79712 POLICY NOTE NO. 39 JULY 2013 Africa Trade Policy Notes David Cal MacWilliam Reducing Dwell Time to Boost Efficiency at the Port of Cotonou1 Introduction HIGHLIGHTS The Port of Cotonou is of primary importance to economic growth and Improving the management diversification in Benin. Furthermore, given its key geographic location as a and governance of port port serving Niger and other land-locked countries to its north, and its operations is fundamental to proximity to Nigeria and Lagos, the Port of Cotonou is an important improving overall port performance and returning regional port. Over 80% of all goods entering the Port of Cotonou are the Port of Cotonou to its destined for final delivery outside of Benin. Niger and Nigeria account for place as the region’s most about 90 percent of Cotonou’s transit/re-export traffic, with Nigeria competitive port. accounting for the bulk of this traffic, most of it informal. As such, the economic impact of the Port of Cotonou on economic activity, job creation The port-land interface is and livelihoods is vastly larger than the role it plays in simply serving the critical to port performance. direct import and export needs of Benin’s economy. Some 20 percent of Reforms cannot stop at the port gate as constraints will national GDP is directly related to trade with Nigeria alone, informal or simply be pushed down the otherwise. logistics chain. The port is currently profitable, despite its considerable inefficiencies and High levels of corrupt sub-optimal performance, largely due to restrictive trade policies in Nigeria, practices, non-transparent which encourage and facilitate the large-scale importation of goods into transit and import procedures Benin through Cotonou, but which are ultimately destined as informal trade and processes, including to Nigeria. The Port of Cotonou could be considered, to a large extent, a negotiations between Nigerian port. This poses important risks, as trade liberalization or other importers and Customs policy changes in neighboring Nigeria could have a dramatic impact on port concerning the value and nature of merchandise being volumes in Cotonou. Thus, improving the efficiency of port operations is imported, and the highly critical in not only increasing economic growth and opportunities within the informal and illegal smuggling prevailing economic environment, but is important in managing the sizable of goods into Nigeria pose risks posed by potential policy reform in neighboring Nigeria. serious governance concerns at the port. Significant congestion in and around the port has been a major problem that delays the clearance and removal of goods and raises costs for importers and exporters. Institutional arrangements and developments in the port also lead to higher costs and to a significant diversion of traffic away from WORLD BANK Cotonou. 1| www.worldbank.org/afr/trade Improving the management and governance of port infrastructure is sufficient to handle expected operations is fundamental to improving overall port volumes over the short- to medium-term. performance and returning the Port of Cotonou to its place as the region’s most competitive port. Furthermore, the port’s location in the center of Cotonou limits physical expansion possibilities. The purpose of this note is to provide some insight Thus, increasing capacity is best addressed through into port operations and to propose reforms for improved internal efficiency rather than through facilitating the movement of goods through the port infrastructure expansion. Improving the efficiency in an effort to reduce dwell time and improve the of port operations and reducing dwell time in the efficiency and effectiveness of port operations – all port can increase port capacity substantially. with a view to improving the competitiveness of the Raballand et al (2012) note that for the Port of port. Durban in South Africa “. . . reducing dwell time from a week to four days more than doubles the Current State of Port Operations capacity of the container terminal without any investments in physical extensions.� The Port of Cotonou compares poorly with its regional competitors in terms of transport Similarly in the case of Cotonou, efficiency gains facilitation and operational productivity. In 2011 will be easier to achieve through improvements in the average port dwell time was over 21 days, while the port’s procedural, management and in Lomé it was 18 days and in Abidjan 14 days. administrative environment and importantly, This increased to over 25 days during through strengthened port governance. If goods implementation of the new import verification can be moved through the port more quickly and if program (PVI) in late 2011 and early 2012 and has dwell time can be reduced given the current level of subsequently fallen after the suspension of PVI infrastructure investment, then port efficiency, activities. Dwell time in June, July and August 2012 capacity and competitiveness will be increased were 20, 12 and 16 days respectively. substantially. Furthermore, improvements of this nature need not be costly as compared to physical The Port of Cotonou was originally conceived for infrastructure, and are frequently more constrained an annual loading/unloading capacity of around 2.3 by capacity limitations (administration and