National Port Authority of Liberia 2010 Annual Report

ANNUAL REPORT

NATIONAL PORT AUTHORITY OF LIBERIA

2010

Her Excellency Ellen Johnson SirleafPresident of the Republic of Liberia

Hon. Joseph N. BoakaiVice President of the Republic of Liberia

NPA 2010 Annual Report

ANNUAL REPORT

NATIONAL PORT AUTHORITY OF LIBERIA

NPA 2010 Annual Report

2010

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National Port Authority Freeport of Monrovia, Bushrod IslandP.O. Box 1849, Monrovia, Liberiawww.nationalportauthorityliberia.org

Tel: +231 (0) 2 760 6001(0) 2 760 6006(0) 7 771 8937

Letter from the Managing Director

2010A DISTINCT

YEAR

~i~ NPA 2010 Annual Report

Welcome to the National Port Authority of Liberia, the Gateway to Liberia’s Economy. This re-port summarizes highlights from Fiscal Year 2010, a distinct year for us.

As a team, we focused our efforts on transitioning to a landlord port model by consummating the APM Terminals Concession Agreement, and the rehabilitation of our outports. Some of our key accomplishments were as follows during the period under review:

FINANCE

• Revenue earned was US$18.785 Million, which is US $0.416 Mil-lion higher than revenue realized in 2009.

• Total Expenses, including depreciation, was 6% lower than budget.

• Net Profit was higher than budgeted Net Profit by US$0.819 Mil-lion. Net Profit for Fiscal Year 2010 is US$2.361 as compared to 2009 profit of US$1.484 Million, resulting in a 59% increase over 2009.

SECURITY

• Achieved ISPS (International Shipping Port Standards) Compliancy in Monrovia and Buchanan in March 2010. We also began the Port Facility Security Assessment (PFSA) / Port Facility Security Plan (PFSP) process for the Port of Greenville to achieve the same in 2011.

• Enhanced lighting throughout the Freeport of Monrovia and the Port of Buchanan, and along their shoreline utilizing generators. We now have city power at the headquarters, and have a commitment from the Liberian Electricity Corporation (LEC) to have electricity throughout the Port by 2011.

• Installed CCTV and cameras throughout the ports of Monrovia and Buchanan, along with CNN and ASI (Vessel Monitoring Software) in the Port of Monrovia. The CCTVs and cameras are monitored 24 hours a day.

• The roads in the Port of Monrovia did not allow a flow of traffic end-to-end. We have created a new road which connects the main port to the north side (of the port) to allow improved operations and security patrol.

• Completed the repair (with gravel) of port roads (outside concession

Letter from the Managing Director

NPA 2010 Annual Report ~ii~

areas) in the Freeport of Monrovia, to enhance the ability of our foot and vehicle patrols.

• The 2010 Access Passes were redesigned with security features to avoid recreation.

• Documented a process and began partnering with other Law Enforce-ment Agencies on various types of emergencies.

• Placed various traffic and safety control signs throughout the Free-port of Monrovia and the Port of Buchanan.

OPERATIONS

• Vacated the warehouses on the marginal wharf, for demolishment during the reconstruction of the Marginal Wharf beginning 2011.

• Conducted quarterly Port User Meetings as a medium of communi-cating with Port Users. We are in the process of changing this fre-quency to once a month.

• Partnered with the Ministry of Transportation and Liberia National Police to develop and enforce standards for all vehicles entering into the Port of Monrovia.

• Deployed biometrics in the Freeport of Monrovia and the Port of Bu-chanan to allow for the monitoring of everyone in and out of the Port.

• Purchased a Fire Truck, fire extinguishers and other equipment for the Port of Buchanan.

• Completed Zoning in the Freeport of Monrovia to restrict all from access to areas outside of their job responsibility or their operations.

• Disaster Recovery & Emergency Preparedness Plans have been de-veloped and implemented to recover and/or protect citizens, employ-ees and port asset during a potential disaster at the port.

• Signed the Memorandum of Friendship and Trade cooperation with the Port of Georgia to increase trade between the two ports.

• First cruise ship (MV Corinthian II) came to the Port of Monrovia in April 2010, exhibiting international confidence. The MV Logo (book ship) arrived in early August 2010 with 400 passengers.

• The cost of shipping a container to the Freeport of Monrovia dropped approximately US$1,500 as the result of the removal of the risk in-surance due to ISPS.

In nearly all areas, the National Port Authority topped many records, including some which were set just one year earlier. We are very proud of the commitment of port authority employ-ees. Because of their hard work, we were able to outperform ourselves in many areas.

On behalf of the entire NPA Management, staff and board members, I would like to thank every-one for his/her interest in our port.

Kind regards,

PAGE

Letter from the Managing Director i

1.0 Executive Summary 1

2.0 Background Information 3 3.0 Key Accomplishments As of December 31, 2010 4 Operations4.0 Uniform System of Port Statistics 6 4.1 Vessel Traffic 6 Table I Number and NRT of Vessels 7 Table II Number and SDWT of Vessels by Agencies 8 Appendix 1 Graph I Vessel Traffic Graph 32 4.2 Cargo Traffic of Freeport & Outports 9 Table III Breakdown of Cargo Volume 10 4.3 Comparative Analysis of Cargo Traffic 11 Appendix 2 Graph 2 Cargo Traffic Graph 2009/2010 33 4.4 Comparative Analysis of Import & Export Container Traffic in (TEUs) 2009/2010 12 Table IV Breakdown of Container Traffic in Units and (TEUs) 13 Table V Container Traffic by Agency in Units & TEUs 14 Appendix 3 Graph 3 Container Traffic Graph 2009/2010 34

5.0 Outports Cargo Traffic 15 6.0 Performance Indicators 16 Table VI Vessel Turn Around Time (TAT) 17 Table VII Productivity of Quay Gang 18 Table VIII Berth Occupancy 18 Appendix 4 Graph 4 Berth Occupancy Graph 35

TABLE OF CONTENTS

PAGE

7.0 Finance 20 7.1 Revenue 20 7.2 Expenses 20 7.3 Net Profit/Loss 21 7.4 Assets 21 7.5 Cash Flow 22

8.0 Revenue Analysis 22

9.0 Expense Analysis 23 Table X Statement of Earnings 24 Table XI Cash Flow Statement 28 Table XII Statement of Financial Position 29

10.0 Administration 30 10.1 Social Responsibility 30 10.2 Head Count 30 10.3 Training 30 11.0 Corporate Challenges 31

TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY

The National Port Authority (NPA) has the statutory responsibility to plan, design, con-struct, administer and operate all public seaports within Liberia. The NPA has the authority

to levy and collect comprehensive and adequate tariffs and charges for services and facilities it provides port users.

