German Agreement To Extend Betuweroute

Niger-Ivory Coast Rail Link Lays Tracks For African Infrastructure Expansion

INTERVIEW: DELMAS Launches New Mozambique Port Services To Pemba & Quelimane

Berth 19 Unveiled At Port Of Mombasa

TRADE-WATCH

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The Kenyan President together with leaders from other East African Community member states commissioned the new US$66 million Mombasa Port Berth #19 on 28/08/13. In West Africa 24 companies are to bid for the US$197 million expansion of the Takoradi Habour in Ghana.

A new line from Niamey to Abidjan is to bolster regional trade as a new 7-year railway project to connect Niger and Ivory Coast is to begin in 2014. Kenya has signed deals worth US$5 billion with China on 19/08/13 to be spent on a standard gauge railway linking Mombasa port to its border town of Malaba and numerous energy projects.

In an apparent move to stifle the port of Dar es Salaam and central transport corridor as a whole in favour of northern route through Mombasa port in Kenya, the government of Rwanda has increased road toll for Tanzanian trucks from US$152 to US$500 effective 01/09/13.

The Walvis Bay Corridor Group [WBCG] hosted an information session to improve awareness of the benefits of utilizing the Walvis Bay - Ndola - Lubumbashi Development Corridor [WBNLDC].

PORTS RAIL

ROAD TRADE

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EUROPE

BALTICS

&

TRADE WATCH

EUROPE & BALTICS

01

Germany

Hamburg Box Volumes Up 2% In First HalfHamburg has seen a throughput of 4.5m teu in the first half of 2013 – an increase of 2.1% year on year - due to world trade growth and positive development of Baltic transhipment traffic. Exports jumped by 2.6% to 2.2m teu, while imports gained 1.7% on last year to 2.3m teu. Throughput of loaded boxes was 2.4% ahead of the first half of 2012, at 3.9m teu. 1.1m teu were transported between Hamburg and the Baltic region, representing an increase of 8%. Seven new feeder services offer additional transport capacity and service range. Hamburg expects box volume growth of around 3% to 9.1m teu for the full year. Europe’s busiest box port Rotterdam reported a 1% rise in container volumes during the first 6-months to 5.9m teu due to a decrease in feeder volumes which had switched to ports in north Germany. Antwerp reported its half-year 2013 container volumes fell 1.7% to 4.3m teu. [Lloyds List 19/08/13]

Netherlands

Rotterdam Port Throughput Decreased SlightlyThroughput at Rotterdam port in the first half of the year decreased by 0.9% compared to the first half of 2012. This was primarily caused by a reduction in the shipment of crude oil. Other sectors were unable to offset this reduction. The container segment experienced a small decrease in the number of tonnes [-2%]. The number of containers handled by the port increased slightly by 1%. Feeder transport contracted [-6%] as feeder connections between the Baltic states and Rotterdam have shifted to ports in North Germany.

Another reason is the persistent overcapacity in the container shipping industry. As a result, to save on costs ship owners not only slow steam their large ships, but also make more direct port calls than in the past. The latter leads to a decrease in the total feeder volume in the Hamburg-Le Havre range.

The decrease in feeder volume is furthermore responsible for a slight decline in the deep sea volume [-2%]. The short sea traffic increased by 5% in part because of the growth in container volume to the eastern part of the Mediterranean. RoRo traffic increased somewhat [2%]. Other general cargo dropped significantly [-23%], primarily because of the decrease in the import of steel. In total 4% less breakbulk was handled. [Port of Rotterdam 24/07/13]

Portugal

Sines Terminal DredgingPSA Sines Terminais de Contentores SA of Portugal has opened the tendering process for the US$55 million dredging contract which will work towards the final phase of the terminal expansion there. MSC affiliate Terminal Investment Limited SA, also holds a stake in the facility. This latest development will add an extra 210m to bring total quay line to 940m with the terminal area also increasing by 10 ha. Ultimately the terminal will dispose of a 1.5m TEU capacity.

UNITED KINGDOM

Southampton Named Europe's Most Productive Container PortABP’s Port of Southampton has been ranked the most productive port in Europe and the #1 performing container terminal in the UK. Based on confidential data charting more than 100,000 port calls at 400 ports during

2012, the analysis from the Journal of Commerce [JOC] put Southampton's productivity performance among a global elite.

