trade-watch

JUNE 2012
ISSUE #13
PAN AFRICA
Brazil Competes With China,
India To Invest In Africa
WEST AFRICA
Phase 2 Abidjan-Lagos Trade and
Transport Facilitation Project
EAST AFRICA
Malawi, Mozambique Agree On
Shire-Zambezi Route Study
TRADE-WATCH
THE AFRICAN TRANSPORT REPORT
WWW.DELMAS.COM
02
EUROPEAN & BALTIC PORTS
• European Investment Bank Finalises €900m
Funding For Maasvlakte 2
• Strong First Quarter Sees Hamburg Close
Gap On European Rivals
• Bremen & Bremerhaven Box Handling Soars
• German Wilhelmshaven Deepwater Box
Terminal
• Essar Ports Set To Strike Deal With Port Of
Antwerp
• Ports Of The Seine Report First Quarter Of
2012
03
• Thames Port To Transform UK Distribution
• £4.3 Million Lock Gate Refurbishment
Programme
• New Straddle Carrier Cranes Delivered To
Port Of Liverpool
• UK Port Operators Blast Government Over
New £35m Liverpool Grant
• Gdynia Port Crane Collapses
• Estonia’s Tallinn Terminal Orders Container
Handling Equipment
04
EUROPEAN RAIL
• Stuttgart Rail Shuttle Frequency Increases
• ERS Railways Starts Rail Service Between
Rotterdam And Poznan
05
PAN AFRICA TRADE
• IMF Cuts Sub-Saharan Africa 2012
Growth Forecasts
• Africa Plan For US$1-Trillion
Trade Bloc On Track
06
• Brazil Competes With China, India To Invest
In Africa
08
WESTE AFRICA PORTS
• Ghana Port Authorities To Reclaim Sea For
Port Expansion
• Ivory Coast Seeks To Triple Capacity At
Abidjan Port
• Guinea: Conakry Port Transformation
09
• Nigerian Ports In Growth Mode
• Second Phase of Namibe Port Rehabilitation
Announced
• Cabinda Port Undergoes Works
13
WEST AFRICA TRADE
• Phase 2 Abidjan-Lagos Trade and
Transport Facilitation Project
14
• GEPA Sets To Achieve US$5 Billion NTE
Target By 2016
• Nigeria Free Trade Zones
• Gambian Customs Generates Over D212
Million
16
EASTERN AFRICA PORTS
• Ongoing Projects In Mozambique’s Maputo
Port To Be Finished By End Of Year
• Tanzania: Dar es Salaam Port Reforms
Attract Zimbabwe
• Tanzania: Dar es Salaam To Build Two New
Shipping Ports
• Kenya: PMAESA and TTCA Pledge to Work
Together
• Kenya: Tideland Signal Lands Mombasa
Port Contract
17
EASTERN AFRICA WAREHOUSING
• Rwanda: Magerwa Bonded Warehouse Set
to Operate 24 Hours
18
EASTERN AFRICA RAIL
• EAC Railway Project Gets U.S.$1.8 Million
Boost to Lower Transport Costs
• Mozambique Sena Coal Rail Upgrade Seen
Ready By November
• Mozambique: Vale to Spend Four Billion On
New Rail Route
• Zambia: New Lease Of Life For TAZARA
SOUTHERN AFRICA INLAND CONTAINER
TERMINAL
• South African Multimodal Inland Hubs To
Add To Gauteng’s Container Capacity
25
SOUTHERN AFRICA RAIL
• South Africa: Setting Rails In Motion
• Transnet’s Loco Procurement May Cost
R35bn
• Transnet Freight Rail Studies Botswana
South Africa Link
26
• South Africa: Work On R5.2 Billion Majuba
Rail Line Begins
• Namibia: The Struggle For TransNamib Rail
Tenders
• TransNamib Begs For State Help
27
SOUTHERN AFRICA TRADE
• SADC Infrastructure Master Plan To Focus
On Deepening Integration
• South Africa, Turkey Set Up Commission
• Namibia Transport Barriers Hamper Trade
Contributors
EASTERN AFRICA RIVER
• Malawi, Mozambique Agree On Shire
Zambezi Route Study
20
EASTERN AFRICA ROAD
• Kenya Signs Japan Funding Accord for
Roads in Nairobi
• Uganda: Development of 1000km of Roads
• Tanga Road Eases Tanzania - Kenya Travel
• Mozambique: China Formalises Credit for
Maputo - Catembe Bridge
21
WEST AFRICA INLAND CONTAINER
DEPOTS
• Reduced Costs, Delays For Traders In
Burkina Faso
12
22
WEST AFRICA RAIL
• Bolloré To Invest In Cameroon High-Speed
Rail
• Ghana Government Sources US$990 Million
For Eastern Rail Project
SOUTHERN AFRICA PORTS
• South Africa: Liebherr Delivers First Batch
Of Mobile Harbor Cranes To Durban Port
• New Man At Helm Of SA's Port Operations
19
EASTERN AFRICA TRADE/ECONOMY
• EU Trade-Development Deal With Four
African States
• Kenya’s EAC Exports Up 34%
• UAE Is Once Again Top Exporter To Kenya
• Tanzania Trade With Emerging Markets
‘Significant’
10
24
• IMF Working On New Malawi Support
Package
• World's Newest Nation South Sudan Battles
To Open
• Mauritius Trade Deficit Narrows 21.9 Pct In
March
Rachel Bennett
[email protected]
Dominic Rawle
[email protected]
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EUROPEAN PORT NEWS
EUROPEAN &
BALTIC NEWS
01 TRADE WATCH
WWW.DELMAS.COM
EUROPEAN PORT NEWS
Left: Maasvlakte 2 Artist’s Impression
European Investment Bank
Finalises €900m Funding For
Maasvlakte 2
Port of Rotterdam 10/05/12
The European Investment Bank [EIB] has
formally agreed to provide the final part of
€900m overall funding to support investment
by the Port of Rotterdam Authority in port
infrastructure, of which Maasvlakte 2 is by far
the most important.
The European Union’s long-term lending
institution has funded land reclamation and
construction of container and specialist
facilities to expand port capacity at Europe’s
largest port. Funding agreements for the
flagship infrastructure initiative were signed
by European Investment Bank President
Werner Hoyer and Port of Rotterdam
Authority CEO Hans Smits and CFO Paul
Smits during a visit to the Netherlands.
The EIB is providing a long-term loan over 30
years, at attractive conditions, eliminating
the need for the Port of Rotterdam Authority
to refinance investment over the period and
is the leading external source of funding for
Maasvlakte 2. The port expansion project is
on schedule.
Two clients were already attracted before the
land reclamation started. They will start
operating their container terminals in the
second half of 2014. The next phases will
only be constructed when the market shows
an interest in their development.
Automated Cranes for Maasvlakte II
26 automated rail-mounted gantry [RMG]
cranes and 2-rail cranes have been ordered
from Austrian manufacturer Kuenz for the
Maasvlakte II terminal. The automated RMGs
will lift and stow containers from automated
guided vehicles that shuttle containers
between the berth and rail terminal and will
load and unload containers on truck chassis.
Truck drivers at the terminal will park their
truck in a designated spot, exit their cab and
wait in a secure area away from the
automatic loading and unloading process.
The rail cranes will span 8-tracks at
Maasvlakte II’s 8-track intermodal terminal.
They will be operated by a driver in the cabin
but much of the activity will be automated.
according to the port, with Hamburg’s
exports increasing by 11.1% to 11.4 million
tonnes. Europe‘s second largest container
port also performed well on imports of
containerized general cargoes, handling 11.2
million tonnes during Q1 2012, representing
5.5% growth.
Bremen & Bremerhaven Box
Handling Soars
Lloyds List 28/05/12
The twin ports of Bremen and Bremerhaven
saw strong growth in box handling during the
first 3-months of the year and have
outperformed their major rivals. Container
throughput grew by 13.6% to 1.6m teu
during Q1. The ports saw the strongest
growth of all peers among the western
European ports.
Hamburg’s box handling was up by 5.2% and
Antwerp was up by 0.7%, but Rotterdam saw
container throughput decline by 3.9%.
Bremerhaven’s total turnover grew even
more. Cargo handling was up by 15.2% to
21.7m tonnes. Inbound cargo rose
significantly by 12.2% to 10.9m tonnes,
exports increased even more strongly by
18.3% to 10.8m tonnes. Car handling also
improved. The port handled 528,883 units
during Q1, up 8.8%.
German Wilhelmshaven
Deepwater Box Terminal
Lloyds List 28/05/12
Eurogate is still facing uncertainty about the
start of the deepwater box terminal in
Wilhelmshaven. The terminal’s start, which is
scheduled for August 5, has been hampered
by the detection of numerous flaws in the
sheet piling. Repair works are still ongoing.
The JadeWeserPort, a joint company founded
by the states of Lower Saxony and
Bremerhaven for the construction of the
terminal, is still sticking to the date.
However, there is still a big question about
whether the new terminal will start on time.
Operator Eurogate recently declined to rule
out a possible delay to the start of
operations. The company complained that it
could not use the agreed length of quay for
trial runs. Jade-Weser Port will offer a
draught of 18 m. It will be Germany’s only
port at which the latest generation of
ultra-large containerships can call fully laden
and without using the tide.
Strong First Quarter Sees
Hamburg Close Gap On European
Rivals
Port Technology 21/05/12
The Port of Hamburg handled 32.6 million
tonnes of cargo during the first three months
of 2012, representing a rise of 3.8% over the
same period last year. Germany’s largest
seaport moved 2.2 million TEU during the
first quarter of the year, 5.2% more than in
Q1 2011, to boost Hamburg’s market share
in Northern Europe at the expense of rivals
Rotterdam and Antwerp.
Rotterdam, Europe’s largest port, saw its
cargo throughput fall by 3.9%, while Antwerp
reported just a small rise in cargo volumes of
0.7%. The Port of Hamburg attributed its
strong start to the year to a surge in Baltic
Sea and North America trade, which helped
to offset lower Asian shipments.
The port handled 23.1 million tonnes of
general cargo during the first quarter of
2012, representing a 7.9% advance on the
first three months of 2011.Growth here was
primarily powered by the strong trend in
exports of containerized general cargoes,
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Above: Wilhelmshaven Deepwater Box Terminal
Essar Ports Set To Strike Deal
With Port Of Antwerp
Indian Essar Ports has announced a potential
stake sale deal with Antwerp port which is set
to be concluded within the next 2-months.
The company, which operates port facilities at
Hazira, Salaya, Vadinar and Paradip, is
looking to the Port of Antwerp for fresh
investments.
A source close to the development revealed
that the Port of Antwerp is likely to invest
around US$25-50 million for a less than 10%
stake in Essar Ports.
Ports Of The Seine Report First
Quarter Of 2012
Port Technology 15/006/12
The ports of Le Havre, Rouen and Paris have
reported handling a shipping tonnage of 22.3
million tonnes for the first quarter of 2012,
matching records for the same period in
2011. This stagnation is seen as a reflection
of the wider economic conditions in France
and the eurozone. It is also thought that
recent changes to the refining capacity in
France have had a strong impact on traffic in
the Seine Valley, which is the largest
petrochemical area in France.