The National Port Authority manages four (4) seaports: the Freeport of Monrovia, the Port of Buchanan, the Port of Greenville, and the Port of Harper. The Freeport of Monrovia is the largest and most vital of Libe-ria’s four (4) ports. It services over ninety- five per cent (95%) of ocean-borne national trade. During the year under review, National Port Authority system continued its pivotal role in facilitating the na-tion’s ocean-borne international trade, amidst immense challenges. Management provided training to 210 of its staff. Those training sessions included job-related courses relevant to the growth and productivity of the entity and the professional development of the employees. (See Sec-tion 10.03) The NPA is reaping the benefits of these in-vestments through increased employees productivity and responsible work culture.

The National Port Authority, in partial fulfillment of the Government of Liberia Port Sector Reform Program aimed at involving Private Sector capital in rehabilitating the infrastructure of the Freeport of Monrovia, signed a concession agreement between the Government of Liberia (GOL) and APM Terminals. The Free-port of Monrovia and the Port of Buchanan achieved ISPS Compliancy Certification in March 2010, and the Freeport of Monrovia showed a marked improvement in security, by moving from Security Level 2 to 1. The complete fencing of the Port’s perimeter, the routine joint UNMIL NIBATT Bravo Company Patrol with LSP, and the provision of security and monitoring equipment were major contributing factors to the improved security.

In 2010, the National Port Authority system handled approximately 1.7 million metric tons of cargo, which when compared to the 1.4 million metric tons in 2009, was an increase of 24.4 percent. Overall throughput in container trade rose from 51,368 TEUs in 2009 to 53,438 TEUs in 2010, representing a 4.0 percent in-crease. Similarly, vessel traffic increased by 9.5 percent - from 400 in 2009 to 438 in 2010. Summer Dead-Weight Ton (SDWT) and Net Registered Ton (NRT) increased by 12% and 9% respectively. This increase in port operations can be attributed largely to the improved security climate and favorable business environ-ment prevailing in the country.

Productivity of gangs assigned at the main quay recorded 62.2 tons per hr./net (TPHN). The average berth occupancy increased from 56.6 percent in 2009 to 63.1 percent in 2010.

~1~ NPA 2010 Annual Report

The NPA earned US$0.417M more revenue in 2010 than was realized in 2009. This was however, US$0.046Million lower than budget. Total Operating Expenses excluding depreciation was 4% lower than 2009 actu-als, and 7% less than budget. Actual revenue for the year was US$18.785M. Compared to 2009, the 2010 rev-enue was US$0.417M higher. This positive variance can be attributed to the 18% increase in Loose Cargo Handling and 8% increase in Marine.

Net profit for the Fiscal Year 2010 was US$2.362 Million. When compared to the budg-eted profit of US$1.433 Million, the 2010 performance reflects a 68% increase over budget. This favorable variance is due to the increase in Loose Cargo Handling and Lease revenues which went up by 19% and 43% respectively. Expenses also reduced. Salaries & Benefits, Port Operating and Administrative Expenses declined by 6%, 12% and 10% respectively. Net Profit for the Fiscal Year was higher than 2009 Net Profit by US$0.878 Mil-lion, reflecting a 59% increase.

Total Expenses for the Year 2010, including depreciation amounted to US$16.423M. When compared to the budgeted amount of US$17.399M, it reflects a variance of US$0.976M under budget. Compare with 2009, the 2010 actual Expenses including Depreciation decreased by 3%. This favorable variance can be attributed to reduced spending against budget for Salaries & Benefits, Port Operating and Administrative Expenses.

NPA 2010 Annual Report ~2~

2.0 BACKGROUND INFORMATION

The National Port Authority was established by an Act of the National Legislature in 1967 and amended in 1970 as a State-owned Corporation to manage, plan and build all ports in Liberia. The NPA system has four ports, namely; the Freeport of Monrovia, the Port of Buchanan, the Port of Greenville and the Port of Harper. The Freeport of Monrovia is the largest and the main Port under the Authority’s Network.

The Freeport of Monrovia handles most of the Authority’s import and export cargo. The harbor is protected by two rock breakwaters approximately 2,300m and 2,200m long, enclosing a basin of 300 hectares of protected water. The marginal wharf (the main Pier) is 610m long and capable of berthing 3 to 4 ships, depending on their sizes. It also has three finger piers: LMC, NOIC and BMC Piers.

The Port of Buchanan is located 272 kilometer south-east of Monrovia. The harbor is protected by two breakwaters, 1,890m and 590m long. Inside the basin, a 255 meters long ore loading quay is lo-cated adjacent to the commercial loading quay, providing a water depth of 10.5m below chart datum. Adjacent to the loading quay another waiting berth for ore carriers is available. On the inner side of the secondary breakwater, is a commercial quay, 334m long with available water depth of 9.5m below chart datum. The access channel to the Port provides ships a water depth of 11.5m below chart datum and a channel width between the breakwaters of 210m. Shipping activities are expected to increase at the Buchanan Port, and the equipment handling agreement with UMARCO could not have come at a better time. It improves the handling capacity and efficiency of the Buchanan Port, thus making it bet-ter positioned to handle increased customers demand. The Buchanan Renewable Energy (BRE) wood chip operation, Arcelor Mittal iron ore exportation from the mining activities at the old LAMCO are expected to go into full operations in 2011. Other companies including Chevron are expected to make extensive use of the Buchanan Port facility, thus increasing the revenue earning potential of the Na-tional Port Authority. This expected increase in shipping activities also creates the need for additional investment to improve operational efficiency and accommodate both new and old customers.

