Building Africa`s Merchant Fleet BY BINYAH C. KESSELLY

BUILDING A MARITIME NATION
The Blue Economy
Presented By: Binyah C. Kesselly
February 23, 2015
Commissioner/CEO
Liberia Maritime Authority
Chairman
Board of Directors
Liberia Airport Authority
Introduction
At the conclusion of this presentation, you should have a deeper
understanding of the:

Elements of a Fully Integrated Blue Economy

Africa’s Interventions in Building a “Blue Economy”

The Liberian Perspective

The Way Forward
WHAT DOES A FULLY INTEGRATED
BLUE ECONOMY LOOK LIKE?
Elements of a Blue Economy
A Blue Economy is one that has the ability to strategically coordinate and
execute...
A Blue Economy
Offshore
Drilling
Services &
Supplies
Fishing
Ship &
Corporate
Registries
Ship
Building
Port
Systems
Bunkering
Luxury
Hotels &
Resorts
Dry Docking &
Ship Servicing
Merchant
Banking
Maritime
Human
Resource
Development
Ship
Breaking &
Ship
Recycling
Water
&
Eco-Tourism
Water
Transpor
t
Other
(Leverage
Existing Core
Competencies)
Africa’s Interventions in Building a “Blue
Economy”
Africa
’
Leadership


s
African nations became concerned with developing their maritime potentials/interests
about 50 years ago. Many noteworthy developments at the continental, regional and
national levels are now taking place.
Evidence of this paradigm shift is the number of interventions through strategies and instruments
adopted by Africa through various bodies such as African Union (AU), Economic Community
of West African States (ECOWAS) , Southern African Development Commission (SADC), East
African Community (EAC), Economic Community of Central African States (ECCAS) etc .
Intervention Tools
Africa Integrated Maritime (AIM 2050) Strategy
Foster increased wealth creation from Africa’s seas and oceans by developing a sustainable thriving blue
economy in a secure and environmentally sustainable manner. This strategy suggests the development
of:




A Common African Defense and Security Policy
A Common Fisheries Policy
An Industrial Benefits Policy
An African Integrated Maritime Human Resources Development (HRD) Strategy
( Maritime Spatial Planning)
Africa’s Interventions in Building a Blue Economy
● Africa Maritime Transport Charter and Action Plan
Issues the Charter addresses:






Promote the growth and development of an African Merchant Fleet
Encourage reform and efficiency in port operations as well as the expansion of
information systems
Promote the establishment of regional or national maritime funds for the development
of the maritime industry
Modernization and harmonization of maritime laws across sub regions, expansion of
maritime regulations and improved transparency and accountability
Improve security capabilities to counter piracy and armed robbery at seas
Establish and strengthen national and regional Maritime Education and Training (MET)
and research institutions
● The Durban Resolution
Commitment to tackle issues of:
 Maritime safety, security, transport and environmental protection.
Africa’s Interventions in Building a Blue Economy

The Djibouti Code of Conduct
Geared towards tackling piracy through shared operations:



Deterrence
Investigation
Arrest and Prosecution
Regional and
National Efforts
The ECCAS Maritime
Safety and Security
Strategy
 Protection of offshore oil
resources, fisheries
and sea routes. Search
and Rescue (SAR).
Regional andECCAS
National
ECOWAS,
&Efforts
GGC:
Yaounde Declaration
June 25, 2013
Repression of:
 Piracy
 Armed robbery against ships
 Illicit maritime activities in West &
Central Arica
Southern African
Development Community
(SADC) Statement on IUU
Fishing
 Review and harmonize national
fishing laws
 Strengthen fishing regulations
 Share information
 Improve the monitoring of fishing
including multinational patrols
Africa’s Interventions in Building a Blue Economy
Maritime Organization of West and Central Africa (MOWCA ) Programs
 * “Regional Maritime Fund and the Establishment of Regional Maritime
Banks to provide financial support to national and regional projects and
programs and Maritime Transport and Transit.”
Maritime Centers of Excellence
 Maritime academies in each region of Africa:
Liberia
Kenya
Ghana
Nigeria
* www.omaoc.org/EN/projects.php (Projects and Program of MOWCA)
Egypt
South
Africa
Cote
d’Ivoire
Africa’s Interventions in Building a Blue Economy
Challenges to Africa’s Interventions
Lack of
Coordination
to implement
Strategies
and Policies
Political
Interference
Security
Challenges
to Building
a Blue
Economy
Limited
Financial
Resources
Administrative
Bureaucracy
Human
Resource
Capacity
Gap
The Liberian Perspective
Original Intent of the Framers of the Liberia Maritime Law
STATEMENT OF POLICY
“The Law is intended and should be construed to
encourage and foster the growth and development
of the foreign and domestic commerce, and to
protect the national defense and security of the
Republic of Liberia”
Title 21 of the Liberian Code of Laws of 1956 Revised (Liberia Maritime Law, Section 1)
The Liberian Perspective
Bureau of Maritime Affairs
INTERNATIONAL REGISTRY
► The Republic of Liberia has operated since 1948,
via an Agent, an Open Registry which allows
foreign owned vessels to fly our civil ensign.
► Maritime and Corporate Registry