Grouped together within the E.I.G HAROPA
since early 2012, the three ports in the Seine
artery have their core business in dry bulk
cargo and containers, and the latter category
brings some good news for the ports.
Container traffic saw a 27% rise in tonnage
compared with the same period in 2011,
rising to 6.1 million tonnes. Number of units
saw a 21% rise to 620,000 TEU.
Transhipment over Le Havre was a
particularly significant area, growing by 78%
to 109,000 TEU. There was also a 22% rise
in business in North to South shipping
services, with regards to the port facilities at
Rouen.
However, more disappointing areas included
liquid bulk throughput, which was down by
7% to 12.2 million tonnes. Dry bulk tonnage
was down by 17% to 3 million tonnes and
grain traffic was down from 2.2 million
tonnes to 1.6 million tonnes.
The results for grain traffic can be largely
attributed to the expected decrease in grain
export, due to the
countries of the
Black Sea returning
to the market at the
beginning of the
2011/2012 season.
The high
competitiveness of
the South America
cereals in early
2012 is also thought
to have influenced
traffic levels on the
Seine.
Chemical products
in bulk were up on
last year’s figures,
increasing by 11%
and, reassuringly,
overall waterway
business for the
ports of the Seine
artery for this first
quarter is up 5% on
the first quarter of
2011, rising to 7.5
million tonnes.
TRADE WATCH 02
EUROPEAN PORT NEWS
Thames Port To Transform
UK Distribution
Financial Times 11/06/12
The London Gateway, a £1.5bn
facility, owned by Dubai Ports World,
lies 25 miles from London. With a
quayside 2.7km long, it will be able
to take up to six of the new
generation of vast cargo ships, 400m
long and capable of carrying more
than 14,000 containers.
When it opens towards the end of
next year, its annual capacity of
3.5m TEU will make it the country’s
biggest port. Just behind the berths,
on an area that is now a huge
building site, will lie a 9m sq ft
logistics park – Europe’s biggest –
where cargo owners, retailers and
logistics companies may hold or
process goods for onward dispatch.
If all goes to plan, many goods that
are currently transported by lorry to
depots elsewhere in the UK – often
to be brought back to the south-east
– will go directly to their owners.
Above: London Gateway Artist’s Impression
The port has the potential to be “transformational”. UK supply chains are currently designed around the golden triangle in the Midlands. Many goods
are taken there and come back again. London Gateway addresses this with the port-centric idea of not moving things past where they need to go
Meanwhile the local council has called for the Department for Transport to address the problems around junctions 30 and 31 of the M25 – already a
bottleneck for the region and the congestion that routinely builds up around the tolls of the Dartford Crossing over the Thames.
LIVERPOOL INVESTMENT
£4.3 Million Lock Gate
Refurbishment Programme
Liverpool’s infrastructure to £20 million.
The first phase of the latest £4.3 million
investment in the refurbishment of the Port
of Liverpool’s lock system is complete. The
complex engineering operation, over 24
months in the planning, has seen the West
Inner Gate at the Port’s Gladstone Lock
replaced. Despite the temporary Gladstone
Lock closure, over 90% of vessels have been
able to access berths via the Port’s Langton
Lock during the outage.
New Straddle Carrier Cranes
Delivered To Port Of Liverpool
The work has seen the giant West Inner
Gate, 16m in height and weighing 400
tonnes, removed following the fixing in place
of a limpet dam at the mouth of the lock. The
refurbished gate has now been manoeuvred
into place and the dam removed, with the
first vessel transiting the lock on 26/05/12.
Gladstone Lock’s East Inner Gate will be
replaced in an identical operation in August,
taking overall investment in this area of
UK Port Operators Blast
Government Over New £35m
Liverpool Grant
Peel Ports in Liverpool have purchased 2-new
units of straddle carrier cranes, which have
been successfully supplied by Liebherr. The
port has also reserved the option to make
further straddle carrier orders later in the
year. The model adopted by Peel Ports is the
SC350T. The Port of Liverpool currently
operates 7-Liebherr ship to shore cranes.
The Telegraph 04/06/12
Britain's leading port operators are up in
arms over a Government decision to give
conditional approval to a £35m grant that
they claim skews the market in favour of
Liverpool's Peel Ports.
Rival port companies argue the grant
contravenes the Government's stated policy
for the industry, published in January that
stresses how private companies compete
"without subsidy". Peel, which runs the
Mersey ports, stands to be the major
beneficiary of an application by the local
Council for money from the Regional Growth
Fund to help finance a dredging project.
The channel deepening is associated with
Peel's plans to build a new £226m container
terminal capable of handling some of the
world's biggest ships.
The partnership's chairman complained of
"market distortion", saying: "The proposed
grant will have a direct impact on a number
of other UK ports beyond the Port of
Felixstowe with London Gateway and
Southampton likely to be the most
significantly affected."
Gdynia Port Crane Collapses
A ferry has crashed into a crane at the Polish Baltic Sea port of Gdynia
due to a strong gust of wind. The port is the number 2 port in the Baltic
region. Delays are to be expected.
Estonia’s Tallinn Terminal Orders Container Handling Equipment
Tallinn Port 17/05/12
Konecranes, the Finnish crane manufacturer, has received an order for
2-RTG cranes and 2-Boxrunner straddle carriers from Muuga Container
Terminal (Muuga CT) in Tallinn. The straddle carriers will be delivered in
2012 and the RTGs in 2013. Konecranes has previously delivered three
STS cranes and one RMG crane to the Estonian terminal. Muuga CT, a
wholly-owned owned subsidiary of Transiidikeskuse, is located in the
Muuga Port free zone handling both containerized and Ro-Ro cargo. The
terminal, with an annual capacity of 450,000 TEU, will be merged with
Transiidikeskuse, who also operate in the port, by the end of this month.
Above: Gdynia Port
03 TRADE WATCH
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EUROPEAN RAIL NEWS
RAIL IMPROVEMENTS
Stuttgart Rail Shuttle Frequency Increases
Port of Rotterdam 10/05/12
Following on from the start of a rail shuttle between Rotterdam and Nuremberg, the frequency of the rail shuttle between Rotterdam and
Stuttgart was also raised from twice to three times weekly, starting on 02/04/12. This is a further improvement of the intermodal network
between Rotterdam and South Germany. The increased frequency is important for industry in Stuttgart, especially the automotive industry, as
it creates more flexibility. This also boosts the competitive position of the port of Rotterdam with respect to the North German ports. Besides
the rail connection, the SCT terminal in Stuttgart also offers an inland shipping connection to Rotterdam three times a week.
ERS Railways Starts Rail Service Between Rotterdam And Poznan
Port of Rotterdam 10/05/12
The Rotterdam-Poznan service recommenced on 07/05/12. The service will run 3-times per week in both directions. The train will consist of
60' wagons, suitable for 20' and tank containers, as well as double-pocket wagons that can transport standard trailers, and 90' wagons for 40'
and 45' containers. The departure times ensure ideal service for export-oriented businesses, by means of the good connection to Rotterdam as
an important hub for short-sea transport and continental European cargo flows.
WWW.DELMAS.COM
TRADE WATCH 04
PAN AFRICA TRADE NEWS
PAN AFRICAN NEWS
IMF Cuts Sub-Saharan Africa 2012
Growth Forecasts
IMF 14/05/12
Sub-Saharan Africa's economies will expand
at a slower rate in 2012 than earlier
projected, undermined by global financial
distress and a sluggish recovery in South
Africa, according to the International
Monetary Fund [IMF]. Africa's growth has
remained above 5% in the last 8-years,
underpinned by strong prices for its natural
resources, better governance and growing
disposable incomes. In its latest Regional
Economic Outlook, the IMF forecast 5.4%
growth this year from 5.1% in 2011. Its
previous projections were 5.9% and 5.5%
respectively.
"The growth outlook for 2012 is
somewhat less favourable than outlined
in the ‘October 2011 Regional Economic
Outlook’, with the growth projection for
2012 now cut by almost one-half a
percentage point, driven in large part by
the weaker economic outlook for South
Africa."
IMF
Growth in Africa's economic powerhouse was
likely to be a relatively modest 2.7% this year
and 3.4% in the next, held back by its
reliance on trade with Europe and close links
with western financial markets. However, an
upturn in drought-hit east Africa, fresh output
05 TRADE WATCH
in new natural resource producers such as
Niger and Sierra Leone and recovery in
post-conflict nations such as Ivory Coast
should help boost the continent's economic
activity in 2012.
Sierra Leone and Niger could post outstanding
growth of 35.9% and 14% respectively. Big
oil-producers Nigeria and Angola will also be
major drivers of the expansion. Economies
reliant on non-renewable resources are
experiencing faster growth but are also
suffering the worst volatility in exports,
revenues and GDP expansion.
Africa Plan For US$1-Trillion
Trade Bloc On Track
Reuters 21/05/12
Plans to create a 26-nation free trade area by
integrating 3-existing African trade blocs by
July 2014 are on track and the only major
sticking point is likely to be harmonising rules
of origin. The East African Community [EAC],
the Common Market for Eastern and Southern
Africa [COMESA], and the Southern African
Development Community [SADC] aim to
create a free market of 525-million people
with an output of US$1-trillion when they
unite.
Although African economies are growing fast
– second only to Asia – the continent has
attracted criticism over its slow pace of
integration, a delay that is seen as driving up
the cost of doing business. COMESA said
tough negotiations on rules aimed at making
cross-border trade easy for firms and small
traders lie ahead.
The World Bank said in a report in February
that red tape and trade barriers were costing
Africa billions of dollars and depriving the
region of new sources of economic growth.
The major challenge for the tripartite FTA
negotiations will be rules of origin. Whereas
COMESA and EAC have identical rules of
origin, SADC has got different rules of origin.
Many of the countries in the 3-blocs are
members of more than one trade area.
Zambia is a member of SADC and COMESA
for example, while Kenya has membership in
EAC and COMESA. The region has turned
multiple membership that was termed as
waste and duplication into an opportunity. The
timetable agreed upon to launch the FTA is
not only realistic but also feasible. Already the
European Union has pledged €400-million for
projects in the blocs.
EAC regional integration had led to a doubling
in trade among EAC states after its member
states entered a customs union in 2005.
Trade among SADC nations grew 18% last
year. Meanwhile South Sudan, which attained
independence from Sudan last year, is also
expected to join the free trade area, taking
the total number of states to 27 or half of
Africa.
WWW.DELMAS.COM
PAN AFRICA TRADE NEWS
FOCUS On Brazil-Africa
Brazil Competes With China, India To Invest In Africa
CNN 07/06/12
Brazil has intensified its efforts to forge closer relations with Africa recently, as the sixth largest economy in the world tries to compete with other
emerging giants like China and India to take a more central role in the resource-rich continent. Last month, Brazil's top investment bank BTG Pactual
unveiled plans to raise US$1 billion to create the world's biggest investment fund for Africa, focusing on areas such as infrastructure, energy and
agriculture. The independent bank's fund, which comes amid a government drive to establish a strategic partnership with Africa, is one of the latest
moves signaling Brazil's increasing interest to extend its economic footprint on the continent -- trade between Brazil and Africa jumped from around
US$4 billion in 2000 to about US$20 billion in 2010.