The Port of Greenville is located in the southeastern region of the country, about 673.6 kilometers from the Freeport of Monrovia. The harbor is protected by a 400m long breakwater, and on its inner side, by two quays. There are two berthing facilities, 70m and 180m respectively, with an existing depth of 6m below chart datum. The Port functions principally as an outlet for the timber and mining industries. With the signing of 14 Logging Concession Agreements, we anticipate an increase in ves-sel traffic at this Port.

The Port of Harper is located in the southeastern region of Liberia, near the border with the Ivory Coast, about 761.6 kilometers from the Port of Monrovia. The Port was constructed on the Rocky Russwurn Island, by connecting the island to the mainland with a causeway, and by constructing a 150m long breakwater. Berthing facilities are provided by a 100m long reinforced concrete pier with available water depth of 5.50m on both sides. Its activities are centered on the exportation of logs and sawn timbers from the southeastern hinterland. The Port of Harper has the capacity to handle the expected traffic from the reactivation of the palm oil sector and other derivative economic activities in the region.


3.0 KEY ACCOMPLISHMENTS AS OF DECEMBER 31, 2010

• The NPA, through the government of Liberia, consummated a concession agreement with APM Terminals for marine, cargo and container handling at the Freeport of Mon-rovia. This agreement was in consonance with a major pillar of the Government of Liberia’s Pov-erty Reduction Strategy initiative, the Port Sector Reform Program. The concession agreement was rectified and subsequently signed into law by the President of Liberia.The Agreement is essentially intended to modernize the Port’s facilities to improve the overall performance and spur the Liberian economy by facilitating commerce.

• The National Port Authority Net Profit for the Fiscal Year was higher than the 2009 Net Profit by US$0.878 Million, reflecting an increase of 59%. Total expenses for the same period was US$0.976 Million under budget. (See Section 7)

• During the year, a World Bank financed project for the construction of a modern 5.04 acre full-con-tainer park, including a concretized paved road between the corporate head office of the National Port Authority and the Dock Office was completed and dedicated.

• The project to provide safe navigation and berthing capacity at the marginal wharf, specifically at berth number three (3) was completed during 2010 with the removal of the sunken Dukor (a Pilot boat) which had been in the basin at the Freeport of Monrovia for over five (5) years.

• In an effort to produce accurate and timely information, enhance communication and improve financial and operational transparency, management procured and installed a financial application software: Quick Books.

• Management exerted every effort to minimize her security risk profile by achieving ISPS complian-cy (International Ship & Port Security Code) in the Freeport of Monrovia and the Port of Buchanan. Management instituted a rigorous access control process, prioritized the electrification of the Port facilities, installed modern security technologies, and completed the fencing of the Port’s vicinities. Additionally, measures such as routine special joint security patrols by the Liberia Seaport Police (LSP) and the Nigerian contingent of UNMIL Bravo Company within the Freeport of Monrovia’s vicinity was executed to discourage criminals and intruders.

• In partnership with the Liberia Electricity Corporation (LEC), the NPA increased illumination throughout the Port, with particular emphasis on shoreline lighting.


• The NPA management made significant investment in the Port of Buchanan in preparation for the expected increase in activities at the port. With the embargo lifted, logging operations are expected to resume shortly; Arcelor Mittal is expected to start full scale exportation of iron ore; and Buchanan Renewable Energy operation within the Port of Buchanan is expected to increase.

• As manpower development remained a top priority for Management, 210 NPA employees were trained in various

courses relevant to the growth and productivity of the Port. The Port Authority also provided on-the-job training incentives to over 50

students both from the secondary and tertiary levels. The training tour gave the students an appreciation and understanding of real and practical working environment.

• The Board of Directors of the National Port Authority had monthly board meetings geared to-wards formulating the policy direction for Management. Management is therefore pleased to re-port that the various policy decisions and resolutions of the Board facilitated the level of achieve-ments reflected in this 2010 report.


Members of the 2010 Executive Board of Directors include:

1. Binyah C. Kesselly - Chairman2. Morris M. Dukuly, Sr. - Vice Chairman3. Miata Beysolow - Statutory Member4. Augustine Ngafuan - Statutory Member5. Amara Konneh - Statutory Member6. Cllr. David B. Gibson, Jr. - Member7. Grace Tee Kpaan - Member8. Faustina Merchant - Member9. Mary T. Broh - Member10. Charles Stuart - Member 11. Robert Neal - Member12. Maureen Shaw - Member13. Rudolph J. Merab - Member14. James Davies - Member15. Matilda W. Parker - Secretary

Members of the 2010 Executive Management Team include:

1. Matilda W. Parker - Managing Director2. Gayah Karmoh - Deputy Managing Director for Administration3. Jeffery George - Deputy Managing Director for Operations4. Christina Paelay - Comptroller5. Armette Hill - Harbor Master

OPERATIONS

4.0 UNIFORM SYSTEM OF PORT STATISTICS (USPS)The NPA operational analysis is prepared utilizing the Uniform System of Port Statistics (USPS) which is the internationally harmonized format on ves-sel traffic, cargo throughput, equipment and port facilities utilization and labor associated with port operation.

4.1 Vessel TrafficBeginning January 1 thru December 31, 2010, the Freeport of Monrovia handled a total net registered ton (NRT) of 1,896,534 for 438 vessels, compared to the 1,739,626 NRT for 400 vessels in 2009. Of the 438 vessels received, container ships registered the highest number of vessels - 93, followed by 75 ro-ro vessels.

