Ex-Post Monitoring of Completed ODA Loan Project
Republic of Cameroon“Douala Port Container Terminal Modernization Project”
External Evaluator: George Terahara, International Development Center of Japan, Inc.
1．Project Description

Map of Project Area

Gantry Cranes in Operation

1.1 Project Objective
The objective of this project is to contribute to expand container handling capacity throughthe installation of gantry cranes at Douala Port, the largest port in Cameroon, thereby
contributing to the economic development of Cameroon and neighboring landlocked countries.
1.2 Outline of the Loan Agreement
Approved Amount/

6,000 million yen/5,999 million yenDisbursed Amount
Loan Agreement Signing Date/May 1987/May 2001

Final Disbursement
Ex-Post Evaluation

2005

Executing Agency

Port Authority of Douala (PAD)
Guarantor: Government of Republic of Cameroon

Main Contractor

Mitsui & Co., Ltd.

Main Consultant

Ocean Consultant, Japan Co., Ltd

1.3 Background of Ex-post Monitoring
Cameroon showed steady economic growth of 7.5% per annum through the early 1980s andthe amount of cargo handled at Douala Port reached its peak of 3.92 million tons in 1983.
Under these circumstances, the Loan Agreement was signed in 1987 to prepare for the increase-1-in cargo volume by developing container facilities featuring safer and more economicalcontainers.
However, the project was not completed until 14 years after the Agreement due to proceduraldelays on Cameroon’s side, and lack of coordination with the World Bank on issues such as
demand forecast, economic impact, questions regarding management structure of the executing
agency, and differences in viewpoints on the privatization of the maintenance and management
structure.
In addition, the Cameroon economy experienced negative economic growth between 1988
and 1994 and stagnated severely.

Thus, the container traffic volume in the year of completion(2001) did not reach the volume forecasted in 1987 nor did it reach that forecasted for the yearof post evaluation (2004).
This project introduced consulting services and prepared recommendations on the operations
and maintenance during project execution, but privatization after project completion lowered
project sustainability by insufficient improvement of the operation and maintenance system.
Furthermore, improvement of the outer ring road around the Douala Port, which was expected
to further positively impact the project, was recommended.

Therefore, this project wasselected for ex-post monitoring and reviewed under each criterion with the findings from thefield survey and other research activities with a final conclusion being drawn.

2. Outline of the Monitoring Study
2.1 Duration of Monitoring Study
Duration of the Study: April 2011~February 2012
Duration of the Field Study: August 29~September 10, 2011
2.2 Constraints during the Monitoring Study
None

3. Monitoring Results
3.1 Effectiveness3.1.1 Quantitative Effects
3.1.1.1 Improvement in Container Handling Capacity(1) Container Handling Efficiency (Unit/Hour)Container handling efficiency, containers processed per hour, improved from 7~8 units perhour (before project) to 24.4 units per hour at the time of ex-post evaluation (Table 1).
Subsequently, the efficiency has ranged between 20 and 22 units per hour, and decreased by
10% from the time of ex-post evaluation.

The around the clock operating rates are 55~65%.

-2-Table 1: Container Handling Efficiency
1996(BeforeProject)

Year
Container
Handling
Effciency(Unit/hour)

2004(Ex-PostEvaluation)

7~824.4

2005

2006

22.6

20.2

2007

2008

20.7

2009

20.6

21.2

2010
(Ex-Post
Monitoring)
22Source: PAD(b) Container Handling Capacity (TEU/year)
Annual container handling capacity has been set as 262,000 TEU1 per year since 2001 after
project completion and has remained unchanged from the designed capacity.
(c) Annual Container Traffic (TEU)
Along with the growth of the economy, the total container traffic in 2010 increased by 57%
from that in 2004.