The South American economy is seeing Africa as a means of diversifying its export markets
An unprecedented decade of economic growth in Africa, coupled with a series of policy and institutional reforms, has attracted emerging global powers
into the continent, seeking to gain a stronger foothold in the continent in their bid to reach more markets and forge new political alliances. But while
much has been said and written about China's and India's strides in Africa, Brazil's African foray has garnered less attention. Using
Portuguese-speaking countries like Angola and Mozambique as an entry point to the continent, Brazil's state and private companies have made big
inroads in various parts the continent, operating mostly in strategic sectors such as infrastructure, mining and energy. Last year, mining giant Vale
announced plans to spend more than £12 billion on investments in Africa over the next 5-years.
But while Brazil, like China, seems to be deeply engaged with the African resource sector, some analysts say its strategy and interests are quite distinct
from its resource-hungry BRICS partner. Being a resource-rich country and a future major oil exporter itself, Brazil is not pursuing a strategy to secure
resources. Rather it sees Africa as a means of diversifying its export markets -- for food, seeds, agricultural machinery -- and internationalizing the
production of its big companies -- Petrobras in the oil and biofuels business, Vale in the mining business.
Although separated by the Atlantic Ocean, Brazil and Africa have long historical and cultural ties, dating back to the 16th century. Today, Brazil is quick
to use this cultural affinity with Africa as an advantage in its competition with the other powers acting on the continent. Analysts say Brazil has
adopted a 3-pronged approach to its engagement with Africa, with an "almost seamless interaction" between the government, the private sector and
development institutions. Brazilian companies seeking to do business in the continent tend to hire and train local workforce and offer social projects to
foster home-grown development -- in Angola, Brazilian construction company Odebrecht has become the largest private employer in the country. In
recent decades, Brazil has gone from being a net importer of food to one of the world's biggest exporters of agricultural and food products.
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Comprehensive port coverage in West Africa via Pointe Noire
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Door to door multimodal transport in West Africa and in South America
TRADE WATCH 06
WEST AFRICAN PORT NEWS
WEST & CENTRAL
AFRICAN NEWS
07 TRADE WATCH
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WEST AFRICAN PORT NEWS
Left: Abidjan Port
Ghana Port Authorities To
Reclaim Sea For Port Expansion
Daily Graphic 14/05/12
The Ghana Ports and Harbours Authority
[GPHA] has initiated steps to reclaim about
0.5km of sea 3-km westward of Tema Port to
secure more space for expansion to meet
increasing demands of the maritime industry.
The expansion project, expected to cost
about US$1 billion, will involve reclamation,
dredging, the provision of breakwaters and
the construction of container terminals and a
cruise terminal.
Already, a Chinese team of experts in the
marine business involved in container
manufacturing, the provision of container
terminals, among others, is in the country to
have first-hand information on the Tema Port.
According to the acting Director-General of
the GPHA, Richard Abugri Anamoo, the Tema
and Takoradi Ports had become too small to
manage the
present growth
in maritime
business.
The Chinese
team, led by
Qui Jingung,
the Deputy
Managing
Director of
Cosco Pacific
Limited, a
Chinese
investment company in Hong Kong, inspected
the land area along the west coast end of the
port, the main port and the Golden Jubilee
Container Terminal and observed the
congestion at the port.
Briefing the team during the inspection tour,
Anamoo said the GPHA was taking advantage
of the private/public partnership [PPP]
system to seek support from investors to
help expand the 2-ports.
At the time of writing the port was choked
with earth-moving equipment, iron rods and
much transit cargo, while about 16 vessels
were still on the high seas for lack of berthing
space.
DELMAS Opens New Group Agency In
Ghana
We are pleased to announce the opening of
CMA CGM DELMAS GHANA in Takoradi. This
new Group owned branch office represents
DELMAS and CMA CGM as from on 1st June
2012, replacing the existing Third Party
Agent SDV GHANA Ltd / Takoradi. Your new
DELMAS sales contact is Maxwell Sotenga,
E-mail: [email protected]
Tel: +233 [0] 312001148.
DELMAS SHIPPING GHANA
Takoradi Branch Office
Takoradi Shippers Centre
Chapel Hill
PO Box 587 Tema,
Takoradi
Ivory Coast Seeks To Triple
Capacity At Abidjan Port
Reuters 08/06/12
Ivory Coast's main port of Abidjan aims to
nearly triple annual container capacity to 2.3
million units by 2016 to keep up with
regional competitors following a decade of
neglect according to the port's director. The
port authority opened bidding for the
construction and management of a second
container terminal week 23 and will accept
offers until July 14.
“We want to make Abidjan the principal
hub not only between the north and
south, but also between the countries of
the south who are experiencing rapid
economic development that will
continue to grow in coming years. We
want to increase the port of Abidjan's
competitiveness in view of competition
from other ports, for example in Togo,
Senegal, Nigeria and Cameroon."
Hein Sie
Abidjan Port Director
The planned second terminal will have a
transit capacity of 1.5 million TEU per year,
adding to the port's current capacity of
800,000 containers. Construction will begin
next year, with completion expected in 2016.
The port, located in the West African nation's
commercial capital, is already one of the
region's principal shipping hubs. The bulk of
top grower Ivory Coast's cocoa exports
passes through Abidjan, as do around 60% of
goods entering and exiting land-locked Mali,
Burkina Faso and Niger.
Abidjan lost ground to regional competitors
over the past decade, however, due to an on
again off again conflict that discouraged
outside investments and froze development.
A political gridlock ended last year after a
brief civil war, and Ivory Coast's economy is
rebounding. After a contraction of 4.7% in
2011, the IMF is projecting GDP growth of
8% this year due largely to a series of major
public works projects.
Guinea: Conakry Port Transformation
In August 2011 the Government of Guinea announced that the Bolloré
Group planned to spend €140 million [US$200 million] at Conakry port to
expand facilities and improve equipment by 2013. The company will
deepen an access channel to the harbor to 13.5m [44 feet] from the
current 9.5m, and build 2-quays that will allow Conakry to handle large
container ships. Bolloré also planned to build a dry port at Dubreka,
50km north of Conakry.
Works are progressing well with doubling of the terminal capacity already
within just a year. On 04/05/12 a new 48,000m2 platform was
inaugurated located on the southwestern tip of the terminal. A second
platform of 14,000m2 has also been completed. Bolloré Africa Logistics
has also undertaken to modernize the stores, the workshop and provide
a dedicated customs hangar.
In addition, Bolloré Africa Logistics has invested in 2-mobile shore
cranes, 11 park cranes, 14 tractors and the latest generation computer
system. These investments have improved productivity from 20
movements per hour to 38 movements per hour – a first for the port.
With this first phase completed, the Group has launched an international
tender for the construction of a new platform of 12ha. The beginning of
the work is planned in the second half of 2012. A dredging tender will
also see the future draught of the port at 13m on a length of 338m. The
access channel will also be deepened.
WWW.DELMAS.COM
TRADE WATCH 08
WEST AFRICAN PORT NEWS
Nigerian Ports In Growth Mode
Dredging Today 28/05/12
Michael Ajayi, the Nigerian Ports Authority
[NPA] general manager, said that Nigerian
port container throughput has increased in Q1
by 5.7% to 210,057 TEU due to investments
by the NPA and terminal operators.
Cabinda Port Undergoes Works
Cabinda port is connecting a new floating wharf to add length to its quay. The move allows vessels
to be moored alongside the wharf more or less in deep sea. This means that operations will no
longer have to be done at anchorage from the mother vessel to a barge with the one available
floating crane.
The concession programme starting in 2006
led to a massive marine improvement in port
infrastructure which involved the laying of
channel marker buoys, maintenance dredging
and the removal of 24 wrecks along the Lagos
Channels.
Investment from terminal operators include
the Port and Terminal Multiservice Limited
[PTML] of US$100 million in infrastructure
development and APM Terminals invested
about US$200 million in upgrading and
modernizing the Apapa Container Terminal
[ACT] in the last 6-years.
Delmas Nigeria: New Office in Port
Harcourt
We are pleased to announce the opening of
CMA CGM DELMAS NIGERIA, new branch
office in Port Harcourt, representing
DELMAS and CMA CGM on 1st May 2012,
replacing the existing third party agent
Alraine Shipping Agencies Nigeria / Port
Harcourt [SDV Nigeria]. This new set up
will attend Group vessels calling at Onne
Terminal.
CMA CGM DELMAS NIGERIA Ltd /PORT
HARCOURT Branch Office
Plot 3-4 Trans Amadi Industrial Layout
Port Harcourt - River State
Delmas Sales Manager: Rotimi
OGUNWUMIJU
Tel: +234 [0] 803 339 9216
E-mail:
[email protected]
Second Phase of Namibe Port
Rehabilitation Announced
Angola Press 11/05/12 & Macauhub 25/05/12
On 11/05/12 the Angolan minister of
Transport, Augusto Tomás, announced the
conclusion of Phase 1 of the rehabilitation and
modernisation of the Namibe Port, saying
preparations are underway for the start of
Phase 2.
Works to be completed include the mineral
terminal will be refurbished, a quay for
unloading fuel will be built, and a study
carried out for construction of a deepwater
mooring station, specialising in container
cargo.
The port of Namibe in Angola processed
961,000 tons of cargo in 2011 and 18,000
containers. Port chairman, Joaquim Neto was
speaking at an event to celebrate the 55th
anniversary of the company.
Neto said that the port, a hub of development
along the Namibe corridor that also extended
to neighbouring SADC countries, was unable
to meet demand arising from development of
the region. During 2010/11 US$6.9 million
was invested to buy materials, IT equipment,
and to draw up the strategic plan for the
desperately needed rehabilitation project.
The minister also announced the start of the
project of rehabilitation of the Saco-Mar
terminal. Tomás noted that with these
projects underway, Namibe Port will boost the
southern region’s social and economic
development.
09 TRADE WATCH
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WEST AFRICAN INLAND CONTAINER DEPOT NEWS
IMPROVEMENTS
Reduced Costs, Delays For Traders In Burkina Faso
West Africa Trade Hub 09/05/12
On 30/04/12, Ouagarinter set a record: the dry port in Ouagadougou, Burkina Faso, handled 110 containers, the most ever for a single day. The
increased volume reflects steady improvements at the facility – it has cut delays by 50% in 5-years and reinforces a key message of the
Borderless Alliance: West Africa can improve its trade competitiveness.
According to Nao Oumou, the chief of the container park for Burkina Container Terminals [TRCB], the 3-entities TRCB, the Chamber of Commerce
and Cotecna inspection have all collaborated closely to improve operations. Improvements were achieved by separating cargoes arriving in
containers from cargoes arriving loaded on trucks. It takes much less time to deal with cargo in containers, particularly if the container’s customs
seal is intact. Before that change, all cargo that arrived was handled together – trucks carrying bags of rice were processed next to trucks with
cargo in sealed containers. Oumou noted “As we separated containerized cargo from bulk loaded cargo, the Chamber of Commerce deals with
bulk loaded and the TRCB deal with containers. So, the work load for the Chamber was decreased and everything works much better.”
The results speak for themselves: In 2008, on average, traders had to wait almost 8-days before cargo was cleared; today the processing time
has been cut to 2-days on average.