The findings place Southampton at 20th in the world for productivity, the only port in Europe to feature in the top 20, with an average of 71 container moves per hour. The ranking comes as the terminal is just over halfway into a 4-year improvement programme.

The terminal now operates at rates up to 177 moves per hour on the ultra large container vessels. The terminal is also the subject of a £150m expansion project designed to ensure it can continue to handle the biggest ships.

As well as an extensive dredging programme, the project sees the construction of a new 500m quay and the installation of 4-new cranes. The development is on course to open in January 2014. [Sandandgravel 19/08/13]

Felixstowe Passes 70m TEU MilestoneFelixstowe Port handled its 70th million TEU since container operations began. The landmark container was loaded aboard the 13,800-TEU MSC Bettina by the UK Secretary of State for Transport.

The event comes shortly after the opening of the port’s new North Rail Terminal, co-financed by the European Union Trans-European Transport Network, which will double rail capacity at the port and promote the use of rail for container freight. The port handled a record 3.7 million TEU in 2012, over 40% of all containers moved through UK ports. [SHDLogistics 21/08/13]

PORTS

Peel Ports Awards £9m Gladstone Dock Contract, LiverpoolPeel Ports has appointed Farrans Construction to carry out £9m-worth of works to upgrade Gladstone Lock and adjacent quayside infrastructure at the Port of Liverpool. No disruption to the port is expected as a result of the works. The improvements will increase efficiency for the movement of vessels within Seaforth Dock.

The upgrade is one of a series of investments by Peel Ports that will substantially increase operational efficiency at the Port of Liverpool. It comes ahead of the launch of the port’s deep water container terminal Liverpool2, which will double the port’s current container capacity and see some of the world’s largest vessels call directly at Liverpool when it opens for business in 2015.

The increasing size of modern vessels has led to a need to increase the width of the Seaforth passage in order to improve the necessary turnaround times for the larger vessels within tidal windows. A new quay wall will be installed and the existing wall demolished. Preliminary works have now started with completion of the full project expected around December 2014. [Daily Post 23/08/13]

EUROPE

TRADE WATCH

EUROPE & BALTICS

02

GERMAN AGREEMENT TO EXTEND BETUWEROUTERAIL

TRADE WATCH

EUROPE & BALTICS

03

The North Rhine-Westphalia and Deutsche Bahn signed a financial agreement for the construction of a 3rd rail line between Emmerich and Oberhausen, an important milestone in the extension of the Betuweroute in Germany. It will solve a bottleneck for freight trains on the route between Rotterdam and Duisburg. To guarantee sufficient capacity for freight traffic during this period, it is important that the Kaldenkirchen-Duelken stretch of the diversion is tackled quickly. The government of North Rhine-Westphalia is paying due attention to this. According to the current schedule, the line should be completed in 2022. [Port of Rotterdam 24/07/13]

GERMAN AGREEMENT TO EXTEND BETUWEROUTE

TRADE WATCH

EUROPE & BALTICS

04

China’s New White Paper On African Trade - Natural Resources, Oil To Underwrite Investment Africa's importance to China's overseas investment agenda could become more significant as Beijing pursues a strategy of securing access to vital natural resources. Chinese foreign direct investment in Africa roughly doubled between 2009 and 2012 to US$2.5 billion from US$1.4 billion, while bilateral trade soared, reaching US$198.5 billion last year, up 19.3 per cent on 2011's total. Last year, Chinese companies completed construction contracts worth US$40 billion in Africa, up 45% over 2009, making up 35% of all of China's overseas contracts. Over 2,000 Chinese companies have invested in more than 50 African countries in all kinds of industries, mainly in agriculture, mining, construction and manufacturing. This number could jump as Beijing seeks to secure access to Africa's oil resources.

China became the world's biggest net oil importer earlier this year, taking the position that had been held by the United States since the 1970s. Chinese firms have invested billions of US dollars in the oil-rich nations of Angola and Sudan to secure access to oil. That means Beijing's influence on the continent, relative to the US, is likely to grow. Africa, projected to grow 5% this year, gets 1% of US foreign direct investment. US companies tended not to invest heavily in Africa countries and focused on nations with better growth prospects instead. Meanwhile China's state-backed economic model allowed its firms to take more risk.