million tons per year, a level attained in 2000. In management issues) and political economy factors 2005, total cargo handled through the port reached and considerations (governance issues) than by 5.1 million tons and at end-2011 it had reached 6.8 resource limitations. million tons, substantially surpassing the original capacity of the port. New facilities have been built Due to deficiencies across management, and equipment has been provided to alleviate the administrative, governance and logistics parameters, current situation. Port handling operations were the port is operating well below its potential liberalized beginning in the late 1990s and three capacity. In an environment like Benin, where private operators currently compete in the port. there is apparent strong commitment to administrative and governance reform, and where Physical infrastructure is often seen as the first clear political will is being demonstrated at the response to improving efficiency and capacity at highest levels, considerable improvements can be ports -– more quays, more and better cranes, better realized with limited financial investment. roads, more quay side space, etc. The general consensus however, is that the current state of Main Challenges infrastructure development in the Port of Cotonou is not the binding constraint and that existing The main challenges and factors facing port operations, those generating the serious congestion 2| www.worldbank.org/afr/trade issues in and around the port, and those Within Port Cargo Movement and Storage: The contributing to extended dwell times are movement of goods and containers from the quay summarized below: side to storage areas needs to be undertaken efficiently and to be properly recorded. Trade Facilitation and Procedural Issues Weaknesses in this regard in the Port of Cotonou exist primarily in three areas. First, congestion on Hours of operation: Operational hours are the quay side and within the port renders this important in managing congestion (peak time compared to non-congested time) and in improving movement more difficult. This largely arises from dwell times (week-end and night-time operation for heavy truck traffic in the port, but also arises from the presence of, storage of, or otherwise failure to example). For this, not only do government remove debris, waste and other clutter from within agencies need to function during these times, such as Customs, but economic operators need to adapt the port. Second, the state of roads in the port is their hours of operation as well. The port has the less than ideal and when added to the congestion problem makes movement within the port capacity to function 24 hours per day, 7 days per hazardous and slow. Finally, finding specific week, yet this is not being taken full advantage of, largely because of private sector operators’ individual containers among the stacks of reluctance to operate on a 24 hour/7 day schedule. containers is at times problematic. Significant time is often lost in searching for containers among the Cargo Handling Procedures: To minimize dwell hundreds, or at times thousands, of containers in time the apron side and berth needs to be vacated the port. as soon as possible for the next ship. Evidence Scanning and Physical Inspection: The points to some vessels taking an inordinately long introduction of scanners should have reduced the time to unload their cargoes –- up to a month in some cases. This is an operator’s responsibility. burden and time spent in inspecting containers. However, implementation of the system has proved However, the port authority has no mechanism or problematic and the learning process was slow and ability to enforce performance standards on the extended as the operator of the system, handlers, operators, yet the upstream effect of prolonged vessel stays can be considerable. clearing agents, forwarding agents, truckers, and others all had to adapt to the new system. This appears to stem from the fact that while Uncertainty around which goods were to be subject infrastructure appears adequate, i.e., cranes, fork- to scanning, misunderstanding of the process itself lifts, etc., human resource capacity may be weak and capacity constraints among the operators of the and thus the infrastructure under-performs due to scanning system contributed to long delays and limited work force capacity. While work force unnecessary congestion around the scanning training is the responsibility of the private sector facilities. Nonetheless, scanning remains a viable operators, the port lacks tools and mechanisms to option if properly implemented. insist on and demand performance up to minimum Port Information Systems: The “Système Intégré acceptable standards. Such insistence on de Gestion du Port Autonome de Cotonou� performance standards would encourage private sector operators to ensure their work forces are (SIGPAC) is an integrated information system used properly trained and have the needed skills and by the port authority and various economic operators in the port. It provides the following capacities. Furthermore, some practices slow the functions: vessel traffic management; stevedore unloading process, such as the bagging of bulk cargo at quay side rather than bulk removal. operation management and invoicing; apron side and shed