The lesson from Ouagarinter is reflected in a comprehensive study of transport and logistics costs on the Lome-Ouagadougou corridor undertaken
by the USAID West Africa Trade Hub. Most imports destined for Burkina Faso come through the Port of Lome. The study recommends that
stakeholders promote containerization of cargo. Ouagarinter’s results show why: significant improvements are possible. Similar gains are possible
in road governance and Burkina Faso stakeholders are pursuing them.
To view the Lome-Ouagadougou Corridor study view:
http://www.watradehub.com/resources/resourcefiles/apr12/transport-and-logistics-costs-lome-ouagadougou-corridor
Unfortunately, progress on reducing delays and bribes at checkpoints in Burkina Faso has been slow but the nation is expected to significantly
reduce the number of customs checkpoints in the coming months. Regional customs directors and the Minister of Finance are driving the reform
following the decision by the Togolese government to eliminate checkpoints. But the issue is complex. Importers divert goods – offloading
merchandise from one truck to another – to avoid paying duties. Checkpoints allow customs services to ensure cargoes reach their final
destinations – and appropriate duties are paid.
Technology is helping to address the issue. A month ago the Burkina Shippers’ Council began GPS tracking of trucks coming from Lome to
Ouagadougou as well as Tema [Ghana] to Ouagadougou and Abidjan [Cote d’Ivoire] to Ouagadougou. GPS monitoring deters diversion and
provides data that can lead to other gains in efficiency. Meanwhile a workshop as held this month in Ouagadougou, where 80 stakeholders
discussed the USAID Trade Hub study to develop ways to implement their recommendations. Meetings were held with police and customs
officials.
WWW.DELMAS.COM
TRADE WATCH 10
WEST AFRICAN RAIL NEWS
11 TRADE WATCH
WWW.DELMAS.COM
WEST AFRICAN RAIL NEWS
Bolloré To Invest In Cameroon High-Speed Rail
Reuters 14/05/12
The Bolloré Group plans to invest about 50 billion CFA francs [US$97.86 million] in a high-speed train line linking Cameroon's capital Yaounde to its
commercial hub Douala within 12 months. Speaking after meeting Cameroon's President Paul Biya, Bolloré, chief executive Vincent Bolloré, said the
group also plans to extend Cameroon's rail line to some countries in the sub-region and invest in renewable energy.
Bolloré group took over management of Cameroon's national railway in 1999 for a 20-year concession following the government's decision to
privatise the former state-run rail company. Though Cameroon is the sub-region's economic powerhouse and gateway port serving neighbours such
as Chad and Central African Republic [CAR], its rail and other transport network remains underdeveloped, undermining efforts to boost economic
growth. The country's rail network consists of a main line running from the port city of Douala through the capital to Ngaoundere in the Adamawa
Region in the north of the country, and shorter line from Douala to Kumba in the South-West Region, all covering about 1,104 km.
Bolloré group also currently manages Cameroon's main container terminal at the port of Douala, and it is vying for the concession of another
terminal at the Kribi deep sea port which is under construction.
Ghana Government Sources US$990 Million For Eastern Rail Project
Ghanaweb 22/05/12
The Ghana Government is sourcing US$990 million from the Investment and Commercial Bank of China for rehabilitation works on the Eastern Rail
lines of Nsawam to Accra and Achimota to Tema. Another US$1.95 billion is being sought from the Exim Bank of China for rehabilitation works on
the Nsawam to Kumasi rail lines.
The Ghana Railway Development Authority [GRDA], also noted that US$500 million dollars would be taken from the US$3 billion Chinese loan facility
for rehabilitation works on the Western Rail line. As part of the rehabilitation works, all the gauges would be upgraded from 10.67 to 14.35mm to
enable it to link Ghana to other ECOWAS countries and enable an increase of speed from 57 km/hr to180 km/hr. GRDA plans to extend the line to
the Northern sector and the Volta Region.
WWW.DELMAS.COM
TRADE WATCH 12
WEST AFRICAN TRADE NEWS
Phase 2 Abidjan-Lagos Trade and
Transport Facilitation Project
Reducing Trade and Transport Barriers Across West Africa
Finchannel 06/06/12
The World Bank’s Board of Executive Directors have approved US$90 million in grant financing by the International Development Association
that aims to reduce trade and transport barriers in Abidjan port and on the roads along Abidjan-Lagos in Cote d’Ivoire. The Abidjan-Lagos
Trade and Transport Facilitation Project in Cote d’Ivoire is the second phase of a regional program including Ghana, Togo and Benin. It will
finance trade and transport facilitation activities along the 130km coastal corridor in Cote d’Ivoire, as well as trade facilitation reforms in
Customs and in the Port of Abidjan. The 1,000 km Abidjan-Lagos corridor is the global gateway to coastal and landlocked countries in West
Africa, with all landlocked countries using at least one port along the corridor.
In the long term, the project will facilitate trade expansion both for imports and exports for local economies. It will
improve road infrastructure and decrease delays in border crossing time and in port dwell time and reduce non-logistics costs, such as
inventory and storage costs.
The program will enhance basic regional access and mobility of goods, and improve basic trade and transit facilitation to people that pass
through the Abidjan-Lagos trade corridor. West Africa had in 2007 a combined GDP of about US$245 billion and a gross national income
[GNI] per capita of about US$744, making it one of the poorest sub-regions in the world.
The total cost of the Abidjan-Lagos Trade and Transport Facilitation regional program is estimated at about US$405.5 million and covers
4-countries: Cote d’Ivoire, Ghana, Togo and Benin. The first phase of the program [APL1] is estimated to cost about US$257.5 million in
Ghana, Togo and Benin has been under implementation since March 2010. The second phase of program [APL2] including Cote d’Ivoire is
estimated to cost about US$148 million
13 TRADE WATCH
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WEST AFRICAN TRADE NEWS
GEPA Sets To Achieve US$5
Billion NTE Target By 2016
Government of Ghana 08/06/12
The Ghana Export Promotion Authority
[GEPA] has indicated its readiness to work
towards the achievement of its US$5billion
target in Non-Traditional Exports [NTEs] by
2016. In 2011 exports of non-traditional
products amounted to US$2.423billion which
represents an increase of 48.74% in value
over the 2010 earnings of US$1.629billion.
The NTE sector grew steadily at an annual
rate of about 16.4% from 2001 to 2008 with
the highest rate of 30.4% occurring in 2007.
The sector continues to be driven by
value-added products such as cocoa and
timber with the European Union [EU] and the
Economic Community Of West African States
[ECOWAS] markets absorbing 45.72% and
27.04% of NTE exports.
The Netherlands, United Kingdom and France
are the 3 top European countries receiving
exports while Togo is the highest ranked in
the ECOWAS Sub-Region. The outlook is
bright for 2012 with the government
supporting the sector making credit and
training available.
Nigeria Free Trade Zones
Oxford Business Group 07/05/12
While a large number of free zones have
been established in Nigeria since the 1990s,
offering a host of encouraging regulatory and
fiscal incentives and bringing in billions in
direct investment, many of them have yet to
reach their full potential, with operators
continuing to face some broader challenges,
including infrastructural bottlenecks.
Speaking at the third annual Free Trade Zone
[FTZ] Nigeria Conference and Exhibition held
in early April in Lagos, Adesina Agboluaje,
the managing director of the Nigeria Export
Processing Zones Authority, the government
body responsible for the licensing, monitoring
and regulation of free zone schemes in
Nigeria, said the country’s FTZs have in total
attracted more than US$13.6bn of
investment thus far.
Around US$5.3bn of this amount has been
directed towards the FTZ in Onne, while the
other zones combined received the balance of
US$8.3bn.
The FTZ at Onne, which opened in 1997, is
located in Rivers State. Dedicated entirely to
the oil and gas industry, it is home to more
than 30 international players in the sector.
However, Onne is just one of many FTZs in
Nigeria, which is home to a total of 25 zones
in operation, under construction or in the
planning stages. Some, like Onne, are
focused on specific sectors, while others are
more broad-based, such as the FTZ currently
under construction at Lekki.
Development of the Lekki FTZ, which is being
built on some 16,500 ha of land southeast of
Lagos, began in 2004. The multi-use facility
will have zones for several sectors of the
economy, including oil and gas, industry,
manufacturing, media and tourism, and
others.
The project at Lekki, like several other zones
in Nigeria, is a public-private partnership,
owned by a consortium of Chinese investors
[60%] and the Lagos state government
[40%]. Other FTZs are either fully owned by
the private sector or the federal or state
government.
To make the zones attractive to private
investors, the federal government has put in
place numerous incentives, including tax
breaks; waived duties on imported
machinery, equipment and semi-finished
materials; discounted rent; repatriation of
profits; and the ability to operate without a
partnership with a local investor.
A further and more unusual incentive is the
provision by which companies operating in
Nigeria’s FTZs are not restricted to export
activities, but can also sell goods directly into
the domestic market. In certain cases, the
government has also supported the
development of infrastructure in and around
the country’s free zones.
For example, at the Onne FTZ, the
government invested heavily in Onne’s port
by upgrading 2-terminals and improving
quayside facilities, communication links and
other services.
Gambian Customs Generates Over
D212 Million
Daily Observer 04/06/12
The Customs and Excise Unit of the Gambia
Revenue Authority in May 2012 injected
D212.8 million to the Treasury. This figure
exceeds the target of D180.8 million tasked
for the unit to collect for last month by the
Gambia Government.
This sum is attributed to the large volume of
trade the country registered last month as
the Banjul port. Operations had to continue
during weekends to clear the backlog of fully
loaded ships docked at the port.
New Agency Office In Banjul
We are pleased to announce the opening of
DELMAS GAMBIA, a new CMA CGM Group
Agency in Banjul [Gambia], agent for
DELMAS and CMA CGM as from 1st June
2012 replacing the existing third party
agency Gambia Shipping Agency [GSA]. Mr.
Thomas Fromet de Rosnay has been
appointed as General Manager. Your
DELMAS sales contact is Bakary Demba
[email protected]. DELMAS
GAMBIA will operate independently located
within GSA‘s office at following address:
DELMAS GAMBIA / Banjul Office
C/O GAMBIA SHIPPING AGENCIES LTD
1 A Cotton Street - PO BOX 257
Banjul
Gambia
Above: Lekki Free Trade Zones Artist's Impression
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TRADE WATCH 14
EASTERN
EAST AFRICAN PORT NEWS
15 TRADE WATCH
AFRICA
NEWS
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EAST AFRICAN PORT NEWS
Left: Maputo Port
Ongoing Projects In
Mozambique’s Maputo Port To Be
Finished By End Of Year
Macauhub 21/05/12
Three investment projects to expand basic
infrastructures in the port of Maputo should
be completed this year, according to the
schedule approved for the respective
2012-2030 development programs.
Budgeted at about US$4 million, the project
includes US$1 million for enlarging the port’s
main access gate, through which over 600
trucks pass daily to be finished in September.
US$2 million has been allocated for a study
to be completed by December on eventual
renovation of docks at the port terminal.
The recent completion of dredging work in
the access channel, whose maximum depth is
now 12m, means the port is now able to
receive large-tonnage ships. But new
infrastructure is required to handle such
vessels. Lastly US$1 million warehouse
renovations should be finished by this
September. Plans then call for Phase-2 of the
vehicle terminal expansion project to be
completed in 2013, with US$20 million
applied to up its capacity to 100,000 units.