This means that the current traffic is beyond the original capacity of262,000 TEUs (Table 2).
Table 2: Container Traffic and GDPsYearContainerTraffic(TEU)
GDP(bil. CFA)
Yr. 2000 price1996(BeforeProject)

2004(Ex-PostEvaluation)

106,000
5,508

2005

2006

2007

2008

2009

179,538 187,506 199,985 217,171 270,245 281,438
7,755

7,933

8,188

8,465

8,682

8,851

2010
(Ex-PostMonitoring)
288,932
9,117

Source: PAD and IMF(d) Containerization Rate (%)
With the increasing volume of containers, the containerization rate has also been increasing.
The rate was 27.6% in 2005 (from January to September) after project completion, but it
increased to 41% in 2010.

Nonetheless, these numbers are lower than the forecasted numberof 61.7% at the time of project appraisal.

The forecasted number was too high andnon-containerized cargo also developed.
(e) Average Berthing Time and Other Indicators
Average berthing time, berth occupancy rate, and average container yard staying time are shownin Table 3.

Among these, the average berthing time diminished from 4.04 days (1995) to 3.20

days (2004) and reached 3.10 days (2009) as a result of project completion.

1

Twenty-foot Equivalent Unit. A 40 foot container is 2 TEUs.
-3-

Container yard

staying time improved from 22.00 hours (2004) to 19.53 hours (import, 2009) and 7.97 hours(export, 2009) after project completion.

The concessionaire, Douala International Terminal(DIT), is to report these indicators regularly to PAD and is improving efficiency from both landand sea-sides.
Table 3: Average Berthing Time and Other Indicators
Year1995
Before Project2004
Ex-PostEvaluation

2009
Ex-PostMonitoring

Indicator
Average Berthing Time

UnitDay

4.04

3.20

3.10

Berth Occupancy Rate％

55.80

62.00

51.66

Day

24.10

22.00

Average Staying Timeon Container yard

Import19.53

Export7.97

Source: PAD
These indicators present that the operation and effect indicators are maintaining anddeveloping the numbers at the time of ex-post evaluation and quantitative effects are judged toappear continuously.
3.1.1.2 Internal Rate of Return (IRR)
Without data provided from PAD, the ex-post evaluation calculated the Financial Internal
Rate of Return (FIRR) and Economic Internal Rate of Return (EIRR) as 7.7% and 10.5%
respectively by partially inferred data.

Because PAD and DIT did not provide necessaryfinancial data for IRRs, this ex-post monitoring survey does not calculate the rates.
3.1.2 Qualitative Effects
Since the ex-post evaluation did not measure qualitative effects, this ex-post monitoring
survey does not compare those.
3.2 Impact
3.2.1 Situation of Impact
3.2.1.1 Impact on Cameroon’s Economy
Cameroon’s economy observed negative growth from the late 1980s to early 1990s andpositive growth after hitting bottom in 1994 (Table 2 and Figure 1).

In addition,

macroeconomic and fiscal management conditions are improving after the completion ofHeavily Indebted Poor Countries (HIPC) Initiative2 application in 2006.

Consequently, theGross National Income (GNI) per capita became US$1,180 (2010, World Bank) and Cameroon

2 By this process, a total debt amount of 10 billion Japanese yen loans was exempted in October 2006.

-4-is classified as a “Lower Middle Income Country.”

10,000GDP (2000 price; CFA billion; Left Axis)

10%

9,000

GDP Growth Rate (Right Axis)

8%

8,000

6%

7,000

4%

6,000

2%

5,000

0%

4,000

‐2%

3,000

‐4%

2,000

‐6%

1,000

‐8%
‐10%0
1985 87↑L/A89

91
Year

93

95

97

99

01

03

05

Project Completed↑

07

09

11

↑Ex-Post Evaluation

Source: IMF Economic Outlook 2011 (2011 value is estimated)
Figure 1: Actual GDP of Cameroon and its Growth Rates

Source: Economic Intelligence Unit (2011)
Figure 2: Imports and Exports of Cameroon
With economic growth, the export of oil, timber, aluminum, coffee and cotton expanded(Figure 2) and Douala Port contributed to the growth through containerization of these export
products.

