The Namibian Ports Authority (Namport) has recorded a staggering N$202 million operating profit for the 7 months up to 31 0ctober 2022 signalling significant rebounding and surpassing the N$123 million operating profit recorded in the same period last year by 63%.
This was revealed on Friday by the Authority’s CEO, Andrew Kanime who among other milestones mentioned that revenue for the 7 months to 31st of October 2022 is up 20% from N$666 million to N$796 million.
“Operating expenditure has also increased in line with increased business activity but at a lower rate. Expenditure for the period to date amounts to N$594 million in comparison to previous year’s expenditure (for the period from 1 April 2021 to 31 October 2021) of N$542 million, representing an increase of 10%,” Kanime said.
The result are also indicative of an upward trajectory from the most recent financial year ended March 2022 where revenue amounted to N$1.234 billion in comparison to the revenue generated over the previous financial year of N$1.112 billion, representing an increase of eleven per cent (11%) year on year.
In the same period operating expenditure for the year remained generally stable and amounted to N$1.007 billion in comparison to the N$1.006 billion incurred in the year ended the 31st of March 2021. This represents a nominal increase of 0.1% year on year. Subsequently, operating profit for the year increased more than twofold from N$121 million to N$375 million year on year.
OPERATIONAL EFFICIENCIES
To sustain performance and enhance operational efficiencies going forward, Kanime said that the Authority had developed a port efficiency index which is an internal basket of key measures of operational performance at the Port of Walvis Bay.
“This is now in its second year since implementation and having started on a low base of 2.9 on a 5-point scale, we have improved by 13% to 3.28 as at the end of October 2022. The target is to achieve a score of 4 by March 2024. We have been recapitalizing our fleet of cargo handling equipment and have already received 2 reach stackers and 4 forklifts in January 2022.
“For this financial year, we have activated the procurement of 7 4-ton additional forklifts which will be delivered by 01 April 2023. For the new financial year starting 01 April 2024, we have budgeted to acquire an additional 7-ton, 16-ton and 32-ton forklifts. We are refurbishing the fleet of RTGs and have awarded a tender for the supply of two new wharf cranes which will be delivered in the second half of the 2023,” Kanime explained.
Additionally, Namport plans to acquire a total of 6 wharf cranes over the next 2 years so that it alleviates the current challenges at the bulk terminal. The Authority recently commissioned an operating system for the general cargo terminal and the ultimate goal is to now automate the billing of operations.
“We are presently in discussions with SAP in this regard. The roll out of the National Single Window continues with implementation earmarked to be carried out in phases and the bidding for the initial phase, being maritime single window and the cross border window will commence in the first quarter of 2023,” Kanime said.
Notably, following an extensive procurement process, Namport has selected Terminal Investment Limited (or TIL), to manage and operate the New Container Terminal at the Port of Walvis Bay.
“As we previously reported, the objectives of the concession are to increase volumes throughput through the watershed investment of the NCT, especially given our limited home market volumes, to attract much needed capital for the expansion of the channel, acquisition of cargo handling equipment and systems so that we amplify our operational efficiencies and to protect and grow our levels of employment,” Kanime explained.
GREEN HYDROGEN EXPORTS
In preparation of the green hydrogen revolution, Kanime highlighted that the Authority is busy with studies to decarbonize Namibian ports and has entered into memoranda of understanding with the Ports of Rotterdam and Antwerp Brugess which puts them in a strong stead to leverage off established practices and to prepare for the exports of the molecule once production commences.
“We also recently signed an MOU with Sonangol and Namcor to explore the possibilities of jointly collaborating and positioning ourselves to accommodate and serve the upstream oil sector in Namibia,” extended Kanime.
In the recent financial year, Namport’s container volumes increased by 12,298 TEUs or eight percent on a year-on-year basis. This increase was mainly attributable to the increased import and export containers of 15% and 3% respectively. Bulk and breakbulk volumes increased by 360,189 tonnes or nine percent, year-on-year on the back of increased exports of various mining commodities.