The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
"I’m not comparing the two airports , I used Diori Hamani airport to demonstrate how Summa generate their revenue which is the same as WSG. }
ERRRRR... yes you did..,. you said :
"Summa airports shelled out $170m for a similar 30 year BOT concession at Diori Hamani Airport in Niger , they generate revenue by charging circa €52 ( $57 ) pr departing pax - so reasonable to assume a similar set up at SL .:
-- .. and as to this... ? Big Ears ...full of WAX..???
o?
Charges and payment
ln consideration of the provision of the Services Westminster will issue an invoice for the Security Fee to the Airlines at the end of each month relating to the number of Passengers of each Airline during that month and the SLAA shall procure that the Airlines pay the Security Fee monthly to Westminster. Notwithstanding that it is the Airlines that will pay the Fee, the SLAA will ensure the enforcement of this through the application of appropriate sanctions against defaulting Airlines including, where
required, removal of take-off rights.
It is agreed that nothing in this Agreement prevents Westminster from increasing its Security Fee or raising a separate charge to any individual Airline should that Airline request additional equipment or services. Westminster will keep the SLAA informed of any such change.
Subject to the remainder of this clause, the parties agree that they will promptly meet to discuss and review the Security Fee annually from the third anniversary following the Commencement Date (the 'Review Date'). At the Review Date should the annual Passenger volumes have increased by a significant amount, above 50% of the current annual Passenger volume at the date of this Agreement, the Security Fee will be re-negotiated downwards and if the Passenger volumes have decreased by a significant amount, below 50% of the current annual Passenger volume at the date of the Agreement the Security Fee will be re-negotiated upwards. The SLAA shall give due and careful consideration to any comments or concerns raised by Westminster but subject to the remainder of this clause shall have the final decision on any Security Fee increase. Notwithstanding the previous sentences, the minimum annual increase of the Security Fee shall be at the annualised rate of change taken from the most recently published Consumer Price lndex (CPl).
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Interesting to note that the contract to which Big Eyres referred confirms that if pax volume increases...or decreases, significantly. then WSG fee will be re-negotiated--- pretty much as you would expect given the economy of scales that I mentioned earlier.
Big Ears .. txs for link.
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"I’m not comparing the two airports , I used Diori Hamani airport to demonstrate how Summa generate their revenue which is the same as WSG. }
ERRRRR... yes you did..,. you said :
"Summa airports shelled out $170m for a similar 30 year BOT concession at Diori Hamani Airport in Niger , they generate revenue by charging circa €52 ( $57 ) pr departing pax - so reasonable to assume a similar set up at SL .:
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SL government have explicitly stated that it won’t be costing the tax payer a bean , so on that basis Summa will have to rinse every dollar out of that airport to service their outlay.
ERRRR... ??? why does that impact WSG iof their fees come from the Airlines?
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Let me ask you a straight question - Do you believe WSG will continue through to 2027 on the same terms as the attached contract ?
EWRRRR... I have no idea,.. Yet you seem to do that you do?..So perhaps you should answer the question,... why do you think that their income will be adversely affected by the new terminal etc., as you see seem to suggest...??
Isn't WGS fee paid by the airline and not the operator?
Not sure that you can compare the two airports..the pax at the Niger airport is already double SL.--- with largely fixed costs for the security scanning regardless off numbers so economies of scale come in to play?
Have you the link to the WGS contract? Txs
BigEars' point about non-scanning of containers, in transit, is I believe correct.
However, given that Ghana borders a number of land locked countries and the further investment and promotion of Tema, with deep berthing facility and state of the art system, IMHO I believe that this will drive further natural growth as more and more fleets use Tema as strategic stopping off point on their long-haul distribution routes. Likewise, it is likely that more goods will be brought to Tema, for off-loading and further distribution to neighbouring countries. Currently, this through transit is mainly by road and rail. ie leaving the port authority,.. which will require scanning. This is backed up in the statement below, from MPS:
Mohamed Samara, CEO of container terminal operator Meridian Port Services (MPS)
“This has not only driven gateway cargo market growth in Ghana, but also the increase of transit and transhipment trade. We have secured intercontinental transhipment volumes connecting the Far-East trade routes with the East Coast of the Americas and also southern African trade with Europe.”
https://www.freightnews.co.za/article/temas-hub-ambitions-gain-momentum
So whilst Big Eyres' point is valid,.... it is perhaps a bit disingenuous to suggest that the additional investment will not lead to further growth in WSG scanning revenue, as clearly MPS see an associated growth in both their 'shipment and transhipment'.
As to BE's comments about productivity- the more efficiently ships can be loaded, unloaded, cargo's sorted etc., the more ships that can be serviced, the more potential income?