-5-

3.2.1.2 Impact on Neighboring Countries
Douala Port is also functioning as an external port for Chad, Central African Republic (CAR)
and north Congo (not an inland country).

Among them, Chad and CAR have no external

ocean ports other than Douala Port.
Table 4 shows the economic importance of the Douala Port although the trade amounts of thethree fluctuate over the years.

Of the total cargo through Douala Port, 20-30% is imported toand exported from three neighboring countries and 80-90% of this is with Chad.
years, cargo to Chad has frequently been related to plant and pipelines.

In recentContainerization rates

are not available.
Table 4: Transit Cargo through Douala Port to and from Neighboring Countries
Country
ChadCentralAfricanRepublic
Congo(north)Imports
Exports
Total
Imports
Exports
Total
Imports
Exports
Total

2004
184,261
60,183
244,444
78,895174,076
252,9712006
180,823
28,078208,901
192,931244,606
437,537
4,694
171,155
175,8492007
196,358
34,086
230,444
63,091
155,222
218,313
5,438
173,774
179,2122008
278,249
34,004
312,253
83,433
168,802252,235
21,919196,780
218,6992009
474,676
24,071
498,747
96,030104,376
200,406
17,765103,299
121,064

Unit: ton
2010
460,940
30,332491,272
111,091
126,020
237,111
11,712
138,580
150,292

Source: PAD
3.2.2 Other Positive/Negative Impacts
3.2.2.1 Impact on Natural Environment
PAD is contracting out channel dredging work to a private company.

According to PAD,

the channel has been maintained properly and no negative environmental impact is reported.
There is no national standard to regulate air quality, water quality and noise and evaluation
criteria have not been established.

The port is located in a remote location away fromresidential areas and there is no effect on residents (based on the field survey).
3.2.2.2 Impact on Douala Urban Transport
Ex-post evaluation pointed out the traffic on the road to and from the port caused traffic
congestion in the city center and prevented smooth cargo operations because of the poor
condition of the outer ring road of Douala Port.

According to the field survey, cargo trucks aretemporarily stopped at the port gate for document inspection.

Additionally, most cargo trucks

now do not go through the city center because the outer ring road connecting the port has beencompleted.

Senior District Officer of Douala issued an administrative order to regulate truck

and container trailer bans in the city area between 5 am and 9 pm and it is mostly upheld.
-6-

Consequently there is little negative impact on traffic conditions around the port.
3.2.2.3 Resettlement and Land Acquisition
There has been no resettlement and no new land acquisition.
The above factors indicate the positive economic impact on Cameroon and the threeneighboring countries through the increase in trade volume.

In addition, any negative impact,

such as traffic congestion in Douala City, pointed out by the ex-post evaluation, has been
confirmed to be largely mitigated.
3.3. Sustainability
3.3.1 Structural Aspect of Operation and Maintenance
PAD conceded the container terminal operation to DIT, which has direct responsibility for
operation and maintenance until the year 2020. DIT conducts operation and maintenance andreports to PAD.

DIT dedicates 250 employees out of 280 to operation and maintenance.

Thestaffing number is sufficient to operate two gantry cranes and conduct container yard workaround the clock.
DIT workers in the container terminal requested the same level of wages as PAD workers inother terminals and went on strike in 2007. DIT workers consider their labor conditions worse
than those of PAD workers and this is a concern for DIT (according to PAD and DIT).
The Ex-Director General and Ex-Chairperson of the Board of PAD have been charged withsuspicion of embezzlement of PAD financial resources.

Both received a guilty sentence in theHigher Court and appealed to the Supreme Court in 2009.

Cameroon newspapers often inquire

about the non-transparency of PAD management.
3.3.2 Technical Aspect of Operation and Maintenance
DIT employs technicians trained in the Republic of South Africa.

