Make the Autonomous Port of Dakar the “engine of emergence” and an economic agent that contributes major added value and creates direct and indirect jobs like the ports of Rotterdam and Singapore. The ambition is great, the stakes too. To make this gigantic project a reality, with the construction of the Ndayane port industrial zone as the key, the Pad needs capital. It is in this context that the launch, on October 1, of a bond loan by Public Call for Savings (Ape) is part. Its managing director, Aboubacar Sadikh Bèye, returns, in this interview, to the reason for this solicitation of the financial market. He also discusses major issues including the 2019-2023 transformation plan, the impact of Covid-19 and the situation in Mali.

Interview conducted by Yakham Codou Ndendé MBAYE & El Hadji Ibrahima THIAM. Photos: Moussa SOW

This Thursday, October 1, 2020, you will use the UEMOA financial market to raise funds for the work of the new port of Ndayane. First, explain to us the context that led to this initiative?

Our objective is to go to the regional market in the form of a public call for savings (Ape) and raise the necessary resources to begin the process of catching up with the gap of the Autonomous Port of Dakar in infrastructure by investing and to begin construction of the new port of Ndayane, a port serving the economies of the 15 ECOWAS countries. The raising of funds will make it possible to build, on the one hand, common roads and infrastructures (Vrd) and, on the other hand, to make the Port Industrial Zone ready to receive the first investors.

Before being able to claim to go on the financial market, the general management of the Autonomous Port of Dakar initiated, since 2018, an in-depth work of restructuring and revitalization which resulted in the development of an ambitious transformation plan 2019- 2023. Thus, following the development of the new strategic plan, during the 1st half of 2018, and its launch on June 28, 2018, "the 6-month battle" made it possible, during the 2nd half of 2018, to stop the financial hemorrhage and to initiate urgent rationalization projects leading, from the first year, to a fourfold increase in the net income of the Autonomous Port of Dakar, which rose from 1.4 billion FCfa in 2017 to 6 billion FCfa in 2018.

At the same time, a 2019-2023 transformation plan has been drawn up. It aims to radically improve the service provided to customers by 2023 and thus preserve Dakar's place as a regional reference port, pending the arrival of new port infrastructure. This transformation plan produced the following results in its first years of implementation (see table opposite).

To be able to access the financial market, you had to submit to the exercise of the financial rating agencies...

The Autonomous Port of Dakar, as a potential issuer of debt securities on the Regional Stock Exchange (Brvm), is subject to the rating obligation arising from instruction 36/2009 of the Regional Savings Council and Financial Markets (Crepmf). This rating obligation extends until the maturity of the securities issued at the Brvm. In order to comply with this obligation, we have requested the services of Wara. This agency assigned an “A-” rating to the Autonomous Port of Dakar, which is three notches above the minimum rating accepted by the Crepmf. The last rating of the Autonomous Port of Dakar by Wara dates from February 2016 with a downgrading that took us from the “BBB+” score to “BBB”. Thus, for the third time in its history and for the first time using its own signature, the Autonomous Port of Dakar will solicit the regional financial market in the form of Ape to raise the resources necessary for the construction of common land infrastructures. What lesson can we draw from this? According to Wara, it is essential for the Pad to begin a process of catching up with its competitors who also aim to be sub-regional hubs and who have invested heavily in modern infrastructure. The Autonomous Port of Dakar is lagging behind in investment and has become a bottleneck in the country's economy.

Can you come back to a few vision elements of your transformation plan?

The new five-year transformation plan 2019-2023 will not only enable the Autonomous Port of Dakar to restore its competitiveness, but also to anticipate major changes in the national and regional port environment. The vision of "a motor port for emergence" in line with the objectives of the Pse has the following specific objectives: to improve by 39 points (from -39 to 0) the Net promoter score (Nps), the true barometer of customer satisfaction ; double the turnover from 49 billion FCfa in 2017 to 100 billion FCfa in 2023; quintuple profitability from 3% to 15%. To do this, the Pad must optimize the management of its current space and develop logistics platforms throughout the national territory (waiting car parks, dry ports, storage and handling areas), in order to speed up the transit time. goods and decongest downtown Dakar. In doing so, the Autonomous Port of Dakar will evolve towards a positioning as a logistics player, much more favorable for Senegal's logistics competitiveness, and in relation to which the integration of the rail chain (Dakar-Bamako) into the maritime chain would be a decisive advantage.

