port of buchanan business plan

NATIONAL PORT AUTHORITY OF LIBERIA

PORT OF BUCHANAN BUSINESS PLAN FEASIBILITY STUDY PROPOSAL

BY: CYRUS L GRAY JR, MSc., MSc.

PORT CONSULTANT

SUBMITTED TO:

MS MATILDA W PARKER MANAGING DIRECTOR

NATIONAL PORT AUTHORITY OF LIBERIA

THIS IS A FEASIBILITY STUDY PROPOSAL DESIGNED TO ARGUE FOR THE COMMISSIONING OF A STUDY TO EXPLORE BUSINESS OPPORTUNITIES FOR THE DEVELOPMENT OF THE PORT OF BUCHANAN IN THE

SHORT TO MEDIUM TERM.

September 29, 2010 [PORT OF BUCHANAN FEASIBILITY STUDY PROPOSAL

CYRUS L GRAY, JR. M.Sc., M.Sc. | 1

I. EXECUTIV E SUMMARY

There are strong indications that the Port of Buchanan can, in the short to medium term, be

re-engineer so as to provide significant services in container, general cargo and timber

handling; and attract revenue to the NPA.

The NPA can ascertain container demand among large companies, wholesale outlets

and importers in the Ganta, Yekepa, Guinea and Ivory Coast regions with easy access to the

Nimba rail. Companies to be targeted in Buchanan will include Flower Mill, BRE, Arcelor-Mittal,

LAC and at least four logging companies.

The handling equipment needs for Buchanan can satisfied by the deployment from the

Freeport of Monrovia to Buchanan equipment owned by the NPA, for example the two Kalmar

Reach Stackers. The short sea Shipping Company, GMT, has express interest informally in

discussing a service agreement that would enable them make regular port calls to Buchanan.

The NPA may also enter into a partnership agreement or a service agreement with a number

of companies who have express interest in providing Wheel Loaders to handle log products in

the Port of Buchanan.

It is with this back drop that we submit a proposal for the NPA to commission a seven

weeks feasibility study exclusively for the potential development in container, general cargo

and log handling in the Port of Buchanan by the 1st of January 2011. This study which is

proposed to commence on October 10, 2010, will result in the formulation of a Business Plan

for the Port of Buchanan based on the findings of the study. Said plan will be submitted to

management on November 30, 2010 if the feasibility is approved and commences as

scheduled. This is a description of the proposed study, time line and budget.



II. DESCRIPTION OF PORT OF BUCHANAN DEVELOPMENT FEASIBILITY STUDY

The study is to be conducted in four phases as follows:

Phase I: Buchanan and the Greater Buchanan Area

Assessments will be conducted at the Port of Buchanan, BRE, Arcelor-Mittal, Flower Mill, LAC,

all Logging Companies and the Business Community in Buchanan to determine demand for

import and export in the area. Information will also be gathered from Arcelor-Mittal on the

potential uses of the rail line for container movement into the interior. The Buchanan study will

last for one week commencing October 10, 2010.

Phase II: Ganta and Guinea Forest Region closer to Zerekoree.

Assessment s will be conducted in Ganta to determine demand and sources of cargo coming

into the Ganta market. The LPRC tank farm near Ganta and along the rail line will also be

assessed for its utility in the movement of petroleum product discharged at the Port of

Buchanan for rail transport to Ganta and parts of Guinea. Assessments in this phase will last

one week commencing October 20, 2010.

Phase III: Yekepa, Ivorian/Guinea Corridor and the Ivory Coast Danane/Man Region

Assessments will be conducted in Yekepa to determine available logistics capability for the off-

loading from rail carts of containers and on to trucks as part of the transshipment link for cargo

from Buchanan to Yekepa, Guinea and Ivory Coast. Assessments will be conducted in Guinea,

near the Yekepa border and In the Ivory Coast man region if the security situation permits. The

object of these assessments would be to measure the cargo volume into the area and their


source; so as to determine the feasibility of the Buchan transit. This assessment will last for 10

days commencing November 1, 2010.

Phase IV: Visit s to GMT (Ghana) Facility and Bush –Water (Togo) Log Handing Facility

Two regional assessment visits will be conducted with GMT Feeder shipping Line and Bush-

Water Log export facility. From November 15 - 17, a tour and assessment visit will be done in

Tema at the logistics facilities of GMT; as a result of which an expression of interest will be

solicited for possible call to the Port of Buchanan. GMT has a fleet of flexible vessels designed

to handle containers and roro cargo at non-conventional terminal facilities. The choice of GMT

as a potential carrier to Buchanan is based on their specialized capabilities and their

expressed desire to expend along the Gulf of Guinea coast line.