Though 438 vessels were recorded during the period, smaller vessels and feeder crafts formed a significant portion of the recorded total. These vessels are billed once a month regardless of the number of turn-around-time in the port. The increase in the total number of net registered ton (NRT) by 8.9% can be attributed to the number of larger vessels that entered and cleared at the Freeport of Monrovia during the year under review. (See Figure 1 and Table 1)

For the year 2009, the vessels by agencies totaled 400 ships with a corresponding Summer Dead Weight Ton (SDWT) of 4,731,964. In 2010, vessels by agencies accumulated a to-tal of 438 with a corresponding Summer Dead Weight Ton (SDWT) of 5,301,347. Of the total vessel traffic handled, Umarco registered the highest call of 125 ships with a total SDWT of 2,026,637, followed by Enigma and Maersk Liberia with a recorded figure of 98 and 48 vessels respectively. In 2009, vessels call by the latter two agencies totaled 118 and 48 respectively. This indicates a total increase in vessels call of 9.5% or 38 vessels with a corresponding SDWT of 579,383 over 2009 vessels call and SDWT. The increase in the SDWT can be attributed to the number of larger vessel calls during the period. (See Figure 2 and Table II).

Vessel NRT2009 400 1,739,6262010 438 1,896,534Variance 38 156,908

Figure 1: Vessel & NRT Analysis

VESSEL SDWT2009 400 4,721,9642010 438 5,301,347Variance 38 579,383

Figure 2: Vessel & SDWT Analysis


TABLE I NUMBER AND NRT OF VESSELS ENTERED & CLEARED

AT THE FREEPORT OF MONROVIA

JANUARY 1 – DECEMBER 31, 2009 AGAINST 2010

2009 2010

TYPE OF VESSEL NO. NRT NO. NRT

General Cargo 76 447,495 65 415,565

Container 93 785,357 93 760,914

Reefer 49 79,907 51 117,945

Tanker 47 162,429 49 178,728

Roro 65 175,240 75 232,436

Clinker 2 36,050 5 79,311

Relief 1 18,115 1 8,988

Iron Ore 2 17,213 8 64,470

Tug Survey 7 2,214 - -

Tug Supply 45 8,641 - -

Tug Boat 4 41 2 -

UNMIL Operations 1 2,230 - 128

Navy Boat 5 2,032 1 -

SOS 3 2,662 4 6,189

Navy Ship - - - -

Barge - - 1 1,822

Warship - - 1 1,800

Log - - 1 4,266

Guard Vessel - - 16 3,843

Humanitarian - - 1 1,269

Tourist Boat - - 1 1,463

Support Vessels - - 31 7,273

Supply Vessel - - 32 10,124

Total: 400 1,739,626 438 1,896,534



TABLE II FREEPORT OF MONROVIA

NUMBER AND SUMMER DEADWEIGHT TON (SDWT)

OF VESSELS BY AGENCIES

JANUARY 1 – DECEMBER 31, 2009 VS. 2010

AGENCY NO. 2009 SDWT 2009 NO. 2010 SDWT 2010

Umarco 118 1,712,118 125 2,026,637

Maersk Lib 48 1,357,321 48 1,356,990

Enigma 48 297,405 98 273,699

Camer 32 372,410 36 630,471

Recsa 7 2,958 5 1,854

OBT 74 454,886 44 91,655

Jorden 26 76,734 30 122,341

Atlantic Maritime 9 264,818 22 652,398

Atlantic Shipping 12 57,192 8 44,023

Sonco 9 43,397 2 13,028

Unity Shipping 6 1,378 5 5,156

No Representative - - - -

Safeway 2 17,820 - -

Greenville Shipping 3 36,934 1 550

Luiz 1 96 - -

Set Link 1 1,580 - -

Sea Trans 1 28,077 - -

Lelee - - - -

Pacific - - 1 12,519

BRE 1 69 - -

Snockri 1 5,471 5 23,282

Sierra Fishing 1 1,300 1 1,300

DAWSA - - 2 2,511

GMT - - 2 22,430

GSA - - 1 11,814

ASA - - 2 8,689

Total: 400 4,731,964 438 5,301,347

4..2 Cargo Traffic at the Freeport of Monrovia and the Outports

The Authority netted a total cargo throughput of 1,709,538.8 metric tons. This represents a 32.0% increase when compared to the 1,373,790.8 metric tons handled in 2009. Import & Export in-creased by 28.8% and 44.1% respectively.

The Freeport of Monrovia registered a total cargo throughput of 9,830,344.2 metric tons, indicating an average growth of 17.4% for the period of six (6) years. (See Figure 3 and Appendix 1)

YEAR IMPORT EXPORT TOTAL THROUGHPUT2010 1,350,359.8 359,538.8 1,709,897.52009 1,048,700.9 249,482.0 1,298,182.92008 1,232,307.0 243,940.3 1,476,247.32007 1,022,393.3 266,221.1 1,288,614.42006 1,110,459.6 226,768.5 1,337,228.12005 890,482.8 257,778.9 1,148,261.7Figure3:FreeportofMonroviaCargoTrafficfor6years