The transformation plan then aims to prepare a perfect transition between the current Autonomous Port of Dakar, the future port of Ndayane and the secondary ports. This, by transmitting, tomorrow, to these ports its activity of goods and a solid customer base but also by developing, in addition to the fishing industries, new activities which will transform the current port space of the Autonomous Port of Dakar into a high-end service port (passenger port, oil logistics base, marina).

To this end, the Autonomous Port of Dakar must be backed by a logistics and free zone of international scope, the role of which will be to contribute to the reduction of the structural deficit of our trade balance and the creation of jobs; the air hub strategy implemented around Blaise Diagne International Airport (Aibd); a railway strategy aimed at consolidating 2/3 of the market share of Malian transit with the aim of increasing the power in the development of market share within the countries of the hinterland.

This strategy will thus enable this new Dakar-Ndayane group to fully support the dynamics of Senegal's emergence with, in 2023, an objective of contributing two to three points to national economic growth now in double digits.

Could you summarize the main lines of the Ndayane port construction project?

First, it is a vision of the President of the Republic, His Excellency Macky Sall, to make the maritime industry a lever for sustained, sustainable and inclusive growth by investing in maritime infrastructure, especially by building various ports, including that of Ndayane. It is a fourth-generation deep-water port that can be described as an industrial port. It is more of a port industrial zone (Zip) than a classic disembarkation-embarkation port. The handling aspect as such is only subsidiary and therefore serves to strengthen the Zip which will contribute, in the medium term, to reducing the structural deficit of our trade balance. This is really what is at stake: the port at the heart of the economy, not as a passive actor, but as an economic agent, a major contributor of added value and creator of direct and indirect jobs in image of the ports of Rotterdam and Singapore.

Ndayane will therefore be a port-industry where Senegal positions itself not only as a gateway to ECOWAS, but also as a processing plant for all products coming from and going to this sub-regional space made up of 15 countries with nearly 400 million of inhabitants.

What are the prospects that justify such investments? Is it a question of restoring the strategic positioning of the Autonomous Port of Dakar as a regional economic engine?

Senegal has all the assets to serve as a gateway to West Africa. Our geographical position, combined with the quality of our human resources, already gives us a head start. We are also a politically and socially very stable country, with a good business climate that reassures investors. However, despite all these competitive advantages, we are only scratching the surface of the potential of our maritime industry.

Port activity will become the "engine" of emergence, once the port is associated with an industrial zone capable of creating added value for both incoming and outgoing products. It is essential, in a pre/post-Covid-19 context, that Africa seriously initiates a phase of exporting its products with a minimum of added value. It is this platform for transforming our products that the Zip de Ndayane will offer. The ambition of the Autonomous Port of Dakar is to carry this objective inscribed in axis I of the Pse which speaks of a regional industrial and logistics hub.

Mr. Director General, the financial statements as of December 31, 2019 show a net profit of 13.9 billion FCfa and shareholders' equity of 112.87 billion FCfa. What is this performance due to?

We went on the offensive very early on to identify revenue niches and above all efficiency in operations. It was very difficult and continues to be. But, as the other would say, it is the difficult that is the path. As soon as I was appointed in September 2017, I put in place a strategic development plan for 2019-2023 based on the clear vision of the Head of State, His Excellency Mr. Macky Sall, but also on the support of the Council of administration, port actors and the involvement of all the staff of the Autonomous Port of Dakar. As soon as the transformation plan was implemented in the second half of 2018, quick win or fast-track projects were developed. Among these projects, we can cite cost-killing or rationalization of operating costs and optimization of the domain through the revaluation of tariffs.

These efforts have allowed the restoration of the financial health of the Pad which allows us, today, to implement major port upgrade projects in its current configuration with the rehabilitation of roads, the management of truck flows and the creation of new spaces. We are resolutely embarking on the construction of the new port and its industrial-port zone, which will provide our country with a tool that will support emergence.

