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12:03AM

Connectivity: it starts at the port

FT story on the need for port privatization across Africa to boost connecting trade, especially in countries where past civil strife led to a deterioration of infrastructure.

Maputo, Mozambique is held up as shining example, thanks to privatization seven years ago, with DP World taking over 40% ownership (yes, the very same company we ran out of America on this very subject).  DP also has a 60% share in the container terminal there, partnered with a railroad company.

Overall, DP runs 3 ports in Africa, a Danish company runs six, and a Hong Kong company runs one.  In each instance, experienced hands are upgrading infrastructure and improving operations and--most importantly--convincing regular customers to move in.

No, privatization is no panacea, and the roads issue can still starve a port, but once you establish the potential for throughput, you trigger more demand for better roads, etc.  The business will come, all right, if you give them a good reason.

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