A white paper released in August by China's cabinet underscored the deepening economic relationship. China-Africa trade volume made up 5.1% of China's total foreign trade, an increase from 2.2% in 2000. On the African side, it rose to 16.1% last year from 3.8% in 2000. The continent, home to six of the world's 10 fastest-growing economies, has been China's second-largest overseas contract market since 2009.

The trend is likely continue. China-Africa ties had reached a new historic high and would "enter the fast lane" this year. There were opportunities for deeper investment ties as African nations sought to upgrade their economic infrastructure. The paper sees the 2-economies as being on highly complementary development paths but on "different rungs of the development ladder". [South China Morning Post 02/09/13]

AfDB to Raise USD 100 Billion for Infrastructure in Africa The African Development Bank (AfDB) has set in place plans to raise 100 billion USD over the next two years to fund development of infrastructure in Africa. The infrastructural development projects include the construction of regional railways, the Lamu port in Kenya and Bagamoyo and Dar es Salaam ports in Tanzania. [CRI 06/09/13]

PAN AFRICA

TRADE WATCH

PAN AFRICA

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PAN AFRICA

TRADE WATCH

PAN AFRICA

06

ECOWAS

EU To Boost Anti-Piracy Efforts In West AfricaThe European Union is to increase security efforts in the Gulf of Guinea. The new measures, likely to be announced in October, will however not include sending warships to the region, a move that helped reduce pirate attacks off East Africa. The EU's efforts will focus on helping improve coordination between regional navies, training and other measures, rather than deploying forces. The number of attacks in the Gulf of Guinea rose from 39 in 2010, to 53 in 2011 and 62 in 2012. [AFP 28/08/13]

PORTS

Takoradi Port Expansion Under Bids24 foreign companies are expected to bid for the US$197 million expansion of the Takoardi Habour including PW Ghana, Kolin, Construction Logistics, Rockshell International and Jaycashman. Bidding documents are to be completed by the end of August. [Spy Ghana 29/08/13]

ICD

Ghana Government Renews Search For Private Investors To Decongest PortsThe Ghana Government has renewed its search for private investors to partner it to build and operate the Bonkra Inland Port and the Eastern Railway line project. A successful revival of the project is expected to decongest the Tema and Takoradi ports leading to a rise in the country’s maritime trade. [GBC 28/08/13]

AFRICAWESTERN

& CENTRAL

TRADE WATCH

WESTERN & CENTRAL AFRICA

07

Component Description ROAD WORKS Gabon: Development of the Ndendé-Doussala section [49km]

Congo: Development of the Ngongo-Kibangou section [130km]; Development of the Kibangou-Dolisie section [93km] Gabon/Congo border: Development of border bridge and road linking it to the border [2km]

RELATED WORKS

Gabon: Rehabilitation of 50 km of feeder roads to open up agricultural production zones. Congo: Construction of parking area between Kayes and Moyombi; Rehabilitation of 57 km of feeder roads to open up agricultural production zones.

TRANSPORT AND TRANSIT FACILITATION

Functional study of single border check point [PCUF] and establishment of a corridor management system; Construction and equipment of a PCUF at the Gabonese border, including a weighing station; Installation of a pilot goods tracking and radio-communication system on the Pointe Noire-Brazzaville section; Study on harmonization of customs procedures in both countries. Congo: Feasibility study of Pointe Noire by-pass road.

AFRICAWESTERN

& CENTRAL

ROAD

Trans-Sahara Highway ProjectThe 9,022km Trans-Sahara Highway [TSH] project is one of the major integration projects promoted by NEPAD. It covers 3-countries, Algeria, Niger and Chad, and hopes to contribute to the development of commercial exchanges by road and to the regional integration between the Arab Maghreb Union [AMU] - Algeria and Tunisia, ECOWAS - Mali, Niger and Nigeria, and ECCAS - Chad. Objectives are to reduce the time and cost of transport and logistics throughout the Alger-Niamey, Alger-Ndjamena, Niamey-Ndjamena and Niger-Burkina-Mali corridors with the construction of the Farié Bridge.

