Consulting Services to Public and Private Actors in the Transport Sector

To a large extent, the transport sector is the most important catalyst of sound and sustainable economic development of a nation. In a famous quote, former U.S. President J.F. Kennedy said in 1960:

“Not our wealth created our transport infrastructure;
It is our transport infrastructure, which created our wealth.”

The challenge of modern transport policy is to create an environment conducive to the development of efficient public and private actors, by enhancing their ability to provide reliable, value-added and cost-effective services to the community .Our services thus address the concerns of private as well as public interests.

• At the firm level we offer restructuring and upgrading advice to providers of transport services.
• At the institutional level we offer transport policy advice, including economic studies, regulatory reform and privatisation.

For all modes of transport and their respective sub-sectors, Pohl Consulting & Associates is offering the following services:

• Pre-feasibility, feasibility, economic studies on projects, markets and business opportunities
• Restructuring and business up-grading of transport companies including management tools, finances, sales, production of services, value-adding services, marketing & research, quality assurance, human resources and training.
• Warehousing, stocking and inventory management.
• Intermodal and Multimodal transport concepts
• Organizational advice on work flows and processes all along the supply-chain
• Implementation of logistics and supply-chain processes
• Institutional advice, capacity building and reorganisation of Transport Departments, Customs Authorities, Port Authorities
• Implementation of concessions for public owned infrastructures
• Privatisation of transport companies
• Outsourcing and privatisation of state functions

Examples of Project Experience

• Algeria
  In a 950k EUR project PC&A is assisting the Ministry of Transport in building and strengthening the capacities of entities in the air (airport), maritime (port), road, rail and urban transport sectors towards the implementation of the reform programme for the transport sector in Algeria (Programme d’Appui au Secteur des Transports – PAST). The following activities will be undertaken:
  • Providing an assessment of training needs (TNA) in the framework of reforming the transport sector, including the elaboration of job and skills descriptions for national transport system institutions (e.g. Ecole Nationale Supérieure Maritime (ENSM), Ecole Technique de Formation et d’Instruction Maritime (ETFIM de Béjaia et ETFIM de Mostaganem), Ecole Nationale d’Application des Techniques de Transports Terrestres (ENATT), Institut Supérieur de Formation Ferroviaire (ISFF), Institut Hydrométéorologique de Formation et de Recherche (IHFR), EGSA  (civile aviation)) and the elaboration of the General Training Plan for the sector for 2010-2015.
    
  • Feasibility study for the creation of a civil aviation Training centre and diagnosis of training institutions and implementation of capacity building measures in the frame of the transport sector reform
    
  • Preparing, programming and implementing specific training actions in various modes of transport, including training of trainers (in total about 25 – 30 training action courses). Training actions will be organised around 2 areas: training, communication and visibility as main components of transport sector institutional reform, and training, communication and visibility as a set of specific, technical, managerial actions within the context of inter-modality and interoperability.
    
  • Building up managerial capacities and increasing the scope of training offered by 5 training establishments under supervision of the Ministry.
    
  • Providing and implementing an information and communication strategy to support the promotion and impact of the Programme PAST.
    
    
• Algeria
  In an 800k EUR project PC&A is currently assisting the Ministry of Transport in developing the 'Port Community Systems' concept through the improvement of communication between the port authority, the customers and members of the port community. The aim of the project is for Algerian ports to acquire effective and competitive management via the set-up of a computerised platform which centralises all existing services, enabling optimal, simplified information and communication between port operators and users, the government departments concerned and the customers, and thus giving them the means to perform all administrative procedures. The system will be based on the experiences of European ports and will be implemented in 3 pilot-sites, i.e., ports of Alger, Oran and Skikda. The following type of services will be provided:
  
  • Analysis of port procedures, information flows, operating methods;
    
  • Design of a port ‘one-stop shop’ concept;
    
  • Technical and software development;
    
  • Implementation and testing of the system;
    
  • Re-qualification of working processes and procedures in ports;
    
  • Training on the new system for the staff concerned in the port operators and Information campaign addressed to trade operators (seminars).
  
  
• Algeria

  Funded by the EU, we carried out the following projects for the Algerian Ministry of Privatisation and Industrial Promotion

  • Partnership agreement, Port of Bejaia – Joint venture Bejaia Mediterranian Terminal (BMT)

    The Port of Bejaia is classified 3 rd port in Algeria for general and bulk cargo, hydrocarbons, containers and passengers. The port total turnover in 2005 reached 14 Millions of metric tons.