management; management of goods/utility supply to the ship; and users’ resource 3| www.worldbank.org/afr/trade management. It was developed with support from effective system for ensuring their timely departure the Millennium Challenge Account (MCA). from the port. Although technically functional, SIGPAC is not being utilized to its full potential. Furthermore, In-Transit Arrangements: Trucks transporting in- there is a need to harmonize and bring greater transit goods are required to form a convoy and are coherency to the broad range of information escorted through Benin by the military (or systems currently operating in the port – SIGPAC, Customs). The formation of convoys can take one the entry/exit system and truck traffic management to several days. For example, a single truck driver system, the video surveillance system, etc. There is missing necessary paperwork or clearances can also limited capacity to continually improve the delay the departure of an entire convoy. The ICT system as needed and not all users are introduction of a GPS system for individual trucks properly trained. Improved electronic was a step in the right direction toward alleviating communication and more effective sharing of data this constraint, but the GPS system has been among the economic operators in the port could discontinued with the suspension of the Benin contribute to improved port efficiency. Control contract and the practice has reverted to the use of convoys. Removal Logistics and the Port-Land Interface Capacity of Port Operators: While shipping agents Truck Scheduling and Staging: The introduction of representing the major liner shipping companies a truck staging system and truck call system is a serving the Port of Cotonou are generally efficient, positive development, as is the registration of trucks as are terminal operators, the clearing and on entry and exit. In the past, the lack of such a forwarding community suffers from a lack of system resulted in large numbers of trucks waiting capacity and low professionalism. It is this in and around the port trying to arrange loads. A community that is largely responsible for the call system should result in trucks only coming to clearance process and the delays encountered in the port and entering the port if they have been pre- moving goods from the “bon à sortie� point to final assigned a load. Time spent in and around the port exit from the port. should be minimal –- enter the port, pick up the assigned load, and then exit. Stripping of containers: The unpacking of containers and the repacking of 2 or more Unfortunately, enforcement of this system appears containers onto a single truck within the port weak, and large numbers of trucks continue to be in considerably slows the movement of goods through and around the port without proper authorization. the port and contributes to serious congestion Furthermore, it appears that an effective system within the port perimeter. Not only does this does not exist for the removal of trucks that do not disrupt port operations, but it leads to the serious have proper authorization to be in the port, or in overloading of trucks, rapid deterioration of the the immediate port environs. This causes serious road network and up-stream road transport issues. congestion and traffic flow issues directly within the The stripping of containers within the port port, in the immediate port vicinity and within the consumes space, takes time and confounds Cotonou city centre. The presence of trucks communication and clearance, as goods and loads hovering in and around the port without an already are variously mixed, split and reassembled. assigned load is highly problematic. Furthermore, loaded trucks are authorized to enter the port with Use of Port as Storage: The possibility exists that goods being exported. These trucks frequently operators are using the port areas as storage then remain in the port searching for outbound because the port does not impose storage charges (import) business and further contribute to the in- or levy fees/penalties on goods remaining for port congestion. There does not appear to be an extended periods in the port. Operators 4| www.worldbank.org/afr/trade themselves do however charge fees for goods that in the direct interest of port operations, to be remain in the port. As such, an appropriate unduly influenced by political considerations, and incentive structure does not exist for encouraging many are open to criticisms related to non- reduced dwell time as some operators make money transparency and potential corruption. from storage fees and have little incentive to remove goods in a timely manner. This of course Port Management: Effective port management is is less problematic if the port is operating under- also constrained by management capacity issues. capacity and goods left in the port do not delay Effective port management is highly dependent on subsequent shipments or interfere with port the managerial and technical skills of senior and operations, but as capacity is reached, the presence middle management. Port management should be of goods essentially being stored in the port directly in the hands of capable, knowledgeable and and immediately increases dwell time and delays experienced port management experts. the movement of goods through the