The construction of the Arlit-Assamakka section in Niger and the section linking Ngouri-Bol-Niger border to Chad is of regional importance as it aims to fill in the missing links on major axes of the TSH and its Chadian branch. Moreover, these roads are located on the trans-African corridors running from Algiers to Lagos [ATT 2] and Dakar to Djibouti [ATT 5 and 6], which were identified as priority links by the Programme for Infrastructure Development in Africa [PIDA]. The AfDB is the executing agency.

DETAILS• 7,771 km [80%] has already been asphalted• Comprises the 4,498 km-long main road running from Algiers [Algeria] to Lagos [Nigeria], via Zinder [Niger]• 3-secondary roads: • Tunisia: Ghardaia [Algeria] to Gabès [Tunisia]. 866 km fully asphalted; • Mali: Bamako [Mali] to Tit [Algeria]. 2,461 km: 1,321 km asphalted / 1,140 km feeder roads • Chad: Ndjamena [Chad] and Zinder [Niger]; 1,197 km: 724 km asphalted / 473 km feeder roads [415 km in Niger / 57 km in Chad currently being asphalted]. In Chad, the construction of the 85 km-long Massakory-Ngouri section will be entirely financed by the Islamic Development Bank [IDB]. The procurement procedure relating to these works is underway and the works should soon begin.

Farié Bridge Project on River Niger Part of the traffic between the WAEMU countries especially eastern Mali, northern Burkina Faso and western Niger makes use of the Ouagadougou - Kaya - Dori - Téra - Niamey - Farié road, which is part of the WAEMU countries Community Action Programme for Infrastructure and Road Transport [PACITR]. Currently, the road is fully asphalted.

A significant increase in traffic is expected, with a large portion of the flow of the heavy duty traffic heading towards eastern Mali and western Niger, as well as towards the Niger River valley from Lomé, Accra, Tema and Abidjan ports. The major obstacle is the River Niger on which there is no bridge.

At Farié, the two banks of River Niger are now connected by a ferry with a capacity that does not exceed 12 passenger car units and operating only 12 hours a day, from 6.30 a.m. to 8.30 p.m., with a break from noon to 2.40 p.m. This results in wasted time and increased transport overheads. To ease the flow, WAEMU has funded technical studies on the economic feasibility of a bridge on River Niger at Farié, with a view to enabling the country to seek financing.

The river banks at the proposed crossing point, close to the existing ferry, will be connected by a bridge approximately 630 m long. The access road to the bridge runs from the RN1 junction and the existing roadway leading to the ferry, and ends on RN4 under construction. The total project length is 3.5 km. This development also includes 2-roundabouts at the start and end of the project connecting the various road sections.

Transport Facilitation: Libreville-Brazzaville-Pointe Noire Corridor The 276-km-long Ndende-Doussala-Dolisie road is to be developed. Part of the Libreville-Brazzaville-Pointe Noire Corridor it is an important section of the international road linking the Republic of Congo and the Republic of Gabon via the South to boost trade between the 2-countries. The section is a key missing link of the Yaoundé-Libreville-Brazzaville corridor which is part of the Tripoli-Windhoek Trans African Highway. Once built, it will open up remote areas in Ngounié and Nyanga Provinces in Gabon and Niari Department in Congo. [AfDB 14/08/13]

TRADE WATCH

WESTERN & CENTRAL AFRICA

08

RAIL

Niger-Ivory Coast Rail Link Lays Tracks For African Infrastructure Expansion

TRADE WATCH

WESTERN & CENTRAL AFRICA

09

REGULATORY

Sierra Leone Bans Right Hand Drive VehiclesAs from 01/09/13 the Ministry of Transport & Aviation has prohibited the shipment of right hands vehicles. The official notification is as follows:

TRADE

Cote d’Ivoire / South Africa Seek To Increase TradeThe South African Ambassador in Côte d'Ivoire, Sem Vusumuzi Sindane, has noted that the 2-countries must accelerate cooperation and reach CFA1 billion in exchanges at a recent Chamber of Commerce and Industry [CCI-CI] meeting. In 2012 Cote d’Ivoire exported 263 million CFA francs against CFA 62 million of import; a total value of trade of CFA325 million. The vice-president of the CCI-CI, Armand Akobé, pointed out this strategy would fit with the National Development Plan 2012-2015 to spearhead growth. An economic mission from the Centre de Promotion des Investissements en Côte d'Ivoire (CEPICI) will visit South Africa next October whilst an international fair hosted by the CCI-CI will be held in 2014. [Fraternité Matin 01/09/13]

