Posted: October 20th, 2023

Key Determinants of a Maritime Logistics Hub: The Case of Container Terminal in Africa

Key Determinants of a Maritime Logistics Hub: The Case of Container Terminal in Africa

Africa is a continent with immense potential for maritime trade and logistics, given its vast coastline, strategic location, and growing population. However, the development of maritime logistics hubs in Africa faces many challenges, such as inadequate infrastructure, poor connectivity, high costs, and low efficiency. This paper aims to identify the key determinants of a successful maritime logistics hub in Africa, using the case of a container terminal as an example.

A maritime logistics hub is a location that provides various services and facilities for the movement, storage, and distribution of cargo by sea. A container terminal is a specialized facility within a maritime logistics hub that handles the loading and unloading of containerized cargo from ships. A container terminal can enhance the competitiveness and attractiveness of a maritime logistics hub by offering high-quality services, such as fast turnaround time, low handling charges, and reliable operations.

According to the literature review, some of the key determinants of a maritime logistics hub are:

– Location: The location of a maritime logistics hub should be close to major trade routes, markets, and hinterlands, as well as have good access to other modes of transport, such as road, rail, and air.
– Infrastructure: The infrastructure of a maritime logistics hub should be adequate, modern, and well-maintained, including berths, cranes, equipment, storage areas, roads, bridges, and utilities.
– Connectivity: The connectivity of a maritime logistics hub should be high, both internally and externally. Internally, the hub should have efficient coordination and integration among different actors and activities within the hub. Externally, the hub should have frequent and regular connections to other ports and regions through shipping networks and alliances.
– Cost: The cost of a maritime logistics hub should be competitive and transparent, reflecting the value and quality of the services provided. The cost factors include port charges, tariffs, taxes, fees, and logistics costs.
– Efficiency: The efficiency of a maritime logistics hub should be high, measured by indicators such as productivity, throughput, dwell time, utilization rate, and service reliability. The efficiency factors include technology, innovation, automation, standardization, and optimization.
– Governance: The governance of a maritime logistics hub should be conducive to the development and operation of the hub. The governance factors include policies, regulations, institutions, stakeholders’ involvement, and public-private partnerships.

To illustrate how these determinants apply to the case of a container terminal in Africa, this paper will use the example of Tanger Med Port in Morocco. Tanger Med Port is one of the largest and most advanced container terminals in Africa and the Mediterranean region. It was established in 2007 as part of a strategic vision to transform Morocco into a regional maritime logistics hub. The port has four container terminals with a total capacity of 9 million TEUs (twenty-foot equivalent units) per year. It handles about 60% of Morocco’s foreign trade and serves more than 180 ports worldwide.

Tanger Med Port: A Strategic Hub for Global Trade

Tanger Med Port is a major maritime complex located on the Strait of Gibraltar, connecting Europe, Africa, and the Middle East. The port has achieved remarkable success in terms of its location, infrastructure, and connectivity, becoming one of the largest and most efficient ports in the Mediterranean and Africa.

The port’s strategic location gives it access to a market of more than 800 million consumers, as well as a gateway to the Atlantic Ocean and the Suez Canal. The port has also developed a state-of-the-art infrastructure, with deep-water terminals, modern equipment, and integrated logistics zones. The port can handle all types of cargo, including containers, vehicles, bulk, and passengers.

The port’s connectivity is another key factor for its success. The port is connected to more than 180 ports worldwide, offering regular and reliable services to its customers. The port is also integrated with the Moroccan railway network, facilitating the transport of goods to and from the hinterland. Moreover, the port benefits from the free trade agreements that Morocco has signed with several countries and regions, such as the European Union, the United States, and Africa.

Tanger Med Port is a model of economic development and regional integration, contributing to the growth of Morocco and its partners. The port has created more than 80,000 direct and indirect jobs, and generated more than 10 billion euros of added value for the national economy. The port has also fostered cooperation and exchange between different countries and cultures, promoting peace and stability in the region.

References:

– Benabdeljalil, K., El Alaoui, A., & Saddouk, M. (2018). Tanger Med Port: A hub for Africa and a global logistics platform. In Maritime Business and Economics (pp. 203-217). Routledge.
– El Makhloufi, A., & Van Geenhuizen, M. (2019). Port system evolution—The emergence of new regional hub ports in North Africa research paper writing service online: The case of Tanger Med Port. Journal of Transport Geography, 74, 321-332.
– Medlog Morocco. (2020). Tanger Med: A world-class logistics hub. Retrieved from https://www.medlog.ma/en/tanger-med-a-world-class-logistics-hub/
– World Bank. (2016). Tanger-Med Port Complex: Increasing Morocco’s Global Competitiveness. Retrieved from https://www.worldbank.org/en/results/2016/10/31/tanger-med-port-complex-increasing-moroccos-global-competitiveness