DRC'S MAIN MARITIME PORT IN DISORDER

UNCLAS KINSHASA 000391 SIPDIS SENSITIVE SIPDIS HOMELAND SECURITY PASS TO USCG-ROTTERDAM (GCZERWONKA) E.O. 12958: N/A TAGS: EWWT ECON ETRD EFIN CG SUBJECT: DRC'S MAIN MARITIME PORT IN DISORDER ¶1. (U) Trade via the DRC's main port of Matadi is becoming increasingly difficult, as a lack of resources and commitment has stalled rehabilitation projects. This assessment is based on information from ongoing contacts with port officials, business operators, and government officials. ¶2. (U) Over the past two months, Post has received numerous reports from business operators and the Belgian DRC mission that the port's operations have become increasingly slow and disordered. The primary reasons for this situation are the lack of adequate cargo handling equipment and a poorly organized customs clearance process. Hence, thousands of containers continue to overcrowd an already small port, whose capacity has been further limited by the closure of several shipping piers for renovation. Business contacts have complained of increased, and costly, delays in the customs clearance process. ¶3. (SBU) Ministry of Transportation officials have demonstrated little interest in rehabilitating Matadi's facilities, and other GDRC ministries lack either the capacity or will to intervene. Matadi's Port Facility Security Officer (PFSO) told EconFSN that he is discouraged that the Ministry of Transportation is less engaged in this project than ever, and is either unwilling or unable to provide further funding or political support. The PFSO added that ONATRA, the DRC's port authority, still has not received equipment and vehicles that it requested months ago for its port projects, and he blames in part the Ministry of Finance's four-month delay in granting certain necessary customs exonerations. ¶4. (SBU) ONATRA itself is also to blame for the port's inefficiency. The organization is neither particularly efficient nor focused, and likely also suffers from underfunding. A Belgium diplomat who closely follows port security and rehabilitation told EconOff that high-level officials within ONATRA may well be dragging their feet, as the opportunity for personal benefit is greater with a badly managed port. The recent arrest of its deputy CEO on charges of illegally selling ONATRA assets suggests mismanagement and fraud within the parastatal. ¶5. (SBU) The Belgian government has proposed its own solutions to Matadi's problems. GOB officials are pushing plans to privatize the Matadi's administration with the Port of Antwerp as manager. The Port of Antwerp is already providing some training and consultation to Matadi through their twinning program. As Belgium is a major DRC trade partner, it has a vested interest in a more efficient, cost- effective port. (Note: By some accounts, Matadi has the highest worldwide, maritime-port usage costs. End note.) MEECE