The Ministry of Transport and Aviation in collaboration with the Sierra Leone Road Transport Authority pursuant to the Road Traffic regulation 2011 Section 73 "No Motor Vehicle shall be registered, used or allowed to be used if the steering apparatus is fitted at the Right Hand side of the vehicle." The Ministry of Transport and Aviation would now like to inform the general public that effective Sunday 1st September 2013, after 12 noon, the importation of right hand vehicles is prohibited. This further importation ban does not affect right hand vehicles already in the country. Licenced right hand vehicles already in the country will be allowed to operate as usual for twelve months until 1st September 2014. This ban primarily targets all right hand vehicles that have been imported to reach Sierra Leone after 1st September 2013. However, all vehicles shipped before 1st September 2013 supported by documentary evidence of such shipment will be licenced to operate and be given a twelve months deadline to change over to left hand drive. All right hand vehicles shipped after 1st September 2013 will not be licenced and therefore would not be allowed to leave the Quay. This decision has been taken in the interest of public safety and in conformity with ECOWAS protocol after extensive consultations between the Ministry of Transport and Aviation, Sierra Leone Transport Authority, the motor drivers union and other stakeholders. The cooperation of the general public is highly solicited.

A new line from Niamey to Abidjan is expected to bolster regional trade, but critics urge focus on people rather than goods. A 7-year railway project to connect Niger and Ivory Coast is to begin in 2014 as part of renewed efforts to improve rail infrastructure in the region. The railway would link Niamey, the capital of landlocked Niger, with the Ivorian commercial hub of Abidjan, via the capital of Burkina Faso, Ouagadougou, after the extension of mining activities in West Africa. The line would extend the existing railway that runs from Ouagadougou to Tambao, a lucrative manganese mine in the remote north east of Burkina Faso, near the border with Niger and Mali. The extension of the Ouagadougou-Tambao railway to Niger would represent a major infrastructure development in the country, which has no functioning railways. It would link Niger with the ports in Cotonou and Abidjan.

The Niamey-Abidjan initiative is believed to be funded by the EU and French governments, with private investment from the Romanian industrialist Frank Timiş, whose company, Pan African Minerals, secured the rights to develop Tambao after a long history of legal wrangles between the government of Burkina Faso and several successive prospectors. The construction of the railway has been central to plans to exploit manganese at the mine since it was discovered in 1959. Tambao is expected to yield up to 1m tonnes a year. Timiş is reported to be locked in a fierce rivalry with French billionaire Vincent Bolloré for domination of African rail infrastructure, seen as key to controlling untapped mineral wealth. [The Guardian 19/08/13]

Niger-Ivory Coast Rail Link Lays Tracks For African Infrastructure Expansion

TRADE WATCH

WESTERN & CENTRAL AFRICA

10

Trade corridors in Mozambique have seen a lot of investment and growth over the last few years in both port and rail infrastructure. Two such ports are Pemba and Quelimane. DELMAS is pleased to announce that it has opened up a new service to these ports with the launch of a new dedicated feeder service. These new port calls reinforces our presence throughout Southern Africa and specifically in Mozambique. DELMAS now offers an effective service covering the country's entire territory: Maputo, Beira, Pemba, Nacala and Quelimane. Combined with our new projects department DELMAS can offer renowned expertise in providing logistics and project solutions for the oil, gas and mining sectors.

To expand on this new service and outline current port projects and future developments within the Mozambique maritime industry we interview our East African trade director Charles-Patrick Segonzac [MOZEX] about the market characteristics and our service to this region. E-mail: LHV.CSEGONZAC@delmas.net

Can you expand on this new DELMAS feeder service?Every 10 days a dedicated feeder will shuttle from Pemba & Quelimine to Nacala with onward connections to our MOZEX Line. The MOZEX line offers a weekly fixed day service with full coverage of Mozambican ports and excellent transit times. With a range of connections to & from the Far East the service offers direct links to Port Kelang, Tanjung Pelepas and the Indian Ocean. DELMAS is positive this new service and its expert local knowledge will offer customers a complete tailor made solution to their worldwide logistics needs to/from Mozambique.