TABLE III FREEPORT OF MONROVIA

BREAKDOWN OF CARGO VOLUME IN METRIC TONS

JANUARY 1– DECEMBER 31, 2009 & 2010

Category Import Export TotalDRY BULK 2009 2010 2009 2010 2009 2010Clinker 39,790.0 58,645.0 - - 39,790.0 58,645.0Cement in bag 193,156.0 233,219.0 - - 193,156.0 233,219.0Limestone - - - - -Iron Ore - - 35,000.0 99,942.0 35,000.0 99,942.0Sub. Total 232,946.0 291,864.0 35,000.0 99,942.0 267,946.0 391,806.0LIQUID BULKPetroleum Prod. 224,197.7 248,109.7 - - 224,197.4 248,109.7Latex 5,318.8 - 10,983.6 13,974.2 16,302.4 13,974.2Vegetable Oil 17,553.1 13,079.8 - - 17,553.1 13,079.8Sub. Total 247,069.3 261,189.5 10,983.6 13,974.2 258,052.9 275,163.7GENERAL CARGOCommercial Rice 118,812.9 163,809.9 12,653.5 - 131,466.4 163,809.9Log - - - 911.5 - 911.5Frozen Products 26,780.8 29,323.1 - 616.0 26,780.8 29,939.1B/Bulk General 8,854.4 922.2 160.6 - 9,015.0 922.2Vehicles 10,619.9 9,611.2 360.5 857.1 10,980.4 10,468.3Rubber Crates - - 20,968.5 23,525.3 20,968.5 23,525.3Wheat 4,826.0 14,364.0 - - 4,826.0 14,364.0Coastal Cargo 233.0 - - - 233.0 -Sub. Total 170,127.0 218,030.4 34,143.1 25,909.9 204,270.1 243,940.3RELIEF SUPPLIESYellow Peas - 1,364.2 - - - 1,364.2Bulgur Wheat 5,628.1 8,121.5 - - 5,628.1 8,121.5Pinto Beans - - - - - -Flour - 2,457.6 - - - 2,457.6CSB - 329.1 - - - 329.1Beans - 80.8 - - - 80.8Vegetable Oil 180.7 23,203.1 - - 180.7 23,203.1Sub. Total 5,808.8 35,556.3 - - 5,808.8 35,556.3CONTAINERSContainer Cargo 387,071.9 404,914.1 109,656.1 105,310.3 496,728.0 510,224.4Container Tare 55,292.6 59,028.2 64,902.4 56,192.4 120,195.0 115,220.6Sub. Total 442,364.5 463,942.3 174,558.5 161,502.7 616,923.0 625,445.0GRAND TOTAL 1,098,315.6 1,270,582.5 254,685.2 301,328.8 1,353,000.8 1,571,911.3


4. 3 FREEPORT OF MONROVIA

COMPARATIVE ANALYSIS OF IMPORT & EXPORT

CARGO TONNAGES HANDLED

(2009 AGAINST 2010)

IMPORT

2009 2010

1,098,315.6 1,270,582.5

Marginal Change = 172,266.9

Status of Change = Increase

Percentage Change = 15.7%

EXPORT

2009 2010

254,685.2 301,328.8

Marginal Change = 46,643.6




(See Appendix 2 for Graph)

4. 4 COMPARATIVE ANALYSIS OF IMPORT & EXPORT CONTAINER TRAFFIC IN TEUs (2009 Vs. 2010)

Freeport of Monrovia

Total container trade during the period under review accumulated to 53,438 TEUs compared to 51,368 TEUs in 2009. In 2010, container import trade rose to 9.7% and container export trade fell by 1.4%. The marginal increase of 4.0% in total container trade is due to the high volume of empty containers exporta-tion. Of the total container trade during the period, Maersk Liberia handled 62%, followed by Umarco with 36%. (See Figure 4 & Tables IV & V for details).

Container (TEUs)

Import Export Total

2009 25,133 26,235 51,3682010 27,562 25,876 53,438Variance (2,429) 359 2,070

Figure 4: Import & Export Comparison in TEUs.

IMPORT

2009 2010

25,133 TEUs 27,562 TEUs

Marginal Change = 2,429



EXPORT

2009 2010

26,235 TEUs 25,876

Marginal Change= 359

Status of Change= Decrease

Percentage Change= -1.4%


TAB

LE IV BR

EAK

DO

WN

OF C

ON

TAIN

ER TR

AFFIC

IN U

NITS &

(TEUs)

IMPO

RT &

EXPOR

T

JAN

UA

RY 1 – DEC

EMB

ER 31, 2010

Month

Import

Export

Full

1

Empty

2

Total

1+2=3

Full

4

Empty

5

Total

4+5=6

Total Traffic

3+6=7

January

Units TEU

s

1,176( 1,660)

Units TE

Us

-

Units TEU

s

1,176( 1,660)

Units TEU

s

534( 608)

Units TEU

s

873( 1,290)

Units TEU

s

1,407( 1,898)

Units TEU

s

2,583( 3,558)

February 1,455( 1,946)

- 1,455( 1,946)

488( 504) 780( 1,287)

1,268( 1,791) 2,723( 3,737)

March

1,656( 2,286)-

1,656( 2,286) 412( 413)

1,294( 1,949) 1,706( 2,362)

3,362( 4,648)A

pril 1,551( 2,127)

- 1,551( 2,127)

375( 377) 1,155( 1,661)

1,530( 2,058) 3,081( 4,165)

May

1,896( 2,675)-

1,896( 2,675) 504( 546)

1,178( 1,784) 1,682( 2,330)

3,578( 5,005)June

1,590( 2,244)-

1,590( 2,244) 286( 290)

966( 1,438) 1,252( 1,728)

2,842( 3,972)July

1,799( 2,519)10(20)

1,809( 2,539) 243( 247)

1,230( 1,798) 1,473( 2,045)

3,282( 4,584)A

ugust 1,582( 2,224)

18(30) 1,600( 2,254)

522( 559) 1,107( 1,817)

1,629( 2,376) 3,229( 4,630)

Septem

ber 1,481( 2,033)

5( 6) 1,486( 2,039)

268( 269) 1,441( 2,075)

1,709( 2,344) 3,195( 4,383)

October

1,856( 2,593)-

1,856( 2,593) 437( 439)

1,437( 2,306) 1,876( 2,745)

3,732( 5,338)N

ovember

2,064( 2,978) 1( 2)

2,065( 2,980) 418( 428)

1,308( 1,941) 1,722( 2,369)

3,787( 5,349)D

ecember

146( 2,219)-

1,461( 2,219) 413( 416)

860( 1,434) 1,273( 1,850)

2,734( 4,069)Total

19,567(27,504)34(58)

19,601(27,562)4,900(5,096)

13,627(20,780)18,527(25,896)

38,128(53,438)Thereof: 20’

40’

11,630

7,937

1024

11,640

7,961

4,704

196

6,474

7,153

11,178

7,349

22,818

25,310


TAB

LE V

C

ON

TAIN

ER T

RA

FFIC

BY

AG

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ITS

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1020

0920

1020

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(18,

242)

11,4

41(1

6,88

8)13

,613

(19,

222)

11,0

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6,28

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,546

(37,

464)

22,4

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3,17

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mar

co 4

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( 6

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(10,

122)

5,0

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(19,

160)

Cam

er

576

(

576)

5

52(

55

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415

(

415)

5

49(5

49)

9

91(

99

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1,10

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56(

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112

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18,4

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(27,

562)

19,0

90(2

6,23

5)18

,527

(25,

876)

37,5

51(5

1,36

8)38

,128

(53,

438)


See Appendix 3 for Graph 3

5.0 OUTPORTS CARGO TRAFFIC

During the period in review, a total of thirty-seven (37) vessels entered and cleared the Ports of Buchanan and Harper. Greenville Port did not handle any commercial vessel except the UNMIL Vessel (Caterina).

