 PACiFIC REGION

No. Conn1~~~~~~~y ~ ~ ~ Tht.j. i, t T.pi.. C- ... 4 I/ i

N. C - yRp, i ] t. 1 2 4 6 6 7 0 9 0 11 12 1 14 15 1t 1 19 20 2 22 23 24 g

fl 1. CHIINA S-ci.ist Eon.."- . 06/S1 I 1 x x x II

2. "-INA Lcr,--T.c I... aod ooi 05/65 jx x x x

II 3. INDONESIA Pobl- 1-..t.s.nt in R4EVLIL[A Iv 12/65 I I IC IC

fl 4. KORFA f(or4.'s Do-.p...vsct n . QLI..I 06/84 I I IC IC IC I x

II ~~~~~~C.nt.ot I

5. KOREA t...i6 .. I,u.JI 7/86 I I IC I

8. LAOS Con-~y Evono.,o NoosYn.0/88 I

I . PAPUA t" QJINLA Cn-t,j Ec tiSoIc. 05/84 II IC C IC C IC IC I

S . PHILIPPINES P.S I - In.-t-ot P-og0- 00/65 I I ICI

0. SILC*i(3 ISLASI)b Co.-t-y Econo.icH~o,F, 06/84 II

10. THAILAND .-. ~,g P.6ii. R.-..n.. to- 08/63 IC ICI

S,. sfAdj~ot..nt 5I

11. TOW-A An I.,t.-dvct-y, II,i No. 1/as I I IC I

II I ~~~~~~~~~~~~~~~- - - - - - -- - - - - - - - - - - - - -- - - - - - - -- - - -- - - - - - - - - - - - - -----ii Il~~~~~~~~~~~~~~~ 2 3 4 S a 7 8 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2.4

SOU1II ASIA NECION

HN.. Coo-t.y N.Po,t IiFI. 0.L. 1 2 3 4 6 7 8 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I

II 1. &RAP -,n.frCovti- j -. r 05,82 6 IC I x IC IC IC

ii 2. INDIA Ecor.c it,.o.- l.. 0.4 /83 5 I IC IIx

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II 4. KALDIVES Hoor .p,d E- . U.x.0/6 II II

II S. NEPAL R..rD..ovrt. 1o1/63 J

II 6. PAKISIA)lI., Lh. 6Lh F,,. Y-, . 10/83 I I ICI

ii 1 2 3 4 6 6 7 8 0 10 11 12 13 ~~~~~~~~14 15 16 17 18 19 20 21 22 23 24 5

-=- - - -~~~~~................- ----- -- ---- - - - - - - - - - -F

1/ R.f.,- to folId o ,p. 3

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I

3,kLro W W0( RiLATkD t0 SCAIkADE LOGISTICS rNAGE4, POIRTS AND SHIPtPIN( 6.r.o-n Jan 190 a*n D.c I9"

EASt*4d Ad) SOUTHff AFRICA REGION

|8 hj~~~~~~~~~~~~~~~~~~Rporl Tr c"oCv**J 1j 1||No. Contry R.p,,ft ? Ti. Data Ii 2 3 4 6 3 1 A 11 10 It 12 13 14 16 13 17 16 19 20 211

| 1. Co5os 0l, ott 5ctLr H.r. J 08/85 I X X X X

2. tTHIOPIA tra.wort S-cto. r 10/82 I X XX

3I 3. ETHIWPIA (nnoport Corrid- r h2/68 | X X X X XX X 1

4. KEYA Tl.."nort Sector h 07/64 I X XX X I

I . MiADAHASCA h.n rt S.ct.o J 02/543 | X X X XX

A. I IIIc.#r Btl.. ~t,A.w' || 0 * AAI WtS 09nwr Sothsv I\ l ei a 10/84 I XC ||

li ~~~~~~AccenF t th* InJi6A 0,.ur,

II 7 MASTITLJAI rsnaort Sect- .K- . .I. 11/JL II6 | X X

i I . SULAkA tr-nnport S*ctor H. -j- 12/82 | X X

il I il3 . TANZANIA I r.neo-ct SeCtr 01/ | X 1

| 10. ZAIkFE lr6nmort S.ctor h..,. .1. c06/02 I X

|| 11. ZAIRiE fran&ort 5*ctr 1H4.r, loin 08/t | X XX |

|| 12. ZAMBIA lrwnb o.t S-ct4r IK-... r..j- 01/43 | X|

33 13. .rKTI-COis ii, e 11, t od b 1 12/00 | X X||| Atftctir 5 A...d. vIcJ 8..t41J I

II I 1 2 3 4 6 S 7 8 9 10 11 12 13 34 15 10 17 10 19 20 21

1/ R.f1. to tul / o I 6

S)

IA

I

stTflAlt fltIirt TO SEATRtAO LOGISTICS NANAGI6*NT. PORTS AK) SiilIPIMG(docue.ntd l 5 Tletc Jan 1960 and D.c 1986)

W1T1E1t1 AFRI4CA REGION

II R. 0 ort ~~~~~~~~~~~~~~~~~~~I Topiioa Coec.d4 I/ ~ I...... tiaritlitia Ct. I 1 2 3 4 5 * 1 a 9 10 11 12 13 14 15 16 17 18 19 20 21

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II 2 CAtILJIUOt I"pnrr,pc t us 1- .reo.nda 0/i j X X X

| 3 CAhotitOLN I ..n.opUt e.egr P.per 02/x4 I

I 4. CAPE VffDE fr..n.o. S.tii itteorand. 04/81l A X X

II S C A R. an.purt £ crir Nur.ndos 06/81 I II

| Ctw4CO Trn.po-t bactor ,rn-rand.ua 06/80s) | XX

I IVURY COAST Tr.n.port 1.-tu- Haor.ndJa 05/t; | X X

a [VORY COAST Trn.pr. t S-otor - .aorndue 06/o8 J - XX

II9. GABON Tr.n.port S-coW Iocrnu 05/80 I K K K K

II 10 CfJiJIA 1'ran-irirt Lactic Itaorsndua OS/d3 I X

11 OANA Tr-naport S.ctor StrateLy 06/5S K K X

12 OUINEA Tr.n-ror t S-tu-r H.aorndu.. 03/hi A X X X1

II 13. AJINEA-BISSAJ Ti enport S-ct-r h-crandus 06j82 A X XI

I 14. LBtIbRIA Tr.n,port S.ctor HI/orendue1 I A K XX

lb 1:. LlEJiCIA Port Sbotor R-vi., (6/rb I X X X

fl 16 MLl The .i tern.tiuacl Tracnport 06/60 | X IICorridor.,I

17 fAtII f(r-pi-rt nc.ccr H-t. endue 071/3 I X X ||

j1 l HAtiulTANIA Tr.anpor t I-.litS lr Oinds 0S/861 I XI

14 NlII rr,ou -t motor H-aeorndus 08/82 | X |J

H 20 NSAUlilA Tr n.. o-t Suitor ltcior.ndoa 06/O 3 K X K X X XI

21. NICG(IA Port atic St-dy 03/63 I X X X X K X X XI

23 NIhCIRIA O..r.i.. uf l rm.port Inaa-tntent 0I/83 | X XI

11 ~~~~~~~Polkia.* sI

I 23. NI8(IA Publ-c E,p-aduiitur. Nenie: 07/6b I X IITh. lranport Snotor I

24. SU1&SAL (rnaprt S-ct-r Iretorndos 10/o2 I X I

3 25 SltlorA LEUK#e fr -n-rt lacto Ntleranda &&/60 X

26 SEIrluA LE[1JE Iracaport Sacti- .it aranduo 04/83 I X X X X X X X II

21 TOGU Trun-port S.-t-r Norandos 09/83 - X XI

28. l4 AT I ChJINTRY L.-,i Slk,-r-j i, U.ea Afri-ce 03/86 | X X K X X X X K X K X X X K

II I 1 2 3 4 5 0 7 8 9 10 11 12 13 14 15 1f 17 18 19 20 21= " f- fd = -= = - -- -- te

rI der to fld cot (in pegt S

I

SwroOi WLfil W.oAUTE To SEATRAD)E ui0IS.1IC5 MANAGSISET. PORT S AND SKI-PP114

(joc..,nteJ bete.en Jan 1980 end Dec 1986)

EAST ASIA AP) PACIFIC REGION4

Ii~~~~~~~~~~~~~~~~~~---- ----- I-- Toi.c. C-ovred I/

jjN- C-Lnty R.,v.t it- G.t.e I 1 2 3 4 6 6 7 a 9 10 It 12 13 14 i 16 1 17 18 19 20 21 g

I1. C'NIA Irenepor1 S-L-n 108 N N

II2. ilmt, Water 1rntItIv.Ir488 x N N N N Iii IWt0AIx

II4. KLRtEkIeneor S-to, v-... 12/63 N N N N N 1N N N N

jj6. KCItL3A f-.u P-ttItrn r. 10/81 N N N N

fl6. I{tIitA Cotanr -xt Sit. S1-ictOn 05/86 I N N N N Iarid R.Ui-,,i u-,vs -%aat II

II 7. tAilS Ir.n..oct bi..t., ~~~~~~ ~~~~09/66 I I

Ii II xx x x x

II 9. III1LIPP1iILS Transyort 1..~~~~~~.v..r 09/83 I N N 1< N N

Ii 2 3 4 b 6 7 a 9 10 11 12 33 14 15 16 17 18 19 20 21 I

£154fH ASIA 115101N

Fi.pcrt j fo~~~~~Tpic. Coner.d 1/ I1114o r~~rrij IIi,...t Iitia 0.t, Ii~~~ 2 3 4 5 6 1 8 9 ja 11 12 13 14 15 16 17 18 19 20 21 I

ol 1. b A2i1 i Tr ... p- L .,£ i,~1-Ca. 10/82 I N N N N N f

fl2. kiI,"CIAAi.IA)I [1.. rifl ... 4. .. et'84 N N N N N N N N N fII i~ ri. in .. ~ ... A Fr.ni- 6, I