port. This Weaknesses in this regard are evident in the Port of raises costs for those shippers who need rapid Cotonou and appointments made on the basis of movement of goods through the port. factors other than technical and managerial competence have compromised management’s effectiveness. Continuity in Management: Frequent changes in senior and middle management have increased management uncertainty and compromised the port’s ability to fully implement necessary reforms. Meaningful reform requires sustained effort over a period of time, appropriate adjustment and adaptation, and consistency of vision in the application of reforms. When management changes too frequently, as is the case in the Port of Cotonou, this sustained and consistent effort is not Political Economy Considerations, Governance applied. Furthermore, with a high rate of change and Port Management Issues there is little personal ownership of reforms, a lack Port Governance: It remains unclear as to where of accountability, and incentives are tilted toward decision-making authority and accountability really short term personal gain over longer term lies within the port, particularly surrounding high meaningful institutional reform and strengthening. level port wide governance and reform issues. The Adaptation to New Reforms: Implementation of division of responsibilities between the Port significant reforms in an environment of limited Authority (PAC), the Ministry of Maritime capacity, where significant resistance can be Economy, the Ministry of Finance, and the expected and without the pre-requisites already in Presidency is perhaps inappropriate and unclear. It place is a challenge. Implementation of the PVI is is difficult for the PAC to effectively manage port an example where resistance should have been operations when it is not responsible for contractual expected, accounted for and built into issues with port operators, when reforms are implementation plans. Weak implementation, a imposed without sufficient consultation with the lack of awareness and acceptance by stakeholders, PAC and other stakeholders, and when decisions an inexperienced private sector operator, and taken by PAC are reversed or altered by other capacity constraints among various stakeholders layers of government. Under current arrangements resulted in a deterioration in port performance and many decisions appear poorly-informed, not to be dwell time. Some reforms in the past have not 5| www.worldbank.org/afr/trade been owned by the port, owned to an even lesser substantially, limit competition, and increase degree by stakeholders and port operators, and uncertainty. some have been seen as being imposed from the outside. Reform plans in the past have not engaged High Level Political Support: High level political those affected by reform and have not ensured the support for meaningful reform is required. Those ownership of reforms by the port community. implementing reforms need to be appropriately empowered, supported when necessary and backed Competition between Operators: While there is up by clear messaging from the highest political competition between national ports for business, levels that the port and Customs reforms are of i.e., Cotonou versus Lomé, the fact that terminal primary national importance. While this level of operations within the various regional ports are support has been demonstrated in the recent past, highly concentrated in the hands of a few operators, particularly since the President’s re-election in April means that there may be substantially less 2011, and while messaging has been clear and competition at the operating level. It may mean unambiguous, this was not necessarily the case little for a terminal operator in the Port of Cotonou prior to April 2011 and needs to be maintained. if ships are diverted to Lomé, as that same terminal operator operates in Lomé as well. As such, while there is an incentive at the national level (government) to maintain port volumes in Cotonou, there is little incentive for the terminal operator to maintain volumes in Cotonou, say through improved efficiency of operations, as the loss of business to the operator in Cotonou will be compensated by the same operator’s increase in business in Lomé. It would appear that this monopoly/duopoly situation may lead to little incentive at the private sector level to improve individual port competitiveness. This is Political Engagement: While strong support and problematic in light of the port’s inability to clear messaging from the political level is necessary, demand the attainment of certain minimum this does not imply personal involvement in the performance standards. details of reforms or personal engagement in managing, directing, supervising or otherwise Corruption: High levels of corrupt practices, non- micro-managing reform efforts from the political transparent transit and import procedures and level. Such interference in the past, has led to processes, including negotiations between unpredictability and inconsistency in implementing importers and Customs concerning the value and specific reforms. Interference from the political nature of merchandise being imported, and the level at the operational level, as opposed to the highly informal and illegal smuggling of goods into policy and strategic