FRANKLIM SPENCER Chairman of Enapor INTERVIEW

Established political stability, a strategic mid-Atlantic location and envisioned expansion backed internationally are just some of the reasons why the islands look set to be the chosen port of call.

Matching the dynamism now apparent in Cape Verde’s aviation sector in sheer volume of investment and number of new developments under way is the country’s ports and maritime transport industry. An injection of new funds from the U.S. Millennium Challenge Account is set to convert the Port of Praia into one of the region’s premier ports, complete with a new cargo village and a corresponding port for cruise ships and inter-island ferry services. But this is just the beginning, as the agency responsible for overseeing the country’s ports, Enapor, is determined to convert the archipelago into an international transshipment hub and has envisioned the expansion of Porto Grande (Mindelo) on the island of São Vicente into one of the largest deep water ports in the West Mediterranean/West African region. Cape Verde’s strategic mid-Atlantic location 300 miles off the west coast of Africa, as well as its established political stability, offers considerable advantages over other regional ports as an en-route shipping option and Enapor is betting that it is a choice many shipping companies will make once upgrades to its maritime facilities are completed.

The potential of Cape Verde’s ports is reflected in the importance the government has placed on investment in maritime infrastructure. Nearly half of the $117 million destined for Cape Verde from the Millennium Challenge Account has been approved for investment in Port of Praia alone. Enapor Chairman Franklim Spencer (INTERVIEW)says that the port expansion should be completed by the end of 2008 and will transform the port into one of West Africa’s finest. According to Mr. Spencer, the port will be divided into two maritime areas, Santa Maria and São Antão. All domestic roll-on and roll-off (ro-ro) ferry services, as well as a cruise ship terminal, will be relocated to the Santa Maria port, while all cargo activities will be concentrated in São Antão. “Our basic idea is to build a 180- to 200-meter quay in Santa Maria for cruise ships, with another 150-meter quay for the ro-ro ships, and another 100- to 120-meter quay for catamarans. We also plan to create a marina nearby to support current initiatives to promote tourism in the area with casinos and other tourist attractions. This way, tourists that come in on the cruise ships to Praia can easily move between the islands.”

Not surprisingly, the wealth of opportunities that exist in Cape Verde’s ports sector at the moment has aroused a great deal of interest, especially in the construction of the international transshipment port at Porto Grande. Although the government will be responsible for the first $100 million in infrastructure investment there, Mr. Spencer says that private investors have already pledged more than $120 million and the government is still accepting proposals. The construction of the port will have a tremendous impact on the Cape Verdean economy, according to Mr. Spencer, who explains, “If we are successful with these projects, I can guarantee that within the next 5 to 10 years, the cost of sea transport will be reduced by 30% or more. Now, transportation is done with container ships with a capacity of between 300 and 500 boxes. Once the project is operative, we will be looking at ships with a capacity of 1,200 to 2,000 boxes. The cost of sea transportation is directly related to the capacity of the ships. This will have a significant effect on the lowering of prices on imported consumer goods and capital equipment in the country and consequently will allow the tourism sector to lower its prices as well.”

In addition to its two largest ports, Port of Praia and Porto Grande, Cape Verde has smaller ports on all ten of its islands and projects for upgrading on many of these are also in the pipeline. Mr. Spencer states, “We are open to public-private management schemes and we also have two or three projects that require smaller investment such as Port Novo, Sal Rey, and Porto Valehro where private investors can form part of the financing of the project.”

Taking advantage of its unique and strategic geo-political location will enable Cape Verde to become a true global hub for passenger and cargo transportation.