The consolidation of shareholders' equity is, on the one hand, the result of the increase in capital by incorporation of reserves in 2009 (52 billion FCfa) and, on the other hand, the placing in reserves of profits accumulated over the years. successive. It should also be noted that the port distributed to the State of Senegal, the sole shareholder, as dividends for the 2018 and 2019 financial years, respectively two billion and 12 billion FCfa.

Covid-19 spares no economic sector. To what level do you think this health crisis will impact the Autonomous Port of Dakar in 2020?

The results of the Autonomous Port of Dakar in the first half show a drop in added value of 11.2%, while the indicator was up 17% in the same period in 2019. This means that Covid-19 hit hard. Nevertheless, port activity is resilient enough for us to be optimistic for a recovery in the second half. The figures at the end of September are quite promising.

The implementation of the Strategic Development Plan (2019-2023) mainly aims to make the Pad "the engine of Senegal's emergence" by 2023. So far, what have you done to reach this goal ?

This objective reflects a paradigm shift in the operating mode of the Autonomous Port of Dakar. We are continuing to work there on three major axes: the construction of the port-industry of Ndayane, the rehabilitation of the Dakar-Bamako railway, the construction of the dry port of Pout. On all three fronts, we have made notable progress. For Ndayane, as you know, we are certainly making difficult progress in negotiations with our strategic partner, Dubai Port World, but we have made giant strides to be able to begin construction of the port using Senegalese equity. The President of the Republic has instructed us to expedite this project and to move very quickly to build a regional logistics and industrial hub. With the fundraising within the framework of the Ape, we are overcoming a constraint in the negotiations, which consists in building the common terrestrial infrastructures. In fact, we will do more since, with the envelope lifted, we will already be able to make the first adjustments to the Zip, thus allowing interested companies to settle before the port itself is ready.

Regarding the Dakar-Bamako train, I am happy to say that the Autonomous Port of Dakar will be a strategic partner of the new Senegalese Railways company. The dry port of Pout will constitute the second phase of decongestion of the Autonomous Port of Dakar with the use of the railway to get goods out of Dakar. Once this dry port has been completed, no truck will enter the city to recover containers, for example.

With the political crisis in Mali, ECOWAS decided to close land and air borders as well as to stop all economic, commercial and financial flows and transactions with this country. However, the Autonomous Port of Dakar is the main transit point for goods leaving and coming from Mali. Beyond the repercussions on Mali, what could be the economic consequences for Senegal?

Our thoughts go out to our sisters and brothers in Mali; we wish them a quick exit from the crisis. Mali is Senegal's leading commercial client. Our trade balance is in surplus by more than 190 billion FCfa in 2018. The Autonomous Port of Dakar concentrates nearly 65% of Mali's import and export traffic. Instability in Mali inevitably has very harmful consequences on Senegal's economy. Mali is a country of 20 million people with enormous economic potential. It represents one of the most strategic sectors of Senegal's macroeconomic environment.

Has the Autonomous Port of Dakar begun to feel the repercussions of these sanctions on Mali?

Yes ! In terms of port activity, we are witnessing, for example, at the Ro-Ro terminal, a 27% drop in activity for the transit of light vehicles, mainly to Mali. The drop is even more pronounced for the transit of heavy vehicles at 49% between 2019 and 2020. As a reminder, Malian traffic in Ro-Ro is the most dominant with 37% of the total traffic of the Autonomous Port of Dakar.

A few weeks ago, the press reported the presence of a large quantity of ammonium nitrate stored at the Autonomous Port of Dakar. How did the transfer of this substance to Mali, its final destination, take place?

The cargo of ammonium nitrate in transit to Mali, stored on the land strip leased to the Malian representation in Senegal, was removed under the escort of the gendarmerie to the border with Mali.