    We carried out the following tasks:

    • Legal audit and analysis of Entreprise Portuaire de Bejaia (EPB) and PORTEK Systems & Equipment, Singapore
    • Assistance to the negotiations according to terms and conditions requested by SGP SOGEPORTS
    • Drafting of a partnership agreement between EPB and PORTEK
      
      
  • Use of the maritime public domain : Concession contract – Port of Bejaia

    Our tasks included:

    • Adjustment and regulation of the use of the maritime public domain
    • Definition of the contractual framework needed for the development of private activities in Algerian ports
    • Development of specifications defining the rules of temporary occupancies of the maritime public domain, on the basis of international regulations and practices
    • Assistance to the setting up of a template agreement for the temporary occupancy of the public domain
      
      
  • Development strategy for the Port of Annaba

    The Port of Annaba is classified 2 nd port in Algeria for general and bulk, cargo, has important grain handling facilities, is active in hydrocarbons, containers and passenger’s traffic.

    In 2004, the port total turnover was of 119 Millions of metric tons.

    Our tasks included:

    • Diagnostic of the ports activity
    • Evaluation of the port’s infrastructure
    • Organizational analysis, in particular in terms of port operations rules
    • Market analysis
    • Evaluation of the main growth perspectives during the next 10 years, with a detailed view on the next 5 years, by taking into account national and international competition
    • Draft of the strategic business plan including needs of investment in infrastructure and handling equipment and space
    • Setting up of a development strategy plan in concert with Port owners, public and private operators
      
      
  • Audit of Port of Algiers’ Container Terminal

    The Port of Algier’s Container Terminal was handling roughly 500,000 TEU’s during 2005 and is handling an estimated 70 % of Algeria’s Container Traffic.

    We carried out the following tasks:

    • Audit of operations
    • Feasibility study and recommendations for the strategic development
    • Drafting of the call for tenders documentation for privatisation
      
      
  • Formulate the privatisation strategy of the Compagnie Nationale Algérienne de Navigation (CNAN group)

    The CNAN GROUP is active in operating maritime freight and passenger vessels internationally and national cabotage as well as container management

    Our tasks included:

    • Diagnostic of the CNAN and its group affiliates
    • Analysis of existing privatisation strategy
    • Re-formulate the privatisation strategy by sub-activity
    • Technical assessment and recommendations on the implementation of the privatisation strategy
      
      
  • Formulate pre-privatisation strategy for the TVC- Group

    The TVC-Group (Transport Voyageurs du Centre) consists of two road passenger companies - TVC (Transport Voyageurs du Centre is operating 60 buses in regional and national traffic, TRANSUB (Transport de Voyageurs Sub-Urbain) is operating 30 buses in the metropolitan area of Algier) – and SOGRAL (Société de Gestion de la Gare Routière d’Alger), a company managing Algier’s main bus station.

    We carried out the following tasks:

    • Financial diagnostics
    • Operational diagnostics
    • Determine the extent of privatization (vehicle fleet, human resources and infrastructure)
    • Formulate a restructuring proposal
    • Development of strategy for the new group
    • Draft of privatisation tender documentation

   

• Bosnia & Herzegovina:

  Financed by EU-Obnova, we assisted the Agency for Privatisation (FPA) and the Directorate for Privatisation (DfP) in Project Management, Institutional Capacity Building as well as restructuring, business upgrading & privatisation of Intersped, a freight forwarding company

   

• Central and Eastern Europe/CIS:

  We assisted the EBRD in providing investment advisory services and worked specifically on the following projects in the transport sector:

  • Azerbaijan: PC&A assisted the Ministry of Transport in strengthening regulatory authorities in the Civil Aviation and Maritime sub sectors. Institutional set-up and mandates of the National Maritime Administration and Civil Aviation Authority’s were reviewed and strengthened, and specific training was provided to each institution. For the Maritime Administrations, activities carried out by PC&A aimed at fulfilling specific International Maritime Organisation (IMO) requirements in terms of internal structure. For the Civil Aviation Authority, capacity building actions aimed to integrate Azerbaijan’s Civil Aviation bodies into the international framework so it could fulfil international treaties it had ratified.
  • Latvia: 
    • Technical, market and commercial assessment of RAF Avia, a freight airline 
    • Technical, market and commercial assessment of SIA Langa, a company producing plastic packaging for the transport sector
      
      
  • Moldova:
    • Technical, market and commercial assessment of a commercial airline
      
      
  • Uzbekistan:
    • Initial and financial due diligence of AviaLeasing, an aircraft leasing company
    • In a 22 months project funded by Tacis, PC&A provided restructuring and privatisation assistance to Uzbek enterprises. Among those companies was a holding company associating about 30 companies in the transport sector suffering from increased competition and cost pressure.
      