II3. 1)itIA ft.nie. ..1

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fl6. t.A5A.Trei.-,-..I..*Iiv...adi 12/80 N N N I

8. LI--Am-t I I.--.. 1-..r.u-idia l 12/nJb j N N N N N N IIx

II Il~~~~~~~~~~~~~~~~~~~~~ 2 5 4 6 6 7 8 9 10 11 12 1814 16 16 17 18 19 20 21

-1d p.u. 6~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4

I

iL" IUR W8 k1IATU) IU SEAIAD LUOISTICS HANA"WNT, FUT AD SHleIlNO( b.twa.n Ian 10 mbod Dec 1904)

ti9RDE. MIDDOLE EAST AND NtORTH AfRICA IRGIOIN

ND CUflRsf 1 R.ort | Tropc. Cow.r.J 1J j

IINo. C"kr R.",i Ll. Out. 1 2 3 4 A 6 7 4 i 10 It 12 13 14 15 16 17 14 1t 20 21 I---------------- _ - - _-- - ---- - ----- --- - - ----

|| 1. mYPI Trn.pr.rt S6L; oUi.- .. 11/86 | X N X X X|

| 2. HNARY Tren.p.rt 5., ow, I.n, . i_ew 06/l I I

t 3. MIOROCCO Transport 5.c", sL- t.y 07/64 | X N X X|

4. PgLAND Tr.n.port 3.ctr ft.H,. 00/6/ N X X X X

, 6. ROANIA Tran-port ctor K- J- 04/00 t x I

SI 6 TINISIA Trsnsport S.t., K,r.t,jo 07/55 x x 11| 7. TAS(EY Transport S.-tor of.J.o- 06/" t X x K X N II

D. DJk(EY Trana.ort 5.oct.o, S 02/64 x x x 11,t9. * .SY Tranopart rut,I; S, , 1 6 Os/" I N X X|

t1. TluEY 0hiXping SL.0/8 . N N X N X x

11. YIra A A Transort S8ctor fi- -1H/u5 i X X X X h X

tt 12. 14B4 r.U.A, Transport ct SL-ta II/tj i X III lPActirn Plan |t

i i ji1 2 1 4 A 6 7 6 91 0 1t 12 13 14 15 iS 17 a 19 20g 1 2

1/ Rat., to J.ld Ot o, S

0i

S~

I I

r * I t g * o 3 r r * ro rF,.,IZS-o ~!;

2 * w i 5 ^¢ ^ ° 2 * lb

COr

a

f===========================j j x r

~~~~~~~~~~~~~i~

V;i~ ~ *] cC Co N 2nOsrcc2s

r , N N N N >, FF = i

.: S N N U bCvS.sii,ciS ,

g lii * *5 *5r I mjS CE X X .. m E ; j i ' j' j \ i , bi

I A

ANMa 3

PROJECT FINANCED ECONOMIC AND SECTOR WORK(Reported by tho Rogional Transport Divisions in 1985)

TOPIC COVERED ESA WAN AEN ASN ElN LCN TOTAL

I I __ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ jll Costing and Tariff 3 2 8 1 7 9 28 ll15 Railway 1 2 2 3 4 10 22 II1i Plan 2 3 1 4 21

aUint-nance il 9 1 3 4 2g iW Muiti-Modsl; Corridor 3 3 3 a 2 a 18 liPort 2 1 6 1 3 3 1S H

II Road User Chargso a 2 2 1 1 5 14 3II Trucking Industry 2 4 4 a 2 2 141 Aviation 2 2 1 2 2 2 11 1

ii Domestic Construction Industry 4 2 1 a 1 3 11 i15 Technical 2 2 3 0 2 2 11 ilil Urban Transport a a 5 O 1 4 10 sll Shipping 3 3 a a a 2 8 3H Miscollaneous 3 a a 2 a 2 7 lII Rural Developaent; Fooders 2 a 2 1 1 1 7 l

Uneconomic (Ine 3 9 1

lAxIo Load 1 1 e 1 3 3If Highway Safety 1 a 2 a 1 2 8 ,H55 Transport Regulations 2 2 1 a a a 5 1

Passenger Transport Industry 0 d 1 1 2 0 4 I ll Public Administration a 6 9 9 1 3 4 HIEnersy 1 9 1 0 9 3.H Labor Intensiv. 1 5 5 5 _ 2 ;

31 TOTAL Ss 8 44 14 h9 71 ^52 5

A I

DWDICAIEa) PORT PRO0JECTSU,ir i.p.~.t.iof d-ir,~ the p.ri.d J.., 1960-D.. 1986)

1AIP-ojnct Cs..t C..Jit/Lo.n Ao-rnt(i. LISS mili.o) (in MsI mflhi-) co,apl.tjon 4.1. Cofi,1.nej.-a

Act.61 ,.- ~~~~~Act.&.I o, 8ord Eff,~.cti' A.ount in

Co.U.try Cr./t,, i4o ioj-.t. liLi., Ag.t.. Ex.ct.4 Appr. A.L~.I Ap, Exp.ct*. oat.. 0.t, N.e.. USS ail.

E~.strn ond Sonth.ab Afr,c, R.U8 ion

1. ETHIOPIA 1676-ET Poet E Jin... ing Lnd d.50 8.50) 5.b0 5.50 08/88 06/8a 03/15/86 11/03/88 - -

C.n.tructi-n Pruj-t.

2. mAuRUIT1S 976-hAS Port P-oj.ct 23 60 22.40 10 00 9.50 12/ig9 12/8.3 G4/0,2/I4 08/13/74 ODA 8.50

1339-T ,ikS k.via.n 3.80 3.50 11/16/76 07/02/77

3. SOMALIA 838-50 F~orth Po,-t Poj-L. 8.60 la. ~ b.50 5.41 101Wo 07/83 071/05/1 06121/79 DANIDA 4.10

4. S'XAN 781-&d Fir.t. Prt v,.oj4c 64.00 81.0 22.00 22.00 12/81 09/83 03/21//e 02/02/79 ODA 9.60

KfW ~~~~4.20K(FALD 0.50

5. SdDAN 12a3 -SU. Sscod ifort. P-j-t 24.80 2980a 28.00 25.00 12/835 12/86 04/20/62 10/22/82 ----

8. TANZAIA S-24--1A Oar .4s.. 6 FI.a s.00 18.00 2.80 2.50 02/81l 12/81 12/21/1Y 08/13/80 -

Enq;n..riAu Proj-~t --

7. TANZANIA 1536-1 A Port. R.h.6iiit.6-~ 1-.j-ct 91.00 9W.0 21.00 27.00 12/89g 12/89 12/13/84 07/31/85 ODA 0.35NORAD 2.82

Italy 3.82FINNJIDA 6.82

DANYDA ~~7.88N.t.h.riands 10.29

S. ZAIRE 1335 - 74 Mit*.iiIKin.fh..a io.I. 9ou. O 90.0 4800 25.00 07167 03/88 0/22/tbJ 10/04/8.3 FAC 1.00

I atation Prc~~~~~~~~~~~~~~j...'~~~~~~i. ~~CCCE 5.00

~~~WUVUIAL ~~~~~~~~~~~~~~~~AfOS 21.00s4J8lOlAi 318.40 314.81) 128.i-10 125.41 80.88

------ ------ ------ --- ~~~~~~~~~~~~~~~~~~~~~~~~~~

I

DWICA ILD FORf FRO.JE=ClS(IAnJ.. i,.molot.tion i,ring thU p.riod Jan 19O-"oG 1984)

[otIl P,.j.ct C-os Cr-Jdi/Loan Amount

(in US$ * 1ginr.) (in iss *illiur.) CompletIion data Cofinenci.re

Actual or ;, , Actu.ul or du.rd Effoct;.i Amount in

it. Country Cr./1- tM. P,Oj-. Tiil. Appr. EpoetLjd Aptr. Actual Appr. Elpect.A Del. Data Nae- US$ oil.

We.ern Africa Rogioa

9. BENIN 826-kkit Cotonoe Pu-t Vr.j,. 46.90 50.40 11.00 19.23 03/81 08/61 08/08/18 10/19/79 iWOAD 6.30fED 3.00UADEA 7.30

CIDA 6.70

CCCE 8.10

FAC 1.60

AfOO 2.90

OPEC 4.80

10 CAHEROON 1321-ut Steond D-ou1

P- i 120.16 148.20 16.00 16.00 03/"3 12/80 04/20/I 086/16/77 AfDd 12.40

657-Li 10.00 10.00 IADEA 10.00CCCE 10.00

CIDA S4.00PAC 3.30

ffD 4.90KNw 10.20NORAAD 12.80

11. CAi.iOON 2259-Ii ThirJ uoual. P-t P- ..j(.... 1 _.0 3J 00 22.50 22.80 12/88 12/68 03/31/,3 12/22/83 --- ---

12 CAFE VEFOE 1322-cAP Praia fort Pr3j1.t S1.70 26.40 7.20 7.20 10/87 10/87 03/0w/ra 09/04/8.1 NORAD 4.00

Portugal 8.00BADEA 10.00

13. CAMBA 1266-ui SoconJ nj.1- P-L tlj.- 19.16 19.1D 8.60 6.50 12/6S 09/88 0/17/ui 01/06/83 KfW 2.40

AfDS 7.00

14. CH"lA 1674 Ca, Port. I l.j,-iit .Li- --.. L Y6.60 96.U0 24.60 24.S0 09/91 09/91 03/21/d6 11/04/66 fED 8.63Saudi Fund 13.15OECF 29.20

1S. OUlt4EA 382- 4r Cor Ar1 o. d. Le.- 00 38 .0 13.00 13.00 12/67 12/87 06/07/13 12/14/83 OTZ 2.70

