East Africa to Get a New Port

4 March 2012

Sunday


If you ever had it in mind to see the pristine northern coast of Kenya, and especially Lamu island with its UNESCO world heritage site old town and the Lamu archipelago, you had better get there soon. Africa is changing. Industrialization and development is coming to East Africa on a scale heretofore unprecedented. Now the project has officially gotten underway (Lamu port project launched for South Sudan and Ethiopia) and it is likely that the way of life in the region will be changed forever.

It would be difficult to name all the ways in which the planned port and its associated infrastructure will impact East African economic development. You can see on a map of Kenya’s road network that Lamu has been off the beaten track. The main A109 road of Mombasa to Nairobi follows pretty much the same path as existing rail infrastructure. The Lamu Port and Lamu Southern Sudan-Ethiopia Transport Corridor (LAPSSET) will involve road, rail, and oil pipeline connections to Lamu (as well as a port at Manda Bay, an oil refinery at Bargoni, three airports, and three resort cities). The map above shows some existing infrastructure as well as regions of Kenya slated for petroleum exploration. You can read a fairly detailed sketch of the petroleum geology of the region at the Africa Oil Corporation website. The company appears to be based in Vancouver B.C. In the map below you can see the proposed development, with the road, rail, and pipeline network passing through the area to be explored and connecting South Sudan and Ethiopia to Africa’s newest Port.

While many of the businesses in Lamu no doubt welcome the development, many in Lamu are concerned for their future, and rightly so. (Cf. Audio slideshow: Kenya dhow captain fears new port, Kenyan town awaits port with trepidation, and Save Lamu) It is likely that nothing will ever be the same again. Even if the governments involved in the project are good their word in attempting to retain the character of Lamu’s tourist area and in protecting the environment, economic development on this scale cannot fail to alter the way of life in the region. Construction crews will arrive, and they will need places to eat and sleep. They will also take time off, and they will have money to spend. All the familiar camp followers and profiteers will seek to relieve these construction workers of their paychecks, and in so doing they will make their own contribution to the economy of the area.

After the facilities are built and operational, different economic forces will come into play. There will be regular jobs with regular salaries, and their will be foreign experts and consultants who come. The burgeoning economies of India and China, and indeed many growing economies around the Indian Ocean, will have a growing appetite for oil, and as oil both increases in cost and begins to flow from South Sudan through Kenya and from Lamu’s port into ships that will sail the world’s oceans, the sheer volume of money involved in such transactions will influence life in the region as well. With money come bankers and financial services industries. With trade connections through the region come international relations and the need to be involved in the affairs of other nation-states.

LAPSSET is being billed as the largest infrastructure project ever undertaken in Africa. It is not likely to be the last. Africa’s infrastructure has lagged substantially behind that of the industrialized world. This has retarded economic development. As Saudi oil money in the later twentieth century was re-lent out for infrastructure projects through the developing world, now in the twentieth century China’s capital generated from its rapid industrialization needs to find investment opportunities. Many of these are likely to be in Africa. There has been a steady stream of stories in the financial press of Chinese money and Chinese expertise employed in large development projects in Africa. I wrote about this in Unintended Consequences in Africa, and more recently the Chinese financed and Chinese built African Union Headquarters in Addis Ababa was inaugurated by Chinese President Hu Jintao.

It is easy to read sinister implications into China’s involvement in Africa, as it was easy to read sinister implications in the disposition of Saudi oil money during the 1970s (think of what the term “petrodollars” means to most people). Money, like industrial development, takes on a life of its own. Both can be controlled (to a limited extent) and regulated (with more or less success), but neither can be wished away. Africa and China are today becoming locked into a “special relationship” because of historical contingencies that cannot be changed and must find some form of expression. It is in the interest of those nation-states that are already industrialized to contribute constructively to the development of Asia and Africa, rather than to respond with fear and apprehension.

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Note added 17 March 2012: There is an interesting article in the East African Standard, Lamu port deal leaves Khartoum feeling put out, describing Khartoum’s growing sense of isolation as a result of being denied membership in the East Africa Community (EAC) and the initiation of the Lamu port project, which includes a pipeline from Juba (in South Sudan) to Lamu. The Sudanese are even pursuing a case of “economic sabotage” at the African Union. Apparently, Sudanese officials haven’t read Hume’s argument about jealously of trade, or they would know that have a thriving East African Community on their border could only be good for the Sudanese economy.

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4 Responses to “East Africa to Get a New Port”

  1. China has good relations with Khartoum and, providing the present altercation between Juba and Khartoum can be resolved, would be quite happy to see the oil continue to flow north.
    After all, the real implications of it flowing anywhere else are that the US and its allies will control it for, while the Chinese presence in Juba is increasing, the Anglo-Saxons are already in control there.

    • geopolicraticus said

      Dear Sanculottist:

      Do you really think that Juba and Khartoum will readily paper over their differences? Don’t count on it. The civil war that split Sudan wasn’t just a conflict, it was a conflict rooted in cultural differences between the Arab north and the African south. That difference is not going away any time soon. Southern Sudan will eventually ship its oil out of Lamu even it if is inconvenient and expensive just for the sake of poking a stick in the eye of Khartoum.

      Also, the Indian Ocean is no US lake, so there is no reason to assume that the US will control this flow. And even if the US does assert control over the sea lanes that will serve Lamu, the oil will go to the growing (and thirsty) economies that circle the Indian Ocean.

      Best wishes,

      Nick

      • No I don’t think that long term or even medium term they will “paper over” their differences. However, we should be thinking shorter term here and if we do we will soon realise that the oil wars have already started. will the Chinese even get to use Lamu?

        Apropos the Indian ocean: India is also in the equation and the Chinese cannot even challenge there yet.

        Juba I know well and the British and Americans are, in fact, well established there. As, indeed, they are in most of Africa. Indeed, the Chinese in Africa have nothing to rival Africom.

        Short term I would keep my eye on Iran, medium term on China, and that is frightening because despite what I have written above, ill-prepared or not, your implication is correct, they are becoming increasingly prepared, and what was it that the Japanese admiral said after the attack on Pearl Harbour about awakening a sleeping giant?

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