The Port of Buchanan handled a total cargo throughput of 134,598.81 metric tons. Out of this volume, import was 77,006.23 metric tons and export was 57,592.58 metric tons.

The Port of Harper handled a total cargo volume of 3,387.5 metric tons. Out of this total, import was 2,770.1 metric tons and export was 617.4 metric tons.

PORT DESCRIPTION 2009 2010 IMPORT EXPORT IMPORT EXPORT

Buchanan 6,275.0 6,165.0 77,006.2 57,592.6 Greenville 353.0 340.0 - -Harper 3,549.0 4,108.0 2,770.1 617.4Total: 10,177.0 10,613.0 79,776.3 58,209.98

Figure 5: Outports Cargo Summary


6.0 PERFORMANCE INDICATORS

The shipping activity level at the Freeport of Monrovia trended upward. During the period, 438 ves-sels were recorded at the Freeport of Monrovia compared to 400 vessels in 2009. Of the 438 ves-sels that berthed at the Freeport of Monrovia, 337 were handled at the main quay (Marginal Wharf), where labor gangs were involved in cargo operations.

Productivity of gangs assigned at the main quay recorded 62.2 tons per hr./net (TPHN). The aver-age berth occupancy increased from 56.6% in 2009 to 63.1% in 2010, indicating that the berths at the main wharf were frequently occupied during the period. (See Table VIII)

Container operations average 6 container-moves per hour/gross and 7 container moves per hour/net in 2009, mirroring the 6 container-moves per hour/gross and 7 container-moves per hour/net in 2010.


TABLE VI VESSEL TURN AROUND TIME (TAT) PER SHIFT

AT THE MAIN WHARF 2010

MONTH FIRST SHIFT SECOND SHIFT TOTAL

January 38 5 43

February 44 9 53

March 43 5 48

April 40 7 47

May 35 5 40

June 21 5 26

July 28 5 33

August 25 8 33

September 19 9 28

October 20 7 27

November 22 7 29

December 26 5 31

Total: 361 77 438


TABLE VII PRODUCTIVITY OF QUAY GANGS ASSIGNED TO CARGO OPERATIONS

AT THE MAIN WHARF

JANUARY 1 – DECEMBER 31, 2010

Month Tons Per Hour/Gross (GC)

Tons Per Hour/ Net (GC)

Container moves per hr/gross

Container moves per hr/net

January 4.2 5.0 1.5 1.8February 7.3 8.6 6.2 7.4March 22.9 25.4 7.0 8.0April 89.5 105.5 6.0 7.5May 60.3 67.6 11.2 13.5June 36.9 42.3 4.6 5.5July 43.6 55.7 5.0 5.4August 43.1 51.7 5.0 6.0September 31.1 37.9 5.0 5.3October 81.9 92.2 6.0 7.0November 30.8 36.3 5.0 6.3December 73.4 77.8 5.1 6.2Total 525.0 606.0 67.6 79.9Average 43.6 % 50.5 % 5.6 % 6.7 %

TABLE VIII BERTH OCCUPANCY

JANUARY 1 – DECEMBER 31, 2010

MONTH PERCENTAGEJanuary 31.7February 79.0March 59.4April 40.9May 61.9June 48.7July 79.6August 95.4September 77.9October 47.2November 71.7December 63.8Total: 757.0Average: 63.1

NPA 2010 Annual Report ~18~ See Appendix 4 for Graph 4


7.0 FINANCE

During the year, Revenue earned was US$0.417M more than Revenue realized in 2009, but US$0.046Million lower than budget. This increase is due mainly to the fact that revenue in 2009 was captured on an accrual basis rather than cash basis. Total operating expenses excluding depreciation was 4% lower than 2009 actuals and 7% less than budget.

7.1 Revenue

Actual Revenue for the year was US$18.785M. Budgeted Revenue was US$18.832M. This reflects a US$0.047M decrease in actual Revenue. 2010 actual Revenue is higher than the Revenue in 2009 by US$0.417M. This positive variance can be attributed to the increase in Loose Cargo Handling, 18% and Marine, 8%. (See Figure 8)

7.2 Expenses

Total Expenses for the Year, 2010, including Depreciation amounted to US$16.423M. Comparing this to budgeted figures of US$17.399M, it reflects a variance of US$0.976M under budget. This favorable variance can be attributed to reduced spending. The expenditure lines that showed reduced spend-ing are Salaries & Benefits, Port Operating and Administrative Expenses. Compared to 2009, actual Expenses including Depreciation, decreased by 3%. (See Figures 7 & 8)

Actual 2010 Proposed Budget 2010 Variance % VarianceTOTAL REVENUE US$18,785,426.58 US$18,831,587.87 US$(46,161.29) (0.25%)

Figure 6: Proposed Budget Revenue Vs. Actual Revenue

Actual 2010 Proposed Budget 2010 Variance % VarianceTOTAL OPERATION EXPENSES INCLUDING DEPRECIATION

US$16,423,433.54 US$17,398,938.55 US$(975,504.98) (5.6%)

Figure 7: Proposed Budget Expenses Vs. Actual Expenses including Depreciation

Actual 2009 Actual 2010 Variance % VarianceTOTAL OPERATING EXPENSES INCLUDING DEPRECIATION

US$16,884,338.27 US$16,423,433.57 US$(460,904.70) (2.7%)