Access Channel To Port Of
Maputo Improved
Macauhub 30/05/12
Safety in the access channel of Maputo port
has been improved as a result of updating
the navigation chart by the National
Institute of Hydrography and Navigation.
The chart, which was updated in January
has already been presented to navigation
agents and the companies that operate
regularly at the port of Maputo.
Modernisation of the chart was a necessity
not only because of incidents in the channel
but mainly because recently the port of
Maputo has seen a heavy traffic increase as
a result of growth in regional and
international trade. As part of efforts to
respond to this level of demand the port
authorities have dredged the access channel
to give it a depth of 12m as compared to 9m
previously, which allows ships with a
capacity of up to 60,000 tons to enter the
port.
Tanzania: Dar es Salaam
To Build Two New Shipping
Ports
Daily News 30/05/12
The Tanzania Ports Authority [TPA]
has registered a TZS40 billion
[US$25 million] profit but has been
cautioned against complacency and
told by the government to increase
efficiency and seriously compete for
business with other ports in the
neighbouring countries.
Tanzania needs US$6.1 billion over
the next 5-years to finance
infrastructure development projects
including railways, ports, airports
and roads. Tanzania is currently in
the process of expanding its Dar es
Above: Dar es Salaam Port
Salaam and Mtwara ports while at
the same time planning to build
2-new ones at Mwambani in Tanga and
crossings in the region, the countries and the
Mbegani in Bagamoyo. New investments are
East African Community have resolved to
also needed for inland and lake ports. On
convert the main border crossings into
expansion and rehabilitation of Kurasini Oil
One-Stop Border Posts [OSBP], with the
Jetty [KOJ] the project is progressing
coordinated support of bilateral and
smoothly.
multilateral donors.
The government is also in the process of
repairing and modernising the central railway
line which spans 2,707 km from Kigoma to
Dar es Salaam and upgrading Tanga to
Arusha line which covers 438 km that would
be connected to the new Kampala port to
provide shorter access for Uganda freight
traffic for exports through Mwambani. The
new development of coal and iron ore
mining in Mchuchuma and Liganga in south
central Tanzania is planned to be connected
to the nearest port of Mtwara for economic
reasons.
Transportation via railway is far cheaper than
road. The cost of transporting 1-tonne of
goods per km on road in Tanzania is
US$0.15. yet transportation of the same
weight on railway is about US$0.07.
Currently in Tanzania over 95% of heavy
traffic is transported by road, while only 2%
is moved by railway. This level implies
underutilization of the railway mode and thus
costs the nation in terms of road
maintenance funding.
Kenya: PMAESA and TTCA Pledge
to Work Together
PMAESA 06/06/12
Tanzania: Dar es Salaam Port
Reforms Attract Zimbabwe
East Africa Business Week 28/05/12
The Zimbabwe Government has shifted its
imports and export activities to Tanzania's
principal port from South Africa and
Mozambican ports due to enhanced services
at Dar es Salaam docks. The Bank of
Tanzania [BoT's] Economic Review noted the
improved services at Dar es Salaam Port
have attracted more hinterland countries to
use the facility.
This means that the Zimbabwean
government, which largely depends on South
Africa and Mozambican ports, has now
started using Dar es Salaam port for its
imports and exports. Other African countries
which use Dar es Salaam port are Zambia,
Malawi, DRC, Mozambique, Rwanda, Burundi
and Uganda.
Dar es Salaam port is the Tanzania principal
port with a rated capacity of 4.1m [dwt] dry
cargo and 6.0 m bulk liquid cargo.
Two-major transport institutions based in
Mombasa, the Port Management Association
of Eastern and Southern Africa [PMAESA] and
the Transit Transport Coordination Authority
of the Northern Corridor [TTCA] have pledged
to work together for the good of trade and
transit transport in the region.
PMAESA and TTCA were both founded by the
United Nations Economic Commission for
Africa [UNECA] to co-ordinate trade activities
in the region. This will include the
harmonization of port statistics and
performance indicators; an assessment study
on investment opportunities and
establishment of a regional permanent
coordinating working group. Key projects also
cover an assessment study on port
privatization & concessioning; and maritime
safety and port security.
The authorities are also taking more than
just a keen interest in border crossing delays
which have been identified in the region as a
major constraint for trade logistics, impacting
on the transport costs and prices, and
ultimately on trade competitiveness.
PMAESA groups seaport authorities and
transport ministries in about 20 states within
the region. These are Sudan, Eritrea,
Djibouti, Ethiopia, Somalia, Kenya, Rwanda,
Burundi, Tanzania and Mozambique. The
others are Malawi, Zambia, Zimbabwe, South
Africa, Namibia, Angola, Madagascar,
Mauritius and Seychelles. PMAESA’s main
focus is to coordinate for best practices for
port activities within Eastern and Southern
Africa while TTCA’s main concern is facilitate
elimination of trade barriers in the Northern
Corridor transit route that links East Africa’s
premier port of Mombasa to the Great Lakes
region states such as Uganda, Rwanda,
Burundi, Congo DR and Southern Sudan in
the near future. www.pmaesa.org
TTCA aims at achieving an economic
development of the Corridor that offers
internationally competitive transit transport
services, promotes national and regional
trade and integration, and provides
opportunities for private sector investments
along the Corridor. www.ttcanc.org
Kenya: Tideland Signal Lands
Mombasa Port Contract
Dredging Today 22/05/12
Tideland Signal Limited, a British-based
member of the Tideland group of companies,
has won another major contract to supply
buoys and lanterns for the port at Mombasa.
The order was placed by Van Oord of the
Netherlands, which has improved access to
Mombasa by dredging the Kilindini Channel
to a depth of minus 15m.
Under the contract, Tideland has supplied
five SB-2200 buoys complete with SolaMAX
140 lanterns, MaxiHALO-60 flashers and
mooring sets, as well as thirteen RL-170 LP
LED range lanterns that will define the access
channel from the outer to inner harbour.
In addition to deepening the Kilindini
Channel, Van Oord has also widened it so
that it measures at least 300m across, while
the turning circle has also been dredged to
minus 15m and widened to 500m. According
to the Kenya Ports Authority, Mombasa will
be able to handle ships of 4,500 TEUs
capacity. The dredging project which was
finished ahead of schedule, took 18 months
to complete and cost US$62 million.
In order to improve the efficiency of border
WWW.DELMAS.COM
TRADE WATCH 16
EASTERN AFRICA WAREHOUSING NEWS
Rwanda: Magerwa Bonded
Warehouse Set to Operate 24 Hours
The Independent 22/05/12
Magerwa, Rwanda's public bonded warehouse, is
expected to operate 24 hours a day beginning July in
an effort to expedite clearance of goods entering the
Rwandan market to boost trade. The move is expected
to help Rwanda rank better on facilitating businesses
to trade across borders, an indicator in the World
Bank's Doing Business Rankings.
Rwanda's poor ranking is always linked to delays at the borders and inland warehouses
dragging businesses into extra costs and reducing the time required for goods to bring back the
invested capital and profit.
Pushing warehouses to open 24 hours follows directives from Rwanda Revenue Authority [RRA]
to all warehouses in the country to upgrade their service hours from 16 to 18 hours a day
effective May 1. RRA Commissioner General Ben Kagarama says the launch of 18 hours
services was a pilot exercise in preparation for the expected upgrade to 24 hours in July.
Currently, Magerwa and SDV, a private inland container depot [ICD], which also offers handling
and storage services to the importers, are operating 18 hours in their warehouses in Gikondo,
Gasata and Kabuye, all located in Kigali city.
However the warehouse companies believe that the increase in operating hours on their side
increases the costs and in response they have reduced the number of free storage days from 7
to 3-days. Beyond that, they will start paying Rwf1/kg per day.
In a bid to continue facilitating cross-border trade, Rwanda is also expected to launch
electronic cargo tracking system, which will primarily increase safety of goods to and from the
ports and also help RRA to curb tax evasion. Once it is launched, the new system will bolster
Rwanda’s electronic single window project, which was launched on Feb.7 as a pilot project with
the aim to facilitate cross border trade. The project, which RRA launched with support from
TradeMark East Africa [TMEA] and the United Nations Conference on Trade and Development
[UNCTAD], aims at expediting and simplifying information flows between traders and
government at a single entry point or border.
MAGERWA warehouse operates a ‘Blue Channel’ regime which enables compliant importers to
have their goods go through without being offloaded for checking. This not only saves
importers time but also money.
17 TRADE WATCH
WWW.DELMAS.COM
EASTERN AFRICA RAIL NEWS
EAC Railway Project Gets U.S.$1.8
Million Boost to Lower Transport
Costs
East Africa Business Week 10/06/12
The Indian Trust Fund and the New
Partnership for African Development [NEPAD]
have given the East African Community
[EAC] railway sector enhancement project a
grant of US$1.8 million aimed at lowering
transport costs in the region.
The project will commence in June 2012 and
end in June 2014 composed of harmonization
of the regulatory and legal framework,
pre-feasibility and feasibility of missing
railway links and the creation of a regional
coordination unit. The study will allow
member states of the EAC to develop and
improve efficiency of the railway sector as
the whole transportation sector is
characterized by very high road transport
costs of bulk goods by trucks which impedes
trade and inflate prices.
The fund will also help EAC to undertake a
feasibility assessment towards the eventual
establishment of the EAC Railways Authority.
The backbone of formal intra-EAC trade is the
Northern and Central corridor starting from
the ports of Mombasa and Dar es Salaam and
reaching to the border of DR Congo. This is
along with a north-south road link through
Namanga on the Kenya-Tanzania border.
These corridors are critical for transit of EAC's
imports from outside and its goods exports
beyond the region. The objective of the
project is to improve efficiency and
modernize the railway sector in the EAC.
When the project is completed, it will enable
a large scale shift of the transportation
modalities of long-haul bulk goods from
roads to the less costly railways.
Mozambique Sena Coal Rail
Upgrade Seen Ready By
November
Reuters 04/06/12
Mozambique' ports and railways company
CFM expects to complete a much-delayed
refurbishment of the Sena rail line linking the
port of Beira with coal mines in Tete province
by November this year. After the upgrade is
completed, the line will be able to carry 6.5
million tonnes of coal per year, up from 2
million tonnes now, before being expanded
further.
All the work is on track. This is the first phase
of a rehabilitation of this infrastructure to be
undertaken by CFM to ensure that the line is
able to carry 12 million tonnes per year by
2013 and 20 million tonnes within 3-years.
Infrastructure bottlenecks remain the main
concern for coal miners setting up in
Mozambique, and both the government and
the private sector have come up with various
projects to expand and build new rail lines
and ports.
infrastructure incapable of coping with large
scale mineral extraction. Work on the railway
has already begun in neighbouring Malawi,
and Vale hopes that negotiations will soon be
concluded with the Mozambican government
so that work can also begin in Mozambique.
In December, Vale signed a rail concession
contract with the Malawian government
allowing it to build and operate the new
railway across southern Malawi. The new line
will run from Chikwawa in the far south of
Malawi for 137 km to Nkaya Junction, where
it will meet the existing line to Nacala.
Brazil's Vale began first exports from its
Moatize coal mine last year and already used
the Sena line to move coal to Beira. Others
were forced to move their coal by trucks.
