Page 1

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   

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.

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


September 29, 2010  [PORT OF BUCHANAN FEASIBILITY STUDY PROPOSAL   

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 offloading 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

CYRUS L GRAY, JR. M.Sc., M.Sc. |  2   


September 29, 2010  [PORT OF BUCHANAN FEASIBILITY STUDY PROPOSAL   

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 BushWater 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. CYRUS L GRAY, JR. M.Sc., M.Sc. |  3   


September 29, 2010  [PORT OF BUCHANAN FEASIBILITY STUDY PROPOSAL   

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.

CYRUS L GRAY, JR. M.Sc., M.Sc. |  4   


September 29, 2010  [PORT OF BUCHANAN FEASIBILITY STUDY PROPOSAL   

Port of Buchanan Business Plan Feasibility Study Baseline Plan PROPOSED

Activity

Objectives

PHASE I Buchanan Feasibility Assessment

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

Report

Compilation of Findings

PHASE II Ganta & About Feasibility Assessment

Assessment and information gathering in Ghana and Guinea

Report PHASE III Yekepa & About Feasibility Assessment

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

Beginning

Ending

10/10/2010

10/17/2010

Deliverable

10/19/2010 10/20/2010

10/27/2010

10/29/2010 11/01/2010

11/10/2010

Compilation of findings

11/11/2010

Report PHASE IV GMT Fact Finding

Assessment Visit to GMT-Ghana

11/15/2010

11/17/2010

B-W Fact Finding

Assessment Visit to B-W Togo

11/18/2010

11/19/2010

Report PHASE V Analysis & Organization PRESENTATION

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

11/20/2010 11/21/1020

11/27/2010

11/30/2010

    CYRUS L GRAY, JR. M.Sc., M.Sc. |  5   


September 29, 2010  [PORT OF BUCHANAN FEASIBILITY STUDY PROPOSAL   

ITEM

PORT OF BUCHANAN BUSINESS PLAN  FEASIBILITY STUDY BUDGET  OCTOBER 1 – NOVEMBER 30, 2010 DESCRIPTION 

UNIT COST 

PHASE Buchanan et al  I  Assessment  Hotel & Accommodation  150.00 Car Rental(out of town)  200.00 Gasoline  20.00 Misc  10.00 PHASE  II  Ganta et al Assessment  Hotel & Accommodation  150.00 Car Rental(out of town)  200.00 Gasoline  20.00 Border Crossing  100.00 Misc  10.00 PHASE  III  Yekepa  et al Assessment  Hotel & Accommodation  150.00 Car Rental(out of town)  200.00 Gasoline  20.00 Border Crossing(X2)  200.00 Misc  10.00 PHASE  IV‐1  Ghana Assessment‐GMT  Hotel & Accommodation  175.00 Transportation  100.00 Air fare  400.00 Misc  PHASE  IV‐2  Togo Assessment B‐W  Hotel & accommodation  175.00 Transportation  100.00 Airfare  125.00 Misc  PHASE  V  Analysis, org. and presentation  Office Supplies  Print  Consultancy/Professional  LABOR  Fee  TOTAL   

#/DAYS

TOTAL

2,660.00 7 7 7 7

1,050.00 1,400.00 140.00 70.00 2,760.00

7 7 7 7

1,050.00 1,400.00 140.00 100.00 70.00 4,000.00

10 10 10 10

1,500.00 2,000.00 200.00 200.00 100.00 1,150.00

2 3 1

350.00 300.00 400.00 100.00

1 2 1

175.00 200.00 125.00 100.00

600.00

125.00

25.00 50.00

5,000.00

BUDGET

25.00 100.00 

2

10,000.00

10,000.00 21,295.00 

CYRUS L GRAY, JR. M.Sc., M.Sc. |  6   


September 29, 2010  [PORT OF BUCHANAN FEASIBILITY STUDY PROPOSAL           

       

CYRUS L GRAY, JR. M.Sc., M.Sc. |  7   

Port of Buchanan Business Plan  

Port of Buchanan Business Plan Feasibility Study