In a previous blog we related how South Asia as a whole had improved the performance of its container ports since 2000 but had still struggled to catch up with other developed and developing regions. But within that picture, some ports did better than others.
For example, Colombo in Sri Lanka, the fast-expanding Mundra and Jawaharlal Nehru Port in India and Port Qasim in Pakistan all improved the use of their facilities in the first decade of this century. India’s Mumbai and Tuticorin were among those that fell behind. Colombo also improved its operational performance by almost halving the share of idle time at berth, while Chittagong (Bangladesh) and Kolkata (India) had the longest vessel turnaround times in the region.
Knowing how specific ports perform and the characteristics of ports that perform well and those of ports that perform poorly helps policymakers design interventions to support underperforming ports.
In the report “Competitiveness of South Asia’s Container Ports” we identified three interrelated policies to improve the performance of the container ports, a key element in one of the world’s fast-growing regions: increasing private participation in ports, strengthening governance of port authorities and fostering competition between and within ports:
Public-Private Partnerships (PPPs) require the coordination of an impressive number of stakeholders to mobilize the commercial financing needed to achieve sustainable, inclusive growth in challenging environments. A great deal of analysis, negotiation, and hard work goes into every project. And each one presents an opportunity to encourage investors to venture into countries and compete for projects they wouldn’t have considered before and, ultimately, to create new markets.
While the commercial and legal challenges involved in structuring PPPs are well known, the efforts that go into conducting rigorous technical due diligence are less well known. For example, projects that aim to provide utility scale solar PV on short order, like the World Bank Group’s Scaling Solar program, require a team of experienced engineers from IFC’s Energy and Water Advisory working hand in hand with our PPP transaction advisors, legal experts, and environmental and social specialists to make them a reality.
The region is also not homogenous. There is a large disparity in the levels of treatment per country: we see countries like Chile, which treats 90% of its wastewater, and countries like Costa Rica, which treats approximately 4% of its wastewater.
The story of a country’s economic development is often told through the lens of new roads, factories, power lines, and ports. However, it can also be told through the voices of everyday heroes, individuals who have taken action to improve their lives, and those around them. In this blog series, the World Bank Group, in partnership with the Ivorian newspaper Fraternité Matin and blogger Edith Brou, tells the stories of those individuals who, with a boost from a Bank project, have set economic development in motion in their communities.
Just a few months ago, the residents of the Dioulakro neighborhood located on the outskirts of Yamoussoukro (commonly referred to as Yakro by Ivorians) had to struggle every day to get drinking water. Ms. Bahlala still recalls the long hours that she spent in front of the neighborhood well to which people had flocked by daybreak. “I would be up by 4 am. Standing in line to collect water took up a large part of my daily routine, but it was a matter of survival for my family, and many others. I have painful memories of that time, because without water, there is no life.”
an additional 100 million people into poverty.
Today, we celebrate the annual World Red Cross and Red Crescent Day. To reduce the impacts of disasters on the poorest and most vulnerable, and build their resilience, it is essential that we collaborate and innovate to bring solutions to the community level. Close coordination with the humanitarian sector is therefore more important than ever before.
The World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR) have a strong ongoing partnership with the Red Cross Red Crescent—the world’s largest humanitarian network—and in particular the Red Cross Red Crescent Climate Centre.
Better disaster-risk data for timely forecast and rapid financing
Sushila Devi, a mother of four in the rural Rohtas district of Bihar, India, has no significant assets and depends primarily on casual labor for income. She recently was able to take out a bank loan of INR 12,000 (US$180), which she used to construct a toilet in her family home
It was the Self-Help Group (SHG) in her village that persuaded Sushila of the importance of sanitation for her children’s health and nutrition, and helped her get the loan she needed. SHGs generally consist of 12 to 15 rural women, grouped into larger federations. They engage with formal financial institutions to help unbanked households access financial services, acting as platforms for standardized large-scale sensitization of community members on a variety of subjects.
Sushila’s actions are part of a larger change driven across Bihar by the recently launched Bihar Transformative Development Project (BTDP), commonly known as JEEViKA-II. This joint initiative of the Government of Bihar and the World Bank covers 300 (56 percent) of the blocks of rural Bihar. The project is working through SHGs to deliver awareness, training, finance, and monitoring on sanitation and nutrition in an integrated manner.
When I met Esther Nyambe, she was dressed in a vibrant swirl of brown, green and violet and was pedaling a water pump. Nyambe heads a community organization in Mbeta Island, where women are taking the lead to improve access to safe water and diversify their income through climate-smart farming.
Mbeta Island is surrounded by the Zambezi River and faces increasingly unpredictable floods. Climate change is a reality in this landlocked country where more than half of the population lives in poverty. The island has seen floods that can turn communities into swamps.
Many countries, developed and developing, that want to become more competitive in global markets tend to jump to a quick conclusion that they need to invest more in infrastructure, particularly in transport sectors like ports. But while many regions, including South Asia, do face important infrastructure gaps, massive new investment is not the only way to improve regional competitiveness. Countries should realize that they also have significant potential to make more efficient use of the infrastructure they already have.
Building megaports all along the coast might reduce a country’s trade costs, but it also requires hundreds of millions of dollars in investment. Improving the performance of existing ports, enabling them to handle higher levels of cargo with the same facilities and in a shorter time, can be a far more cost-effective approach to reducing transport and trade costs. Closing the infrastructure gap does not just require more infrastructure, but also better infrastructure, and better use of existing infrastructure.
The report Competitiveness of South Asia’s Container Ports, which we launched today, provides the first comprehensive look at the 14 largest container ports in South Asia, which handle 98 percent of the region’s container traffic. It focuses on port performance, drivers, and costs.
I was in Vietnam last month and I was so impressed by the tremendous progress the country has made compared to what I had seen 17 years earlier.
In 2000, the Nhieu Loc–Thi Nghe canal in Ho Chi Minh City’s central business district was so polluted that it posed a health risk to everyone living and working there. How times have changed. The canal’s water is now clear, contributing to a greener and healthier urban living for 1.2 million people in the rapidly expanding metropolis.
The World Bank is releasing its first-ever comprehensive study of container ports in South Asia, examining the competitiveness of major ports across the region and suggesting ways they can work more efficiently to boost trade.
The report, to be formally launched on April 27, examines the performance of the ports, which handle about 75 percent of the region’s trade by value, and assesses the role that the private sector, governance, and competition have played in their development.
Trade has been key to South Asia’s remarkable economic average annual growth rate of about 6.7 percent since the beginning of the century, the second-highest in the world after East Asia.
By improving the transport infrastructure, including ports, and easing bottlenecks that hinder the flow of goods, the World Bank is helping South Asia lower its high logistics costs, capture a bigger share of the global market and create more jobs, supporting its progress toward becoming a middle-income region.