level, undermines Nigeria pose serious governance concerns at the implementation efforts being undertaken by those port. Corrupt and non-transparent practices seem tasked with implementing reforms, limits to occur at several levels from large contracts institutional capacity building, reduces institutional entered into with port operators, to small individual and management ownership of reforms, and contractual and procurement arrangements, to contributes to a high rate of reform failure. Some Customs practices, to the payment by truckers to useful prior reforms instituted by port management, gain port entry. This high level of corruption can for example, the levying of penalties and fines for raise costs, reduce government revenue trucks spending too much time in the port, have 6| www.worldbank.org/afr/trade been over-turned, waived or not enforced following Pricing for Truck Time in Port: Consideration the application of political pressure applied by could be given to imposing a fee on truck time those who have been subject to such fines and within the port. Various fees structures could be penalties. devised, but a fee could provide an incentive for trucks to enter the port, efficiently obtain their load Recommendations and exit the port as quickly as possible. Entry time could be recorded for each truck and charges Below are a number of recommendations for imposed after a set period, so that trucks entering improving port operational efficiency and and exiting within an acceptable time frame would potentially reducing dwell time. not be subject to a fee, but trucks remaining in the Truck Scheduling System: No trucks should be port over a prescribed time limit would be subject allowed to enter the port without prior to the imposition of fees on exiting. authorization. Efforts by truckers to circumvent Extended Hours of Operation: Serious attention this system should be resisted, as should political should be given to providing incentives to operate pressure to allow greater entry and there should be the port 24 hours per day and 7 days a week. no exceptions regardless of the influence or nature Releasing trucks at night could alleviate peak traffic of the truck operator. This may require the congestion in the City of Cotonou and would better establishment of more parking or staging areas away spread the truck traffic throughout the day and not from the port and outside the city center. Any conflict with ongoing Cotonou business and social trucks found to be in the port without authorization needs. It is recognized that operators, employees, should face a penalty/fine and be forced to leave including private sector employees and government the port immediately. Fines and penalties thus and Customs officials, and some truckers, might levied should not be subject to cancellation, resist working shift work, or working weekend days, reduction or other non-payment based on a and this resistance should not be under-estimated. trucker’s complaint or resort to the political level –- However, this is normal practice in many ports and again, no exceptions. many industries and can be overcome. Allowing Installation of Parking Meters/No Parking Zones the entry of and the release of trucks at night when and enforcement: In the short term, while a longer roads are more or less deserted may reduce truck term traffic plan is being developed, thought could transit time significantly and speed up deliveries be given to the installation of parking and improve trucking performance and profits. At meters/charges in designated parking areas and the peak hours, say at 3:00 pm in the afternoon, a truck designation of no-parking zones around the port having to traverse the city to enter or exit the port environs and the city centre. This will discourage can easily take 3 hours to cover 40 or so kilometers. trucks from waiting around the port area, At 3:00 am this could take 40 minutes – 40 minutes encourage them to use staging areas outside the city in and 40 minutes out – instead of 3 plus hours in center, and could serve to generate both directions. Incentives to encourage night shift municipal/government revenue from trucks and operations should be considered. other vehicles that could be re-invested in Short Term Pricing Considerations: Port pricing improving the local road infrastructure. should be addressed, particularly storage charges. Enforcement would be required. In conjunction The ability to impose storage charges and the with an effective and enforced truck scheduling manner in which they are imposed remains system there would be little need for trucks to park unclear. There is some uncertainty as to whether in the city center and this practice could be the contractual arrangements with the main port discouraged by meters and the enforcement of no- operators allow for the imposition of extended parking areas. 