CFM was asked to complete the upgrade of
the Sena line after the government cancelled
a contract it had with India's Rites and Ircon
[RICON] when the consortium had failed to
deliver the project despite many delays. The
line was initially scheduled for completion in
September 2009 to carry coal from Tete
where the likes of Vale and Rio Tinto are busy
developing mines that will serve Mozambique
and exports.
Mozambique: Vale to Spend Four
Billion On New Rail Route
AIM 06/06/12
The Brazilian mining company Vale plans to
spend US$4 billion on developing a new rail
route to transport coal from its mine in
Moatize to the port at Nacala in the north of
the country.
The railway will travel from its coal mining
venture in the western province of Tete,
through Malawi, to a new coal terminal at
Nacala-a-Velha port. Although Vale would
fund the new railway, which would be built in
partnership with the public ports and rail
company CFM, the railway would also be
used to transport other cargo and
passengers.
The initiative is necessary because it is clear
that Mozambique has a weak logistical
Zambia: New Lease Of Life For
TAZARA
Daily News 12/06/12
The government of Zambia has made a
commitment to pump US$10 million to
revamp the ailing 1,800km Tanzania-Zambia
Railway Authority (Tazara). The Zambian
Minister of Transport, Yamfwa Mukanga, said
the government would inject US$5 million to
increase the volume of cargo and
passengers.
A year-long feasibility study is currently
underway to establish the problems that
afflict the railway that links the Dar es
Salaam port in Tanzania to Kapiri Mposhi in
Zambia. The study has already started and it
is expected to be completed in June 2013.
The once-successful railway line plummeting
in the mid 1990s. Tazara is a brainchild of
former Tanzania and Zambia presidents,
Mwalimu Julius Nyerere and Kenneth Kaunda,
respectively.
WWW.DELMAS.COM
TRADE WATCH 18
EASTERN AFRICA RIVER NEWS
Malawi,
Mozambique
Agree On
Shire-Zambezi
Route Study
NyasaTimes 14/05/12
Malawi has agreed with Mozambique that experts should assess the environmental and biodiversity
implications of making the Shire and Zambezi rivers navigable so that they can launch an inland waterway
project to the Indian Ocean giving Nsanje port a new lease of life.
To that affect an agreement was signed 12/05/12 in Maputo by Malawi President Joyce Banda and her
counterpart Armando Ghebuza. The projects aim is to reduce the high costs of importing and exporting
goods by road via Malawi’s commercial capital, Blantyre and the Mozambican port city of Beria – a round trip
of about 1,200km – cutting cost of Malawi’s imports by 60%.
But navigation of the Zambezi River caused misunderstandings between neighbouring Malawi and
Mozambique. Malawi Foreign Minister Ephraim Mganda Chiume and Mozambican Foreign Minister Oldemiro
Balói, agreed on behalf of the 2-countries from now on to deal with issues about the navigability of the
Zambezi together.
They also gave assurances that the African Development Bank agreed to fund the feasibility study that
formed part of the MoU on the Shire-Zambezi Waterway project signed by Malawi, Mozambique and Zambia
in April 2007 and that the study was proceeding.
19 TRADE WATCH
WWW.DELMAS.COM
EASTERN AFRICA ROAD NEWS
Kenya Signs Japan
Funding Accord for Roads
in Nairobi
Bloomberg 02/06/12
Kenya has signed agreements with
the Japan International
Cooperation Agency for US$360
million in loans and grants to
improve roads.
The loan involves building a road
from Mombasa port’s container
terminal, also known as the Dongo
Kundu bypass.
The construction of the bypass is
aimed at decongesting the city of
Mombasa, by providing an
alternative to the Likoni ferry
crossing by linking the mainland
with the South Coast.
Once completed, the project will
also facilitate access, mobility and
transportation of goods and
passengers from the South Coast
to other parts of the country as
well as neighbouring countries.
Finance Minister Njeru Githae said
the bypass will further complement
the ongoing expansion of the
Mombasa Port.
Roads Minister Franklin Bett has
already instructed the Kenya National
Highway Authorities to start land
procurement on the corridor urging for
construction to start in early 2014. The
Dongo Kundu project has been in the pipeline
for decades.
Meanwhile the Roads Minister announced
plans to revive the Nairobi Eastern bypass
project which collapsed last year.
Currently the Finance Ministry are in
Washington, United States, negotiating with
the World Bank to provide funding for the
project expected to cost $400million
[Sh34bilion] with the government
contributing $100 million [Sh8.5billion] and
the World Bank $300 million [Sh25.5billion].
Kenya will also receive a grant of 1.7 billion
shillings to widen 4.7 km along Ngong Road
in Nairobi to 4 lanes.
Uganda: Development of
1000km of Roads
being rehabilitated and upgraded under the
Main Trunk Roads Project as part of the
Millenium Challenge Compact [MCC], signed
by former US President George Bush and
President Jakaya Kikwete in 2008.
Others underway, operating simultaneously
with the Tanga-Horohoro highway, are in
Sumbawanga, Mbinga, Tunduma, Songea and
Namtumbo.
Through the MCC Compact, the American
people provide financial support for several
other projects in the transport sector and
provision of technical assistance to Tanzania
Roads Agency [TANROADS] to enhance their
capacity for operating and maintenance of
roads throughout Tanzania. Sinohydro
Corporation Ltd. of China was the contractor.
Mozambique: China Formalises
Credit for Maputo - Catembe
Bridge
AIM 31/05/12
The Exim Bank of China on 30/05/12
formalised an agreement to provide US$72.5
million to finance the building of a bridge
across Maputo Bay linking the centre of the
capital city with the district of Catembe. The
amount represents 10% of the total funding
for the project. The bridge will be 2,700m
long, and will stand 48m above the bay of
Maputo, allowing ships of any size to enter
and leave Maputo port.
Currently, anyone wishing to travel between
Catembe and the capital has to use a ferry
across the bay. Originally, funding for the
project was expected to come from Portugal.
But a financial crisis has made it impossible
for the Portuguese government to honour its
promises.
UKDTI 21/05/12
The Uganda National Roads
Authority [UNRA] has identified the
need to upgrade from gravel to
paved standard approximately
1,000km of roads supporting the
primary growth sectors of tourism
agriculture and oil and gas.
UNRA therefore seeks to procure
firms with the capability to organise
funding for road development
projects supporting the primary
growth sectors that will be
packaged into 4-lots of
approximately 200-500km total
length.
Tanga Road Eases
Tanzania - Kenya Travel
IPPMedia 15/05/12
With the Tanga-Horohoro trunk
road near completion traffic volume
across the border to Kenya is
anticipated to double. The road is
one of several trunk roads that are
WWW.DELMAS.COM
TRADE WATCH 20
EASTERN AFRICA TRADE/ECONOMY NEWS
EU Trade-Development Deal With
Four African States
RTT News 14/05/12
The first interim Economic Partnership
Agreement [EPA] concluded by the EU and
Mauritius, Madagascar, Seychelles and
Zimbabwe took effect on 14/05/12.
The Agreement provides duty and quota free
access to the EU market for exports from
Mauritius, Madagascar, Seychelles and
Zimbabwe. These countries will gradually
open their markets to European exports over
the course of 15 years.
In 2011, total EU imports from the four
Eastern and Southern African [ESA] countries
amounted to about €2 billion. The main
imports were processed tuna, coffee, cane
sugar, textiles, tobacco, cut flowers and
metals.
In the same year, EU exports to the four ESA
countries amounted to €1.7 billion and
comprised mainly machinery, vehicles,
pharmaceutical products and chemicals.
EPA negotiations with other African regions
have intensified over the last year. Recently,
progress has been made at technical level
with the East African Community and West
Africa.
Kenya’s EAC Exports Up 34%
East African 19/05/12
Kenya’s exports to the East
African Community [EAC]
grew by 34% last year on
the back of improved
commodity prices.
Exports to Uganda
grew the most, from
US$626 million to
US$915 million a
47% rise.
Kenyan firms are
increasingly
focusing on the
EAC for business,
attracted by
friendlier trading
policies in countries
like Uganda, as regional
integration picks up.
Exports to Rwanda, Tanzania and
Burundi grew by 28.7%, 25.7% and
8.2% respectively, according to Kenya’s
Economic Survey 2012 by the Export
Promotion Council [EPC].
The growth in export earnings was driven by
a weak shilling and high global commodity
prices. A stronger dollar also helped push up
export earnings from Kenya’s main
international markets like Europe, where the
country sells its flowers.
Sudan to Kenya, allowing businesses to trade
with two of the world’s fastest growing
economies, and giving the country access to a
population of over 90 million people - which is
the equivalent of the population of Kenya,
Uganda and Rwanda.
On the other hand, imports from Burundi
grew by 225% the largest margin, rising from
US$1.7 million to US$5.6 million. Imports
from Tanzania stood at US$187.6 million,
having grown by 48.5% compared with 2010.
The country remains Kenya’s main source of
imports within the EAC bloc. Prices for tea,
horticulture and coffee led to increased export
performance. Imports from Uganda slowed
down, growing by 12.11% compared with
108% in 2010, while imports from Rwanda
dropped marginally US$5.1 million to US$5
million.
Overall, the four East African community
partners, Tanzania, Uganda, Rwanda and
Burundi accounted for about 55% of all
exports to Africa, and about 27% of Kenya’s
total exports.
However, EAC members countries contributed
a paltry 2.8% of Kenya’s total imports, a
factor that trade experts blame on Kenya’s
large oil bill and the fact that EAC countries
produce largely the same goods.
The fact that Kenya has a strong
manufacturing sector means it can
produce products at a relatively
cheaper price, making it very
hard for other EAC countries
to compete with it.
But with Uganda likely to
start commercial oil
production sometimes
next year, and with the
oil imports accounting
for nearly 50% of the
Kenya’s total import
bill, trade experts say
EAC countries could
take a bigger share of
Kenya’s import bill.
Top export region remains
the Common Market for
Eastern and Southern Africa
[COMESA] with export values to this
region accounting for 35.5% of total
exports in 2011. Total exports to Africa
accounted for 48.5% of total exports, while
exports to the European Union made up
22.5% of total exports.
To shore up the export volume and value, EPC
said in the statistical update that it has
adopted an aggressive export promotion
campaign for Kenya in non-traditional export
destinations like the United Sates.
For the better part of last year, the Kenya
shilling weakened sharply against major
currencies like the dollar, hitting a historic low
of Ksh107. Kenya’s export earnings grew from
US$5 billion in 2010 to US$6.1 billion last
year. The statistics came as Kenya said it was
looking at new export markets to diversify
trade.
For instance, EPC said, it will participate in the
forthcoming AGOA forum, which is scheduled
to take place in Washington DC on June
14-15. Kenya is also seeking to increase
exports to China, Japan and the Gulf
countries.
“New markets and expansion of various
infrastructure projects will support
growth in trade in 2012.”
The National 20/05/12
Wycliffe Oparanya
Kenya’s Minister for Planning,
Development and Vision 2030
The project will open up Ethiopia and South
21 TRADE WATCH
UAE Is Once Again Top Exporter
To Kenya
Exports from the UAE to Kenya surged nearly
72% last year, helping the Emirates to
surpass China and India to reclaim its position
as the largest exporter to the East African
country.
