Scaling inter-African trade, with Arise Ports & Logistics
Andrew Dawes, Chief Executive Officer
Andrew Dawes brings 25 years of experience in managing port infrastructure, operations and services, making his mark in Africa, Asia and the Middle East for several multinational ports and logistics firms. From 2018 to June 2020 he led the operations of seven port facilities in the Asia-Pacific region for ICTSI. Before that, he was CEO of the Port of Salalah, in Oman, and Managing Director of the Apapa Container Terminal in Lagos, Nigeria, for APM Terminals. Andrew was also CEO at Intels Nigeria Ltd.
Invest Africa sits with one of our newest members to find out more about how Arise is developing port and logistics infrastructure across West Africa and how the organisation is supporting the implementation of the AfCFTA.
According to the African Union, the infrastructure gap in Africa is estimated to be around $90bn. Has this been worsened by Covid-19? How has ARISE been protecting its businesses in light of the pandemic?
The global crisis linked to Covid-19 has shaken up the world economy, including the African economy. For the first time in 30 years, Africa is facing an economic recession. This has exposed some of the painful challenges that Africa continues to face. African governments are therefore fighting a two-front war – a pandemic and recession – which only deepens the struggle to invest adequately in the trade-enabling infrastructure that will allow African countries to take their rightful place in global and regional economies. As a pan-African company, Arise Ports & Logistics has made the economic development of the continent its primary mission. The challenges of the pandemic has only reinforced our convictions as a public-private investment partner to build and modernize infrastructures. In strict compliance with health regulations, we have managed to ensure the full quality and delivery of our services to our customers in the three ports we own – the Owendo Mineral Port (OMP) and the New Owendo International Port (NOIP) in Gabon, and the Terminal Industriel Polyvalent de San-Pedro (TIPSP) in Côte d'Ivoire. Like the Continent, Arise Ports & Logistics has demonstrated its capacity for resistance and resilience.
2. According to the World Bank, private sector investment into Africa’s ports sectors multiplied by 13 times between 1990-2004. In recent years, however, this number has decreased significantly. Why has FDI flow into Africa’s ports slowed so much?
The COVID-19 pandemic has had a significant impact on foreign direct investment (FDI) in Africa. Indeed, flows to the continent fell by 16% in 2020, to $40 billion, compared to $47 billion in 2019. Central Africa is the only region in Africa that recorded an increase in FDI in 2020, with inflows of $9.2 billion, compared to $8.9 billion in 2019. Confinements imposed as a result of the Covid-19 pandemic worldwide have slowed existing investment projects. In addition, the prospect of recession has led multinational companies to reassess new projects. In developing countries, the number of new projects announced fell by 42% and international project finance deals, important for infrastructure, by 14%. In this rather gloomy context, we are pleased to say that Arise Ports & Logistics has managed to maintain the planned investments in its various ports. If we take the example of TIPSP in San-Pedro (Ivory Coast), we have managed to continue the construction of the extension of the Autonomous Port of San Pedro, which we launched in May 2019, without a hitch. Less than 3 years after the first works, we look forward to inaugurating the port before the end of 2021.
3. How do you see the AfCFTA rollout impacting your business and its role more broadly of increasing trade in Africa’s recovery?
At Arise Ports & Logistics, we do believe that Africa’s economic transformation will not be possible without a competitive and integrated African trade market. Therefore, any initiative that intends to enhance trade and industrialization, and accelerate the pace of doing business is good news.
4. Digitalisation in sectors such as finance, education and agriculture have seen huge developments over the last 18 months in Africa. Have you found the same phenomenon affecting the ports and logistics space?
I would even say that the digitalisation of Africa dates back long before the last 18 months! As the Continent skipped landline telecommunications systems to jump onto the Internet / Mobile telecommunications, Africans developed ages ago a series of e-services - such as Mobile Money, Mobile Banking and consequently e-commerce – we have only started experiencing here in the Western world. Therefore, on this Continent that never ceases to innovate, there is no reason why the transportation and logistics sectors could not benefit from the evolution of new technologies. It is just a matter of time. Just as technology disrupted the telecommunications and banking sectors of Africa, we should anticipate similar development leaps to occur in transport and we are excited to be a part of that. I do believe that technology systems and digital innovations will continue to be implemented in ports and terminals at an escalating pace in Africa. Software and hardware technologies have been in place for decades in terminals, and most have implemented various generations of technology over the years to digitalise operations and operating data. I strongly believe the digital transition will be at the core of the major transitions in the port sector in the coming years. Digital tools can improve ports’ operational efficiency, security, safety and the enhancement of the connection with shipping lines’ technology systems. To put it simply, it can improve total supply chain visibility.
5. It is fair to say that the logistics sector is a male-dominated working environment; what efforts is ARISE making to ensure gender balanced across your businesses?
At Arise Ports and Logistics, we recognise the tangible business benefits of a gender-balanced workforce but also that we must place concrete actions behind our values. We are proud of the outstanding women in our leadership. We have exceptional women running our ports, including the most important ones in our business. This is the case of Roselyne Chambrier, who manages the Port of San Pedro in Côte d'Ivoire and all our activities in the country. We are also fully committed to recruiting more women to join our organization. In Gabon, we piloted a project to train 50 women to drive and operate trucks, cranes, forklifts, and other heavy equipment, with the goal of increasing their employment potential and to seek job opportunities within our business. Our efforts in challenging gender stereotypes have been recognized by CDC Group plc for our work. Through initiatives like our program to train women to operate heavy machinery, ARISE Ports and Logistics is leading the way in building a gender-balanced workforce in Gabon and everywhere we work in Africa. Going forward, we remain committed to inclusivity and to empowering women in all roles of our organization.
6. Last, can you give our readers a few updates on what they can expect from ARISE Ports and Logistics in the coming months?
We have many projects underway, including the development of the port of San Pedro, which is progressing rapidly. The Multipurpose Industrial Terminal of San Pedro (TIPSP) has already received its first two brand new mobile cranes at the cutting edge of port handling technology. TIPSP is the result of a public-private partnership that is developing a logistics infrastructure essential to the economic growth of the Greater West region. With the support of Arise Ports & Logistics, the Port of San Pedro will now have a new infrastructure whose competitiveness and quality of service will meet the highest standards. We will continue to develop projects that contribute to the development and integration of the African continent. This is the essence of our DNA : contribute to building an Africa that is ever more integrated and open to the world.