7| www.worldbank.org/afr/trade berth and storage tariffs. Consideration should be Container Management: Consideration should be given to imposing (or redefining if they currently given to the amount of unloading and re-packing of exist for some operators) tariffs/penalties for cargo goods from containers onto trucks that occurs in spending more than a certain number of days in the the port. This practice should be streamlined, port. A determination can be made as to the undertaken outside the port at freight forwarders’ appropriate number of days to allow cost free facilities, other facilities or otherwise better storage (i.e., assess the adequacy of the free time managed. There are cost implications both to period) and then impose realistic storage fees for doing this in the port and in moving it outside the periods in excess of this initial cost free storage port, but the practice as currently undertaken in the time. Appropriate storage tariffs have proven port is disruptive, leads to increased congestion, effective in reducing port congestion and in increased truck traffic in and around the port, and encouraging more rapid removal of goods and contributes to higher dwell time. Streamlined containers from ports. Storage fees can be based customs procedures could also facilitate quicker on: (i) free storage up to a given number of days; (ii) clearance of containers and strengthened risk the imposition of daily rates after the free period; management systems with fewer physical and (iii) a scale of fee increases as the number of inspections of low risk shipments could also days in the port increases. These should be set at facilitate container flow. levels that encourage rapid movement of goods through the port, but not so high as to significantly Installation of Weigh Scales: The very high rate of raise costs or lead to the abandonment of goods over-loading of trucks at the Port of Cotonou poses and containers in the port. serious downstream problems for inland transportation, including issues such as significantly Reconsideration/Renegotiation of Contractual increased road deterioration (resulting in very high Arrangements with Operators: There is some road maintenance costs for the Government), concern that existing contractual arrangements are increased truck breakdown rates, road safety issues, not optimal. Consideration could be given to and potential issues at border crossings. revisiting the contracts with the major operators Overloading is a serious impediment to effective with a view to mutually improving contractual and efficient road transport across the region and it arrangements. This should be approached from a is imperative that this issue be addressed in Benin win-win perspective where the objective is not to and regionally. While this is clearly a regional issue unilaterally renegotiate contractual terms in favor of that will require regional solutions, primarily the port and the state, but to adjust existing around enforcement efforts, it is essential that the contracts to better reflect current realities. Not Port of Cotonou has functional scales and that all having access to the contracts, it is unclear as to trucks exiting the port be weighed, with no which contractual arrangements should be exception. reconsidered, but there is a broad concern that existing contracts do not reflect current best Rehabilitate Rail System and Strengthen Rail practice. As such, there may be a clear interest on Management: A strengthened and more effective the side of the PAC and the Government to rail system could clearly and significantly improve renegotiate certain terms and there may be similar the port-land interface and get goods and containers interest on the side of the operators as well. If out of the port and to their destination more undertaken, renegotiations should be led by the quickly. A fully functional rail system could also PAC, with external assistance to ensure best significantly alleviate truck traffic in the port and in practice. Cotonou and reduce road traffic and associated maintenance. The benefits of a functional rail 8| www.worldbank.org/afr/trade system cannot be overstated and this should be a Stakeholder Engagement: Initiate regular meetings leading priority. of stakeholders in the port at the decision-making level. The intention would be to identify, discuss Establishment of Inland Clearing Depot(s): and decide on the implementation of key measures Consideration could be given to the establishment that should be implemented to reduce dwell time of inland clearing depots in order to move and improve port efficiency and effectiveness. containers out of the immediate port environs to a Many ports have something akin to a “Comité de location where they could be subsequently cleared. Facilitation Portuaire� that serves this purpose. The short experience with moving in-transit The Port of Cotonou should consider the containers to the town of Allada by rail was establishment of such a committee to be an successful in alleviating congestion in and around effective instrument for dialogue in improving port the port, although it suffered from weaknesses in performance. the rail system. If costs could be kept reasonable and transfers made relatively quickly and efficiently, Raising Awareness: A workshop/seminar for the there may be merit in considering such port community and consumers of port services arrangements. The planned development of dry could be useful in explaining the direct and indirect ports is a step in this direction, but care should be consequences of poor port performance on taken to ensure costs are minimized, contractual consumer prices, input prices, export costs, and arrangements are transparent and all stakeholders economic competitiveness. The attendance of