Show your hand
01 May 2007
The Port of Dakar, Senegal is reportedly in the process of privatising its container terminal facilities – or is it?
While it is known that Dakar has issued a call for Expressions of Interest for parties interested in bidding for the terminal, there is no news from the port as to what the next steps are. Indeed, it seems to have gone remarkably quiet as to what is going to happen next – prompting fears in certain quarters of a flawed privatisation process.
Such fears have undoubtedly had fuel added to them by the fact that the West African port chose to include in its qualifying criteria for interested bidders the requirement that they handle more than 5m teu per annum. Given that Dakar handles 500,000 teu (331,191 teu, 2004) it would be fair to conclude that such a qualifying criteria for acquiring Dakar’s container terminal concession is more than a little excessive. It also encourages speculation that the implementation of this criteria serves not to qualify various parties for the bidding process but rather to eliminate them from it, and thus push the process in a “certain direction”.
Which direction you may well ask – well there is no definitive answer to this as yet but given that the seeming cloak-and-dagger privatisation process continues, characterised by the port authority’s unwillingness to talk on this topic, then this will be easy enough to identify when the “successful bidder” emerges.Will they trumpet their triumph in the face of “tough international competition” (this is the age of spin after all)? Will the port authority talk of a “clean and transparent”privatisation process?
However, it might be better all round if the port authority of Dakar has a change of heart beforehand and does engage with all the parties that have expressed an interest in the privatisation. Certainly, it would be better for its international standing and the standing of the Senegal government, of which it is an affiliated agency.
The Africa of 10 years ago is not the Africa of today in numerous respects and an important element of this is the new emphasis on the reduction of corrupt practices, particularly where the transfer of public assets to the private sector is concerned. Look at the strenuous efforts made in the ports sector in Nigeria in this respect – much has been achieved, although to be fair some observers do consider some elements of the ports privatisation process were not entirely unscathed.
Look at the benefits that have flowed from a successful privatisation like the one that took place in Dar es Salaam, Tanzania. At the other end of the scale, look at the confusion and inertia that resulted in Luanda,Angola from a disputed container terminal privatisation process that eventually resulted in a protracted courtroom dispute.
Huge experience has been built up of port privatisation in Africa and it is no longer the mysterious, somewhat out of the way,business it once was.It is now relatively easy to ascertain whether a given process is heading in the right direction and with agencies like the World Bank presently conducting a comprehensive review of the ports sector in Africa, an initiative that flowed out of the Glen Eagles summit,then it is nothing short of stupidity for ports to go about privatisation other than in the correct and proper manner. Equally, any external party encouraging a flawed process inevitably places itself at risk and open to challenge if awarded a concession on what is perceived to be a flawed process.Need we say more?