What developments are taking place at these ports? It is an exciting time for Mozambique which anticipates a near 8% growth rate in 2013. In March this year, Bolloré Africa Logistics Mozambique, in partnership with the Mozambican public corporation CFM, inaugurated the country's first oil port in the city of Pemba. Thanks to new infrastructure coming online at Pemba the port is confirming its position as a natural gateway for the oil and gas sector and will equip Mozambique with the resources to achieve its energy development.

What are the main commodities dealt with on these corridors?In these ports we handle logistics mainly for drilling and extraction projects in the oil and gas sector as well as for mining projects. We can move anything from bulky rig components to pipes, massive turbines to cable reels. DELMAS has been a renowned African specialist handler for many years and as such we offer the technical expertise, secure handling and knowledge to help you move your cargo safely and efficiently. Our dedicated team of experts will guide you through the different loading procedures to ensure safe and secure transport. For rates and bookings please contact your usual DELMAS agent.

DELMAS INTERVIEW

DELMAS LAUNCHES NEW MOZAMBIQUE PORT SERVICES TO PEMBA & QUELIMANE

TRADE WATCH

EASTERN AFRICA

11

DELMAS LAUNCHES NEW MOZAMBIQUE PORT SERVICES TO PEMBA & QUELIMANE

Imports into Mozambique Exports from Mozambique Port Kelang - Pemba 38 days Pemba - Hamburg 42 days Jebel Ali - Quelimane 31 days Quelimane - Huangpu 35 days Mundra - Pemba 27 days Pemba - Singapore 24 days

Port DetailsBoth ports are overseen by the Portos e Caminhos de Ferro de Mocambique, E.P.

PembaServed by m/v RMS Pemba, Pemba is the capital of the Cabo Delgado Province situated in Pemba bay, the 3rd biggest natural bay in the world. Pemba lies 2,000 km NE of the capital Maputo. Pemba port is confirming its position as a natural gateway for the oil and gas sector. Caminhos de ferro do Moçambique (CFM), Mozambique’s state-owned ports and railway, announced its intention to upgrade the port at Pemba in November 2007.

QuelimaneThe m/v RMS BUCHHOLZ and m/v RMS VOERDE will call at Quelimane port twice a month. Quelimane is the administrative capital of the Zambezia Province and the province's largest city, and stands 25 km from the mouth of the Rio dos Bons Sinais. Quelimane port is managed by Cornelder Quelimane, a JV between CFM [30%] and Cornelder of Mozambique [70%]. Cornelder was granted a 25-year concession in March 2005. The port also received €23 million from the German development agency, Kreditanstalt für Wiederaufbau. The port compliments those of Beira and Nacala in the export of Mozam-bican coal.

TRADE WATCH

EASTERN AFRICA

12

BERTH 19 UNVEILED AT PORT OF MOMBASAPORTS

Berth 19 Facts• 250m in length • Will allow 3-Panamax vessels to unload containers simultaneously• Linked to a stacking yard covering an area of about 6ha• Offering additional container holding capacity of 200,000 TEUs pa

TRADE WATCH

EASTERN AFRICA

13

BERTH 19 UNVEILED AT PORT OF MOMBASAKenyan President Uhuru Kenyatta together with leaders from other East African Community member states have commissioned the new US$66 million [Sh5.6 billion] Mombasa Port Berth #19 on 28/08/13. The 250-m long new berth is expected to boost container handling operations and increase capacity at the Port.

“This facility reflects the expanded capacity at the Port of Mombasa and will enable berthing of large container ships. It is the single largest berth capacity expansion undertaken in 35 years. We are looking for efficiency in order to reduce trade barriers and to improve opportunities for our country.”

President Uhuru Kenyatta

The event was attended by President Yoweri Museveni of Uganda and Paul Kagame of Rwanda.

President Museveni, who is the chairman of the East African Community [EAC], noted the port was critical in assisting producers of goods and services in the region to access local and international markets and challenged regional states to unite in a bid to create a bigger market for regional products and services as well as consolidate their bargaining power with major global economies and trading blocs.

Museveni also praised President Kenyatta’s efforts to remove non-tariff barriers such as roadblocks and corruption resulting in faster movement of goods, people and services between Kenya and Uganda.

