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