K fW,i 6.00AfO1 14.00

16 CINiSEA-8ISSAU 1392 .- :3 B1*e.. POt r'L -.- t 11.36 17.1S 16.00 16.00 12/87 12/87 01/232/3 02/23/84 --- ---

11 NAL9RITANIA 6td-Iv.IJ Not4o.dhi6.. .hi,h, r 27.65 26C3r 8.00 7.96 09/77 10/80 lU/1b/1/ 06/15/76 KFAED 3.60

Proj-rt CCCE 5.70

18 NtIGE1CA 9Z2 ... 1 S.cod i P-.t 1 . J.-L. d3.D4 90 t5 D5 00 65.00 12/78 03/50 01/l/3 10/15/73 --- ---

11 sEBEAL 1401 . D.k.r f-i"' P-.,t j 23.yI 20.DI 6.00 6.64 12/80 12/63 04/14/Ul 0/20/7U bADEA 6.04CCCE 8.00

PAD 2.88

t0 SENEGAL 1411 ', D.k.r Cor el,11.r iL 27.65 2/.6b 2.68 2.68 06/88 06/68 04/17/64 01/18/t6 KFAED 4.09

SF-li-SO Proj.ct 4.88 4 dS CCCE 6.65

o&,l d1u 164.90 690.1_ 2y2.20 210 02 275.04

I

I

k'tiDICAT&ID FIlRT rQJLJErS((Aror o4~,o otrrIJurina Oh. P*rhoJ Jr.n 198

0-D.c 1980)

rot, roj y~ t Cr,4 t/i.o.. A,-.ot(ir u26 .iIi~orr) (in 081.i nIlion) Ccn.plal.tb 8.1. Cafinancj.rm

ALo-1.I o A.to.I or .,-rd Eff-otive Aoount inCoontr3 L. U.roP,~. f-i App, E 6.p-t.4 Appr. Act- I Appr. E,p.oL.d Dot. ). to N.". US$ .ih

21. CHINA 2-CHA T1r.. -Lo. P-- .421.40 2/9 0J 124.00 69~.00 12/08 12/86 ll/.2/82 02/02/83 ---

22 INDONESIA V11,i, .. jo y. P-L. .o.c 7. 30 /0 80 32. 00 31.20 06/79 06/8.4 1 1 j18/7 6 03/16/77 --

2~3. 1INIOESIA 2j-lo oto P,. 0.50 W6.b 111.00. 111.00 12/91 12/92 00/11/88 09/15/88 -

24. KUREA ~ I-K I AWP,t P, .j .. 11Il 60 142.60 80.00 80 00 06/78 01/8J Ub/15/13 09/15//.3 --

26. KOREA 1401-jiG S.,.,d I-,,t WIo.. 1. 0 111.20 67.00 61:.20 12/61 03/83) 04,15/7! 01/18/17 --

26 KOREA 2/6-- .,. ~--L, P,-J-. 020 30 322 30 141.00 141.00 12/90 12/90 Oo178 11/06/866 --

21. KOREA Iv&/Ilo. 63 T.ih-o 8.0k In,-I- 2-1.80 2b.40 1.00 7.00 01/82 10/82 U09,U2/80 na. Suppli.re Cr.dit 4.40

Local Bank., 6.650

28 MALAYSIA 12d.1L ,,oo> G tot P ta t,OOo.tt 26 00 26.40i 13.00 13.00 09/81 12/83 0510,1/18 10/1/18a -- -

2:9. MALAYSIA 2166 EV. P-rt K.I.., r-.j-.> 14 61 14,91 18.80 18.80 06/89 06/89 04129/86 08/08/88 -

30. PAPUJA NEW (IINEA 1551-11EAl S--od P.r-to j, 10.80 9.00 3.80 3.80 12/00 09/80 04/18/78 01/10/79 ----

31. PHILIPPINES 93-191-l S-.con Po1t. f--j.,L 12.00 19.30 6.10 6.04 12/70 01/80 10/16/73 12/31/73 --

32. PHILIPPIN4ES 1868-191 1i,d, P-rt. Pr..t106.02 103.10 67.00 87.00 07/84 12/86 06/21/80 09/29/80 --

33. THAILAND3 1yla, H ll-n6to -ol ot-LLip 109.16 24.80 47.00 9.00 06/84 03/8/ 11/18/80) 08/12/81 -- -Port. -j-n.tn

6, A. 1623s.8 1e186o 21 717.40 823 .84 11.00

Sooth Aaia R.gioo

34. BANGLADESH1 1210 Chitt.o.o-P... P-ojoct 110.00 110.00 60.00 60.00 08/87 12/84i 00/18/82 11/17/82 ----1504-14) 7 00 7.00

38. BOfdNA l/1-8, Soco-r Po-t P j..10.10 18 10 10.00 10.00 12/80 12/81 12/21/76 03/18/71 -

18 HURIAA IL,12-bA, ihird Port r-r.jct 91.48 9/ 48 80 00 80.0`0 00/88 06/88 ur/24/83 10/18/83 ----

at/. INDIA 2.oGl INi 14h.- GOo P.-t 1 .. r 22.00 722 00 280.00 250.00 03/89 03/90 03/13/84 08/23/84 Netharland. 30. 00Saudi Fund 60.00

38. PAKISTAN1 4 22 -P/( ~ Ihi,d K.r..lri 00,.G O1't.j. 34.20 79.1.0 18 00 181.00 08/78 09/82 00/15/13 12/18/73

39. PAKISTAN 492-ph' r-o,tl, tk,,.t P-rt ?rOi*rot 23.90 34.30 16.00 18.00 06/79 06/832 08/18/74 10/18/74 N.tha,rland. 12.80

a,b1d1/I. 1003 68 100i3.98 411.00 411.00 117.10

------ ------ ------ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~n

I

0 DCA') 1D POI6T PfOJECr8(UW,.r J.j.ataljnaurinig Uhe p.rio4 Jon 1980-D.c 1986)

Tot.i Pr..j.ct C~..aa Cr.odit/Loan A-ont(in USII a&lI ioi') (;I, USII million) Compaletioni '4s. Cofinancigrs

A.t.aal a- Ac6tal or 8,.a-d Eff.ctso- A-ont. in

No. Coont.y Cr./1.. No. Prj- TiLl. Appr. Exp*cL.J Apapr. Act4..l Appe. EIupec",11 04A. Date Hom IJ6 i II l.

Eor.p., Midd4l. E.-t and 14-.th AI',i.. A.gjo

40. ALGERIA 499-Al. B.thio,ua P-et P-j-tn 23.20 200.00 10.00 49.10 10/71 nas. 06/21/Y4 02/10/11) AE68O 20.00

KfW ~~~32.00

41. ALGER4IA 1427-1Ai. Port of Jijl1 Prj..A62.40 0 80 80.00 0.21 00/82 n.e. 06/19/11 01/24/78 ----

42 LYP~RUS 1640 LY S.ctoa P.,t. P-,.J-L 29.60 88.00 8.60 8.80 03/81 04/0.3 083/16/io 08/15/118 ----

43. EGYPT 1239~ LI, f PortL f Ai.~.-di. ~ 111 00 130.00 45.00 46.00 12/79 08/88 03/22/1/n 08/S0/76 0ECF 19.20

Proj ,.t USAID 30.80

44 EGYPT 218.3u..1 ELI ji,hil. l.i-L P-.J-.sa 4-15.1u 387(X 132.00 97.00 06/84 06/89 06111/u2 09/23/83 ----

45. EGIYPT 2669 z.( Port S.i4 P-t. 5 1.60 82.60 3i1.00 31.00 12/90 12/90O 06/06/b.1 02/20/871 - -

a.d R.h&Wjit.ti-., P,.-o,t.

46. MOR4OCCO 266/ ..a C..anbi.-. -,) J . i 41.00 41 00 22.00 22.00 12/89 32/89 0Y2126/i/o 32/80/86 -- -

Port Proj .ct

41. PORTU.KAL 2131 ru Coal hod) -.~ L~. ... 1/8 10 11610 8U 6.00 88.0 08/90 08/90O 04/2s/us 01/01/88 £uppliere Credit~ 49.70

48. SPAIN 684 . .odP-L~ )9.Jo,6.940 130 00 60.00 610.00 12/717 12/62 03/21/i., 08/18/13 ----

43 T1.*ISIA 1-131 I(44 Third Po-L V-- 128. 0 106 60 42.80 42.80 06/84 06/87 01/22/w0 06/08/80 Eiport Credit. 16.30

11 TU*(EY 2t'3Y-. Il Thrd P'ort. Ip."1/. 44 17)1 4.4 134 -60i 184.80 12/89 12/89 06/03/4. 1(4/04/85 -- -

62. Yb8*/ A.R. 714 i.d P-L ..... l.' ... ~ 2 1.1.Iu 4600 6.00 6.00 08/82 08/83 06/1 39¼/ 03/17/18j KFAa) 8.00

-1 YEHEN3' P.DR. 684 I..r( Ad.,, P-rt H.1,..6hi i.t. L11.21 la-43 8.20 3.16 08/79 08/86 0i/ 12//I! 02/03/16 Arab Fund 13.30

Projact.

64 YUGOSLAVIA 11.('S U Port ".f )., rl-.-... . W80 'is /0 44.00 42.40 12/77 12/81 11/26/14 06/18/76 - -

2176 U l4orL.-.g- 1.rt.., - .i 124.80 61I 50 60.00 80.10 06/82 12/84 11/24/?1; 0-4/28/80 ---

140.), 23/0.14 18621.01 o16.10 691.912 249.30

------- ------ ------~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~U

w

I

I

L,tbi2.AILD PORT1 P140,E6I S

2.1,de i.pl,,oetioJurin~g tht. p.ri.d Jian 1980-D.c 1986)

TotaL .1 o.2 C-,t Cr.Jit/L..n Amo-n

(in 021 Il.c (in US11 n;Iho.") C.-pleLlon Jt. C0fsn%nLi*r6

Actu.) -. Actoeli or U.rl Eff-ctivo Aeount in

2.. Coortry C, /U. Ic. Pro,j..t hti. App, ExpecLed Appr. Acto-l App,. Exp.ct.d Oct. Oct.a Ne.. US11 mUl.