The value of exports from the Emirates
reached 199 billion Kenyan shillings
[Dh8.67bn] last year boosted in part by an
increase in oil prices, according to figures
from the Kenya National Bureau of Statistics
[KNBS].
Oil accounts for the vast majority of the UAE's
exports to Kenya. Total demand for petroleum
products in Kenya last year was 3.94 million
tonnes, 1.9 per cent more than in 2010, the
report states. In 2010, China was the biggest
exporter to Kenya. There is an imbalance in
trade between the UAE and Kenya.
Kenya's exports to the UAE are substantially
lower, with goods that include tea, coffee,
fruits and nuts, vegetables and fish totalling
18.85 billion shillings in 2010. Globally, tea is
Kenya's biggest export, followed by
horticultural products and coffee.
Although investment flows into Kenya from
the UAE have been relatively limited, the Abu
Dhabi Fund for Development has supported
some infrastructure projects in Kenya with
grants and loans.
The UAE's Ministry of Economy has said that
the Emirates' investment in Africa is expected
to increase significantly in the coming years
as the UAE continues its economic
diversification efforts. The sectors it is
interested in developing on the continent
include infrastructure, energy, mining,
transport and mobile communications, it has
said.
In November, Kenya and the UAE signed an
agreement to avoid double taxation - part of
efforts to develop economic relations between
the two countries. All of the UAE's national
carriers would be exempt from taxes on
commercial profits, according to the
agreement.
Kenya has highlighted on a number of
occasions that it is keen to attract more
investment from the UAE in projects including
infrastructure. Tourism and aviation links
between Kenya and the UAE have also been
strengthened lately. Last month, Etihad
Airways introduced flights between Abu Dhabi
and Nairobi.
Tanzania Trade With Emerging
Markets ‘Significant’
The Citizen 24/05/12
Emerging economies are now the most
significant trade partners with Tanzania,
accounting for more than 50% of the
country’s export and import.
In 2011 China [11.1%], India [11%], South
Africa [9.6%], the United Arab Emirates
[8.4%], Japan [7.1%], and Switzerland [7%]
accounted for 54.2% of Tanzania’s imports
according to statistics by the Bank of
Tanzania.
This reflects the current global economic
trends in which the global economic might is
shifting from the recession hit rich countries
of the West to emerging countries. Imports
included tyres, telephone equipments,
motorcycles, vehicles, petroleum products,
pharmaceuticals and aircraft parts.
Major destinations of Tanzania’s export of
goods were the same emerging markets.
These include South Africa, China, and India
together with Switzerland, Germany, Kenya,
Japan, Netherlands, Belgium and the
Democratic Republic of Congo [DRC] which
account for 80% of total goods exported. Gold
and other precious metals including diamond
and tanzanite are the major exports.
WWW.DELMAS.COM
EASTERN AFRICA TRADE/ECONOMY NEWS
IMF Working On New Malawi
Support Package
World's Newest Nation South
Sudan Battles To Open
Mauritius Trade Deficit Narrows
21.9 Pct In March
An International Monetary Fund [IMF] team
will visit Malawi to work on a support
package.
South Sudan has set up only about a dozen
embassies in the year since the world's
newest nation declared independence [July
2011] and an oil output shutdown is slowing
efforts to expand its diplomatic presence
abroad.
Mauritius trade deficit narrowed 21.9% to
5.25 billion rupees in March from a year ago
on lower imports. The trade deficit in March
last year came to 6.7 billion rupees.
Reuters 14/05/12
The IMF will explore "various programmes"
for Malawi, whose currency, the kwacha, lost
50% of its value in devaluation recently.
Aid has normally accounted for 40% of
landlocked Malawi's budget, although donor
flows took a knock last year after a diplomatic
spat with Britain.
Since Mutharika's death from a heart attack in
April, new president Joyce Banda has moved
swiftly to patch up ties with donors and the
IMF.
Reuters 11/06/12
The country is now eager to boost its
presence in Asian countries including China,
India and Malaysia - all potential sources of
capital for infrastructure projects and
development aid. So far Juba has managed to
establish only about half of the 22 embassies
it set as its initial goal, and might be further
hampered since shutting down oil production
in January amid a row with Khartoum over
transit fees has reduced resources.
Some embassies are not fully functioning and
in Western Europe, South Sudan has
embassies only in London, Paris and Brussels.
WWW.DELMAS.COM
Reuters 22/05/12
The value of exports overall fell by 0.8% to
6.7 billion rupees on a drop in revenues from
sales of manufactured goods, Statistics
Mauritius said in a statement. Imports fell
11.3% from a year earlier to 11.95 billion
rupees, with the cost of mineral fuels and
lubricants slowing to 2.1 billion rupees from
4.6 billion.
Britain was the main buyer of goods from
Mauritius in March, accounting for 19.5%,
while India supplied 19% of the island
nation's imports.
TRADE WATCH 22
SOUTHERN AFRICA PORT NEWS
SOUTHERN
AFRICAN
NEWS
23 TRADE WATCH
WWW.DELMAS.COM
SOUTHERN AFRICA PORT/INLAND CONTAINER TERMINAL NEWS
Left: LHM550C
South Africa: Liebherr Delivers
First Batch Of Mobile Harbor
Cranes To Durban Port
Port Technology 18/06/12
Transnet Port Terminals [TPT], the South
African port operator, has taken delivery of
2-new mobile harbor cranes from Liebherr
Werk Nenzing for its container facility in
Durban.
The two cranes are part of a R438 million
programme to boost container handling
capacity at the Durban Ro-Ro and Maydon
Wharf Terminal.
The LHM550C cranes, among a fleet of
6-ordered from Liebherr, arrived on board the
MV Trina vessel earlier this month. Two more
cranes are scheduled to arrive in June with
the remaining 2-cranes arriving in November.
The new mobile harbor cranes boast a lifting
capacity of 140 tonnes and will be the first to
enable TPT to handle 18 container rows
across deck through a 54m boom.
They will also allow TPT to test Liebherr’s
new hybrid technology known as Pactronic,
which improves load lifting, lowers speeds,
and reduces both fuel consumption and gas
emissions by 30%.
The Durban Ro-Ro and Maydon Wharf
Terminal handles predominantly break-bulk
and Ro-Ro cargo.
However, the terminal has been earmarked to
handle some of the 400,000 TEU of container
traffic diverted from Durban Container
Terminal’s [DCT] Pier 2 per annum, while
berths undergo deepening and refurbishment
over the next five and a half years.
the Chief Harbour Master responsible for
Marine Services and the general manager of
Infrastructure and Port Planning tasked with
driving capital investment and infrastructure
developments.
Msagala was formerly general manager of
Resource Management at Transnet Freight
Rail (TFR) since 2000.
Equipment and maintenance is one aspect of
TPT’s six-point plan to handle increased
container cargo at Durban Ro-Ro and Maydon
Wharf Terminal; the other focus points being:
human resources, information technology,
infrastructure, stakeholder engagement and
change management, and planning.
New Man At Helm Of SA's Port
Operations
Herbert Msagala has been appointed as
General Manager for Port Operations at
Transnet National Ports Authority (TNPA)
effective June 2012.
Msagala will focus particularly on improving
port operations in close conjunction with both
South African Multimodal Inland Hubs To Add To Gauteng’s Container Capacity
Engineering News 08/06/12
Gauteng will require additional container terminal capacity by 2016, when City Deep, in Johannesburg, will reach its full capacity.
Container movements to the province was projected to grow to over 3-million TEUs a year by 2020. Gauteng’s intermodal capacity
currently stands at 650,000 TEUs a year and comprised the Pretcon, Vaalcon, Kascon and City Deep hubs. The next generation of inland
hubs would create an integrated multimodal logistics capability connecting air, road, rail and sea. Tambo Springs and Sentrarand, in
Ekurhuleni, have been identified to be developed into the new improved hubs. By 2018, Tambo Springs will handle 500,000 TEUs and will
focus on economic development. The government is working towards reaching an agreement with State-owned Transnet in September so
that funding could be committed to start implementation by June 2013, for the first phase, which would comprise the railway arrival and
departure terminal, to be completed by March 2014.
WWW.DELMAS.COM
TRADE WATCH 24
SOUTHERN AFRICA RAIL NEWS
South Africa: Setting Rails In
Motion
Oxford Business Group 15/05/12
A much-needed, multi-billion rand investment
programme – spearheaded by Transnet’s
capital upgrades and targeting South Africa’s
transport bottlenecks – looks set to transform
the country’s rail and port services, although
historical issues over project delivery and
pressure on the government finances have
made its implementation a more complicated
prospect.
[$15.5bn]. PRASA also intends to build new
rail signaling and train depots, valued at
R15.5bn [$1.9bn], and develop high-density
commuter stations worth R25.9bn [$3.3bn]
over a 3-year period.
The overhaul earmarked for South Africa’s rail
system will be of key interest to exporters,
including mining companies, who are
currently saddled with the significant costs
that come from using roads for
transportation.
According to February budget statements
there will be an estimated R4.5trn [US$562
billion] in financing required for infrastructure
projects over the medium term, with roughly
R845bn [US$105.5bn] already budgeted for.
Rail development should also hugely improve
South Africa’s public transport network, which
forms a key component in the government’s
efforts to address the country’s economic
inequalities.
This extensive outlay forms part of the
government’s broader plans to modernise the
country’s infrastructure and are also in line
with its bid to promote export
competitiveness and public transport –
particularly train travel, which it hopes will
reinvigorate both passenger and cargo
volumes.
Transnet’s Loco Procurement May
Cost R35bn
The state-owned transport and logistics
company Transnet unveiled its R300bn
[US$37.9bn] capital investment programme
in April, which earmarked R205bn [$25.9bn]
for rail developments. Among its targets, the
initiative aims to raise freight rail from its
current volume of 200m tonnes to 350m
tonnes by 2019.
The company plans to finance R213.6bn
[$26.9bn] of the scheme from operating cash
flows, with the remaining funds to be raised
on debt capital markets. It will also allocate
R7.7bn [$972,500] to be spent on training
and skills development over the next seven
years.
The expansion of the cargo rail network and
rolling stock is being mirrored in the
passenger rail sector, spearheaded by the
fleet renewal programme recently announced
by the Passenger Rail Association of South
Africa [PRASA].
In April, the minister of transport, Sibusiso
Ndebele, invited firms to submit bids for the
construction of 7,224 commuter rail coaches
over the course of 20 years valued at R123bn
Creamer 17/05/12
The procurement of 1,064 new locomotives
by Transnet could cost about R35-billion.
Transnet will begin implementing a 7-year
locomotive fleet procurement of
“unprecedented scale in South Africa’s
history”.
The acquisition of the locomotives formed
part of the group’s larger R300-billion market
demand strategy, which would involve a total
investment of R201-billion into South Africa’s
railways infrastructure and rolling stock. A
further R47-billion would be directed towards
harbour infrastructure, R33-billion towards
port terminals and R11-billion to fuel
pipelines.
In addition, R4-billion had been allocated for
Transnet Rail Engineering to upgrade its
locomotive manufacturing and assembly
facilities and to pursue research and
development into a so-called African
locomotive.
Nine bidders were already competing to
supply 95 electric locomotives for Transnet
Freight Rail’s general freight business, having
made their bid submission in mid-April.
Future locomotive purchases will be pursued
on a so-called ‘fleet’ basis, partly to ensure
high levels of local content.
Transnet had already entered into contracts
valued at R14-billion that included local
supplier development commitments of
R5.4-billion, of which R2.9-billion had already
been delivered. “During the second half of
this year, the Department of Public
Enterprises will also be hosting a Supplier
Development Summit where comprehensive
details of Eskom’s and Transnet’s procurement
and supplier development plans for the next 5
years will be shared with industry.
Transnet Freight Rail Studies
Botswana–South Africa Link
Engineering News 11/05/12
The feasibility study for a coal rail link
between Botswana and South Africa is under
way and is expected to be completed by the
end of the current financial year according to
State-owned Transnet Freight Rail [TFR].
The link would form part of the heavy-haul
expansion in Limpopo’s Waterberg coalfields
to bring coal from Botswana for export. The
heavy-haul line would have a capacity of
80-million tons a year when completed.
Currently there is no rail infrastructure that
crosses from Lephalale into Botswana, the
idea is to build the link near the Stockpoort
border post to link to Mahalapye or further
south to link to Mmamabula.
The line would run from the southern end of
the Waterberg reserve to the northern side of
the Botswana-run network to open the
Mmamabula coalfields, and possibly the
reserves located across the Zimbabwean
border.
TFR is engaged with Botswana Rail to discuss
the rail link and was currently actively
marketing the project.
Global expansion in the seaborne thermal coal
market, diminishing coal reserves in the
Witbank region and new power stations in the
Waterberg contributed to the urgency of
solving logistical challenges in the area.
TFR has a 2-tiered approach to developing rail
in the Waterberg, which included minor
expansion options through enhancement of
the existing route and infrastructure, as well
as major expansion options that would result
in the doubling of the current route,
infrastructure upgrades and new heavy-haul
routes.
The new Waterberg rail lines would run over
560km and would include a new single line
between Thabazimbi and Ermelo.
TFR plans to add 23-million tons a year to the
capacity of the line running from Lephalale to
Ermelo by 2020. A new single bidirectional
line would also be constructed between
Lephalale and Ermelo from 2026 onwards. It
would have a capacity of 112-million tons a
year.
Around R200-billion of Transnet’s
R300-billion, 7-year rolling capital investment
programme would be invested in rail, a good
portion of which would be directed towards
commodity export corridors. It would be
spent on freight rail projects and included
capital for the Waterberg rail expansion.
In addition to TFR’s plan to increase its coal
rail line throughput to 81-million tons a year
by 2014, it was also planning further
investments to ramp up coal supply to
State-owned power utility Eskom to
32-million tons a year, excluding the Tutuka
and Camden power stations.
25 TRADE WATCH
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SOUTHERN AFRICA RAIL NEWS
South Africa: Work On R5.2 Billion
Majuba Rail Line Begins
Creamer News 14/05/12
State-owned power utility Eskom has initiated
a process to prequalify bidders for the civil
construction of the R5.2-billion Majuba railway
line project, which will be funded partly from
finance secured from the World Bank in 2010.
Envisaged is the construction of a 68km
heavy-haul line from Ermelo, in Mpumalanga,
to the Majuba power station, in
KwaZulu-Natal. The coal will be sourced from
various mines in Mpumalanga and will shift
the transportation mode from road to rail.
Initially, the line will handle 14-million tons of
coal yearly, but will have a nameplate design
capacity of 21-million tons.
Construction of the line should begin in
November and continue for a 24-month
period. The new line will be operated by
Transnet Freight Rail [TFR], which is
undertaking a separate process to acquire
rolling stock for the operation of the new line.
The operation agreement between Eskom and
TFR has not yet been concluded, but it is
envisaged that the line will carry its first fully
laden 100-wagon train on December 15,
2015.
Namibia: The Struggle For
TransNamib Rail Tenders
Informante 23/05/12
The Ministry of Transport has requested for
the Attorney General’s office to review and
amend a section of the TransNamib Act in
order to allow other market players into the
building and maintenance of Namibia’s
railways.
Any changes to Section 13 of the 1998 Act
would open the door for competitors, besides
the national transport carrier, to acquire
tenders to build and maintain Namibia’s vast
railway lines.
Under the present Act TransNamib has the
sole obligation to maintain and manage the
railway through the Railway Management
Agreement entered into between TransNamib
Holdings Ltd and Government.
Above: Headquarters of TransNamib in Windhoek
TransNamib Begs For State Help
Mail & Guardian 08/06/12
Namibia’s partial privatisation of non-core
state services appears to be heading up a
dead-end track with the news that railway
operator TransNamib will require a R2-billion
bailout over the next 3-years.
It is not only TransNamib that is in serious
trouble – its sister company Air Namibia has
swallowed up subsidies of more than
R3.6-billion in the past 10 years and shows
little sign of returning to profitability.
TransNamib, the rail carrier, which was
commercialised under the National Transport
Holdings Company Act of 1998, has a
debt-to-equity ratio of 89% and can no longer
obtain any loans from the open market.
The debt included R260-million for 22
locomotives that TransNamib bought from
China in 2004, although the state took over
the debt on TransNamib’s behalf.
According to the agreement, maintenance
includes any re-investments required to
maintain the railway line. Currently only the
Minister of Works has the prerogative to
award railway tenders to a third party.
TransNamib has not been able to repay this
debt to the government. Amid the rumours of
gifts and kickbacks, it appears the Chinese
locomotives are at the heart of the managerial
collapse at TransNamib.
One such company is D&M Rail Construction
who recently finalised maintenance work on
the Tsumeb-Kranzberg railway after it was
awarded a N$40 million tender from an initial
N$150 million approved by Cabinet last year
for emergency repairs and is expected to
receive a further N$95 million for the
maintenance of the Aus-Luderitz railway.
The previous minister of works and transport,
Helmut Angula, admitted in Parliament in July
2009 that the locomotives had suffered 265
breakdowns between October 2004 and July
2007, after which they were withdrawn from
service.
This included the showpiece of
Namibian-Chinese co-operation in railway
engineering, the Omugulu GwoMbashe Star,
which made a weekly run to Ondongwa in the
north. But the service was slow, with the trip
taking 17 hours.
Most passengers preferred taxis that did the
same 660km trip in 9-hours. After the
locomotive’s gearbox could not be repaired
economically, the train was mothballed in
2007.
Angola blamed this on a failure to assess the
suitability of the Chinese equipment for the
harsh Namibian climate and a lack of quality
control. But, ultimately, it appears that
TransNamib was politically co-opted into a
deal that has crippled its rail operations.
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TRADE WATCH 26
SOUTHERN AFRICA TRADE NEWS
SADC Infrastructure Master Plan
To Focus On Deepening
Integration
In addition the
Trans-Kalahari Corridor
is complemented by the
Maputo Corridor on the
east coast of Africa, thus
forming a transport
corridor over the entire
breadth of southern
Africa.
Engineering News 05/16/12
The Southern African Development
Community [SADC] is looking at ways to
implement trans-boundary infrastructure in
order to facilitate trade and deepen the
process of regional integration and
cooperation.
SATH had a meeting
with the Namibian
Deputy Minister of Works
and Transport Samuel
Ankama in April to
assess selected aspects
of Namibia’s road
transport legislation,
regulations, policy and
environment.
The SADC Regional Infrastructure
Development Master Plan is a strategic
framework, which articulates the region’s
aims, underpinned by a collection of projects
in sectors including energy, infrastructure,
trans-boundary water and transport. The
region aims to create a digital SADC by
2027.
The first step to creating this is to promote
policy and regulatory coordination across
borders. Once that is in place, SADC hopes to
create better e-services, research and
innovation, the development of industry and
manufacturing as well as the completion of
complementary infrastructure to support this
sector.
A recent Africa Infrastructure Diagnostic
Study has forecast necessary capital outlay of
almost US$93-billion a year to enhance
infrastructure and services in the SADC
region.
The region is facing basic infrastructure
capacity constraints, which have not only
delayed regional economic growth, but have
failed to tackle supply side constraints and
productive competitiveness, and the core
issue of poverty.
There is broad consensus that unless, and
until, the region has fully managed the issue
of access to enabling infrastructure, no
significant development will be realised,
despite immense investments.
The SADC Regional Infrastructure
Development Master Plan is specifically
designed to tackle these issues and form a
collaborative plan to facilitate growth and
cross-border cooperation in order to achieve
the goals of the region.
The reviewed master plan will be completed
in June for approval by the SADC Cluster
Ministers of Infrastructure and adoption by
Council and Summit in August, in Maputo.
South Africa, Turkey Set Up
Commission
BuaNews 11/06/12
Relations between South Africa and Turkey
are set to be elevated after Deputy President
Kgalema Motlanthe's working visit to Ankara
culminated in the establishment of a
bi-national commission between the
2-countries.
The commission, which will meet every
2-years, will be co-chaired by Motlanthe and
Turkish Prime Minister Recep Tayyip Erdogan.
Total bilateral trade between South Africa and
Turkey increased slightly to R7- billion in
2011.
South Africa's major exports to Turkey
comprise mineral products, base metals,
machinery and mechanical appliances,
electrical equipment, chemical and allied
products, vehicles, aircraft, iron and steel,
organic chemicals, ores, slag and ash.
27 TRADE WATCH
The meeting included
one with industry
players and regulatory
authorities with
oversight on road
transport issues.
Namibia Transport Barriers
Hamper Trade
New Era 30/05/12
Namibia has to eliminate major trade barriers
many of which are rules and regulations, if it
is to become the ‘regional transport and
transit hub’ by 2025.
Singled out are trade barriers in the transport
sector and their current serious implications
on the efficiency of Namibia’s Trans-Kalahari
Corridor and Tanzania’s Dar Corridor.
For instance a vehicle from Namibia delivering
cargo to Zambia, cannot pick up a load in
Zambia for transportation to Tanzania unless
this route passes through Namibia, points out
the Southern Africa Trade Hub [SATH].
Such practices have resulted in a high number
of trucks returning to their point of origin
empty. Naturally, this represents an additional
cost to transport operators which is passed on
to the operator’s clients and ultimately the
final consumers.
It looked at assisting
with “creating a more business friendly
environment in implementation of pilot
regulatory impact assessments. This type of
support is an essential element of unilateral
regulatory reform.”
SATH described the meeting as successful
saying involvement at the highest levels “is a
key element in securing regulatory reform
and this interface certainly represents a
positive step.”
The assessment looked at identifying
problems to be addressed, presenting the
range of policy options to address identified
constraints, analysing these options to
understand the impact of the different
available policies on various stakeholder
groups, and recommending the best available
option on the basis of the analysis.
Namibia’s involvement, says SATH, “sends a
positive signal to other SADC member states
on the benefits of employing empirically
based decision-making tools and of regulatory
reform generally”.
The Trans-Kalahari Corridor from Namibia and
Dar Corridor in Tanzania connect with Zambia
through the
Trans-Caprivi
Corridor that
also connects
Namibia with
Zimbabwe and
the DRC. Trans
Kalahari
Corridor covers
over 1,900km
and connects
the port of
Walvis Bay to
Gauteng in
South Africa
via Botswana.
The Dar
Corridor or Dar
Es Salaam
Corridor, also
around
1,900km,
connects
Tanzania with
Malawi, Zambia
and the DRC.
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TRADE WATCH 28