The commissioning of the berth was part of activities of a 2-day infrastructure conference in Mombasa. The Summit is a follow-up of the 1st Conference held in Uganda in June, 2013 and aims at taming spiralling business costs and concerns over huge projects lagging behind schedule.

Kenya is determined to upgrade road and rail links with neighbouring countries, starting with the building of a standard gauge railway from Mombasa to Malaba in order to increase rail freight from the current 4% to at least 50% in the next few years. [Daily Nation 28/08/13]

TRADE WATCH

EASTERN AFRICA

14

Kenya

Lamu Mega-Port Plan Still In Need Of Solid FinancingInitial work has started on the mangrove coast near Lamu that could in a few years be a bustling container port and crude terminal, creating an export hub for fast-growing east African states and their oil.

However, Kenya must shore up regional commitment for the US$25.5 billion Lamu Port-South Sudan-Ethiopia Transport [LAPSSET] plan that by 2030 envisages a port, new roads, a railway and pipeline.

Experts say the Lamu port and transport links are viable, if not on such a huge scale. Some South African banks are watching closely, but emerging markets now face tougher times raising cash and no big donors, such as China, have thrown their full weight behind the plan. The biggest obstacle is really a political one to make sure discussions take place.

Initially predicated on convincing South Sudan to switch its oil exports to Lamu from the regularly disrupted pipeline it now uses via Sudan, the Kenyan scheme has found a new raison d’etre.

First, Uganda agreed to ship its future oil output through a pipeline to Lamu. Then last month, British explorer Tullow Oil increased Kenya’s oil reserve estimates and said east Africa’s biggest economy could start oil exports by 2016.

LAPSSET notes that that there are 3-oil

sources, up from one when the studies were previously done. However South Sudan has suggested that a new pipeline that could run through Ethiopia to Djibouti port.

Uganda lately backed a Kenyan route, after mulling one via Tanzania. Also Kenya and Uganda may be enough to get the oil terminal going.

Nairobi is confident it can make an economic case for a Uganda-Kenya pipeline costing an estimated US$2.5 billion to US$5 billion, made costlier because Uganda’s waxy oil means it must be heated to enable flow. A spur could then go to South Sudan.

Economies of scale gives greater investment credence to the project, raises profitability and de-risks a lot of other factors which were associated with one single oil source.

A dirt road is the first sign of work at the site, where a Chinese firm has a US$470 million contract for Lamu port’s first 3-berths of 32 planned at a port estimated to cost US$5.5 billion. Further funds will be needed for the planned roads and railway linking South Sudan and Ethiopia.

However, financing is trickling in. Battling a big budget deficit, Kenya allocated only about US$48 million to the project this fiscal year. China’s involvement with Lamu pales against its backing for Tanzania’s US$10 billion Bagamoyo port plan.

The World Bank, African Development Bank and the EU are funding roads linking Kenya with South Sudan and Ethiopia. Though this could help the Lamu project, these donors and concessionary lenders are not directly

funding LAPSSET.

On the international markets, funding has become trickier as the US looks set to rein in its loose monetary policy, hiking interest rates for emerging market borrowers.

Still Nedbank Capital, Rand Merchant Bank, Standard Chartered are watching progress with The Development Bank of Southern Africa keen to be a lead arranger for funding and could offer as much as US$1.5 billion to LAPSSET.

Some say Kenya must make a clearer case for creating a new container port over expanding and upgrading Mombasa.

The government faces worries the new port and surrounding development will harm delicate coastal areas and could overwhelm the popular tourist destination of Lamu.[Taipei Times 01/09/13]

Expansion Plans At Shimoni Port to Boost TradeThe Coast region will soon have a fully functioning port at Shimoni area following calls to revamp the underutilised port into a modern facility.

Reportedly plans are underway to increase its efficiency and to enlarge its capacity to serve the East African region following recently discovered mineral deposits.

Feasibility studies undertaken at the site has shown huge potential and local governors have been meeting investors and government officials to bring their input to the project. [The Star 27/08/13]

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Kenya

Lamu Mega-Port Plan Still In Need Of Solid FinancingInitial work has started on the mangrove coast near Lamu that could in a few years be a bustling container port and crude terminal, creating an export hub for fast-growing east African states and their oil.