L.tin A-eic- 4d C. Ii.b.o wiio

~s B12AZIL Y 1- BR SAotW. P-L P....- 78 Sc, 1.41 !O 45,00 44.510 12/15 06/81 (,o/2S/.'1 10/29/11

g6 COLOMBIA 26..o CLH P- L. fi.h.I -L-Hr. ?-J-t 62 32, 52 30 42.80 A2 131; 12/91 12/91 1 1/ 23,51d 05/09/866 - -

5/ ECUADOR 1'21.-4-C Se-od G-e,., 1. 8 , 3 50Q c3 10 33.60 33.10O 12/79 01/61 061/9 03/11/77 lW6 lnt-rnatiooal 10.00

P-oject

o8. HiAITI i112 -H~A Port Decipo -.j.Lt. 23 &0 2s2 10 9.30) 9 20 12/83 01/84 03/2o;41ti 11/16/61 K(fW 8.00

2631bcNLXRAS 135 --ii 1hi,d Po-t Pr - 2910 J 42.70 5,00 4.131 09/79 06/84 04/CL/17 12/22/1l VsnezkAla I.F. 9.10

13,6 HiO 7.00 7.00

OPEC Pund 9.00

696-i0 £.00 5 00

Go MEXICO 1964-XC PorteO,. D Iop,,.-. 2400O 1 90 14.00 5.46 06/84 10/88 03/2.3/61 08/24/81 -- -

PropsrlLic.r Proj--

61. MEXICO 2450-Hl(C Le.-..o C.idr... Io-i-. .tie 112.20O 109 20 76.30 78.20o 08/90 08/90 08/22/84 03/06/8.5

Port Project

L2 PANAMA I A 114Pti Fi.r,i.Q Port P-j-~t 34.U0 4.410 24.00 24.00) 12/78 08/80 04/5~2.'75 091251l5 ----

63 PANAK4A 2182 PAN Sec-d P-rt P-oj-. 48 JO0 36.00 24.440 1800w 12/85 12/88 06/f13r/82 12/15/82 1W0.30o

64 IJ4IXIJAY 1/3196 -LAJ 5Ic.le 0 .J,. 18 40 34 00 50.00 40.00 12/82 12/86 0 1/22/80 02/26/81--

~cb I bVAL 5112 w 11.20 3.38.30 31115 lb.40

TOIAL (i', 026l "iHlic-.) 6434~04 b612 03 2600.70 23121i4 767.74

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - -- - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -~~~~~~~~~~~~~~~~~~~~I

I I

I

ANNEX 5P 1 of 2

PROJECrS WrTH PCRT c aPNTSs(under impleentation during the period Jan 1900 - Oc 1986)

tb. Coantry Ln/Cr No. Projesc Title

Easern and Southern Africa Region

1. KENA 1051-iE Fisheries Oev-lopeent Project

2. IDAASCAR is244 Cyclone Rehabilitation Proj;et

S. SEYfCESi. 2492-SEY Trns-ort Proj ect

Weetern Africa Region

4. CHONA 14 Exort Rehabilitation ProjectSF-9

3. ~ i4as-<1 2 r R.haai i i ezin T~rchni caAeistance P-oje*CZ

-. QHANA 144-04 Refinery Rerihailitation and TecnnIc-Aesistance Proj ct

7. LI#OXA 1768-Lin Dacoeri Oil Pals Project

SA 3S-LiP

S. K*ITANZA 116-1 Pulblic Enterprise R-bheailitationProject

9. NICEIA 2734-ZJMI Traneport Parastatas, Project

1Q. SWNA1. 1412-T-SE Petit. Coto Tourism Project1413-SE

East Asim and Pacific Region

il. N1ONZA 119S-mS Fertilizer OiAtribution Project

12. DQL ZA 1708-NS Eighth Power Pra;oct

13. INIDOJE5A 2872-;NS Minth Power Projecs

14. iXOtESA 2079- iB lukit Aos- Coal Mining Oe*vioemenn-nd Trsnaortaton Project

iS. 3ONIESA 2120-TIN RationaN crtilizer 3istr,hutionProject

13. NA 2153-mo Coal ExpiOration Enqinasring Project

17. 1DO00IA 22t7-Ui6 Fifth SAPI1WD Proiect

l. KO5REA 2267-lKOR Coai .nd Cement Ois-t,iusion ProJect

19. 6REA 2S09-KOR nuaar-ei r-ifanca Project

0. A 2571-KiCR Secena A-u.r.r-ai in-c -rojac

21. MALAYSIA l443-#A EigAeh ooear Po-Jact

22. PHLIPPItE 1772-PH S-ar :..*d Rural Je-aODent Projac.

2J. THAILAND 2889-TH :nland vaterway. an. Son4ai orcaProj *ct

24. THAILAN 2520-TH Regional Cities ODqaviogmnt Projoct

25. VANLATU 1866-VA Multiproject

2 W. EST SAMOA 2657-WSO ui tii-roj.ct

SxclIua-a d-diCated port Projects.

I I I

P1C- 2 of 2

pRoJECTs YrrH PcFrr COMPOENTSs'urder Mal-_mntation during the period Jan 1Q80 - Dec 1906)

No. Country Ln/Cr No. project Title-------------------------------------------------------------- __-------------

aourh Rea g-oc

27. 3ANCLAOFSH 1096-81 Fertili.ze rtnsport Project

28. 3AN0aES i504-8 Spi.ntai aitanca Cr-dit

29. i.f4A 1615-3A Timbe.- Oiatrn,ution Project

30. iADIVY S 1320-NAL Second fish rie Project

31. PAKISTAN 11S7-PAK( Cr-n Stora-i Projoct

32. SRI 'A(A l401-CE :ndustrial Dev.oeient Project

urep-. Mjidid. E.t .n.d Nocth Afrita Region

33. _uAN 1463-JG Nuiti-mods Tr-anavort Prj*ect

34. LEBANiON 1476-LB Rvconacruction Projcet

3a. maROCCD 2W044Km Second nduztrisi and Trede PolicyAdjuat-nt Loan

35. -JFISIA 2052-Tt>i lrein Distribution and Steoreq Project

37. Ef .742-A-R -rin Storaeg Proe ec

3-. -X.O<EY 1952-1 .Or-lnrnav :nautry Arojac

39. Y148N A.R. 102i-YAR Fi neriss Developent Projacs

- `0. -' >.0 R. ,32-YOR "?irn.a -T -t

'-tin Aerica and Caribo.an Region

st. ARCETISNA 1521-ARG 7ra.n Stor-r. Project

,2. RAZIL _9S-6CRA ara,a 1ion Cr- Projict

-. -ARIBBEAN D) 8 --RC 3aconi Crsorrean 3-veiocrna Sanx

A4. OOHINICAN RE. 2369-OOM ; .O -o --r-mina -na P-.r0,01 lee--r.r Proj ct

A5. HAITI 807-HAI Fifth Transport Project

f'8. _MAICA 2107-wAM i-ngaton Frea Zo. Proj.ct

Eci.d.a .ricatac rort orojact.

Mex 6

PijecTS WTH SHIPPING CO Di4Ts(under i_lssntatioen during thJce *ri,o J&n 19W - Dec 1988)

Me. Country Ln/Cr No. Project Title

Eastern ns Southern Africa Region

1. MDrIA 1051-KE F;..e.ie. Do-io _nt Projoet

2. SMALA 146t-So Fisheriso EePiorstion/Pi lot Proj.ct

Wlstern Africa Region

S. NA&rITANIA 1214-AW Secon Education Projsct

tact Asia *nd Pecific Rsqion

4. 0 SA 1;13C9-Ii Frti l izer O3;tribution Project

S. ;INCNIA 1250-LYiN Second Shioping Project

;. :?GeIA 2070-1NS 9.kic s Co-i miiniet O".eioomontins -en ortstlou, i'ro,.ct

7. 'DCEEIA 212=-I16 Notionwi Fertiiiter Oi*triautionProject

S. IN4 >IA 2277-7i-6 F;fth IPNDO Project

9. 11NIBN1A 290-11 Poiytechnic II Project

10. KKA 23OR Industrisi Finence Project

11. XOREA 2'571-4OR Second bn4umtrial FnSncos Project

12. Pi4ILIPPINES 1046-PH First Shipping Proj ct

13. PHILIPPIN 1894-Sp Third Li.ostoek and Fi sheris Creditrojiect

PHILPPINiS 19q84-PH Industri Firc- P-roject

South Asia Resion

15. 9AFiD~AOESiH 1096-80 Fertilizer Trsneport Project

. N. 3ADESH 1117-aO 9&n.iea I n Shii io 8sne 1 Project

17. 8.WA 1114-8A dood 1neustries I Project

, t.RtA 1415-aA -o.-r Oietr rjcioo Project

19. OtIA IFC SD 010 Croat Ewatern Shipping

ALDIVES 1320-4AL Socona Fien-riee Pro--t

21. PAIISTM4 1499-PAK Second Ssi l Indu,tries Project

22. SRI LAN(A 1132-CE S.eone Se I I ace Pedins ,djjst,-.e

23 -RI LANKA 1401-CE :n Du.- -ije 1.ee, t r?,o ot

rAjroee, Židdl isEA-t -na Nortr Afr-ce rejon

24. SIYPT 2074-6s2T -evejnt .e..r... jane3 - -ojct

25. -KROCC 2037-W Minth aOE Project

26. PRlJCAL 2263-Pi Sal In-d ?ed"z Inds.-stry (SHI)O-s-io-sent II Pro1.c-t

2. Y84EN AR. 1O25-YAR Fiehsri.e Oetoejomnt Project

28. 8 P.0DR. 932-YDR FeAh. ei. : Iroject

29. YESE P R. 1274-t3R Thins Penerje Project

.ttin Asisc. nd Car, 41,n . Pqign

30. A9CE1TINA IFC AC 021 ALPESCA II

31. ARCEBTINA IFC AC 02 ALPE5CA III

32. BAR9AOS 2260-8AR I-d..tr, I Credit 'rejecc

33. CLOM9IA IFC S3 040 COLFRICOS

34 HAITI 807-HAI Fiftlh Tr-nort Project

35 JEZIJAY IFC AC Oll ASTRA Il

26. JA.X22AY IFC AC 012 ASTRA -'…-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

I

ANEX 7

NON-PRiJeCT LOANS ANO CREDITSCONTAININr SEATRAOE AND MARITIME TRANSPORT RELATED PROVISIONS

(approved by the Board betseen Jan. 1980 a*nd Dec. 1988)

No. Country Lancing COpration R-i.mant Proviysions

Eastern and South-rn Africa R.gion

1. KENYA SAL I Export protes...

2. MZAMBIQUE Rehabiiit.tion Program Port lnfrastructure

3. UCANOA Rhtabi l t.tion Shipping

Western Africm Reqion

4. ~AN Export Reblb i itation Port infrestruc-ur.