DIT conducts operational

training in a training facility of a subcontracted Dutch company four times annually.
DIT staff conduct routine repair work such as painting and replacement of consumables.
More important repair work is carried out by the foreign engineers as necessary.
Periodical maintenance of gantry cranes is scheduled based on the crane maker’s criteria.
Based on the hours operated, certain maintenance is performed and large scale repair work is tobe conducted by South African and European engineers.

Thus, DIT is maintaining the gantry

cranes properly in terms of routine maintenance work.
3.3.3 Financial Aspect of Operation and MaintenanceAlthough PAD operated in the red until 2004, it is in the black since 2005. In 2005 PAD
conceded its port operation to DIT, thus the leasing fee revenue influenced the financial-7-condition.

DIT pays 3.8 billion CFA francs to PAD and charges on average 145,000 CFA

francs for each 40 foot container.

DIT had revenue of 38.17 billion CFA francs andexpenditures of 37.56 billion CFA francs in 2008. Operation and maintenance costs accounted
for 24.93 billion CFA francs.
maintenance costs.

These numbers show that DIT secured operation andHowever, the financial statements of DIT have not been disclosed for thismonitoring purpose.
3.3.4 Current Status of Operation and MaintenanceThe container yard has strict gate control and unauthorized vehicles and persons cannot enter
the yard.

Safety management system is also reinforced.

Gantry cranes are properly

maintained as described above and they are operational around the clock.

There have been nospecific problems observed during the field survey.
By these facts, DIT is conducting operation and maintenance up to the year of 2020, the final
year of the concession contract, and no specific problems are anticipated in terms of technicaland financial matters.

On the other hand, the labor issues of DIT and non-transparency of past

management of PAD remain concerns in structural aspects of operation and maintenance.
4. Conclusion, Lessons Learned and Recommendations
4.1 Conclusion
As the container traffic (288,000 TEUs, 2010) has already exceeded the designed handling
capacity (262,000 TEUs), significant effects have been observed.
This project played an important role for Douala Port to function not only as the main port for
Cameroon, but also as an external port for central African countries.

Especially, the role itplayed in contributing to Cameroon’s export and import boom since 2005 is significant.
The ex-post evaluation concluded that the concession of the terminal had led to low
sustainability of the project.

Contrarily, this monitoring survey found that the sustainability isheld by the concession scheme.
The ex-post evaluation recommended: i), cooperation from implementing agency, and ii),
improvement of outer ring road of container yard.

Regarding i), PAD cooperated with thismonitoring mission to a certain extent in matters such as provision of information and facilities.
Regarding ii), the traffic problem has been solved by the improvement of the outer ring road as
described in 3.2.2.2.
4.2

Recommendations

None
4.3

Lessons Learned-8-None-9-Comparison of Planned and Actual Outcomes
ItemPlanned

Actual(1) Procurement of Equipment

1.Output(1) Procurement of Equipment
Mostly as planned.

1) 2 gantry cranes for quays

1) as planned,2) 4 transfer cranes for container2), 3) and 4) cancelled.
Additions: 1 small fire engine, 1yard
3) 8 tractors, 10 trailers

mobile workshop, operation and4) Computer system

maintenance training)(2) Utilities, civil engineering and(2) Utilities, civil engineering andconstruction work, etc.

construction work, etc.
Mostly as planned.
(There was some additional civilengineering and constructionwork.)(3) Engineering services(3) Engineering services

Mostly as planned.
2.Duration

May 1987~December 1990

July 1990~July 2001

(44 months)(133 months)

6,000 million yen

5,999 million yen

Local Currency

1,875 million CFA francs

481 million CFA francs3

Total

6,994 million yen

6,079 million yen

6,000 million yen

5,999 million yen

1 CFA franc = 0.53 yen

1 CFA franc = 0.166 yen(as of January 1985)(2001 average)

3. Project Costs
ForeignCurrency

ODAloanPortion
Conversion Rate

3

Estimated figures have been used as the executing agency did not provide data.
-10-