The second part of Phase IV will commence form November 18 – 19, 2010, at the Log

Handling Facility of Bush – Water Ltd., near the Freeport of Loma. The intent of the visit is to

view wheel loaders of Bush-Water Facility and listen to the thinking of the company on the

possibility of partnering with the NPA to provide log handling equipment and expertise for the

Port of Buchanan; and possibly those of Greenville and Harper. Logging has been reduced in

Togo because of new and unexpected government regulation to limit export quota to 50,000

cubic meters per year; in order to reduce the depletion of their forest resource. Bush-Water

has a fleet of idle log handling equipment in Togo.

We have initiated contacts with both companies who have expressed their willingness to host

the assessment visits at an agreed time.



Phase V: Data Analysis, Presentation of Business Plan for the Port of Buchanan

Beginning November 21, 2010, data from all Phases of the assessments will be analyzed and

a Business Plan for the development of the Port of Buchanan formulated based on the

assessments’ findings. On November 30, 2010, a formal presentation of the plan will be

submitted to management; same plan compressed will be demonstrated in a power point

presentation to form part of the final deliverable.



Port of Buchanan Business Plan

Feasibility Study Baseline Plan PROPOSED

Activity Objectives Beginning Ending Deliverable

PHASE I Buchanan Feasibility Assessment Report

Assessment of demand pattern and information gathering on reception facilities and potential in Buchanan area. Compilation of Findings

10/10/2010

10/17/2010

10/19/2010

PHASE II Ganta & About Feasibility Assessment Report

Assessment and information gathering in Ghana and Guinea Compilation of Findings

10/20/2010

10/27/2010

10/29/2010

PHASE III Yekepa & About Feasibility Assessment Report

Assessment and information gathering in Yekepa, Guinea and Ivory Coast Compilation of findings

11/01/2010

11/10/2010

11/11/2010

PHASE IV GMT Fact Finding B-W Fact Finding Report

Assessment Visit to GMT-Ghana Assessment Visit to B-W Togo Compilation of Findings

11/15/2010 11/18/2010

11/17/2010 11/19/2010

11/20/2010

PHASE V Analysis & Organization PRESENTATION

Analysis of research and organization of Buchanan Business Plan Presentation of hard copy & PP

11/21/1020

11/27/2010

11/30/2010



PORT OF BUCHANAN BUSINESS PLAN FEASIBILITY STUDY BUDGET

OCTOBER 1 – NOVEMBER 30, 2010


ITEM DESCRIPTION UNIT COST #/DAYS TOTAL BUDGET

PHASE I

Buchanan et al Assessment 2,660.00 Hotel & Accommodation 150.00 7 1,050.00Car Rental(out of town) 200.00 7 1,400.00Gasoline 20.00 7 140.00Misc 10.00 7 70.00

PHASE II Ganta et al Assessment 2,760.00

Hotel & Accommodation 150.00 7 1,050.00Car Rental(out of town) 200.00 7 1,400.00Gasoline 20.00 7 140.00Border Crossing 100.00 100.00Misc 10.00 7 70.00

PHASE III Yekepa et al Assessment 4,000.00

Hotel & Accommodation 150.00 10 1,500.00Car Rental(out of town) 200.00 10 2,000.00Gasoline 20.00 10 200.00Border Crossing(X2) 200.00 200.00Misc 10.00 10 100.00

PHASE IV‐1 Ghana Assessment‐GMT 1,150.00

Hotel & Accommodation 175.00 2 350.00Transportation 100.00 3 300.00Air fare 400.00 1 400.00Misc 100.00

PHASE IV‐2 Togo Assessment B‐W 600.00

Hotel & accommodation 175.00 1 175.00Transportation 100.00 2 200.00Airfare 125.00 1 125.00Misc 100.00

PHASE V Analysis, org. and presentation 125.00

Office Supplies 25.00 25.00 Print 50.00 100.00

LABOR Consultancy/Professional Fee 5,000.00 2 10,000.00 10,000.00

TOTAL 21,295.00


CYRUS L GRAY, JR. M.Sc., M.Sc. |

7

port of buchanan business plan

Documents

port of buchanan

buchanan study

buchanan equipment

description of port

proposed study

weeks feasibility study

container demand

ganta market