have been appropriately consulted and have helped government decision makers, civil society informed the choice of sites and the logistical participants, Parliamentarians, and others whose arrangements. As noted in an earlier support may be required to effect change or recommendation, streamlined customs procedures support meaningful change should also be could also facilitate quicker clearance of containers, important. Planned reforms, their justification and whether in the port or at in-land depots, and implementation plans could be presented in order strengthened risk management systems with fewer to generate greater understanding and foster greater physical inspections of low risk shipments could ownership and support for the planned reforms. facilitate container flow. Combating Corruption: Systems should be put in Strengthen Monitoring and Evaluation: A place to monitor, detect, and prosecute corrupt strengthened system to measure more accurately practices in the port. This extends to corrupt port dwell time metrics and disseminate the results practices within Customs, at entry gates, load transparently could prove to be beneficial. assignment practices, staffing and human resource Availability of accurate and disaggregated real time practices, procurement, etc. Reporting systems and dwell time information would help in the hot lines could be put in place for reporting identification of emerging bottlenecks and instances of corruption, reports should be promptly constraints and could lead to more rapid responses and seriously investigated, and investigations should by port actors in maintaining efficient port be followed by transparent and open enforcement, operations. SEGUB (the port single window prosecution and administrative sanctions where operator) and PAC, together with ALCO (Abidjan- warranted. An Anti-corruption team in the ports Lagos Corridor Organization, a transport could be created to undertake investigations, monitoring group), should be able to design a dwell monitor efforts against corruption and implement time monitoring system with relatively little effort. anti-corruption activities, including sting and The data exists and it is simply a matter of pulling it undercover operations to identify corrupt officials. together and instituting a regular reporting system. Awareness campaigns focusing on corruption, ethics and values among employees at the port and 9| www.worldbank.org/afr/trade among the consumers of port services could prove Strengthened Port Governance: Decisions at the beneficial. port should fall under a single clear line of authority, properly empowered and with the In many cases practices that slow the movement of capacity, knowledge and accountability to make, goods through the port remain in place simply implement and be held accountable for decisions because they offer the opportunity for rent seeking, thus made. The PAC should be at the center of all generate alternative revenue streams, reduce such decisions and should be fully and integrally competition, impose barriers to entry, etc. Leveling involved in all port related decisions, even if not the the playing field could permit increased efficiency ultimate authority. For example, all contracts with and significantly increased government revenue. private operators should fully involve the PAC in terms of selection, negotiation, contractual details, Strengthen Port Management: All senior and middle management appointments in the port and performance criteria, etc., even if in the end the within the Customs Administration should be based contract is signed by the Minister of Finance. In the very short term, this should extend to any on merit. Standards for management positions arrangements around renewed tendering of the PVI should be clearly defined (based on technical capacity, knowledge, experience and capability). contracts and PAC should be integrally involved in Candidates for port management positions should this process. evaluated against these standards and selected based on their competence as measured by these standards. About the Author David Cal MacWilliam is a Senior Economist in the Africa Poverty Reduction and Economic Management Unit of the World Bank. 1 The note summarizes a report provided to the Government of Benin in October 2012 in response to a request from President Yayi for advice on improving port performance. This followed rising dwell times in 20011 and 2012, high costs, traffic being diverted to more competitive regional ports, falling trade-related government revenue, and considerable unrest and conflict within the port community between private sector operators, government contractors, the Customs administration, and other levels of government. Following delivery of the report and complementary assistance and advice from the development community, the government implemented several of the recommendations over the ensuing months with significant impact on port performance. Dwell times fell quickly to under 10 days (currently under 7 days), costs were reduced, traffic increased by over 11%, and government revenues rebounded accordingly. Reforms to further improve port performance continue with emphasis now shifting more from port logistics (though efforts continue here as well) to Customs reforms. 10| www.worldbank.org/afr/trade