Vessel Registration
►
Inspections
►
Certifications
►
Evaluations
Mortgage Recordation
Offshore Corporate Registration
► Enjoyed the distinction of being one of the top
premier open registries in the world
► Vessels are not owned by Liberia or Liberians
► Commercial Business Undertaking
DOMESTIC PROGRAM
► Limited Operation of Domestic Registry Program
► Limited Regulatory and Enforcement Functions
► Little involvement of Private Sector
► Not a major domestic stakeholder/player in the
sector
THE PRESIDENT’S VISION: A PROGRAM IN
TRANSITION
“We must transition from a Nation with a
leading Maritime Program, to a Leading
Maritime Nation.”
~ President Ellen Johnson Sirleaf ~
The Liberian Perspective
From Bureau to Authority – “The Transition”
Factors that necessitated the transition:
► STATEMENT OF POLICY: * “The Law is intended and should be construed to encourage and foster the growth
and development of the foreign and domestic commerce, and to protect the national defense and security of the
Republic of Liberia”.
► In August of 2010, the BMA, an Autonomous Agency of Government, via an Act of of the
National Legislature was transitioned to the LiMA, a Public Corporation with greater
responsibility to manage and commercialize Liberia ’s Maritime Domain;
► The LiMA Act of 2010 ensured that Maritime was now properly empowered as the framers of
the original law had intended, and placed us on equal footing with our competitors.
Title 21 of the Liberian Code of Laws of 1956 Revised (Liberia Maritime Law, Section 1)
The Liberia Maritime Authority
Corporate and regulatory structure was changed envisioning a broader scope of
oversight and a consolidated approach to optimizing Liberia’s Maritime Domain
International Registry Ranks as No. 1 globally in terms of quality and No.2
in terms of number of vessels and Gross Tons
Continues to operate a world-renowned Open Registry with increased
revenue contributions to Government
Institutionalized a Domestic Registry to register and ensure international
safety standards for all vessels operating in our jurisdictional waters
Hosts the Regional Maritime Rescue Coordination Center (MRCC) and
vessel tracking system to enhance safety and security in our waters and
beyond
Reopened the Liberia Maritime Training Institute (LMTI) – a Center of
Excellence for Maritime Education and Training (MET).
The Liberian Perspective
Our Experience
Lack of
Coordination
to implement
Strategies
and Policies
Political
Interference
Security
Challenges
to Building
a Blue
Economy
Limited
Financial
Resources
Administrative
Bureaucracy
Human
Resource
Capacity
Gap
THE WAY FORWARD
Africa’s Potential
Africa is described as the largest island on planet Earth which is surrounded by the
South and North Atlantic, Southern and Indian Oceans.
It has a coastline of 31,000 km and is largely engaged in intra-regional trade
conducted by sea.
*Almost all carriers sailing along the African coasts are foreign vessels. For instance,
in 2012, over 9,871 vessels were captured in the African maritime traffic.
Since the 1800s, vessels from Europe, America and other countries constantly sail in
our waters to engage in commercial activities.
African nations may generate revenues to build their “Blue Economy” from the
activities of foreign commercial vessels in their waters.
*South African Maritime Safety Agency (February 3, 2012)
The Way Forward
Leveraging Kenya’s Domestic Maritime Assets




PORT SYSTEM: One Major Port (Mombasa and other smaller ports
along the Mombasa coastline) and the Port of Lamu which is under
construction.
MARITIME HUMAN RESOURCE DEVELOPMENT: Kenyan
Universities and Colleges offering degrees and certificates in
Maritime disciplines.
INLAND WATER TRANSPORT: Smaller ports along the Mombasa
coastline facilitate inland water transportation, i.e Funzi, Vanga,
Shimoni, Kilifi, Malindi, Lamu, Kiunga and Mtwapa
FISHERIES: *Kenya’s Annual Marine Fish production potential is
estimated at 150,000 metric tons per annum.

Only 4% of this estimated potential is exploited
Ministry of Fisheries Development, Kenya Coastal Development Project, February 2013
The Way Forward
Where is Kenya Now?
As of today, Kenya has made significant interventions in select sectors....but
others remain untapped.
A Blue Economy
Offshore
Drilling
Services &
Supplies
Fishing
Ship &
Corporate
Registries
Ship
Building
Port
Systems
Merchant
Banking
Green is existing
Blue is Untapped
Yellow is opportunistic
Bunkering
Luxury
Hotels &
Resorts
Dry Docking &
Ship Servicing
Maritime
Human
Resource
Development
Ship
Breaking &
Ship
Recycling
Water
&
Eco-Tourism
Water
Transpor
t
Other
(Leverage
Existing Core
Competencies)
The Way Forward
Building Africa’s Merchant Fleet
Elements of Building a Merchant Fleet
► Ships / Vessels
► Human Element



Maritime Education and Training (MET)
Trained Seafarers
Trained Onshore maritime professionals
► Cargo / Trade
 Cargo Type
 Trade Volume
► Maritime Related Infrastructure
 Ports (Air/Sea)
 Rails
 Roads
► Finance
Methodology
► Concerted National, Regional and Continental
Effort (Deliberate Action)
► De-politicization of the Sector
► Consolidated Trade Agreements
 Common Markets
 Common Currency
► Well coordinated Policies and Strategies
► Safety and Security
► Appropriate Funding Mechanisms
► Ship Financing
► Merchant Banking
REGIONAL INTEGRATION
...UNDERSTANDING THE AFRICAN CONTEXT
MARITIME TRAFFIC 03 FEBRUARY 2012 16:32 – 9,871 SHIPS
MARITIME TRAFFIC 03 FEBRUARY 2012 16:20 – 9871 SHIPS
*South African Maritime Safety Agency (February 3, 2012)
THANK YOU.