As an aside---- it isn't true that goods in transhipment are never scanned. For instance, some ports, dealing with containers in transhipment to Russia, at the moment, ARE being scanned in transhipment, to ensure that they are carrying what has been described 'on the can', for obvious reasons. -- as I understand it, it is at the discretion of the Port Authority. -- ( the Russia comment does not refer to Tema, simply noting a recent report).
https://mps-gh.com/2022/02/08/mps-sets-new-vessel-productivity-record/
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MSC DANIT is a “New Panamax” sized container ship with cargo capacity up to 14,000 TEUs. The ship has an overall length of 366 m (1,199.1 ft); a moulded beam of 51.20 m (168.0 ft); a maximum draft of 16.00 m (52.49 ft); a deadweight tonnage of 165,517 tonnes; measures 153,092 gross tons.
5,471 TEUs were handled on/off the vessel (1,456 discharge and 4,015 loaded) with vessel productivity of 152.67 moves/hour at an average STS crane productivity of 33.4 moves per hour deploying up to 6 STS cranes during part of the operation which is the highest crane density and best vessel stowage plan achieved at MPS Terminal 3.
Tema reaches new heights
23 Feb 2022 — Tema reaches new heights
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A total of 5,471 TEU of containers was exchanged with the call of MSC's 14,000 TEU intake MSC DANIT on 3 February
https://www.worldcargonews.com/news/tema-reaches-new-heights-68388
Meridian Port Services (MPS) is upping capacity at the Port of Tema in Ghana inking a contract for new equipment with ZPMC.
Michele Labrut | Feb 09, 2022
The port operator has signed a purchase agreement with Shanghai Zhenhua Heavy Industries Company Limited (ZPMC) for the acquisition of 15 new gantry cranes, including 3 STS cranes and 12 RTG cranes.
The $53.31m investment will enhance the capacity at Terminal 3 in the Port of Tema and reflects MPS' commitment to continuously improve its services to the benefit of the port community and Ghana.
“MPS’ Terminal 3 is currently equipped with 11 ST cranes, 2 mobile harbour cranes and 29 RTG yard cranes. The increase in volume has led us to augmentin our fleet by an additional 15 gantries. We will be in a position to handle the world's largest container vessels and the potential trade growth, thanks to the establishment of the African Continental Free Trade Area (AfCFTA)” explains Mohamed Samara, CEO of MPS.
Following the virtual signing ceremony with Mohamed Samara, CEO of MPS and Liu Cheng Yun, President of ZMPC, Mr Kwaku Ofori Asiamah, Ghana's Minister of Transport, and the executives of Ghana Ports and Harbours Authority (GPHA) expressed their enthusiasm for the new acquisition.
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https://www.seatrade-maritime.com/ports-logistics/capacity-boost-tema-port-ghana
https://sierraloaded.sl/news/summa-group-constructing-new-ultra-modern-airport-lungi/
PROJECT GEARING UP
Summary
Being the 1st port of call for several Liner Services in West Africa with improved handling capacity, certainly Meridian Port Services Ltd (MPS) attracted several shipping lines to put MPS Terminal 3 to the test as a potential transhipment hub and MPS has succeeded operationally and commercially to provide the expected service levels.
MPS Terminal 3 is currently running with berth occupancy in the range of 90% on the 3 new berths and the civil works on the 4th New Berth was completed back on 1st October 2021. The wharf at MPS Terminal 3 is geared with 11 STS cranes and 2 Mobile Harbour Cranes backed by 29 eRTG’s , several Reachstackers and Empty Handlers. With the envisaged increase in volumes (Gateway & Transhipment) we are gearing-up so to cater for larger capacity.
The Management of MPS simulated volume scenarios and presented to the Board of Directors an investment in additional gantry cranes (3 STS cranes and 12 eRTGs) and several ancillary container handling equipment as well as upgrading the backup power plant from 12 MVA to anywhere between 18 to 24 MVA.
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https://mps-gh.com/2022/01/24/meridian-port-services-ltd-signs-a-usd-53-31-million-purchase-agreement-with-shanghai-zhenhua-heavy-industries-company-limited-zpmc-to-supply-15-additional-gantry-cranes-for-terminal-3-port-of-tema/?fbclid=IwAR1kVVIYIvyzyw2hKRilP3YxgDWI1GH3XV_Mi7uU0om4mKh8Jw95NdpCAHM
...and if you were at the Queen's Award ceremony last year,... you'd have been able to see the Drone... and anti-drone technology in action,.... which was very impressive. The Ukranian situation has shown the importance of the use of drones in that setting.