      
  • Turkmenistan:
    • Preliminary technical, market and commercial assessment of Energiya, a company producing woven polypropylene sacks as part of an integrated logistics service
• Pakistan:
  
  In an Asian Development Bank (ADB) funded project, PC&A was contracted to assist the Government of Pakistan in developing policy reforms related to Private Participation in Infrastructure (PPI). This entailed formulation of a strategy, policy and subsequently an implementation plan for reforms to enable PPI in Pakistan. Focus sectors were: water supply and sanitation, road system, urban transport, the electrical power sector, and the telecommunication sector.

• Serbia & Montenegro: Montenegro

  Funded by the European Agency for Reconstruction we assisted the Government of Montenegro in the following tasks:

  • Port of Bar, the main port for Serbia & Montenegro is offering all facilities for freight and passenger vessels from RO/RO, container, general cargo, bulk & liquid terminals to timber and passenger terminals with an annual turnover of more than 2 Million metric tons. Our mission included the following:
    • Corporate analysis and diagnostic,
    • Preparation and implementation of pre-privatization restructuring plans,
    • Business planning including detailed marketing proposal (strategy, resources, etc) based on the analysis of regional competitors,
    • a management information system (MIS)
      
      
  • Port of Bar – Free Port Zone:

    We were responsible for the Economic study of the Free Port Zone, which included:

    • assessment of the legal & fiscal status and recommendations for improvement,
    • organizational streamlining, streamlining of work flows and processes, concessions
      
      
  • Adriatic Shipyard Bijela: The enterprise is the largest ship-repair yard on the southern Adriatic coast, employing some 800 persons. It was founded in 1927. The enterprise covers an area of 120,000 m2 and has two steel floating docks with lifting capacities of 330,000 kN and 100,000kN. After the breakdown of the former Yugoslavia, the shipyard stood idle during 4 years. In 1997, 69 vessels came for repairs with a turnover of EUR 4 M. In 1998, air strikes led to a loss of 100 days of work. The shipyard came back on international markets in 1999. Turnover recovered from EUR 4 M in 2000 to EUR 7 M in 2001

    We were responsible for the following:

    • Corporate analysis and diagnostic,
    • preparation and implementation of pre-privatization restructuring plans,
    • put modern financial management tools into place and provide general management recommendations,
    • provide operational recommendations in the context of international vessel handling techniques and standards;
    • audit and international benchmarking of environmental and safety standards

• Hungary:

  Financed by PHARE, we assisted the State Budget Office in charge of the allocated ERDF funds granted to the Government of Hungary. We were involved in the preparation of projects for regional development, and our tasks included the following:

  • Identification of projects in transport sectors;
  • Project elaboration
  • Development of cost sharing schemes
  • Development of monitoring system for project implementation in accordance with Structural Fund requirements
  • Project development and management;
  • Transfer of knowledge to the experts / project managers of the beneficiaries in areas related to Structural Funds projects;
  • Preparation and presentation of case studies
  • Establishing project preparation partnerships with local and regional actors from the Member States

• Jordan:

  We conducted a number of projects financed by the EU, among which:

  • Aqaba Economic Free Zone (ASEZ)

    We provided technical assistance to various institutions and companies in the Aqaba Economic Free Zone (ASEZ), identified bottlenecks and weaknesses of the Jordanian shipping, freight forwarding, stevedoring, warehousing and customs clearance industry, notably in terms of deficiencies in the institutional support services (customs, port authorities etc) and made recommendations for improvements.

    This included also a study of the Port of Aqaba operations, especially on transit times and performances of the different public actors.

  • Assistance to the Executive Privatisation Commission

    Under an important project for the Executive Privatisation Commission (rank of a ministry), we assisted in the economic pre-feasibility of the construction and operation of a Light Railway System (LRS) connecting the Jordanian Cities of Amman and Zarqa under a public-private partnership scheme.

• Morocco:

  We have assisted several Moroccan companies in the transport sector to improve strategy and operations in order to increase ROI of recent investments. The objectives of the mission were to identify the problem areas where the follow-up assistance could have the highest leverage on increasing the competitiveness of the enterprise in order to adapt to the Free Trade Zone with the European Union. Among the clients was a major Moroccan road transport company active in three strategic businesses:

  • International Reefer Transportation
  • National Reefer Transportation and
  • National Transportation of Dry Goods

  Under the European Union MEDA programme and co-financed by the client enterprise our firm was asked to assist one of the major Moroccan freight forwarding (22% of sales) and courier services (75% of sales) companies. We made a strategic diagnosis and developed a business plan. The main challenges of the company were to advise them on reducing costs despite the high growth rate and to be competitive in two different businesses – freight forwarding and courier services – requiring both very high investments to maintain competitiveness