I must recall that the Autonomous Port of Dakar is Senegal's logistics infrastructure through which 95% of goods destined for Senegal and 65% of those destined for Mali transit. Consequently, products classified as dangerous pass through the Autonomous Port of Dakar. I must remind you that the reception of products classified as dangerous is a well supervised activity at the Autonomous Port of Dakar. In 2019, we handled 89,701 tons of nitrate, of which 74,747 were destined for Mali. In 2018, the volumes landed were 66.613 tonnes, including 47.129 tonnes for Mali. In the end, the last trucks left the Autonomous Port of Dakar on September 1, 2020, at 2:50 p.m.

Does the Autonomous Port of Dakar offer all the security guarantees to store such a quantity of ammonium nitrate?

The Autonomous Port of Dakar does not store ammonium nitrate. The product was in transit and awaiting the receiver to finalize customs procedures and environmental services. In accordance with the provisions of the Imdg Code and the product safety data sheet, its storage on pallets and in the open air presented no risk. The product safety data sheet specifies the storage standards. The Autonomous Port of Dakar makes it an obligation to respect these standards.

In the light of what happened at the port of Beirut, the strong measure taken by the port authority is to prohibit the storage, even temporary, of ammonium nitrate on the embankments of the Autonomous Port of Dakar; and, for the next ships, the receivers of the cargo will have to take all the measures for a disembarkation under hoist of their product then a transfer towards the final destination.

When you arrived at the head of the Port, you made the decongestion of this platform one of your priorities. Did you get there or does the task seem more difficult than expected?

Congestion at the Autonomous Port of Dakar is a brake on our economy and this is why, within the framework of the 2019-2023 Strategic Development Plan, the General Management has prominently included improving fluidity as a strategic objective. This objective resulted in the implementation of the truck flow management project. The implementation of this project has enabled the creation of an IT platform for modern and efficient management of truck flows; which should considerably reduce the very heavy congestion of the Autonomous Port of Dakar. It is also important to note that to make this project of capital importance a success, a waiting car park with a capacity of more than 400 trucks was erected in a port space outside the customs barrier. Today, this tool is an essential element in the truck flow management system.

The management of truck flows consists of a computer platform, an appointment system and a physical waiting car park to proceed with what logisticians call Just in time (Jit). No truck will be allowed around or inside the Autonomous Port of Dakar if it has not previously registered in the system. Then, he must create a mission and receive an Ok from the handler who tells the carrier where and at what time his goods are ready to be picked up.

The multiplicity of players (carriers, handlers, consignees, shipowners, etc.) and the diversity in the transport sector (transport of containers, hydrocarbons, solid bulk, vehicles, so-called conventional goods such as cereals, wood , iron, etc.) make the task a bit difficult in terms of reconciling often divergent interests.

However, we have agreed with the carriers on the essential points, it being understood that the objective of the Autonomous Port of Dakar is to decongest to such an extent that the carrier manages to make more rotations during the day, thus generating more income.

As a reminder, the Autonomous Port of Dakar has invested heavily in decongestion. Only one week after taking office on September 22, 2017, I had decided to rent land from Sonacos to manage the empty container crisis at the time. It was only in 2018 that we launched a Notice of expression of interest for the selection of a manager operator of the truck flow management platform. This operator is, of course, responsible for all investments in the car park, including the IT platform.

As we speak, the Autonomous Port of Dakar is breathing better since September 15, 2020, the date of the official start of truck flow management, which constitutes a sustainable solution to eliminate this congestion.

In July 2019, renovation work on the bulk carrier terminal assigned to the Malian market began, fifty years after the last upgrade. The work was to last two years. Are they proceeding normally or has Covid-19 slowed down the pace of the construction site?

For the rehabilitation of mole 3, since mid-April 2020, work has been stopped, just after the reception of the first phase (post 31). In fact, the work was suspended due to force majeure (Covid-19 pandemic), our Japanese partners and other expatriates having returned on the recommendation of the Government of Japan. Discussions are underway with Jica, the Japanese cooperation, to agree on a date for resuming work. It should be noted that discussions and execution studies with the Consultant (Mcc-Kgc) for phase 2 never stopped. The end of the works was scheduled for May 2021 and the non-refundable subsidy allocated to the project is approximately FCfa 21 billion, an amount to be revised upwards due to the site immobilization costs incurred.