Connectivity: it starts at the port
Tuesday, July 27, 2010 at 12:03AM
Thomas P.M. Barnett in Africa, Citation Post, infrastructure

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.

Article originally appeared on Thomas P.M. Barnett (https://thomaspmbarnett.com/).
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