-i '>!IiNEA S.41 >-,e Adsini*t-tion

S. CJINEA-aISSAU R.con..truction .niand 4aterway.

7. wVORY CDAST SAL : -4- Shipping Industrya. YORY COAST SAL. - - Shipbuiiding

Emport Proce.ses

A URITANIA lublic Enterpri... Port/Shipping Adminiatration

10. SA TONE A PRILCIPE Econosic Rehabilitation Ports, Shipping Service.and Modermiz;tirn

vZat Asia an i Pacific Region

II. PHIUPIiNES SAL I Exeort Processes

12. THAILAIN SAL 2 -;- E_port Proc...._13. THAILAND SAL 1I -4 Trej. Rj.-t.4 0trib.zion

Systems

Sou th Asia Region________________

14. 9ANaLADESH Suppi..nt l C,-esit Po-t .v.loc-nti5. 7ANLADESH F-l ood R.heviiitation Inland watra-vs

iS. ?AKISTAN 5AL ot Management

7urcop. Middl, Fzot nd Horen Africa R.gion

17. TURKEY SAL Z - m- aritime Planning and18. 7UREY SAL II inv..t.ents_9.

t-iKEY -AL _1 Eaort Proc-- --

20. 71.REY SAL IY -i

21. YUGOSLAVIA SAL ship R.haciILtation

-atln Ae.r,a and Car.I bi- Region

^3. _S:LIMBIA irrr-, 7 lcy _ort roc...

24. -DSTA RICA S,ort ;.evi op nt Epoort r,ocase..

25. AMIAICA _AL £I2 : upor- t,cce--

25. NICARAGUA 1nhajIliL.tjoio TIenId w.t*r.ry.

27. PANA SAL Thad. Procedure.

Rarer, ,o .ru.tires Ad ju..tn-t Lan. or dedit. ector, Adjuetintun. or Cr-dit. .nd other non-erojct .pec,fic !naing ogPrwtion,.

I

Page 1 of 2

DOICATE PRT PR0JE7S(appraeeid during the period Jan 1960-Oec 1986)

Tot.al

I i Project Cr. (i n Reproz ReportY-er N 4o. Cotuntry Cr./Ln. N. Project Title comt Amunt

Type Oate

1980 I I East Asia and Pfcific Region

II 1. PHILZPP1NE Ln. 16554- Third Posrt Project 16.02 67.00 Appraisl 04/30/S0

I 2. ThZL.ANO i. 19115-TH Bangkoki and Settahip 1096,1 47.00 Aaoraial 10/15/80Poert Proj eats

Ii 3. KOM IFC/RSO-3 Teihan 3ulk Terminal 27.80 7.00 A.pre,-. as/19/80

1981 | Latin Aaerica and Caribbean Region

-4. '-AT Cr. 1121-HA Port De.vicament Project 23.50 11.00 A praiaa 02/24/81

S. S EXICB Ln. 1964-*C Ports Oe,e,opment 24.00 14.00 '31ment. 25105i/l

1982 j i stern end SouthMrn Africa Region

I 6. %xim Cr. U233-SU Second Part Project 29.80 25.00 Agprvisai 03/30(82

Weetern Africa Region

| 7. SAEA Cr. t211-8 Second Banjul Port Project 19.15 S.30 ADpreiel 06/28/82

11iI iast Aeia and Fcific Region

I 8. CHIA Ln. 2207-14A Three Ports Project 427.40 124.00 Approiei 10(14/8211

South Asia Region

I . aMfl40ESH Cr. 1247-a0 Chittegonq Port Project 110.00 0.00 Awprao.e 04(15(811i I Europe. Middie CEst and torth Africa Region

il 10. EGYPT Ln. 2108-Mr El Oikhihl. Port Projie 475.10 132.00 Appreieel 05/14/82

! i athin America and Caribbean Reqion- -- -------------- _-----______-

j 11. _AAMtA L n 2182-PAN s;econo Port Project M.30 24.44 Aspramas. S/21132

983 | | i-astern and Soutnern Africa Region

- ----- ----------

j 12. ZAIl Cr. 13W-JR fttd;gi-4nnaee Part 90.00 25.00 kppremei 02/15/83

, Re7t*haci l itation Proj ct

! rstern Africa R-eion------------------- ____

13. CA'EOCH Lii. 2259-0 Third Douseal Port Project 33.00 22.50 Appraise 03/10/83

I 14. CAPE VYE Cr. t322-CAP Pjs Port Project 31.70 7.20 Aepraiee 21/10/8J

ilI. (JIcNEA Cr. 1382-liJI Conakry Port Project 38.00 13.00 kspr-,_e 36/17/83

!s. XJINEA-81SSAU Cr. 1392-OUS 3iese 0ort ProJect '7.08 -1.0 CO ,r-a S/1715

' aouth Asi, Reqion

1_7. 3LJF_ A Cr. 1372-SA Third Port Project 17.a 50.00 ax4rsa 14/22/83

.984 j cueten end Southern Africa Reqion

-'! ----------------------------------

j 1 8. T

A4NZANIA Cr. 1S36-VA Port Rehvbiiiit.lon Pro;j.ct S1.00 Z7C4 -aore,as I '11/0f8/84

|i } eetern Africa Region

j 19. SIeAL C-r 1459-SE Ocahr Ciitai-nr Port '07. Z5 --.5 .oprcs. '1..29/84

! Cr. Sf-l4-SE Projec% t5

'2-uth Apia Reqion

;I -----------------

; 20. flQIA Ln. 237-LN Nia,a Sheva Port Project 722.00 250.00 Avprsamei 7.2/17/84

! i LLatin Aerics and Caribbean

) 21. 4EXIC0 Ln. 24bO-MXC Lc-ro C.dens Thdustr,sl 112.70 76.30 ADr-i-ei ef/297S4…--------- -- ------------------- -------- ------ -------- ---- _ -------------- ---- _ _-- ---- _ ___- ___-- ___-- _ __-_-- __-- ___- _-- __- -- ___ _- -

I I

ANt SPage 2 of 2

DEDICATED PZrT PROJECTS(appraiiead during the period Jon 1

980-e.c 1986)

OVERVIEW

ji Tota i

i l Project CrlLn. Report ReportYour 1 No. Coustry Cr./Ln. No. Project Titiu Cost AAount Type O t-

1985 | East Asia and Pacific Region- _ I I _ _ _ _ _ _ _ _ _ _ _ _ _ _

| 22. TANESIA Ln. 2577-INO National Ports Deveiopment 18.50 111.00 Appraisal 05/15/85

jI Europa. Middi. East and North Africa RegionII _______________________________-----__-_--

1i 23. SOYfr Ln. 2569-5G7 Port Said Port Exoansion 51.60 37.00 Appraisa 05/02/85ilnd Reh.Di;itation Project

1124. MROCCO _n. 2657-MOR Casalanca *ns Meh.sadi 41.00 22.00 Appraisal 12/18/85

Port Project

:5. 7tlRTLCAL -n 2521-PC Coai Hanrdli,na Porz Project 176.10 S8.00 Appraisal 03/27/85

25. T1LMEY _n. 2535-T1J Phire Port. Project 173.94 134.50 Apra-a, 34/24/85

II 'tin Aeari.a and Car ibban Rgi on

| 27. COLOMBIA Ln. 2635-CLN Ports Rehabilitation Proj-ct S0.00 42.80 Appraismi l0/24/85

1986 j; Eastern end Southern Africa Region-- - --- - - -- -_--------- _- ____

il 24. ETHIOPIA Cr. '676-Ec Port Engineering *na 8.50 5.50 President's 03/11/86I I Canetruction Project

29. AAAGASCAR Ci.r 1752-MAC Por Renaiiitation Project 42.10 16.00 Aeprainei 11/14/86

i 30. SOMOALIA Cr. 1723-SO Port Modernization Project 24.40 22.80 Avprai"i 04/30/86

j;sirn Africa Reqion----------- ________

31. CNA Cr. 1874-H Ports Rehahiiitarion Project 95.60 24.50 Appraisal 03/03/86

1 i EEst Ania. an Pacific Reqion

32 3iINA Un. 2689-0lA Tianjin Port Projett 281.96 130.00 Appraisia 03/17/86

!31 30REA .726-{0PR Pnort 3roiacr 328.30 '41.00 4oprisai :4/25/86

34. ' ALAYSIA _n. 2688-NA Port Keianq Project 34.91 ia.3 Ppsra,saa a3/31/86

,6TAL "in "iSS ,ilionm 4224 83 _784 0

~Or,, Aurntr ny

'I WAN 7 iAEN StSN i

'I 514 5 9H __ __ ___ _ II

.RLD 34

I

I

ANNE) 9Page 1 of 2

0DDICAT PORT PR0JECTS(appraised during the period Jon 1980-0ec 19rM)

SYST8I4C FEATlJR

U 0 SS.A.R. TOPICSr-1 FMCIN CZQlMTRY PRJEr TrTtLE DATE |1 2 3 4 5 5 7 3 q i

II EBA SM M Second Port Proj.ct 03/82 X if

II ZAIRE ~htali-Ki.neams Pori 02/8 | X XI ! Rehabilitation Project

TAWN4LA Port Rehabilitation Project 11/84 X X X

I j EI11IOPIA Port Engineering and 03/94 1 IConstruction Project I

SOjALS A Port Modern,zton Project 04/8t Y X X

tAflAASCAR Porte Rehabi itation Project 11/86 X x X

I: _______________- --------------- - -- i-VAN GAIZA Second 8enjui Port Project 05/82 I j

II CAPE VEDE Pr-ie Port Project 01/83 I

j j CAM ThirJd O-il Part Project 03/a8 X X

j j JUDEA Conakry Port Project 05/83 X

jI j JIPJA-4ISSAU Bisaau Part Project 05/83 X X U

SSmAL Onkar Container Port Projoct 03/84 t X X X II

jI j3wANA Porte Rehalibiitation Pmoject 03/86 j X H

__ __ ----- ---- …*~----------- - … --- - -- -------ASN 3ANM.A0ESH Chittagong Port Project 04/82 X X X

I 3U4A Third Port Proj-ct 04/83 X x

H 1?CIAuhave Showv Port Proect 02/84 - X X

j Singige out for trajects only ith eignificant treat;ent cf 1 2 ___ __5 _ _ -- i

II reveent topic. - - --- -- 1H *- Por *x lenetion. Olsone refor to th. tabil belw.

