Page 22 - LUA November December 2024 Issue for website

INDUSTRY REPORT

Africa’s container shipping
OPPORTUNITIES

AND OBSTACLES

As Africa modernises its ports and logistics infrastructure, the capacity, leading to severe congestion issues
continent’s container shipping industry is growing, overcoming that plague the sector.
African ports are largely state-owned,
challenges to become a more integral part of the global trade making their operations sensitive to
ecosystem, reports Parijat Sourabh. prevailing socio-economic conditions.
While many countries have moved
he African continent has CURRENT STATE AND towards privatising port management,
witnessed a remarkable CHALLENGES regional and political instability
transformation in its logistics and The container shipping industry in still hampers operations, customs
Ttransportation landscape over Africa has undergone a remarkable procedures, and the transportation
the past decade, with container shipping transformation over the past decade, networks connecting to and from these
playing a pivotal role in this evolving with major ports across the continent ports. Africa has over 100 ports, yet
narrative. As global trade patterns shift experiencing unprecedented growth only a few are equipped to handle the
and the world becomes increasingly in container throughput. According simultaneous arrival of today’s giant
interconnected, Africa has emerged as to the latest data from the African cargo ships, according to a report by
a strategic hub for container shipping, Development Bank, the number of In On Africa.
unlocking new avenues for economic container units moving through African Operational inconsistencies, largely
growth and integration. ports increased by nearly 50%, from due to rising cargo volumes, limited
According to the latest data by UN 24.5 million to 35.8 million between resources, inefficiencies, and corruption,
Trade and Development (UNCTAD) 2011 and 2021. are common in many facilities. This is
between the first half of 2018 and the first However, the reality of container shipping especially true in West African ports,
half of 2023, port calls by container ships in Africa presents a complex picture of both where rapid growth in cargo flow strains
in Africa rose by 20%, marking a record- challenges and potential. Most African ports facilities that need significant upgrades,
breaking increase for the continent. currently operate beyond their designed including deeper draughts, expanded

20 LUA NOVEMBER - DECEMBER 2024