APIX, SERVING INVESTMENT AND BUSINESS

Aboubacar Sedikh Beye,

Director General, Port Autonome de Dakar (PAD)

The Port Autonome de Dakar (PAD), which is located in the heart of the Senegalese capital, started a development, modernization and decentralization plan that is both necessary and ambitious especially considering the intense competition. At the end of 2017, Aboubacar Sedikh Beye was appointed Director General and it took him just a few months to fine-tune his strategy. What are the major challenges in making Senegal’s PAD the leading logistics hub in West Africa? In this globalized economy, several trends are guiding international relations: a key word is “gigantic” because ship owners are constantly seeking economies of scale that can consolidate the sector through mergers and acquisition, the regionalization of trade, and the development of hubs that push ports to increase their reception capacity and increase inland multimodal transportation. Digitalization is also accelerating ship reception and cargo throughput. The increased involvement of the private sector has hastened the development of the port terminals. The port authority is well aware of its inland potentials and wants to develop its position on the African west coast. The latest vision sees PAD as a “driver of emergence” whose final goal is to create a new port complex that can receive the latest generation container vessels. PAD is already well assured that Senegal will reach its goal, i.e. to become the main logistics hub of West Africa. Ndayane, the new port has the great advantage of being one of the deepest on the West African coast and is next to an integrated economic zone that is coupled with the urban conglomeration of Diamniadio and also the Blaise Diagne International Airport (AIBD). These platforms allow Dakar to serve as the logistics hub for Senegal and even more importantly, for the sub-region. How can you explain the incredible improvement and the record numbers that PAD registered in the 2018 and 2019 financial years? Immediately after the strategic plan was introduced on 28 June 2018, the port launched its structural transformation project. It was a hard, but successful, fight during the second half of 2018 to stop the financial hemorrhage and start rational, urgent work projects. One of the projects focused on “cost-killing” or streamlining operating costs and optimizing the activities by revising tariffs. This improved PAD finances and paved the way to the implementation of large-scale projects such as upgrading the port to its present level, better roads and truck traffic management, and the creation of new spaces. More good news is that PAD has also improved its ranking with WARA. Now that its financial health has been recovered, PAD is authorized to take out and personally guarantee a loan on the bond market for the third time. This financial boost will be used to build roads and various infrastructure and to ready the Port Industrial Zone to receive its first investors. This fund-raising exercise was a big success with 157.71% of targeted subscription rate. The public offering was closed early since it had received over 94 billion CFA francs while the target had been 60 billion. What are the main goals and objectives of the 2019-2023 Strategic Plan? In 2018, the Port’s management started a thorough restructuring and re-energizing project, which led to the preparation of the 2019-2023 Strategic Plan. By launching this new vision “a port, driver of emergence” PAD supports the objectives set out in the PSE: improve customer satisfaction by 39 points on the Net Promoter Score (NPS); double the sales figure (from 49 billion CFA francs in 2017 to 100 billion), improve profitability by fivefold (from 3% to 15%), and improve the fluidity of operations in the PAD.

In order to work towards these goals, five strategic actions were identified: securing and developing the offer; making transit smoother; improving the client’s experience; optimizing management and building up human resources; strengthening governance.

Achieving these objectives would enable PAD to become one of the reference platforms at the African and sub-regional levels and to become more competitive by preparing for foreseeable major changes in the national and regional port environment.

What is the financial plan for this large-scale restructuring project? Are you looking for more private investors? The creation of the Ndayane port is the showcase project of this plan. It was developed as part of a rider to the container terminal concession agreement signed with Dubai Ports World (DPW), the world’s third largest operator. The other projects will be covered by PAD, bearing their final purpose in mind. The plans for the parking areas, for instance, were devised through a partnership agreement with AGS (focused on development, management and services) which meant sharing the cost. As for roadwork, PAD paid the 7+ billion CFA francs since the goal was to carry out a government mission. We will proceed case by case. But since the funding requirements were huge for the maritime and ports sector, we gave priority to public-private partnerships. As part of the PAD modernization plan, are efforts being made for PAD to be complementary to the other systems of transportation such as road and air travel?

The modernization plan includes measures to ensure smooth transition from the Dakar port to the Ndayane port and to the secondary ports. The Dakar port area is to be transformed into a highend service port (cruise ships, yachts, logistics base for the oil sector) Yet PAD has to be able to rely on a logistics and free zone of international standing in order to contribute to decreasing the deficit in our trade balance and creating jobs. This explains the strategy to develop the air travel hub that was installed around the Blaise Diagne International Airport and the railroad strategy to increase Senegal’s market share in transit traffic to Mali and beyond. Furthermore, Senegal’s negotiations with the Dubai Logistics World about joining the World Logistics Platform are well underway. This membership will connect Dakar to a huge network of maritime and airport infrastructures, whose partners are granted special advantages on the supply chain management side (loading, storage, customs inspections, etc.).

Could you say a few words about the goals of the port du Futur project? What did the Dubai Ports World contribute to the project? President Macky Sall’s intention is to adopt, plans for the Ndayane port that will turn the maritime industry into a lever of steady, sustainable and inclusive growth thanks to the investments in the maritime infrastructure, namely the construction of ports, including the Ndayane port. The plan to expand and modernize the PAD is described in a rider to the concession convention concluded with DPW in 2007. This is an innovative project that is scheduled to become operational in 2025, combining some fundamental aspects of modern port management with various challenges: a multiphase approach with the creation of a container terminal; a roll on-roll off terminal and multi-purpose terminals; the reception of ships, especially the latest generation container ships with draughts of 18 meters; speed in the throughput of ships and goods thanks to innovative; efficient connections to the road and rail network that allow for bulk transportation of goods; creation of an integrated logistic zone in order to add value to the export products like in Singapore and Rotterdam. If all goes well, Ndayane port will be operated as an industrial port that makes Senegal the entry port into the ECOWAS area while also serving as a processing zone for all goods coming into and leaving this zone. After two years of discussion between the State of Senegal and its strategic partner, the Dubai Port World concerning the development of this deepwater port, the two parties came to an agreement. Senegal feels that the decision for DPW to invest 837 million dollars is a guarantee for Senegal that it is building a world-class port.