D.<race 0oveooeent

2. Shipping Oeo,iooeent

3 Cntainri:etion Tr-nd.

Traneshipment laesI--

. Inreodl Issues

S. Mejor Inetitution.l R-fore_

7. '%jor Pol icy Reforms

. rvr tl zvtlon

9. Labor Issue.

I

ANNEX 9Page 2 of 2

DEICATED PORT PROJECTS(appr*ised during the period Jan 1980-Oec 1986)

SYSTEBIC PEATURES-

j j S.A.R. TOPICS-- j

j REION COLiTRY PROJECr TITr-E DATE 1 2 3 4 5 6 7 8 i

-- -.___________________________ ___________________________ ______________--- __________ ________________________---

I ZAEd PFILIPPItE Th rd Port. Proj oct 04/80 Ii

jXjRKO Taihan Bulk Terminal 0/808 X

THAILAW Bingicok and Sattahic 10/80 I XH i ,orts Proj.c!

iI OCFiINA Three Ports Projct .0/82 1 x x x II

iI 1 IFNESIA Nationai Ports Development 0S/85 IX A X X x x XP'a-nect I

OIINA Tanjin Port 'ro;ct 02/86 A A l

[iii ! l ~ ~~ALYSIA Part K*Ja nq Projct 'i/86 ( X X X i

II iDOREA P%san Port Project 04/86 X X X X

! j 4d S OR cYPT i Dikiheiia Por% Project 05/82 IX

Il P .ORtUC Coai Handling Port Project 0/85 I X 11

il T(LRKEY Third Ports Project 04/85 X X X X X

i i 3YP'f Port Said Port Excans.on 05/85 X Xand Reha6bilitation Project j i

j j iCCOROcD *aaMOnoC ananni Mo2im.ai -2/85 X j j Port Projejct

I ----------------------------------------------------------------------- ___-- _________ _________________________-i-

El j LCN HAITI Port OD*v.opment Project 02/81 I X X X

F1EXICO Por't 04veiopment 08/81!-l-r ion P-oj.t

i ~ANAMA ?-ona Yort Prot ct .5/82 ; ^ X Xl

l xIC0 ' *Zarn ar.n... .rustrial '.5/ i XI

i P~~~~~~~~ort Projectii

COLDMEIA Por,t RehibiHitation Project 10/S5 | X x l i------------------------------------------------------------------------- ----------------------------------- '

jH * Singled OUt For proi-ta only -,th sIgnIficant -re.mbent of - A 7 _3 qil reeivant too c.!

-or axolanatlonS 9lae-- -n/er ao tyte :al. na..o

.reguency of T,oDcs - a 9 i 9 i S : 7

-umnr,q 'rojct 14

TOPICS

age DE 0ee rf ient cw Q

'2. Shioping Developent

:naolnr l yt. on -rends

4. -ran noment Issues

j. .nternco9,) L.ue

S Major Institutional Reforms

7< '>.o j0,niicy R-forn.

. Privati.xtion

9 Labor :.uee

-~ ~~~ ~ ~~~ ~ ~~~ ~ ~~~ ~ ~~~ ~ ~~~ ~ ~~~ ~ ~~~ ~ ~~~ ~ ~~~ ~ ~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

OLDICAILI3 PIJC PROIJECTS(e.a d driu. th.. p.rio

4Jah I1~6O-D6C 1986)

k4't qlJECT PEA1&1RES

S.A.R. tk,..f 1TOPICS ly

REG~ION COUNTHIn Fi0UJb2f li~li- DAIE F o,t I 1 2 3 4 6 6 7 8 9 10 11 12 13 14 15i 16 17 18 19 20 21 f

II ESA SUA)AN S-.og P.rt Pr-lj.LL ~ 03/82 I I I IC IC

It ZA1~& ~ VAr-t 012/a3 2 IC IC IC IC I

II TAnZ~~'M4ANIA P-t I N.AiitAtio r i1ci 11/64 I I IC IC I

II E~~~~TiiGiOPIA Port Lglin-o i.u o-,,, 02/a4 I C IC IC I

II ~~~~~~~~~Conl.tru~ctia, Pr,~joc~ II

IL S{.~~~0tALIA Port H.. -P joot 04/". a 3 ( IC II IC IC IC IC I

LI I4~~~~AD~AOQSCM4 Port.. I.h.Li itti,,o Pr.j.cL 11)860 10l J IC C IC IC IC IC IC I

