Challenges and Opportunities in Sustainable Port Development in Nauru
3 April 2019
Pivithuru IndrawansaInfrastructure SpecialistAsian Development Bank
Capacity Building Workshop on Sustainable Port Development and Improving Port Productivity
• World’s Smallest Island Nation – 21 sqkm
• Deeply Isolated in the Pacific
▪ Population: 11,300▪ Distance to closest
country (Marshal Islands) 1,300km (Brisbane over 3,400km)
The Port is Nauru’s Lifeline
Challenges in Current Port Operations
Looking North
Challenges in Current Port Operations
▪Aiwo Port–Shallow Boat Harbor
▪Current Facilities - Over 115 Years Old –Highly Dysfunctional
▪Fully Exposed to Effects of Climate Change–Complete Shutdown 3 months a year
▪Offshore Loading and Unloading–Costly, hazardous and difficult–Ship Turnaround Time Exceeds 21 Days
▪Weak Port Management–Unskilled Human Resource
(1) Offloading containers into barges
How Port Operates … If and When It Works
(2) Transporting containers into port area
How Port Operates … If and When It Works
(3) Unloading containers
How Port Operates … If and When It Works
(4) Rundown port buildings
How Port Operates … If and When It Works
(4) Rundown port buildings
Harbor Master’s OfficePort Workshop
How Port Operates … If and When It Works
Offshore Mooring System
Mooring diagram for container ship
Mooring diagram for phosphate bulk carrier ship
• The existing mooring system is frequently damaged;
• Annual repairing and maintenance costs about A$1 million;
• Replacement costs about A$6 million every 5-6 years.
Offshore Mooring System
Tug Boats (hired when mooring system is damaged, cost over A$1000 per hour; A$3.5 million a year)
Neptune Shipping is the Only Remaining Shipping LineMatson Shipping withdrew in November 2015
Challenges in Developing a New Port for Nauru
▪Nauru’s Specific Geography–Limited Options
▪Design Constraints–Wind Climate - Strong Westerly Winds–Effects of Climate Change - Sea Level Rise–Wharf Orientation, Berthing Ability, Ship Arrivals and
Departure
▪Satisfying ADB’s Technical, Economic, Financial, Environment, and Social Safeguards Requirements
▪Presence of Unexploded Ordnance
▪Design Validated through;–Detailed Feasibility Study–Geotechnical Investigations–Comprehensive Ship Simulation Modeling–Independent Design Review
Challenges in Developing a New Port for Nauru
Proposed New Port - Layout
Technically feasible, climate resilient, and least cost option
Proposed New Port - Layout
Technically feasible, climate resilient, and least cost option
Development Within Existing Port Footprint
Residential area; nearly
deserted due to extremely
poor living conditions.
Being demolished and
earmarked for a fish
processing plant
Yellow line: Proposed
port development
boundary (within existing
premises)
Red line: Few residential houses
near the port; Other buildings for
industrial use
7 land parcels (204-209 and 131; 16,830 sqm; existing port premises); Customary land owners (426 individuals); leased by the government until 2020; renewable
Foreshore; public land 5,963 sqm
Port is surrounded by two districts;Aiwo - 215 HH; 1263 people; Denig - 337 HH; 1549 people
Project Outputs Fully Financed
▪Three Outputs–Climate-proofed port infrastructure constructed,–Sustainable operations and maintenance achieved,–Efficient port operations established
▪Costs and Financing–Total cost - US$79.59 million–Financed by:
➢ADB – US$21.3 million Grant➢Green Climate Fund - US$26.91 million Grant➢Government of Australia - US$14.08 million (A$18 million)
Grant➢Government of Nauru - US$17.30 million
Challenges in Introducing Reforms Port Authority of Nauru
▪Organization Restructure– Introduce International Best Practices - Financial and Human Resource
Management, Port Operations– Resistance to Change– Highly Political Environment– Legislative Amendments– Limited and Unskilled Human Resource – Comprehensive Training Needs
▪Tariff Restructure– Resistance from port users
▪Outsourcing Port Operations to Private Sector– Port Authority as a Regulator– Cost Recovery– Fish Transshipment– Fish Processing
Project Implementation Status
▪Construction Works Ongoing–Contract Awarded in December 2018 - Competitive Bidding–Construction Supervision Consultants Engaged–Independent Technical Auditor–Civil Works Completion by December 2020
▪Port Equipment–Government of Japan Donation A$10 million–Supply by December 2020
Project Implementation Status
▪Port Reforms Ongoing–Revolving Maintenance Fund Established–Reform Consultants Engaged–Organization Restructure approval by December 2019–Outsourcing Port Operations
➢Expression of Interest - June 2019➢Outsourcing – December 2020
▪Project Completion by December 2022
Thank youFor any queries: