february 2013 freight & trading weekly 40 · 2013-02-06 · february 2013 cross border 5...

FREIGHT & TRADING WEEKLYFebruary 2013

‘ABSURD’

losing the battle against non-tariff barriers

regulations milk SA truckers

Africa’s cash cows...

BEITBRIDGE’S DEcEmBER DELUGE...is modernisation helping?

CRoSS-boRDER 40 YEARS

FTW5688

WBCG Head OfficeT. +264 61 25 1669E. [email protected]

WBCG South AfricaT. +27 11 258 8912E. [email protected]

WBCG Zambia T. +260 21 124 1329E. [email protected]

WBCG DRC T. +322 386 5109E. [email protected]

WBCG Brazil T. +55 11 5044 7701E. [email protected]

CONTENTS

February 2013 Cross Border 1

www.ftwonline.co.za

Editor Joy Orlek

Consulting Editor Alan Peat

Assistant Editor Liesl Venter

Advertising Carmel Levinrad (Manager)

Yolande Langenhoven

Gwen Spangenberg

Jodi Haigh

Division Head Anton Marsh

Managing Editor David Marsh

CorrespondentsAfrica/Port Elizabeth Ed Richardson

Tel: (041) 582 3750

Swaziland James Hall

[email protected]

Advertising

Co-ordinators Tracie Barnett, Paula Snell

Layout & design Tanya Bosch

Circulation [email protected]

Printed by JUKA Printing (Pty) Ltd

Annual subscriptionsCombined Print & Internet - (SA only) R530.00

Southern Africa (Free Internet) - R950.00

International Mail (Free Internet) - R1 200.00

Publisher: NOW MEDIA

Phone + 27 11 327 4062

Fax + 27 11 327 4094

E-mail [email protected]

Web www.ftwonline.co.za

Now Media Centre

32 Fricker Road, Illovo Boulevard,

Illovo, Johannesburg.

PO Box 55251, Northlands,

2116, South Africa.

Trucks line up at the Kazungula border post between Zimbabwe and Botswana.Photo: Tanya Bosch; Cover Design: Dirk Voorneveld

Page 23

Page 18

Page 10

Page 2

Big issues

Modernisation helps truckers minimise border congestion ................. 2‘Absurd’ regulations milk SA transporters........................................... 6‘Toothless’ system loses the battle against non-tariff barriers ............. 7

Road transport

SA truckers increasingly targeted ........................................................ 8Lack of regional standardisation frustrates transporters ...................... 9Celtic sets sights on expanded project focus ...................................... 14Transporter provides recipe for cross-border success ........................ 20

Logistics

Volumes flow into SACD’s new high-security warehouse .................. 5System helps improve agents’ productivity ....................................... 10Beitbridge solutions demand buy-in from both border authorities .... 12Beitbridge office preclears on both sides of the border ..................... 16Swazi Rail thrives on transit cargo .................................................... 22

General news

‘Development corridors the answer to economic integration’ ............. 4MSC’s Lusaka office offers tailor-made solutions ............................... 8Politics bedevils expansion of one-stop border post concept ............ 10Disparate regimes complicate compliance ......................................... 13Chinese fund major infrastructure projects ........................................ 14Volumes of aid freight set to drop ...................................................... 16One-stop borders the target in southern and East Africa ................... 19Customs being modernised across Africa .......................................... 21‘Modernisation has transformed business’ – ShipShape.................... 22Walvis Bay vehicle imports accelerate .............................................. 23‘Inventive solutions help overcome communications challenges at borders’ ........................................................................................... 24Chirundu one-stop border post meets revenue target......................... 25Authorities likely to scrutinise invoicing more closely ..................... 26Non-tariff barriers have become cash cows in Africa – Fesarta ........ 27New transit laws help boost Mozambican volumes ........................... 28Tobacco exporters increasingly opt for containers ............................ 28

FTW5486

JHB: +27 11 974 2585CPT: +27 21 385 [email protected]

Provider of wholesale express services to courier and freight companies wishing to reliably deliver into and out of Africa.

3 Strictly Wholesale3 African Specialist3 Courier Express3 Heavy Weight Courier3 Cross-Border Road Freight3 Airfreight3 Ocean Freight

Africa is a continent on the move and the time has come to develop a network providing first class express courier and freight services.

2 Cross Border February 2013

www.ftwonline.co.za

P & J BOTHA TRANSPORT (PTY) LTD

T: +27 16 365 5081 E: [email protected] www.imperiallogistics.co.za

For all of your tri-axle and smaller transportation requirements, give us a call.Steel, containers and break bulk, we cover it all.

Your Product at the right place at the right time

FTW5817

By Ed Richardson

Commercial traffic has suffered fewer delays over the past months at the main

South African borders thanks to the digitisation of the clearing system.

Agents at Beitbridge say the modernisation of the customs clearing system helped truckers escape the December congestion, which saw queues of cars and bakkies of up to 23 kilometres long on the Zimbabwe side of the border, as well as long delays on the South African side.

Trucks were caught in this congestion due to the lack of infrastructure to handle such

volumes, but were not “unduly delayed,” according to agents based at the border.

Similar hold-ups were experienced at the Lebombo border post with Mozambique, according to Danie Parsons, chairman of the local agents’ association.

“The systems worked very well, but the border posts came to a standstill. Trucks could not physically get through,” he says.

With some trucks carrying fuel and other hazardous cargo, this represented a threat to “hundreds” of commuters as the police and emergency services could also not get through the traffic at times. At one stage travellers faced queues of up to 14km.

“In the past the traffic was better controlled. There were a lot more traffic officers on the road. The officials have to realise that the traffic increases year by year,” he told FTW.

Traffic flowed a little faster on the Zimbabwe/South Africa border.

One of the Beitbridge agents interviewed by FTW said “in my six years on the border, 2012 was the best as far as commercial is concerned”.

South Africa’s Border Control Co-ordinating Committee (BCOCC) deployed more staff after four days of long delays.

Zimbabwean and South African officials then abandoned their blame game and got down to business.

South Africa’s deputy director of the Beitbridge border post, Elvis Mavhunga, is quoted as saying that between 26 000 and 30 000 travellers passed through the border on some days of the holiday period, compared to

about 15 000 a day the previous year.

This would have been matched on the Zimbabwean side of the border.

A makeshift clearing post in the commercial vehicle clearing area had the biggest impact on hauliers, as parking space was taken up by travellers on foot and in vehicles.

Customs officials also had their work cut out with smugglers trying to take advantage of the sheer volumes of people trying to get through the border.

Two of the most interesting finds were a consignment of false Zimbabwean passports hidden in a tyre, and a large quantity of Viagra. There seemed to be fewer

attempts to smuggle tobacco and tobacco products.

Parsons called for the establishment of dedicated truck and emergency vehicle lanes, or for the creation of “commercial freight windows” from midnight to three in the morning.

Officials could also be stationed at the major turnoffs to redirect traffic through Swaziland to reduce the pressure on Lebombo.

“They did this on the way back and it worked much better,” he said.

What would also reduce the pressure would be the staggering of mine closures because it was the rush of returning miners that added to the pressure.

Modernisation helps truckers avoid border congestionCall for dedicated truck lane to avoid delays

Long queues at Beitbridge provide plenty of business opportunities for enterprising hawkers.

‘Customs officials had their work cut out with smugglers trying to take advantage of the sheer volumes of people trying to get through the border.’

February 2013 Cross Border 3FTW2565SD

FTW2633SD

FTW5583

Tel: 0861ZIEGLER Email: [email protected] www.ziegler-za.com

Welcome to our world

Durban ● Johannesburg ● Beit Bridge


www.ftwonline.co.za

DAILY CONSOLIDATIONS TOBOTSWANA • SWAZILAND • LESOTHO

● Competitive rates● 2000m2 warehouse in Johannesburg● 800m2 warehouse in Botswana● Door to door deliveries● Handling of all documentation and border procedures● Bonded warehouse in Botswana● Removals in bond

www.botswanaconsolidators.co.za

Johannesburg Tel: +27 11 974 0342 Fax: +27 11 974 0363 Cell: +27 83 406 1320

Gaborone Tel: +267 393 6295 Fax: +267 393 6323 Cell: +267 7522 5595

email: [email protected] Local and into Africa on request

Serving the industry for more than a decadeFTW5497

By Liesl Venter

More and more development corridors are being established across the

southern African region as a tool to support economic integration as most believe this is the only way to open up markets and promote increased trade and investment.

According to Barney Curtis, executive director of the Federation of East and Southern African Road Transport Associations (Fesarta), this forms part of the Southern African Development Community (SADC) decision to focus on corridors rather than countries.

“The focus on corridors is because they are the lifelines

to the landlocked countries and interventions often straddle more than one country. There is considerable mineral and agricultural wealth available in the hinterland and moving these commodities in the future will require improved corridors. Hence the focus on upgrading the infrastructure along the corridors.”

Possibly the largest and most successful development corridor initiative thus far in southern Africa, the Maputo Development Corridor, has proved what can be done when a corridor is efficient.

According to Barbara Mommen, chief executive officer of the Maputo Corridor Logistics Initiative (MCLI), corridors

have a significant impact on the competitiveness of local business and regional economies as they can provide a measure of predictability, reliability and efficiency which are crucial to trade and logistics supply chains, apart from which they are key to providing access to markets.

“In our experience, the ability to address the issues affecting trade in a transport corridor approach has given a significant level of comfort to users and has resulted in significant economic growth in this region,” she told FTW. “Corridors need good infrastructure, good systems and procedures, good information, and an institutional mechanism which can act as the

facilitator and interface between users and the public sector. Good co-operation between the public and private sector is essential to ensure sustainable success.”

Curtis agrees saying if not efficient, the cost of moving goods only increases making them less competitive on the global market.

“The first element is to have an effective and efficient corridor management institution (CMI) to drive the process towards making the corridor more efficient,” he said. “This is more difficult than it appears, since it requires a person who will drive the process. Furthermore, there has to be a cost-effective way of funding such an institution.”

‘Development corridors the answer to economic integration’… but good infrastructure is key

Domestic & OverborderAbnormal LoadsWarehousingCrating and FumigationPacking/Unpacking containersHazchem compliant

Your full landside logistics link

JNB +27 11 021 5214-8 DBN +27 31 206 2910/2973 Cell +27 82 554 [email protected] [email protected] [email protected] FTW5835

SERVING SOUTH AFRICASERVING SOUTH AFRICA FOR 26 YEARS


By Joy Orlek

SACD Freight is confident that its recently completed high-security warehouse at

City Deep will be operating at full capacity by the end of this month.

“The year has started on a very positive note,” regional director Dennis Trotter told FTW, “and volumes are looking good.”

The new 5 000-sqm facility, comprising two 2 500-sqm sites, was developed to cater for minerals moving into Africa.

Consolidating commodities from the DRC and Zambia at City Deep, containerising them and transporting them to ship’s

stack is one of the company’s core focus markets.

Based on growing customer demand for secure warehousing capacity at City Deep early last year, SACD embarked on an expansion programme and the final touches to the warehouse were completed at the end of last year.

While volumes tend to be fairly volatile, influenced largely by the world economy and its impact on commodity prices, SACD believes it is well placed to capitalise on expected future growth.

Scanning and bar-coding facilities are part and parcel of the high-tech security systems that the facility offers.

Volumes flow into SACD’s new high-security warehouse

Dennis Trotter ... new 5 000-sqm facility was developed to cater for minerals moving into Africa. Photo: Shannon Van Zyl

First For Freight into Africa

Johannesburg T: +27 11 918 6645 F: +27 11 918 6618 E: [email protected]

Musina T: +27 15 533 1632 F: +27 15 533 1632 E: [email protected]

• Zimbabwe – Malawi – Zambia• Exceptional Transit Time

• Consolidations / Full Loads

• Competitive Rates

• Specialist Packaging & Crating

FALCONGATE LOGISTICSFALCONGATE LOGISTICS

FTW5188

• Hazardous/ Abnormal Loads

• Break Bulk / Containerized / Specialized

• Satellite Tracking & Daily Customer Reports

• Refrigeration


www.ftwonline.co.za

By Liesl Venter

Ongoing changes to legislation, systems and procedures – particularly

in Zimbabwe and Zambia – remain the biggest challenges to cross-border operators, according to Gavin Kelly, spokesman for the Road Freight Association.

“The states to the north of South Africa – especially Zimbabwe and Zambia – are imposing regulations on our transporters all the time, irrespective of the fact that those trucks are not registered there,” said Kelly. “There are

new fees to be paid for new regulations and it is starting to impact dramatically on costs. The new regulations are implemented with very little warning resulting in massive penalties and fines having to be paid while in some cases the trucks are impounded.”

He said many of the new standards and regulations being implemented were not in line with SADC protocols.

“There seems to be a total disregard for SADC’s call for harmonisation. For a long time we have had a situation where our operators are fined for not being compliant with

this or that regulation, but the situation is slowly getting out of hand and now becoming a real issue.”

He said with many South Africans not wanting their equipment impounded they were making the payments to officials because it was cheaper than trying to get a truck out of the country.

“Many of the regulations are absurd and we are not able to meet them. In Zambia,

for instance, they have now introduced a standard for fuel tankers that we are expected to comply with. It is clearly an old South African standard and in many cases the tankers going into the country won’t comply with that old standard any more because they are now compliant with the newer versions meaning one will have to pay.”

Kelly said fines were being handed out for anything and everything.

‘Absurd’ regulations milk SA transporters

Transporters are facing fines for anything and everything.

Reducing your carbon footprint

by eliminating the need for a paper

Air Waybill

Electronic Air WaybilleAWB

FTW5844

The Customer Is Always King

Tel: 011 012 8700 [email protected] www.compu-clearing.com

Celebr

ating

30 y

ears

February 2013 Cross Border 7FTW4623

By Liesl Venter

Non-tariff barriers (NTBs) are fast becoming one of the biggest challenges facing

the road transport industry in sub-Saharan Africa, seriously hampering trade as they lead to increased costs.

According to Barney Curtis, executive director of the Federation of East and Southern African Road Transport Associations (Fesarta), complaints are flooding into a system launched by the Tripartite alliance that comprises the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC).

Already identified as a top priority in 2008, NTBs refer to non-tariff-related trade restrictions resulting from prohibitions, conditions or specific requirements that make importation and exportation of goods difficult or expensive. The elimination of these barriers is part and parcel of the system, but said Curtis, this was not really happening at ground level.

“The system has played a major role in allowing NTBs to be reported, but it is not leading to the NTBs being eliminated. It has yet to prove its worth in this regard,” he explained. “

Through the system the road transport industry can report any NTB that is experienced anywhere in southern and East Africa and

automatically it goes through a process that determines if it is a valid NTB. Once this process has been completed it is registered and the system makes contact with the offending country, which has the opportunity to respond.

More often than not countries will have valid and legal reasons for having introduced the NTB. The system, however, accepts their response and the matter is then closed.

“The system has no real teeth,” said Curtis. “Just because a country has an acceptable reason for a levy or a charge it has implemented does not mean it is not an NTB. The implementation of many of the regulations that are considered NTBs may very well be legal in the

country implementing them, but that does not make them acceptable from a regional perspective.”

‘Toothless’ system loses the battle against non-tariff barriersGood reporting – but no action

Barney Curtis ... ‘The challenge continues to be how to eliminate non-tariff and other barriers to trade.’

Photo: Shannon Van Zyl


www.ftwonline.co.za

Sea and AirGroupage Cargo

Clearing and ForwardingWarehousing and Distribution

Bond Store AssistanceProjects

Insurance

Looking after all your import and export needs

JNB +27 11 496 3535 DBN +27 31 462 7330 CPT +27 21 932 6704/6/[email protected]

www.unitrans.co.za

The Spirit of Can Do

Freight Forwarding and Clearing

FTW5512b

MSC’s Lusaka office offers tailor-made solutionsBy Liesl Venter

Mediterranean Shipping Company (MSC) has significantly strengthened

its southern African footprint with the opening of an office in Lusaka in Zambia.

According to Lawrie Bateman, who heads up MSC Logistics, southern Africa has always been an important region for MSC, and in the light of growing container volumes in Zambia, it has made strategic sense to open an office in the country.

“Container volumes in Zambia have continued to grow for the past 40 years,” said Bateman. “MSC has been represented by

various agencies in Zambia, with Global Logistics having been its agent since 1999. However, given Zambia’s strong economic growth in recent years – averaging more than 6% per year – a mandate was received by Captain Salvatore Sarno, chairman of MSC SA, to establish an MSC office in Lusaka.”

Bateman said the process kicked off in May last year with the new MSC office opening its doors in September under the directorship of Mesele Seyuba.

“The office has a staff complement of seven and is served by three ports – Durban in South Africa, Beira in Mozambique and Dar es Salaam

in Tanzania. The goal of the MSC Zambia office is to offer customers tailor-made solutions for their import and export trade requirements,” said Bateman.

Mesele Seyuba ... strengthening southern African footprint.

South African operators have become key targets in neighbouring countries where they find themselves increasingly being stopped by authorities.

“Infractions range from having no lights in the top of the cab to the signage on the truck not being compliant with the country’s legislation,” says RFA spokesman Gavin Kelly. “The issue needs to be addressed as it is at present looking like nothing but institutionalised corruption.

“Our own authorities on this side also seemingly have no teeth when it comes to these countries, which means that operators have no choice but to pay up or have the trucks impounded.”

SA truckers increasingly targeted

Swaziland Railway Building, Dzeliwe Street, MbabanePO Box 475, Mbabane, Swaziland

T +268 2 404 2486 / 8862 / 2571 / 3711 / 4702 / 3710 / 2488F +268 2 404 5009 / 7210

E [email protected]

Container volumes in Zambia have continued to grow


By Liesl Venter

If SADC regulations and other customs controls and protocols that are being implemented are

intended to harmonise operations in the region, they have missed the mark.

That’s the general consensus among South African transport operators.

“We are led to believe that all the member states have signed the SADC agreements that will see harmonisation and standardisation in the region from the load and lengths of vehicles to the calibration of weighbridges, but this is far from the reality on the ground,” said Gavin Kelly, spokesman for the Road Freight Association.

“If the agreements have been signed they have definitely not been implemented because there is not even standardisation on something simple such as accepting another country’s road-worthiness certificate.”

He said the lack of standardisation remained the biggest challenge when operating across borders, as what was acceptable in one country, was not in the next and ultimately resulted in fines and penalties.

“Also there is no arguing with an official on the ground in a foreign country, trying to explain that there is a protocol in place. They do not have it in their hands and therefore they do not care. It is either pay the fine on the spot or face having the

truck and the cargo impounded – which is a much bigger cost.”

With more than 90 non-tariff barriers already registered, SADC is mounting the pressure on governments to get their houses in order.

“It is not for want of trying by officials in these meetings, but the change is not filtering down to the officials working in the field and that is where the problem lies,” said Kelly.

Another major problem is that documentary requirements are vastly different from one country to another.

This results in massive time delays that add to the already escalating cross-border costs, says Kelly.

Lack of regional standardisation frustrates transporters‘It’s a choice of pay up or have your cargo impounded’

Gavin Kelly … ‘If the agreements have been signed they have definitely not been implemented.’

FTW5777

NITROGEN TYRE FILLING SYSTEMSFOR TRUCKS NOW AVAILABLE

• Increased safety - tread life increased by up to 30%• Improved overall performance• Dramatically slowed pressure loss• Improved fuel economy by up to 6%

After 7 million kms, Nitrogen-inflated tyres:

Tel: +27 21 702 1559 Email: [email protected]

Contact Intaka Tech to purchase this system today!

NIT

RO

FIL

L S

AV

ES TIME, MONEY AND TYRES

www.nitrofillnow.com

www.intaka.com

TWO MODELS

High Output Nitrogen Generator

44NM3 / Hour Output

Nitrogen Generator23NM3 / Hour Output

FTW5816

Lanisource Project Logistics +27 11 958 1426/1431 www.lanisource.co.za

We specialise in: • oil & gas energy

• mining & construction industries

Don’t move your projects without us

Don’t move your projects without us

Lanis

ourc

e Project Logistics


www.ftwonline.co.za

By Joy Orlek

Freight systems provider Compu-Clearing is making significant inroads in the over-

border market with its CargoWise ediEnterprise single platform logistics management system.

“Thanks to the CargoWise joint venture, Compu-Clearing is expanding its product offering beyond customs clearing to full supply chain logistics – which includes SA customs,” says marketing manager Moshe Zulberg.

“We’ve got prospects in Namibia, Zambia and Zimbabwe – and we’re achieving success in these markets,” Zulberg told FTW.

“While we’re not doing the customs clearance overborder, we are providing a full supply chain logistics package,” he said.

The benefit of the ediEnterprise system is that on both sides of the border you work on one database and one system, says Zulberg.

The time- and cost-saving benefits have already found favour

with Namibian logistics provider Transworld Cargo.

According to managing director Heino Herrlich, the company has managed to streamline its operations through the implementation of ediEnterprise, replacing a series of separate operational and financial software systems with CargoWise’s ediEnterprise single platform ‘only enter data once’ technology.

As a result it has improved productivity and improved its integration with global partners, said Herrlich.

And this is the message that comes through loud and clear with every new installation, says Zulberg.

“For example, CargoWise has customers who have multiple branches worldwide. They have one system hosted in the UK, USA and AUS which supports as many users as the companies need. When an import or export is transacted, because it’s one system for each group, once the export has

been entered, all the information is immediately available to the importer.”

The same applies to different companies using ediEnterprise,” says Zulberg. “There’s an amazing facility called E2E. The second there’s a transaction in one system, the information is automatically picked up by the other system. You end up with companies able to totally integrate any aspect of the system.

“In the overborder market there’s a similar chain of events with Asycuda,” said Zulberg. “If you do the import or export on Compu-Clearing, you’re able to pull and push the information to Asycuda.”

The big benefit of CargoWise, says Zulberg, and one that is finding favour in the overborder market, is the fact that it’s a one-input system. “You enter the information once and you don’t have to recapture anything – it integrates seamlessly between all your branches.

“It’s highly efficient and enables the user to automate many

expensive manual processes.“The agent’s clients can log in,

do their own quotes, view their invoicing – in fact they can access everything within the parameters set.”

While Zulberg estimates that Compu-Clearing has cornered a large portion of the import and export clearance market – ediEnterprise adds substantial muscle, providing customers with a logistics execution facility via a single integrated platform, with Compu-Clearing’s customs clearance system available to SA customers as part of the package, he added.

System helps improve agents’ productivity

Moshe Zulberg … ‘automating many expensive manual processes.’

By Liesl Venter

There are several one-stop border posts (OSBP) in the pipeline in southern Africa, but politics is inhibiting progress.

With only the Chirundu border post between Zambia and Zimbabwe operating as an OSBP, several other countries are working hard at getting their own

one-stop borders. According to Barney

Curtis, executive director of the Federation of East and Southern African Road Transport Associations (Fesarta), the establishment of a border post firstly requires a bilateral agreement between the two countries in question.

“Then both countries need

legislation allowing them to operate in another country,” he said. “This is not a quick process and takes time.

“You cannot have a one-stop border post without legislation in place that allows Customs officials from another country to operate within your jurisdiction, as well as legislation allowing your own officials to operate

in another country,” explained Curtis. “It is a politically complex situation. Only once the legislation has been passed by each individual country’s parliament can the physical work start of turning a border post into a one-stop facility. In many cases in southern Africa it will require some infrastructure upgrades to the facilities.”

Politics bedevils expansion of one-stop border post concept

Guaranteed consolidated express roadfreight service

Between Johannesburg, Bulawayo, Harare and return

Johannesburg +27 11 826 4250Cape Town +27 21 386 [email protected]

Harare +263 466 [email protected]

FTW5668

www.transmartafrica.co.za www.transmart.co.za


Marine and General Short Term Insurance Specialists

Your Interest • Our BusinessYour Interest • Our BusinessTel +27 11 453 9002 • Fax +27 11 453 9022

www.prestgroup.co.zae-mail: [email protected]

A Division of PrestgroupFT

W53

75

FSP Ref No: 165

International transport contractors● Johannesburg – Durban

● Cross Border

Superlinks and tri-axlesT +27 861 337 722C +27 83 357 6061 E [email protected]

FTW5687

FTW5517b

Level 1 with a B-BBEE Procurement Recognition level of 110%

Warehousing Transport of containers Normal/abnormal breakbulk

cargoes within South Africa Cross-border Perishables Reefer transport on gensets Tailor-made solution for

refrigerated cargo

Tel: 031 562 1733 | Fax: 031 562 1766 | [email protected]

REPUBLIC WIDE AND OVERBORDER ROAD FREIGHT SPECIALIST

JTR Freight Services c.c.

FTW5809

Air Freight Export & Import • Sea Freight Export & Import • Warehousing Multi-modal transportation • Combined transport – Sea & Air

ZAMBIADAILY CONSOLIDATIONS TO

Lusaka and the Copperbelt

[email protected]@zamlinx.co.za

FTW5429

+27 87 944 4082+27 11 979 5054

Be container-wise and chooseCargo BrokingContainerised CargoAirfreight / SeafreightClearing & ForwardingGroupageLocal & Over Border TransportNVOCCWarehousing & StorageTel: +27 11 3020000 Fax: +27 11 3020092Email: [email protected] Web: www.metconsouthafrica.com

FTW5733

YOUR OVERBORDER SPECIALIST Roadfreight into Southern and Central Africa

Full loads Hazardous cargo Confirmed daily tracking Dedicated express loads

FTW5594

Tel: +27 11 396 4300 Fax: +27 11 396 4707 [email protected] www.bpfreight.co.za

Since 1997

THE AFFORDABLE AFRICA AUTHORITY

Motion LinerTRANSPORT

GD

Cross Border Specialists

Angola • Malawi • Mozambique Tanzania • Zimbabwe

FTW5659

Tel: 011 496 3108Cell: 082 786 9444

082 413 3938www.motionliner.co.za


www.ftwonline.co.za

By Liesl Venter

Customs modernisation, while not yet fully implemented at the ports in the country,

has gone a long way to increasing efficiency and speeding up processes when crossing borders, according to Glynn Crowther, Transmart exports manager.

“While there are still a number of manual processes in place – these are a slip in an otherwise well-oiled cog.”

Crowther said the full introduction of the Customs modernisation programme at the ports would continue to impact positively.

“The sheer volume of trucks and cargo moving through the border posts tends to overwhelm the controlling authorities at

times, especially with the manual processes. By comparison though, the sheer lack of plausible infrastructure and the palpable apathy of their counterparts across the Limpopo grossly outweigh any of South Africa’s border shortcomings.”

And herein lies one of the biggest challenges when addressing cross-border operations, in his view. Unless all countries upgrade their infrastructure and integrate their systems, delays will continue to be a daily reality.

“Beitbridge has for many years proved to be an exceptional challenge to all transporters, exporters and importers alike – and for all the wrong reasons. If ever there was a need for a fully integrated One-Stop Border

facility, then by far Beitbridge needs to become that facility,” said Crowther. “You can introduce the most basic of systems and procedures, incorporate modern equipment and communication tools, provide the training and develop skills – but without a substantial and deliberate work ethic, you achieve nothing. Working through the quagmire that is Beitbridge is exceptionally challenging. All of this must be addressed to change the situation.”

Even more so, said Crowther, in light of the fact that there are endless opportunities in Zimbabwe.

“Zimbabwe is not a dead country and there is enormous growth potential in spite of some misgivings and the negative sentiment.”

According to Crowther, not only is Transmart planning to increase its volumes into Zimbabwe but it is also, in the mid- to long-term, looking to provide a fast and efficient service further afield.

Beitbridge solutions demand buy-in from both border authorities

Glynn Crowther … ‘Without a substantial and deliberate work ethic, you achieve nothing.’

FTW2635SD


By Liesl Venter

Compliance in Africa would be much easier if authorities established similar tariff

regimes for services – along with dedicated government accounts for payments.

According to Johny Smith, chief executive officer of the Walvis Bay Corridor Group, this is, however, not an easy task to accomplish, given the unique African environment.

“If you look at SADC you will find that governments are meeting regularly and signing agreements to improve compliance, but at the end of the day nothing is implemented,” he said. “The first step is to develop a partnership

with one country and get that right before we go too big.”

According to Neil Gardener, logistics and trade compliance manager sub-Saharan Africa for Baker Hughes, big corporates establish their compliance teams on a global level and then cascade them down to regional level to ensure that all transactions undertaken are compliant.

This is crucial in the modern-day business environment where companies are being fined millions of dollars for non-compliance. Siemens and Pfizer are two companies that in recent years have had to pay more than $50 million each for non-compliance.

According to Michael Wragge, president of the Maritime Law

Association of South Africa, there are two categories of compliance – trade compliance and business compliance.

He advises companies to ensure they sign water-tight contracts with clients, suppliers and sub-contractors to ensure they are meeting all the necessary compliance requirements.

“In Africa the different regulations from country to country make it difficult to always be compliant as there is no specific standard. It is therefore important to ensure you are trained to trade in Africa and know what to expect,” said Gerald Povey, global vice president for projects, mining and energy, UTi. “Non-compliance can lead to massive penalties or fines,

but also to an entire consignment of cargo being confiscated.”

According to Gardener, too many countries in Africa work in isolation. “Each country has its own import and export regulations, its own inspection regulations and its own tariff rates for services. Implementing a less complex system would bring about more compliance.”

Disparate regimes complicate compliance‘Start off with a partnership with one country’

Johny Smith ... agreements signed but no implementation.

FTW5826

14-16 Hermes Road, Southerton, Harare, Zimbabwe Tel +263 4 621161-9 Email [email protected] www.pioneerafrica.com


www.ftwonline.co.za

Durban Head Office:54 Winder Street, Durban, 4001

P.O. Box 10614, Marine Parade, 4056Tel: (031) 360-7811Fax: (031) 332-9291

E-mail: [email protected]

A subsidiary of Mediterranean Shipping Co.

MSCMediterranean Shipping Co

Sea • Rail • RoadSeamless solutions

GRA

PHITE

FTW

1212

SD

By Liesl Venter

Infrastructure development is high on the Zambian government agenda which is good news for

business.According to Adrian Friend of

Celtic Freight, all indications are that the Zambian government is committed to its infrastructure development programme – and an important element is that it seems to be self-funded and not dependent on foreign aid.

“It is extremely good news for companies like Celtic Freight that is Zambian based,” said Friend. “We have seen some real effects on the ground already with major

Chinese contractors beginning work on the various projects. There is huge development potential for agriculture and mining within Zambia as the infrastructure upgrade will allow areas to become accessible for the first time.”

And with more projects on the horizon, Friend and his team at Celtic Freight believe it is now the time to expand the business.

“Celtic had long ago set itself up to be able to provide services to the projects forwarding companies,” said Friend. “Our crane delivery fleet is able to handle 20-foot and 40-foot loaded containers to any remote destination, while our independent container depot gives

Celtic sets sights on expanded project focusZambia’s infrastructure development programme on course

By Ed Richardson

China has become one of the biggest funders of much-needed infrastructure development projects in sub-Saharan Africa, according to the World Bank’s 2013 Global Economic Prospects Review.

This strategic investment is required to ensure that there is free flow of raw materials to China and manufactured goods back into one of the world’s fastest-growing markets.

The Forum on China-Africa Cooperation (FOCAC) has announced that China will provide US$20bn of credit lines to African countries to assist in developing infrastructure, agriculture, manufacturing and small and medium-sized enterprises

Infrastructure investment will increase the demand for capital

goods, leading to more demand for project cargo services.

The increased demand for capital goods to meet infrastructure and other investment needs, growing demand for oil among oil importers, and rising per capita incomes, should boost demand for consumer durables and other imports, says the report.

It will also support continued economic growth.

“Continued investment in infrastructure will be critical to maintaining and strengthening growth over the medium term – potentially boosting growth rates in the region by two percentage points,” says the report.

“Indeed, infrastructural shortcomings may be depressing firm-level productivity by as much as 40% in some countries in the region.

Chinese fund major infrastructure projectsSA’s labour challenges will cut into growth

www.ftwonline.co.za

dedicated

Innovative freight solutions ensuring your competitive edge.

Road freight of perishable goods, general & industrial consignments, within the RSA & Southern Africa.

Consolidated loads from RSA to Zimbabwe & Zambia

F r e i g h t C o - o r d i n a t o r s ( P T Y ) L T D

Tel: +27 (11) 907 8808Fax: +27 (11) 907 8969

email: [email protected]

to deliveryefficiency

24hr tracking 24hr tracking

dedicated





Tel: +27 (11) 907 8808Fax: +27 (11) 907 8969




dedicated





Tel: +27 (11) 907 8808Fax: +27 (11) 907 8969




FTW4809

SOUTH AFRICA

ZAMBIA

ZIMBABWE

Tel: +27 (11) 907 8808 I Fax: +27 (11) 907 8969 I email: [email protected]

Cell: 00260 966 860703 I email: [email protected]

Tel: 0027 828 177700 I Cell: 00263 91401 4133 I email: [email protected]

dedicated





Tel: +27 (11) 907 8808Fax: +27 (11) 907 8969




Celtic sets sights on expanded project focusZambia’s infrastructure development programme on course

us an advantage. Also, having an expanded abnormal fleet gives us the ability to provide most, if not all, development or grassroots projects with the logistics required.”

Friend said with this in mind they were set on expanding their project work in 2013 extensively.

“We have been a specialist provider of logistics in Zambia for more than 15 years and have experienced the good and the bad times in the economy. We believe that now, more than ever, there is room for expansion especially in the light of Zambia being a current favourite amongst South African retailers and property

development companies.”Lusaka itself is now one of the

fastest-developing cities in Africa with a growth of some 4%, as construction begins on a series of major shopping centres, industrial parks, and hospitals.

Adrian Friend … ‘Lusaka is now one of the fastest-developing cities in Africa.’

SA’s labour challenges will cut into growth

Sub-Saharan Africa exports are projected to continue increasing rapidly over the forecast horizon, partly due to an expected strengthening of global demand, but mainly reflecting further increases in the region’s share of global markets – itself partly a reflection of productivity growth, but also the coming onstream of new mineral exports in several countries (eg, Burkina Faso, Mozambique, Niger, Cameroon, Gabon, Sierra Leone etc.),” it adds.

Angola’s crumbling infrastructure ... investment critical.

By Ed Richardson

Trade between developing countries is helping protect them from the recessionary conditions in the industrialised world.

“Developing countries are increasingly less dependent on high-income countries for their exports. The steady growth of developing country GDP and increased interconnections between these economies means that since 2010, more than half of developing country exports have gone to other developing countries,” says the World Bank’s 2013 Global Economic Prospects Review.

Describing global trade as being “very weak in 2012,” the report estimates that developing country exports of goods and services increased by 4.2% for the year as a whole. Developing country imports rose 5.4%.

Overall global trade rose only an estimated 3.% in 2012 (compared with a pre-crisis average of 6.2%.

Connectivity reducing reliance on developed world


www.ftwonline.co.za

By Joy Orlek

As Ziegler South Africa prepares to celebrate its first year of operation in

South Africa, managing director Paul Lawrence is upbeat about the year ahead with project work in and out of Africa featuring high on the demand list.

“We’ve had a lot of enquiries as far as the Congo for requests to move products like machinery and even feed for the development of the farming community – which is all new business.

“We’re still concentrating on Zimbabwe and Mozambique and will develop from there,” he told FTW.

A key part of the company’s overborder value proposition is its on-site office at Beitbridge, says Lawrence.

“We are the only global logistics provider on the SA

side of the border and the BBR division is one of the few agents at Beitbridge that holds a special road bond with Sars.

“This allows us to process and move in-bond export consignments out of South Africa into the region using our road bond,” he told FTW.

“An additional facility that we offer at Beitbridge is the processing of cross-border procedures required by the Zimbabwe revenue authority,” he added. “This includes CVGs, insurances, gate passes and the like – and this service is facilitated through us on a preclearance basis. In essence we therefore offer 100% preclearance on both sides of the border, which ensures no delay in expediting shipments north and south. In a nutshell, by the time a vehicle and cargo arrives at Beitbridge, it is ready to be dispatched.

“As a whole Ziegler SA

is accredited and registered to process Sars-compliant declarations anywhere in South Africa, through any land border.”

The opening of an office at Groblersbrug – which has been on the agenda for some time – is now on the backburner, says Lawrence, because customs modernisation has significantly streamlined clearance procedures.

“All our business is currently handled by the Beitbridge office.”

In terms of the budget that was put together for the year, Lawrence is more than satisfied with results achieved.

“We have over the past year managed to integrate a lot of our systems with Ziegler. This is ongoing and we expect to be fully integrated by our financial year-end in February.

“We are moving forward and growing – and have done very

well in terms of new sales.”Growth in general as well as

niche cargo is the focus for the year ahead, with a big account just signed up with a chemicals company.

Beitbridge office preclears on both sides of the borderZiegler upbeat as enquiries flood in

Paul Lawrence ... ‘Accredited and registered to process Sars-compliant declarations anywhere in South Africa.’


Improved food security across most of Africa is likely to see volumes of aid-related maize and other food products dropping over the next year.

According to the Famine Early Warning Systems Network (FEWS), no African countries are expected to need emergency aid in the first quarter of 2013 – barring

natural disasters or political unrest. Above-average harvests

are being reported from the West African region, with only Liberia reporting “minimal food insecurity”.

In East Africa, “acute food insecurity is likely to decline”. The region will, however, continue to rely on imports,

particularly in Somalia – although the situation is improving in the country.

Southern Africa is expected to experience “minimal” food insecurity, with the situation in Zimbabwe reported to have improved.

African ports in West and East Africa in particular are likely to

see volumes drop as a result of the drop in imports of food aid.

Intra-African trade could, however, be given a boost with exports from regions with surpluses to those that are not self-sufficient.

There is also a flow between different production areas within countries and regions.

Volumes of aid freight set to drop

FTW5836

JHB 011 453 9496 CPT 021 913 6052 [email protected] www.easyclear.co.za Contact our sales team for an obligation free demonstration!!!

IT’S EASIER THAN SWITCHING BANKS THESE DAYSSWITCH TO EASYCLEAR,


THE GLOBAL LEADER IN WEIGHBRIDGE TECHNOLOGYCWCSA is committed to bring Heavy Duty WEIGH BRIDGES at affordable prices to the market!!

22m weigh bridges at R250,000 excl civil work

22m Axel weigh bridges at R280,000 excl civil work

Rentals on 60 months from R6,600 pm

GET ONE NOW!! WWW.CWCSA.COM

CARDINAL WEIGHBRIDGE COMPANY SA (PTY) LTDCPT: Tel: 021 855 5793 Fax: 0866 759710JHB: Tel: 011 914 3198 www.cwcsa.com

FTW5728

FTW5818

Project and Abnormal CargoDiversified, manoeuvrable and dedicated With offices in Beitbridge, Harare and Lusaka

“Africa Just Got Smaller”Durban Tel +27 31 465 5003 [email protected] Tel +27 11 918 5942 [email protected] www.tcslogistics.co.za

FTW2500SD


www.ftwonline.co.za

Roadfreight experts to

ANGOLAMALAWIMOZAMBIQUE

For competitive rates contact:T +27(0)11 395 3472F +27(0) 86 661 8414C +27(0) 82 724 1193C +27(0) 79 015 9822E [email protected]

FTW5698

Dedicated loads1, 4, 8, 14 - tonnersTri-Axles & Super-Links

By Liesl Venter

Southern African border posts may have speeded up cargo processing, but they remain

unpredictable, with regular users agreeing you never know what you will get on the day.

“Efficient and effective border posts across southern Africa are crucial if we want to improve trade,” said Gavin Kelly, spokesman for the Road Freight Association (RFA). “And yes, we are seeing an improvement at border posts – especially on the South African side where some major triumphs have been achieved with the introduction of the Customs modernisation programme.”

Kelly said pre-clearing and the automated cargo management system had speeded up transit time, with trucks moving faster through the processes than ever before, only to be held up in countries where the same systems were not being used. And many countries are still reliant on manual systems which lead to even further delays,” he said.

“In addition, sometimes the infrastructure at border posts slows down the movement of trucks even when the cargo has been cleared quickly. Trying to cross rivers over one-lane bridges or even negating the bottlenecks that occur at these border posts result in further delays.”

He said while major inroads had been made at border posts like

Beitbridge for instance, the 14km long queues over December did not improve perceptions about efficiency.

The abnormally long queues at the border post in December 2012 were the result of the high number of people crossing between the

countries – up to 30 000 in a single day.

Zimbabwe officials have said the situation at Beitbridge remains intolerable and unacceptable. They have gone as far as suggesting the development of a new border post between the two countries.

Border delays persist despite streamlined processesBeitbridge creaking under the strain

Beitbridge border ... ‘you never know what to expect.’

www.idvsystems.co.za Contact: +27 11 453 8337

Providing the cargo industry with web-based, real-time solutions

that leads the market in cost effectiveness and efficiency.

FTW5682


By Liesl Venter

Delays at border posts remain the most pressing challenge for development

corridors whose aim is to promote trade and investment.

From limited border operating hours to operational constraints and a lack of harmonisation between countries, border posts remain a bone of contention for many.

These delays are however receiving a lot of attention, says Barney Curtis, executive director of the Federation of East and Southern African Road Transport Associations (Fesarta).

Last year the fifth Comesa meeting of infrastructure ministers and joint transport

and communications, energy and information technology committees noted that one stop border posts (OSBPs) minimised delays.

OSBPs remain a target in southern and East Africa where two are already operational at Chirundu (between Zimbabwe and Zambia) and Malaba (between Kenya and Uganda). Around ten are at various stages of development.

OSBPs, however, entail much coordination, investment and planning, ranging from the physical construction of buildings and facilities to harmonised legislation between countries.

According to Barbara Mommen, chief executive officer of the Maputo Corridor

Logistics Initiative (MCLI), the problems at borders are exacerbated by other factors. These include the backlog in rail capacity which results in growing truck traffic, and

that has implications for infrastructure maintenance and ultimately the cost of logistics and the efficiency of trade facilitation arrangements.

“All these elements are linked in that the congestion and delays experienced at many border posts on the continent still represent the biggest cost to transport of freight, and have negative consequences for the competitiveness of trade – both within the region, on the continent and internationally,” she said. “The Maputo Corridor has been fortunate in that the customs modernisation programmes driven by the customs authorities, particularly affecting Mozambique/South Africa trade, have been instrumental in reducing transit times, while the infrastructure upgrades on the corridor have also had an impact on relieving congestion and ensuring a greater level of efficiency.”

One-stop borders the target in southern and East Africa

FTW2519SD

‘Congestion and delays experienced at many border posts on the continent still represent the biggest cost.’


www.ftwonline.co.za

By Liesl Venter

In the fiercely competitive cross-border transport market, success is

determined by more than just the ability to deliver the service, says Glynn Crowther, exports manager for Transmart.

“The first question you need to ask and answer is if there is room in the market for your specific type of service and who exactly needs the service,” said Crowther. “It’s important to understand what is necessary to make that service as cost-effective as possible to all parties – because operating across southern Africa’s borders is notoriously difficult.”

A lot rides on having the right vehicles with the right back-up services, the best and most disciplined drivers, as well as clearing agents that embrace the same vision and level of service that you aspire to achieve, says Crowther.

“It is only when all of this is in place that one can really tackle the challenges that are sure to arise.”

These range from changes in legislation governing the import of goods to the difference in classification of

goods from one country to the next, poor road conditions, changes in foreign road traffic regulations, corrupt officials and various other foreign legislative idiosyncrasies that keep transporters on their toes.

In Crowther’s view, there are

three key factors to ensuring a successful cross-border operation.

“Firstly, keep things simple – have only one representative agent for all lines on a manifest on each side of the border to ensure complete

control of the cargo; secondly, triple check all the right documentation is in place and all duties and deposits paid; and finally make sure there is constant communication at all levels throughout the process.”

Transporter provides recipe for cross-border success

Operating across southern Africa’s borders is notoriously difficult ... potholed roads and border delays are par for the course.

Service you can rely onOver 25 years of experience

•Coordinating and monitoring Project cargo (Import and Export)

•Transport of abnormal & normal cargo within SA and over border

•Air & Sea freight Import & Export•Customs compliance

Contact Chris Scott or Peter Scott for more [email protected] • [email protected]

T: 011 397 5370 • F: 011 397 3200

FTW5036 FTW5840

www.ftwonline.co.za

daily news for

YOU

REGISTER NOW

February 2013 Cross Border 21FTW5619

WALVIS BAYTEL: (+264) 64 206-000

PORT ELIZABETHTEL: (041) 505-4800

EAST LONDONTEL: (043) 702-8293

PRETORIATEL: (012) 335-6980

CAPE TOWNTEL: (021) 405-2000

DURBANTEL: (031) 360-7911

JOHANNESBURGTEL: (011) 263-4000

MEDITERRANEAN SHIPPING COMPANY SATHE DEPENDABLE INDEPENDENT GENEVA SWITZERLAND

THE GLOBAL SERVICESWISS

PRECISIONTRULY

WEEKLY

SY

STEM CERTIFICATION

SGS

ISO9001:2008

By Ed Richardson

Clearing agencies throughout Africa are having to rethink their business models as

the authorities put their customs systems on-line.

Border operations become marginal when clearing can be done remotely, and the strategic advantage of having offices at the border posts becomes a cost – except when there are problems, and the customs officials want to sit face-to-face with the clearing agent.

All of South Africa’s neighbours have either implemented electronic systems, or are in the process of doing so. Most roll-outs are, or have been marked by

severe disruptions to trade flows.However, leading the continent

in the modernisation and harmonisation of customs is the East African Community (EAC), consisting of Burundi, Kenya, Rwanda, Tanzania and Uganda.

They are busy implementing a common Authorised Economic Operator (AEO) model, which is one of the first of its kind in the world.

The proposed common AEO model is part of the World Customs Organisation (WCO) -East African Community Customs modernisation project, which is sponsored by the Swedish International Development and Cooperation Agency (Sida).

It is designed to implement modern customs procedures for the five East African Community (EAC) countries, based on WCO international conventions and standards.

All EAC partner states are still in the pilot phase. Kenya and Uganda have been actively promoting the project by requesting interested parties to apply and be evaluated for possible consideration. By last August, Kenya had registered over 60 companies for the programme.

Southern African countries are also working together to streamline trade flows through a process which includes reaching agreement between a long list of stakeholders.

Customs being modernised across AfricaEast Africa implements AEO model

By Liesl Venter

Unless Africans start grasping the big picture and encourage an environment that is corruption-free, it will not attract the necessary investments needed for its development.

That’s the view of Public Enterprises Minister Malusi Gigaba, who believes that the current economic situation presents a glorious opportunity for us to reposition our continent, look at the shared growth from within and allow for more trade amongst ourselves.

‘Corruption-free environment is key to growth’ – Gigaba


www.ftwonline.co.za

FTW2482SD

DEDICATED truck loads into Africafrom 1 to 8 tons

Pharmaceuticals, hazchem, time sensitive and general cargo

Namibia BotswanaZimbabwe MozambiqueZambia Swaziland Lesotho

NGL Logistic Solutions Landline: 0861 000 NGL (645) • Direct: 011 615 6458 Mark Scott +27 82 557 4869 • [email protected] Quinton de Villiers +27 82 573 0595 • [email protected]

FTW5451

www.ngllogistics.co.za

PUTTING IT ALL TOGETHER FO

R YO

U

By James Hall

Cross-border freight traffic is expected to ensure profitability for Swaziland

Railway this year. About 90% of the company’s revenues are derived from transit cargo.

“Cargo originating from other countries and moving through Swaziland is our mainstay, although we are seeing more freight like minerals originating locally. Our system is prepared to receive transit shipments so they pass quickly through the country to their destinations,” Stephenson Ngubane, acting CEO of Swaziland Railway, told FTW.

To different degrees, Mozambique, South Africa, Zambia and Zimbabwe all depend

on Swaziland’s rail lines for freight sent out and received by rail. Zimbabwe, for instance, is a recipient of containerised cargo shipped through Swaziland.

Travelling from points south and west, rail freight entering Swaziland is directed to either Maputo, a short northeasterly trip from the country’s northern point, or east to Richards Bay, where larger vessels than those that can dock at Maputo await to receive or disgorge cargo received from or about to commence its rail travel.

Ensuring smooth passage of cross-border freight traffic requires constant liaising with customers from other countries, and planning. Trains arriving at Richards Bay with Swazi coal return laden with fuel and import containers.

Swazi Rail thrives on transit cargo “SA Revenue Service’s

modernisation changes at land border posts have completely transformed the way road freight clients do business,” says ShipShape Software MD Chrissie du Barry.

“Full automation means that clients are able to turn their trucks around more quickly from depot to border, without having to wait for hardcopy documentation for presentation at the border. This in turn has had a positive impact on transit times and SLAs. “

But with change comes challenge and once again the support and development teams at ShipShape proved their mettle, said Du Barry. “On-going and advanced notifications by the

modernisation team at Sars ensured that ShipShape was ready for all the updates. Not only were clients kept well informed as to the landscape of the changes, they saw very little or no break in service.”

‘Modernisation has transformed business’ - ShipShape

Chrissie du Barry … positive impact on transit times. Photo: Shannon Van Zyl


By Ed Richardson

More and more cars are being imported from the European and American

Markets for the Southern African Development Community (SADC) through the Port of Walvis Bay.

There has been significant growth in second-hand car volumes via the Port of Walvis Bay destined for Namibia, Botswana, Zambia, Zimbabwe and the DRC over the past two years, according to port authorities.

Walvis Bay is competing

against the ports of Durban, Maputo and Beira, which also handle the importation of second-hand cars for landlocked countries. In 2012, transit traffic through the port amounted to well over 15 000 vehicles.

One of the biggest single shipments was in November 2012, when the MSC Immacolata docked, carrying a record 972 transit cars earmarked for the land-locked markets in SADC, 70 more units compared to the 902 units delivered by Euro Spirit on July 20 last year.

The rise in transit traffic to the SADC saw the “mushrooming”

of second hand clearing agencies, creating more new jobs at the port town of Walvis Bay, including stevedores and customs officials, according to port authorities.

There are several reasons for the growing volumes at the port, according to a spokesman.

“These range from safety and efficiency of the port environment to transit time from Europe that varies from 17-21 days because of the port’s proximity to the

European and American markets. Rail and road networks to its landlocked countries as well as continuous efforts by the Walvis Bay Corridor Group (WBCG) to smooth the flow of border trade are all contributing factors.

The introduction of the Single Administrative Document (SAD) 500 by the WBCG fast-tracks the clearing of transit cargo at the neighbouring border posts.

Cargo is cleared within 30 minutes of arrival at the border.

Walvis Bay vehicle imports accelerate

The Port of Walvis Bay ... significant growth in second-hand car volumes.

FTW5830

Windhoek+264 61 300 [email protected]

Johannesburg+27 11 894 [email protected]

Cape Town+27 21 946 [email protected]

Full loadsHalf loadsBonded transportAbnormal cargoDangerous goodsDoor-to-door deliveriesCustoms clearance

Your

partner inABSOLUTE

ABSOLUTELYall SADEC countries


www.ftwonline.co.za

on Projects into: NamibiaBotswanaLesothoMozambiqueSwazilandZambia

BIG20 years experience in general haulage

Containers • Breakbulk • Abnormal Loads • Full & Part LoadsFTW5533

Durban:Tel: +27 31 460 0500Fax: +27 31 465 7903

Johannesburg:Tel: +27 11 396 9067/45Fax: +27 86 615 1947

[email protected]

Full Loads to MozambiqueFrom citrus to steelCollections, clearance and deliveriesAccess to more than 100 trucksTri-axle and superlinks

Johannesburg T +27 861 337 722Cell T +27 83 357 6016Email [email protected]

FTW

5678

By Liesl Venter

Communications infrastructure or lack of it is probably one of

the biggest challenges from a technical point of view to overcome when moving goods across South Africa’s border posts.

According to Easyclear’s Michael Henning, communications infrastructure at some border posts is far from desirable resulting in service providers and their clients having to come up with inventive ways to communicate electronically with Sars in compliance with modernisation.

“Through the use of mobile technology and sometimes international mobile service

providers we are often able to address this challenge at very little extra cost to the client, but it would be worthwhile if infrastructure, especially communications infrastructure at our border posts, could be

addressed – especially in the light of everything now being communicated electronically.”

He said while modernisation had for the most part led to massive improvements in the system, the speed at which

Sars implemented the changes did not always filter down as fast to border post employees.

“If the changes have not been communicated as quickly at ground level, this can lead to confusion around policies and procedures.”

But, said Henning, the situation is improving.

“The same can be said about the harmonisation of systems and procedures within SADC,” he said. “Albeit slowly, at times due to politics between different neighbouring countries, there is a drive to see more alignment and harmonisation – and that bodes well for the future.”

He said while some countries were still lagging behind in the SADC due to the specific systems they were

using, some had also made massive improvements.

“Mozambique, for example, is improving dramatically, probably due to the one-stop and single-window projects being implemented and driven by the Maputo corridor group.”

‘Inventive’ solutions help overcome communications challenges at borders

Michael Henning … ‘Encouraging drive to see more alignment and harmonisation in the region.’


‘Speed at which Sars implements changes does not always filter down as fast to border post employees.’


DBN Tel: +27 31 205 0463JHB Tel: +27 11 867 3377WVB Tel: +264 64 203 522 [email protected]

www.interlogix.co.za

Road bond facility

Fast, accurate document clearance

Logistics management

Specialising in Abnormal Cargo

Cross Border Road FreightFTW5714

Officesnow open in

WalvisbayONE STOP SHOP INTO AFRICA

FTW5779

• Customs Clearing• Cross Border Transport• Dangerous Goods Handling• Insurance• International Forwarding• National Collection / Delivery

• Packing• Perishable Cargo Handling• Pre-Inspections• Project Services• Regional On-forwarding• Warehousing

Tel: (011) 823-4806/27/31 Fax: (011) 823-4955 E-Mail: [email protected] www.kingfisher-freight.co.za SA MEMBER

For complete peace of mind contact the professionals

SERVICES INCLUDE: WORLDWIDE IMPORTS AND EXPORTS

By Ed Richardson

Africa’s first one-stop border post at Chirundu, between Zambia and

Zimbabwe, is beating its budget forecast.

The Times of Zambia quotes Chirundu One-Stop Border Post deputy manager, Kasepa Mulenga, as saying that the crossing met its 2012 budget in October – two months ahead of schedule.

According to the report, the border post collects over K180 billion (R293 million) a month.

It was opened officially on December 5, 2009 by the presidents of Zambia and Zimbabwe, and is one of the links in the North-South trade corridor designed to reduce transit times and logistics costs in the region.

There have, however, been

delays in the establishment of other one-stop posts along the route.

This is despite the fact that the 2012 World Bank’s “Doing Business” report identified the cost of border delays, not lack of infrastructure, as the biggest cost to logistics on the continent.

Red tape and corruption at border posts is seen as one of the biggest obstacles to the growth of inter-regional trade.

“To unlock the potential of intra-African trade and boost competitiveness, governments should redouble their efforts to improve both “hard” and

“soft” infrastructure,” says Habiba Ben Barka, senior planning economist with the African Development Bank.

In his paper on the challenges facing intra-regional trade, he says “hard” infrastructure improvements would include: constructing and/or rehabilitating transportation networks (roads, railroads, port facilities and airports), ensuring a reliable and affordable source of power, and building robust ICT systems and services.

Measures on the “soft” infrastructure side include: simplifying and harmonising customs and border procedures; encouraging the use of new technology by customs agencies; and eliminating corruption and illegal payments (including bribes to officials) at borders and checkpoints.

Chirundu one-stop border post meets revenue target

‘Biggest logistics cost is border delays, not lack of infrastructure.’

By Liesl Venter

In the volatile global environment in which we operate, country risk assessment has become more critical than ever, says Theo Reddi, general manager exports at Credit Guarantee Insurance Corporation.

The recent violence in Mali when rebels attempted to overthrow the government leading to France sending hundreds of troops to the area in an attempt to stabilise the region is a case in point.

“It is vital for exporters to assess a country’s risk before setting out to do business across the African borders,” he said.

Country risk assessment crucial when trading overborder


www.ftwonline.co.za

FTW2061SD

DurbanTel:031 319 1300Email: [email protected]

JohannesburgTel: 011 409 8120Email: [email protected]

Cape TownTel: 021 552 1771Email: [email protected]

● Courier Express

● Overnight Freight

● Customs Clearance & Forwarding both International and Cross-border

● No load too large or small

FTW5541

Johannesburg: Tel: +27 11 908 9699 Fax: +27 11 864 9783 email: [email protected]: Tel: +27 31 700 9884/6 Fax: +27 31 700 8374 email: [email protected]: Tel: +27 51 432 0244 Fax: +27 51 432 0245 email: [email protected]: Tel: +266 223 24791 Fax: +266 223 24564 email: [email protected]

The Lesotho Freight Specialist

Overnight every night to Lesotho

By Ed Richardson

Revenue authorities can expect to come under pressure from governments to examine

documentation for cross-border trade more closely following the publication in December 2012 of a Global Financial Integrity review financed by the Ford Foundation.

The Task Force on Financial Integrity and Economic Development recommends that authorities “require that the parties conducting a sale of goods or services in a cross-border transaction sign a statement in the commercial invoice certifying that no trade mis-pricing in an attempt to avoid duties or taxes has taken place and that the transaction is priced using the OECD arms-length principle”.

Formed in 2009, the Task Force is described as a global coalition of more than 50 governments as well as civil society organisations to advocate improved transparency and accountability in the world’s financial system.

Trade mis-invoicing is the preferred method of transferring

illicit capital from all regions except the MENA (Middle East and North Africa) region. Here it accounts for “only” 37% of total outflows for the decade ending 2010, according to the report Illicit Financial Flows from Developing Countries 2001-2010, which found that fraudulent outflows from Africa increased by 23.8% a year on average over the decade under review.

In declining order of dominance, the share of trade misinvoicing in total outflows by region is Asia (94%), Western hemisphere (84%), Africa (65%), and developing Europe (53%).

Large current account surpluses of countries in the MENA region driven by crude oil exports entail larger outflows through what authors Dev Kar and Sarah Freitas term balance of payments leakages.

In the case of Europe, the relatively large unrecorded outflows from the Russia’s balance of payments dominate regional outflows.

The countries with the ten highest illicit outflows are China, Mexico, Malaysia, Saudi Arabia, the Russian Federation, the Philippines, Nigeria,

India, Indonesia, and the United Arab Emirates, in declining order of magnitude.

South Africa is ranked 12th. An estimated US8.3 bn flowed illicitly out of the country in the decade under review. Angola is ranked as the next sub-Saharan country, in 40th position.

One of the hardest-hit countries is Zambia, which was singled out by Freitas in an article for Trustlaw. “Our research finds that $8.8 billion left Zambia in illicit financial flows between 2001 and 2010. Of that, $4.9 billion can be attributed to trade misinvoicing, which is a type of trade fraud used by commercial importers and exporters around the world.

This is a very serious problem. Zambia’s GDP was $19.2 billion in 2011. Its per-capita GDP was $1 413. Its government collected a total of $4.3 billion in revenue. It can’t afford to be haemorrhaging illicit capital in such staggering amounts,” she says.

There is a clear link between crime and lack of control over financial flows.

“In previous reports, we’ve

proven that illicit financial flows drive the underground economy. This means that as criminals and tax evaders avoid law enforcement and move their money overseas, it becomes easier for them to operate in Zambia. The underground economy becomes bigger, which makes it even more difficult for Zambia’s government to collect taxes. This in turn drives illicit financial flows further, completing the vicious feedback loop,” she says.

Authorities likely to scrutinise invoicing more closely

Trade misinvoicing culprits

Asia 94%

Western hemisphere 84%Africa 65%Developing Europe 53%


Your logistics needs managed

from A-Z

Domestic and international transport

by road and rail

FTW5457

Tel: +27 31 335 6160 Fax: +27 31 337 8527 E-mail: [email protected] Web: www.jvcfreight.co.za

Publication date: 5 April 2013

Western Cape

Booking deadline: 22 February 2013

To promote your services contact CARMEL LEVINRAD on Tel: +27 11 214 7303

FTW

5828

By Liesl Venter

Free trade in Africa remains nothing but a pipe dream because instead of doing away

with non-tariff barriers more and more are being introduced on a daily basis.

According to Barney Curtis, executive director of the Federation of East and Southern African Road Transport Associations (Fesarta), non-tariff barriers have become a massive cash cow in the region and dire measures are needed to address the situation that is beginning to impact on regional trade.

With organisations such as Trademark Southern Africa (TMSA) maintaining that the removal of tariff and non-tariff

barriers between countries could lead to trade expansion, the continuous implementation of NTBs is pushing up costs on all fronts.

In Zambia new standards for fuel tankers have seen a regulation implemented that all fuel tankers have to be inspected at a cost of $150 per vehicle, while a health inspection in Malawi now costs $20. In Mozambique on the Beira route a new charge has been put in place of $50 and all vehicles need an escort for a certain section of the road. In Zimbabwe many truckers say they cannot keep up with the speed of new standards being introduced.

While most experts agree there has been a major improvement

in addressing NTBs, the past few months have been a cause for concern.

According to Curtis, new NTBs are being reported to the Tripartite alliance NTB system all the time.

“The NTBs are flooding in and the only reason is that many of these countries are seeing the road transport industry as a cash cow. We have new instances of fees or charges being levied all the time.”

Gavin Kelly, spokesman for the Road Freight Association (RFA), agreed with Curtis saying a solution was needed sooner rather than later.

“The costs are escalating very quickly and there is nothing that can be done other than to just pay or face the risk of having one’s truck and other

equipment confiscated.”According to Curtis the time has

come for the road transport industry to stand together to address NTBs.

“There is going to have to be a day of reckoning. We are therefore calling on the industry to continue reporting all of these incidents as it will allow authorities to see the severity of the issue,” said Curtis.

One of the major obstacles in the region regarding NTB’s is the lack of agreement between countries and role-players over how to eliminate the barriers.

At the same time the lack of a legally binding framework to force countries to comply results in many being able to implement regulations as and when they wish – regardless of these barriers.

Non-tariff barriers have become cash cows in Africa – Fesarta‘Road freight industry must stand together to address escalation’


www.ftwonline.co.za

Advertisers' Index Absolute Logistics ............... 23African Distribution Network .................................. 1Botswana Consolidators ......... 4BP Freight ............................ 11Bridge Shipping Group ........ 23Cargo Carriers ...................... 17Celtic Freight and Logistics . 19Central Weighbridge Company .............................. 17CMA-CGM .......................... 26Compu-Clearing ..................... 6Core Freight Systems ........... 28Customs Services ................. 20Destrans ................................ 24Easyclear .............................. 16

Expolanka Freight ................ 11Falcongate Logistics .............. 5Frits Kroon Transport ............. 7ID Verification Systems ....... 18Intaka Tech ............................. 9Interlogix .............................. 25JTR Freight .......................... 11JVC Freight .......................... 27Kayhil Freight ...................... 26Kingfisher Freight ................ 25Lanisource Project Logistics ................................. 9Manica Group Namibia .......... 3Metcon ................................. 11Motion Liner Transport ........ 11MSC Logistics ..................... 14

MSC Shipping ...................... 21Namgola Logistics ............... 18Namibian Ports Authority ............................IBCNGL Logistics Solutions ...... 22P & J Botha Transport ............ 2Pioneer Corporation Africa ................................... 13Port of Maputo ..................... 12Prestmarine International ..... 11Reddy Cargo Services ............ 4RFB Logistics ...................... 24SACD ..................................... 3Shipshape Software .............. 22Swaziland Railway ................. 8TCS Logistics....................... 17

Transit Freight Co-ordinators ....................... 15Transmart ............................. 10Transport Holdings Limited ................................. 19Unitrans Freight Forwarding and Clearing ........................... 8UPS ................................. OBCWalvis Bay Corridor Group ................................. IFCWestrans TruckingWhiteLion Carriers .............. 11World Cargo Services ............ 5Zamlinx ................................ 11Ziegler .................................... 3

By Ed Richardson

In terms of new legislation, a wide range of commodities has been exempted from the need for a

guarantee during transit through Mozambique to the ports.

The commodities include coal, copper, sulphur, ferrochrome, granite, magnetite, manganese and gold dust, as well as lead, iron, pyrite, tungsten, uranium and vanadium ore.

“This new legislation is not only a benefit for our customers from South Africa, Swaziland, Zimbabwe and Zambia, but it will also allow us to attract more business,” says Johann Botha, commercial director of the Maputo

Port Development Company. “Almost 80% of the cargo

handled in the Port of Maputo is bulk mineral cargo, and there is a clear growth tendency, so the fact that this cargo is now bond-exempted is good news for everyone,” he said.

“The approval of this legislation demonstrates the commitment of our stakeholders to developing the region.”

For other goods, the legislation will help speed up transit and reduce overall costs, as the existing regulations were drawn up some time ago.

The simplified regulations are also designed to harmonise trade with Mozambique’s partners,

and to meet the standards and recommendations of the World Customs Organisation.

New transit laws help boost Mozambican volumes

Johann Botha … ‘helping reduce overall costs.’

As tobacco and cotton lint exporters tune into the benefits of containerisation, Safmarine is expecting a 10% increase in volumes moving over-border from Zimbabwe to South Africa in the year ahead.

“Not only are the cotton lint and tobacco sectors important contributors to the Zimbabwean economy, but they’ve also become increasingly important to Safmarine as a result of a growing trend to containerise these commodities rather than move them breakbulk,” says Andrew Kuster, Safmarine’s Zimbabwe country manager.

“Containerisation reduces security risks when moving the product over borders and reduces the need to rehandle and refumigate.”

Tobacco exporters increasingly opt for containers

“Facilitating South African trade

FTW5838

Fully comprehensive Software Solution for South African Freight Fowarding and Customs Clearing

+27 11 706 3545 • www.corefreight.com

... Cross-border and beyond!”

FTW2546SD

P57522_UPS_297x210 2/28/05 2:32 PM Page 1

One planet.One contact.One deliverycompany.

www.ups.com

SHIPPING. SYNCHRONISED.

P575

22 0860 877 772FTW0721SD

february 2013 freight & trading weekly 40 · 2013-02-06 · february 2013 cross border 5...

Documents