WI AN GAJO1A S.cor" b.-jd ro,-. Proj.;A Ob/U2 I I j I ICIC

CAI0L- VaDOL Pr-ja Port Poi1 0/8 I 1 I IC IC ICI

CAtr.0* T id0 orUNoio 034 3 IC IC IC IC I

OUDhizA Ln.*lry Port 03/63 1 j I IC IC IC

OGJi"& -fiIbSA1 6"..o Po-t P-j-t Ob/i.3 £ IC IC IC ICI

II £&24.EOAL ~~~~~D.kar CL ot,u-, I-',,t 03/64 I 1 I IC IC IC

II G~~~ANA ~ ~ orL. H.I.b~~~ it.Uo., ero.i.,t 01/68 2 IC IC IC IC IC

I AS"I 8Al"AU061 I Chitt. 6 -og 1o-t PlOj.ct 04/82 I1 I C IC IC IC IC

O-Ai)IA F-L vs. P -L G-j.k. 264 1 I IC IC IC

II ~~~~~~~~~~~~S16 ltI I II

- - - - -…-- -…-- - - -- -… I- - - - - - - - - - - - - … - - - -- - - - - - - ----- - - - - -…-- - - - - - - - - - - -

j J1 2 3 4 8 8 7 8 9 10 11 12 13 14 16 16 17 18 19 201 21

I/ Wrd. to frAJ t o. ps, 2

I I I

~~~~~~ * j'o"°^

I ' F * F;!, a5ere*

c I. r

-" F ; I i 4

t ! . ¢, > i hK tj

4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. - i

i i i~~~~~~~~~~~~~~~~~~~~~~~

; K

,~~ ~ ~~~~ : i t.

el ; Ks 7zv.^ ;7rc K

If~ ~~~ o :r i C7 iiCi L r L !; G O C F iS;i Xrp' OiQ~ K I K K K K K K S .3L10 i

01 K r K I K K ;: : >4w = r io

M e I I Ito r Fr

iI K I r ; ; K e

! .o i G Sd ; ~ 8 . G a a E 8 c i ;rL

I

Page 1 of 2

DEICATED PW PROJECTS(appraised during the period Jan 1980-O.c 1988)

KEY LO0A/CREDIT AQtED4VTS PROVISI6

II S.A.R. I PROISIEa IiREION CONTRY PRJECT TrrLE DATE I 1 2 3 4 5 S 7 S 9 10 11 12 11

) - - - - ----- - --- ________ I--------------------------------------------------MA SUM Second Port Project 03/82 IX X X

11 1Il ZAIRE Mstadi-Kinshwaa Port 02/83 X X X

R.heDilitation Project

TANZANIA "ort Rha iilitation Proj ct 11/S4 X

ETHIOPIA Port Engin- ring snd 03/8S X j Construction Projct I

SOMALIA Port Modernixation PmOject 04l88 !x x x x ! MA0A3A3CAR Porte Renmbiitation ?roj.cm :1/S8 ( 0 X X

1 AN aIAPUA Seconi Banjul Port Project 05/82 Xi

| CAPE VEDE Praia POrt Project O1/83 ii

!; CMRONw Third Ocuaia Port Project M3/83 X X I

GUIWEA Consihry Port Project 05/83 I

jIWEA-8ISSAU Si;xu Port Project 051i3 I X X

saNeAL Dakar Container Port Project 03/84 1 X X

jjAWA Ports Rehabilitation Proj ect 3318 X X

-- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - - --…- - - - - --- ------ - --------- …-… -- …--- --ASN 3AN 03 H Chittagong Port Project 04/82 i Y X X X X l

jI j SLtUA Third Port Project 04/83 I X X X X

jNDrA dhave Shae, Port Project 02/84 1 X X Y X

-- - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - --_ - - --------------------- __- _--- _______,-

. eintee.-o key sector soecific orovisions only. 2 3 4 5 S 7 3 9 10 11 12 1S j

j Por axcianationm pie*sm rsafer so -- e tabla D1i,,'

PROVISIONS

Li-e av. aaer.

2. lpraetons, -. rqet

3 Financiai -.rgeza

*. Port Operations Mn.egeent

s. Pin.ncil Pe 1 n4geQ nt

S. Port Veintenence

7. intitujiosi ArrangSenta

S. Staffing

9 -aining Arrangaenta

10. CU.stoa Proceasires

11. Port Syst*e tMenageent

12. M4ritie infrastructu re Os.I opmnt

13. Shipping Ipro,.-nt.

I

AEcX 1 1Page 2 of 2

DEDICATED PORT PROJECTS(appraised- during the p*riod Jan 1

980-Oec 1986)

KEY L0AN/cCRfDT AGR9EEMETS PROVISIONS

S.A.R. I PivVSION4 IRECION COUNTRY PROJECTTTLE DATE 1 2 3 4 S 7 3 9 10 11 12 131

------------------------------------- ------------------- ---------- - -------A EN PHILIPPINE Third Ports Project 04/80 I X X X X

KOREA Taihan Bulk Terminli 08/80 I ii

THAILAPO 3angkok and Sattahip 10/80 ! X x x XI ~~~~~~~~~Ports, Project I

II OCINA Three Ports Project 1.0/82 I X II

j I INDONESIA Nationai Ports Oe-opment 05/85 I A X X X X X ! H p~~~~~~~~roject

ItHINA ianj in Port Project Xi/86 !S

jI r45IMAYSTA Port Keieng Project 03/86 j X X x

KOREA Puean Port Project 04/86 j X X-- --- ……-- ---- …---- - -- -- ----- -- --- - - -- -- - -- - ----- --- - ----- ------------**-I

jj l *4 r 0YPT El Oikhi is Port Project 35/82 x X x x j j

PORnJAL Coal Handling Port Project 03/85 x x x X

iI P.R(EY Third Ports iroj*ct 04/85 I X i i

II ~ YP1 i Prt Said Port Sxpoen.ion 05/E5 iX X Y XXII a; nd Rehabilitation Project

!1ROCCO Camaaianca and Hohammia :2/85 I X X X XIIl Port Project j

------------ __-- _-- _-_- - -- - ----- -- - - - -- - - - - - -- -- - - - - - - _-_--- _-_--- _-_----- ___________________________----

i I 04 HAITI Port D*.iopent Project 02/81 I X X A 4 jI* -I 1

II jMEXICO Porte, Devolopent 03/81 1 III Peparation Project I

| N econd Fort Project OW/82 i A A AX

I .1 ~ MXICO -azarrt Cardnva, industr,ai O5/84 X X 2II "ort ~~~~~~~PriOect

j I 3AC A Port. Rehebiiitation Project 10/88 I x x x A x x

-- - - - - - - - - - - - - -__-----------------------_----------- ------ -- - - - - - - - - - - - - - -- -I - - - - - - -

jHl * 2esate . to *ey "ctor uoecifit rovi-, o oniy. 2 3 S3 10 lO 2 :3 H1

j or ,x.invtions Piase refer co the taile elowi

r.q..n.y 3f Pr-ia.ioni 1 12 -_3 _ 3 .a- 2

2 3 3

.N&joer at aqrae..el 24

'ROVISIOI6S

-i rit NO inw ...- t"nto

2. goerationai Targmta,

A. Port Ogerationa Manaqeent

S. rinancia, Managqent

3. Port Maintenance

7. intitutional Arringeeents

8. Staffing

9. Training Arrangements

10. Customn Procedurem

l. °ort Sy.t.n M%negen,ent

12. Mii,ito.. Infr-at-cture D-viop-ant

13. Shipping Iopro--nt.

I

MX 12Pag. 1 of 2

PROJEC PR K4CE AUDIT RE50r (PPMAR) AtO PRJWfr CtfLETION REPRrS (PCR)PM PMW AtJO SH1P RELATED PROJECTS

(Prewared during the Period Jan. 1960 - DOc. 1966)

Total project cost Cra-dt/Loan saA.t(in USt 1ilIion) (in Ut *ii;on) Co_let.on date

__________________ ------------------ ----------- _------- Regort Rooo,t

No. Country Cr./Ln. No. Project T;tle Ap,. Actual Agpr. Actual Aopg. Actual Type Date------------------------------------------------------------------- ________________________________________________________________________--______

OEDtCATED PORT PROJTS

asetern end Southorn Africa Region----------------------------------

. EA5T AFr. CON. 538-EA Sacond and Third Harbour 106.74 136.73 35.00 34.48 12/00/72 03/00/79 PPAR 06/30/823_EA ! Proj.cta 25.20 28.35 I2/100/7 03/C0/79

2 MtAURfIlTI ;7.-AS 9

7e6e Port Proj ect 23.5 22. 90 10.00 9.50 12/00/79 12/00/83 P(C 05/17/8J1339-T1-AS 3.60 3.30

3 SMALIA ^39-So Sqad nu P n o rt 2 5.00 2. 20 2.9S .2.95 S ./00/7t '2/00IT7 'PAR M6/27/50186-SO 5xtnsaon P'rljct 3.o 1.30 5.20 .. 98 31/00M/n 0/00/77

* SONAIA 936-SO Fourth Port Projact f.60 9.30 S.30 3.41 20/31/80 07/00/83 PCR 05/19/86

S SUAN -81-SU2 Fircs Port Project 64.00 61.00 22.00 22.00 12/31/81 09/00/83 'PAR 06/28/8S

Wstre Africa Regioon_____________________

6 SN9N 326-88 Cotonou Port Project 44.90 50.40 11.00 19.23 03/00/81 06/0/ PPAR 04/08/86

7 CAMEO 1321-04 Second Dousle Port Project 120.16 145.20 15.00 15.00 03/00/83 06/00/82 PCR 02/14/84657.04 10.00 10.00

MArtTrANIA 588-NAJU Nouadhibou Port Project 27.56 26.36 8.00 7.95 09/30/77 10/31/Jo ?PAj 12/19/83

9 NICERIA 922-WT S*comd Los Port Project 83.84 90.6b S3.00 55.00 S.2/00/78 04/00/79 PPAR 06/30/82

10 S8-EfAL 1405-SE ODakr fiahing Port Projec% 23.96 20.48 6.00 5.64 12/31/80 12/00/83 ?m 06/25/86

=act Aa,s en4 Pecifi;c Region

11 iN>ONESIA 13-IND Tnejunh Priok Port Project 79.30 70.60 32.00 31.20 06/00/79 06/00/84 JPAR 08/19/86

12 KOREA 317-K0 c; rt ond Second Port 118.60 142.60 80.00 60.00 06/00/7% 06/00/79 PPAR 04/28/83_401-K0 'rojct.. 48.3S0 .;1._0 j7.20 56. 20 _2/00/81. 03/00/83

23 MALAYSIA 580,4A -Second S.b... Ports Project 26.00 29.40 13.00 13.00 2)9/30/83 22/17/83 YCR 3/07/86

Rk PMJA ,J (INEA 226-PNO 'i-at Por,t Project 1 1.20 10.60 9.20 1.20 06/30/78 02/07178 ?PAR 25/20/80

15 PAPUA W CtJINEA 1551-PNO second Ports Project 10.50 9.00 3.50 3.50 12/00/80 09/00/80 PCR 12/08/8a

2H PILIPPTINES 439-P4 PeHond Per e-eoHct 22.00 19.30 s. S 5.04 22/31/75 01/31/80 '-AR .S/07/85

South Aai. Rqijon

U7 RA 571-8A Second Port Prioct 16.10 16.10 10.00 10.00 12/31/80 12/31/81 PCR 035/10/84

3 P9XISTAN A22-PAX .hi rd cod Fourth K.rcr,i 3.4.20 79 .20 l8.00 28.o00 1/00/78 09/00/82 PPAR 22/09/86-42-PAK ',z perolects 23.90 39. 0 -0.00 6.0 00/79 >/00/82

-srw-e. 4iadjl Easnot n. th, 41r,ca .7on

29 ALCERIA 2427-AL 'ort of 3,jei Project '52.40 0.20 30.00 3.27 'P&R .9/06/82