Figure 8: 2009 Vs. 2010 Actual Expenses including Depreciation


7.3 Net Profit/Loss

Net Profit for the Fiscal Year 2010 is US$2.362Million. Budgeted Profit was US$1.433Million, resulting in a 65% increase over budget. This favorable variance is due to the increase in Loose Cargo Handling and Lease revenues which went up by 19% & 43% respectively, while Salaries & Benefits, Port Operating and Administrative Expenses declined by 6%, 12% and 10% respectively. Net Profit for the Fiscal Year was higher than the 2009 Net Profit by US$0.878Million. This is a 59% increase. (See Figure 9 &10)

7.4 Assets

The National Port Authority’s assets are estimated at US$41.087M (Forty One Million Eighty Seven Thou-sand United States Dollars) as of December 31, 2010. Current Assets constitute 21% and Fixed Assets 79%. The NPA Equity balance is stated at US$41.087M (Forty One Million Eighty Seven Thousand United States Dollars). (See Figure 11)

Actual 2010 Proposed Budget 2010 Variance % VarianceNET PROFIT US$2,361,993.01 US$1,432,649.32 US$929,565.39 65%

Figure 9: Proposed Budget Vs. Actual Results

Actual 2010 Actual 2009 Increase (Decrease) % Increase (Decrease)NET PROFIT US$2,361,993.01 US$1,484,155.59 US$877,837.42 59%

Figure 10: 2009 Vs. 2010 December Actual Results

Total Assets Total Liabilities Total EquityUS$41,086,626.55 US$782,595.71 US$40,304,030.84

Figure 11: Summary of the Balance Sheet


7.5 Cash Flow

Ending Cash Flow balance is US$0.943M (Nine Hundred Forty Three Thousand United States Dollars). (See Table XI)

8.0 REVENUE ANALYSIS

Marine Revenue was US$6.928M compared to budgeted figure of US$7.192M, reflect-ing a 4% decrease in actuals vs. budget. This revenue item was also 8% higher than 2009 revenue. This increase can be attributed to increases in Stevedoring 497%, Port Dues 13%, Dockage 18%, Light & Buoys 4%, Dredging 18%, Pilotage 8%, Towage 6%, Line Gang Mooring 4%, Lunch Service 11% and Harbor Rental 13%. 2010 Marine Revenue was higher by US$0.528Million when compared to 2009 results.

Actual Lease Revenue is US$3.288M. Compared to the budgeted amount of US$2.306M, it shows a favorable Revenue variance of US$0.982M or a 43% increase. This revenue line is also 6% higher than 2009 by US$0.197M. This increase is due to the change in accounting convention. Revenue in 2009 was captured on an accrual basis and on a cash basis in 2010.

Actual Miscellaneous Revenue is US$0.352M against budgeted revenue of US$0.368M. Comparing actuals with the budgeted miscellaneous revenue, shows a decrease of 4%. Rev-enue from this source is seasonal. This revenue is also 1% higher than 2009. Revenue in 2009 was based on accrual basis.


9.0 EXPENSES ANALYSIS

Some Expenses during the period exceeded budget. These include Overtime, Court Cost, Mate-rial & Supplies, Contribution to Government of Liberia, Plant & Equipment Maintenance, Fuel & Lubricants and Social Security.

Total overtime cost for 2010 amounted to US$0.567M. This amount, when compared to budgeted figure of US$0.289M, results in an unfavorable variance of US$0.278M or 96%. This increase is attributed to the payment of overtime to Marine, Operations, Technical and Liberia Seaport Police Departments due to the late execution of the APM Terminals Concession Agreement.

Actual cost incurred for court amounted to US$0.017M. When compared to the budgeted figure of US$0.002M, it results in a huge increase over budget due to the settlement of claims of former employees.

Actual Material & Supplies cost incurred amounted to US$0.176. Compared to budgeted figure of US$0.102M, it reflects an increase of 72% over budget. This increase can be attributed to the increase in the demand for supplies by various departments due to the late execution of the APM Terminals agreement during the period. Actual total contribution to Government of Liberia amounted to US$0.400M. Compared to budgeted figure of US$0.251M, it reflects an increase of 60% over budget due to NPA’s increase in Net Profit.

Fuel & Lubricant cost reflect operational fuel and administrative coupons supplied to employ-ees. This amounted to US$1.482M and US$0.302M; and when compared to budgeted figures of US$0.943M and US$0.299M, resulted in 57% and 1% increase over budget respectively. The increase in actuals over budget can be attributed to increase in the volume of fuel occasioned by upsurge in operational activities and the increasing change in the price of fuel & lubricant.

Social Security contributions cost incurred amounted to US$0.045M. There was no budgetary ap-propriation for this line item. This expense is due mainly to the 20% increase in salaries of em-ployees in late 2009.


TABLE X NATIONAL PORT AUTHORITY Statement of Earnings for the Period ended January 1, 2010 to December 31 ,2010

2010 vs. 2009 Results

%Jan-Dec Jan-Dec Actual Actual Increase Increase

Revenue 2010 2009 (Decrease) (Decrease)

Loose Cargo Handling 1,837,817.75 1,556,903.25 280,914.50 18%

Container Handling 4,114,309.00 4,246,398.00 (132,089.00) -3%

Storage 1,702,292.50 2,089,946.25 (387,653.75) -19%

Total operations 7,654,419.25 7,893,247.50 (238,828.25) -3%

Marine 6,927,559.57 6,399,509.92 528,049.65 8%

Leases 3,288,538.79 3,410,567.69 (122,028.90) -4%

Miscellaneous 352,055.03 349,289.35 2,765.68 1%

Total Marine & Others Revenue 10,568,153.39 10,159,366.96 408,786.43 4%

Total Revenue 18,222,572.64 18,052,614.46 169,958.18 1%

Outports 161,546.55 315,879.40 (154,332.85) -49%

Leases-Buchanan 401,307.39 0.00 401,307.39

Total Outport 562,853.94

315,879.40

246,974.54 78%

Total Revenue 18,785,426.58 18,368,493.86 416,932.72 2%


TABLE X Continue NATIONAL PORT AUTHORITY Statement of Earnings for the Period ended January 1, 2010 to December 31 ,2010