20 ALCEIA 195-AL ietia Port Pro.-c- 293.20 200.00 70.00 '9.70 20/00/71 32/00/79 'C°. 06/30/83

21 CYP.I.S 2540-CY Second Port. Prozect 29.50 36.00 6.50 8.50 03/00/81 04/O0/85 PPAR 06/11/86

22 SPAIN 384-SP Second Port Projact 98.90 130.00 50.00 s0,00 12/31/77 .2/31/82 PCR 02/08/84

23 r7.°WEY 1741-TJ Port.. Rehabilitat,o- Proj-ct 155.60 30.20 75.00 57.30 12/00/82 06/00/86 PCR 05/21/86

4 fe A.R. 14-_AR cort Oac...ent- Pro?.ct 27. 0 I .3.00 5.00 6.0 C 3/31/82 36/30/84 '-PkR 02115/85

25 'EMEN P.0.R. 584-VOR idan Port Rhatii itati-o 17.27 '8.4.3 3.20 3.15 06/30/79 06/30/86 PPAR 22/20/85

26 YUJCOSLAVIA 1060-5J Port .f 8ar Project 78.00 73.70 44.00 42.40 22/31/77 12/31/81 PPAR 07/09/861768-YU Montanagro Earthaouse 124.80 61.30 50.00 30.10 06/30/82 12/31/84

R.h.Ss 1 i tion Poojet…-------------------------------------------------------------- ---- _ ------- _ ------ __ -__ -- ____ ----- _ ---_ --- _ ---- _ --__ -_ -- _-_ __- ____----_____----

I

AMIEX 12Page 2 of 2

PRJECT PlRFaRMANCE AUIIT REPORTS (PPARn) AND PROJECT COIMETION REPORTS (PCR-)FOR PORT AND SHIPPIIG RELATED PROJECTS

(Prepared d ring the Period Jan. 1980 - Oec. 1986)

Total nroject cost Credit/Loen aeount(in L." AU I Iion) (in US6I .II-on-) co.p.t,on dat.

---- --- --- --- - - --- --- --- --- -- --- --- --- --- Retort R.vort

No. Country Cr./Ln. No. Project r.tl* Appr. Actual Ampr. Actu.i AVp. Actual Type Oate

OEDICATED PRT PROJECTS

a-n A-nCe tn- Cr...b..n R.Aa. -

27 SHAZIL 756-aiR Snn.o Prort ''oject -8.50 :.48.50 '.00 44.80 -2/00/75 06/00/81 '(Z C5/1613

28 ECUAOOR 1255£-EC Socond Coayaqui l Po 33.80 33.50 33.50 33.50 12/00/79 01/00/81 'CR 12/13/83Pro-j ct

29 HArTI 1121-HA Port Oenelo.aent Project 23.50 22.50 11.00 9.70 12/00/83 07/00/84 PCR 06/27/86

30 HGNOLRAS 787-HO Second Port Project 9.410 19.90 3.00 9.00 12/00/74 01/00/79 PCR 12/30/82

31 HODLRAS 1395-T-HO Third Port Project 29.90 47.70 17.00 16.90 09/00/79 06/00/84 PPAR 06/17/8Ei1396-HO96-HI0

32 PANAMA 1114-PAN i;hi.ng Poret Pioject 34.00 47.10 24.00 24.00 12/00/78 11/00/79 PPAR 06/30/83

SHIPPING PROJECTS

East Asis nc Pn cific Req,on

33 I0XNE5IA 318-IND P:,rat Shipping P,ojact 13.50 n.e. 8.50 8.20 09/30/76 12/00/79 PPAR . 03/25f83.

34 INDONESIA 1250-;ND Second Shiepinq Proaect 195.20 1S5.60 54.00 54.00 12/31/80 06/30/a3 iCR 05/15/85

35 /HILIPPINE5 S 1048-PH cret Shippiqn Pro.ct 34.-0 .4.S0 70.00 39.40 S6/30/79 07/31181 7QtR _1/31i34

IULTI-HOOAL PROJECTS

Eastern and South.rn Africa Region

40 SU3AN 457-SU -hird Raiyiy P,ro.ct 79-70 79.10 4.00 ° 23.20 09/00/76 $3/00/81 'R 8.002409

41 ZAIRE 055-'R Ri-er Tranaport Project 13.00 n.e. 7.00 8.90 06/00/73 02/00/81 PPAR 10/07/83571-ZR Raii/Ri-e, Trnaport Proj.ct ;2.00 I.e. 28.00 24.60 12/00/78 10/00/82292-ZR S-con6 HiOlhney Proj.ct 46.40 n s. L9.00 18.90 02/00/74 12/00/79536-ZR Thirl Hignaey Pr-ject 40.30 42.20 268.0.00 00 16/00/78 12/00/80

'_cr C AIIIr 1. tnt Car, ot-n r/aqioc

42 HAITI 307-HA =i;th Trneport P-r,jc- _0.47 20.30 15.0 .4.02 ;8/30/1 24/(00/82 R .3/'2/34

43 PERU 1196-PE .i-Aazon .r-nort 128.70 126.-0 Z6.50 70.80 28/00/80 06/00/8S N1R 33/24/86Corridor Orolact

H ISCELLANEI0S PRCJ0ECS

i-ats rn *5 ri c m* Reg on

44 SENECAL S-3-SE Shio Rpoir ,,g-n....rng 3.09 2.52 0.60 0.49 10/00/74 04/00/75 PCR 12/28/82

set .5.. t nt c . ic 9e. .on

5 ISIDONESIA L139-IhD FP.tirli.ir Oietribrution 130.00 89.50 88.00 s8.00 36/30/78 10/16/80 PPAR 12/30/825

ro I ect

I

I

MNNE 13PPAR / P F8R OEDICATE PRr PRWOJTS ieg. I of 2

(Pre*ared Ouring the Period Jan. 1980 - Dec. 196)KEY IPLAUErATION4 I IDETIFIED

RPr I ISS.JER j IN COLICTR PROJECr TTTLE DATE 1 2 3 4 5 8 7 8 9 10 11 1.2 13 14 15 15 17 It

- ------------------- - -- ~- -- -- -- - -- -- -- - -- -- -- - -- ---- -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1

SEA SONALZA 4OeieAh. Part Project -I i XXii ~~~~~~~ ~~~~ ~~~ ~~~~~- 0./ac x x x x x I

1¢ 50 il W~~~mmdak Piere Fstono;ewI I Project -l I

II ~~~~E. A. co8Mzr Second Ha~rbour Project -I III I E A W m 5 eeni rhet Prei et - 06/82 l x x X X

E A. COMllT Third Iartoar Project -I I

II0 .wPtTIEs Reied Port Project 05/85 I X X X X X

i: SDS Firt, Port Project 06/85 A X A X X X

SOKLIA Fourth Port Project Ost8a j X X X X X x ii

! AAsI 'IR10IA lecone nl.oe Port Projet 06/82 ' A iX

-"RITANIA lounhiaou Port Proiect -2/83 S ' X X

H zoAMMN Secno Oousie Port Project 32/84 X x X X

II 9otono Port Project 0/86 X

I SIAL. Deir Fieniag Port Project 06/88 A X X X x H

---- __________________________________-________--- -------------- ----- ---------- --- - -- - ------------- ~~----------------- - ---- !1H A8 PAe N JDNEA First Port. Project 06S/0 A X X X X Ii

PiAPUA MEN QJIEA Seconi Port Project 12/83 !x x x x x xAl

I i KOE First Port Project 06/85 A X X X X

11 Y<REA sconr Port Project 36/8o IA A X X X X X X X

I ~ PHILIPPIES Second Part rojeet 07/88 i X X X X X X X X

II :4ALAY51A Second Sabah Ports Project 03/8ii Ix X X X X X X X I

XNDO4EiS A T.njuog Priok Port Project Os/" A A X X X X

AIN 2.AA 3..~~~Zcond Port Projact 05/84 5 A A

-Aj(ISTAN Thirl Karachi Port Project .2/886 A A A A A

PAMCXTM Fourth Karachi Port Project 12/8t A X A X

i. 2 3 S 6 7 4 9 W 11 12 13 . 4 :5 I6 17For *xaicnstions 6leeee refor to the tabe h oiow ------------------------------------------------------------------- i

- ol-"ct ut zrO ton

2. :pi_aentat.cn Ti_ Variations

cccal .. ei Fi-lncCtrg

. Trade / Traffic 0e-iacrons

5 Fc,4i ty oesi gn

i. 'ro;jct Scope / Zortent C'hangqe

- rocuri,ant

a. Conrrctor P--forance

4. -cnn-cal w.iZanc- Con-jit-n ?nrborr nca

10. Training Arringant.

11. Institutional Aspect.

12. Port Operations

13. Ragulations

14. Financial neoeagnt

C-o-enait -o I *nc-

16 Econcoic Rate of Rturn Variat-on

17. Fin.ncial Perf-rcenca Trgt Vari-tion-

I

ANNE 13PIAR* / PCa FOR ODCATED PCr PROJETS Puge 2 of 2

(Prared During the Period Jan. 190 - Dec. 1988)KCEY LBUETlATION ISSI MldTIFIED

REPIr I !SSWi RElION cmmRY PROJECT TTLE ATi 1 2 3 4 5 * 7 8 9 10 11 12 13 14 15 16 17

11 901 ALMIA Port of Ji jai Project 09/82 X X X X

ti ALZA rA*seigu Pe" Projet 06/8S I x x x x x x x x x If

SPAXN Second Part Projoet 02/84 X X X X X X X X H

II Y9E A.S. Port Declopent Project 02/8S I X X X X X

I | Y9N P.O.R. AJen Port RMab i I itetion 12/85 I X X X X X IIProject

II TIlCEY Por.Rahakiitation Proj*cu 05(/6 IX X X X X X X XII~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

! I CYP Seconi Port Project 0/U I X X X X i X

|I ~ 5YULAVTA Port of Bar Projiect lnd 07168 X X X X X X X Y: |

4ons nfeqro F*rthJquaee

A sae.i.ittion Prlelcz

| t ___ ____________________------ --------- --- --- __- 1----- ---------- '------ --------------------

II 0A MON.NA3 3econ d Port Proj acm 21a82 j X X x x

IIAZIL Sante Port Project 0/63 IX X X X X X X

|I PMA Pj,,ing Port Project M/l3 I1 X X

IIlt W.MO Sazcon ayai I Port 12/63 iX X X X X X j i! Projecti

jI 0 NAUUSi Third Paort Pro;ject O6/68 j X X X X

i I MHAM Port Devecoo_nt Proj et 12/68 X X

----- … -I-.-.--.....~-..--- ------------------------.----…-I j sFor explansation. eles refer to the ta-le e.io 1 2 3 4 5 6 7 6 9 ;0 11 12 13 14 15 16 17 H

u ____ _____eort*: ,A 1 2 _ 4 3_ _ 7 8 101 12 '3 14 15 1H7I … -…-, … --------- …- ---- ---

Fr*anecy of l*..*. 24 29 5 21 12 5 S 7 4 a 4 3 4 20 1!

1. Project Ceot variations

2. implementation Tine Variations

3. L Cl st Fnncinq Iaeu-e

4. / Trvfflc Deitrons

S* 3

e.on leuno

S. 'oiect Scoo. / Zontent Canq-e

7. rocuresent Iessuo

ontractor perfornce isSues

9 'cflnical Aoistance / Consultnt ea

11 inetitutionai Ieuee

12. J-srtionsi 1u.--

13. Regulaeory Iauee

14. Financii Mansoea_nt I-su.

15. Cocenant CoplI;ance I-suec

16. Economic Rate of Return Variation.

17. Financial Perforeence Torget Variation.

I

_ _ _ _ _ _ 20439

f-A ~ ~ -

¾,2,p,/i L\ X,')I

aN\, tAk ._ I ,+11)~~~,

el~~ ~~ ~~~~~~~~ tJ

Wu L . D BANK _WJPPO L i D DEDICAl EID P eT PkO)Ec-rsEQ94TOt,4 .'Lt - ivJDER 1MFPLEMEN1AIION DURil4G mirE PERIOD JAf'4,RjkY kyB i E)i WCLMtER 1986

O ON GuIrl,

* CO&IL I [ I- LS