2010 vs. 2009 Results

%Jan-Dec Jan-Dec Actual Actual Increase Increase

Revenue 2010 2009 (Decrease) (Decrease)

Expenses

Operating Expenses

SalariesandBenefits 6,536,373.65 5,627,857.40 908,516.25 16%

Supplies 416,069.23 637,936.13 (221,866.90) -35%

Port Operating Expenses 3,826,500.66 4,233,255.38 (406,754.72) -10%

Subtotal Operating Expenses 10,778,943.54 10,499,048.91 279,894.63 3%

Administrative Expenses

Administrative Expenses 2,051,630.90 3,276,465.86 (1,224,834.96) -37%

Subtotal Administrative Ex-penses 2,051,630.90 3,276,465.86 (1,224,834.96) -37%

Total Operating and Adminis-trative Expenses

12,830,574.44 13,775,514.77 (944,940.33) -7%

Operating Income 5,954,852.14 4,592,979.09 1,361,873.05 30%

Other Expenses

Non-operating Expenses 1,225,901.98 809,183.50 416,718.48 51%

Depreciation 2,366,957.15 2,299,640.00 67,317.15 3%

Subtotal Other Expenses 3,592,859.13 3,108,823.50 484,035.63 16%

Total Expenses including De-preciation 16,423,433.57 16,884,338.27 (460,904.70) -3%

Net Income 2,361,993.01 1,484,155.59 877,837.42 59%




TABLE XI

Cash Provided by Operating ActivitiesNet Income 2,361,993.01

Non Cash Items: Depreciation 2,366,957.15 Changes In Working Capital:

Accounts Receivable (5,752,166.00)Advances 290,964.72 Inventories/supplies 37,355.47 Accounts Payable 83,147.74 Advance Payments Made 0.00

Cash provided by Operating Activities (611,747.91)

Cash provided by (used for) Investment ActivitiesInvestment In:

Fixed Assets, Equipment, Vehicles etc. (853,925.44)Cash provided by (used for) Investment Activities (853,925.44)

Cash Provided by (used for) Financing Activities Long Term Debt 0.00 Cash Provided by (used for) Financing Activities 0.00

Increase (Decrease) In Cash (1,551,890.40)Beginning Cash Balance 2,495,009.97 Ending Cash Balance 943,119.57


TABLE XII

Dec 31, 10ASSETS

Current AssetsChecking/Savings 943,119.57 Accounts Receivable 7,405,545.87 Other Current Assets 344,433.73

Total Current Assets 8,693,098.57 21%

Fixed Assets 32,210,258.78 79%Other Assets 183,268.60

TOTAL ASSETS 41,086,626.55 100% LIABILITIES & EQUITY

LiabilitiesCurrent Liabilities

Accounts Payable 1,502.50 Other Current Liabilities 781,093.21

Total Current Liabilities 782,595.71 Total Liabilities 782,595.71 Equity 40,304,030.84

TOTAL LIABILITIES & EQUITY 41,086,626.55


10.0 ADMINISTRATION

10.1 Social Responsibility

The Management of the NPA gave 67 waivers of accumulated storage fees to religious institutions, needy communities, individuals and counties to aid their development initiatives. Management hosted a Christmas Party for children and donated to the Central Freeport Community road project. Donations of assorted food items were also made to Mosques during the Islamic Holy month of Ramadan.

10.2 Head Count

In 2010, employees’ headcount dropped by 55% from 668 on January 1 to 303 on De-cember 31, 2010. During the year, the following personnel administrative actions were effected:

TERMINATION 3RETIREMENT 2DEATHS 10RESIGNATION 2SEVERANCE -NEW HIRES 4REDUNDANT 352

10.3 Training

In 2010, the following training programs were provided to 210 employees in each category as specified below:

Quick Books Payroll Software 12Audit Management 6Advance Microsoft Excel Application 4Success Skills for Secretaries & Support Staff 30Managing Projects 6Drivers and Operators Workshop 18Quick Books Software Application I 31Maritime Port Security/LSP 40Scalar Workshop 12Environment Protection Workshop 15Records and Archives Management 3Heavy Duty Mechanic & Technician Workshop 23Strategic Planning 5LIPA/USAID Capacity Building Training Program 5 Total: 210


11.0 CORPORATE CHALLENGES

Despite the Concession Agreement signed between the Government of Liberia and APM Terminals, effecting major Port Reform initiative to include the reconstruction of the marginal wharf and other infrastructures at the Freeport of Monrovia, there still remains daunting infrastructural challenges for Management at the Freeport of Monrovia and the other three (3) ports.

As part of our responsibility under the Concession Agreement for the Freeport of Monrovia, Man-agement is to remove wreckages to facilitate safe berthing and maneuvering; carry out dredging to reduce siltation to pre-war status, ensures regular specified maintenance and provide navigational aids. Measures are already underway to satisfy these requirements.

For the Ports of Buchanan, Greenville and Harper, the repair of basic infrastructures remains a chal-lenge. The Port of Buchanan requires the replacement of its navigational buoys, the dry-docking of the two tugs to be transferred to Buchanan Port as well as the purchase of log handling equipment. The other two Ports require the same attention, including dredging, wreck removal, container/cargo handling equipment, ISPS infrastructures, etc.



Appendix 1

GRAPH 1


Appendix 2

GRAPH 2


Appendix 3

GRAPH 3


GRAPH 4

Appendix 4

NPA 2010 Annual Report ~36~ Gra

phic

Des

ign

& P

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g: C

hipS

oft I

T-D

igita

l Pre

ss-0

6 20

4 92

9- A

Cor

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s J. D

avis

Des

ign

GATEWAY TO THE LIBERIA’S ECONOMY

National Port Authority Freeport of Monrovia, Bushrod IslandP.O. Box 1849, Monrovia, Liberiawww.nationalportauthorityliberia.org

Tel: +231 (0) 2 760 6001(0) 2 760 6006(0) 7 771 8937

Documents

National Port Authority of Liberia 2010 Annual Report