However, Kenya must shore up regional commitment for the US$25.5 billion Lamu Port-South Sudan-Ethiopia Transport [LAPSSET] plan that by 2030 envisages a port, new roads, a railway and pipeline.

Experts say the Lamu port and transport links are viable, if not on such a huge scale. Some South African banks are watching closely, but emerging markets now face tougher times raising cash and no big donors, such as China, have thrown their full weight behind the plan. The biggest obstacle is really a political one to make sure discussions take place.

Initially predicated on convincing South Sudan to switch its oil exports to Lamu from the regularly disrupted pipeline it now uses via Sudan, the Kenyan scheme has found a new raison d’etre.

First, Uganda agreed to ship its future oil output through a pipeline to Lamu. Then last month, British explorer Tullow Oil increased Kenya’s oil reserve estimates and said east Africa’s biggest economy could start oil exports by 2016.

LAPSSET notes that that there are 3-oil

sources, up from one when the studies were previously done. However South Sudan has suggested that a new pipeline that could run through Ethiopia to Djibouti port.

Uganda lately backed a Kenyan route, after mulling one via Tanzania. Also Kenya and Uganda may be enough to get the oil terminal going.

Nairobi is confident it can make an economic case for a Uganda-Kenya pipeline costing an estimated US$2.5 billion to US$5 billion, made costlier because Uganda’s waxy oil means it must be heated to enable flow. A spur could then go to South Sudan.

Economies of scale gives greater investment credence to the project, raises profitability and de-risks a lot of other factors which were associated with one single oil source.

A dirt road is the first sign of work at the site, where a Chinese firm has a US$470 million contract for Lamu port’s first 3-berths of 32 planned at a port estimated to cost US$5.5 billion. Further funds will be needed for the planned roads and railway linking South Sudan and Ethiopia.

However, financing is trickling in. Battling a big budget deficit, Kenya allocated only about US$48 million to the project this fiscal year. China’s involvement with Lamu pales against its backing for Tanzania’s US$10 billion Bagamoyo port plan.

The World Bank, African Development Bank and the EU are funding roads linking Kenya with South Sudan and Ethiopia. Though this could help the Lamu project, these donors and concessionary lenders are not directly

funding LAPSSET.

On the international markets, funding has become trickier as the US looks set to rein in its loose monetary policy, hiking interest rates for emerging market borrowers.

Still Nedbank Capital, Rand Merchant Bank, Standard Chartered are watching progress with The Development Bank of Southern Africa keen to be a lead arranger for funding and could offer as much as US$1.5 billion to LAPSSET.

Some say Kenya must make a clearer case for creating a new container port over expanding and upgrading Mombasa.

The government faces worries the new port and surrounding development will harm delicate coastal areas and could overwhelm the popular tourist destination of Lamu.[Taipei Times 01/09/13]

Expansion Plans At Shimoni Port to Boost TradeThe Coast region will soon have a fully functioning port at Shimoni area following calls to revamp the underutilised port into a modern facility.

Reportedly plans are underway to increase its efficiency and to enlarge its capacity to serve the East African region following recently discovered mineral deposits.

Feasibility studies undertaken at the site has shown huge potential and local governors have been meeting investors and government officials to bring their input to the project. [The Star 27/08/13]

Mozambique

Grindrod Hopes To Push Maputo Cargo From 18Mt To 50Mt By 2020Maputo port is expected to handle around 18-million tons of cargo this year, up from 15-million tons last year, and 12-million tons in 2011. JSE-listed bulk handling and shipping group Grindrod operates the port in partnership with Dubai Ports World and the Mozambique Ports & Railways Company.

The original plan was to take the port to 50-million tons a year by 2025, but now the operators are hoping to do this by 2020. The growth is expected to come from coal, magnetite, iron-ore, chrome ore, containers and vehicles.

The product mix in the Maputo terminals will be driven in favour of magnetite, a form of iron-ore. The demand for the commodity is motivating this decision, while export volumes are also available at Maputo.

The magnetite comes from Palabora Mining, approx 5-million tons a year, with 1.25-million tons of iron-ore coming from Swaziland. Palabora Mining has massive stockpiles that could be exported through Maputo. While market demand will ultimately drive expansion at Maputo port, capacity for magnetite and iron-ore could rise from 10-million tons a year to 15-million tons a year.

July also saw the completion of the 1.3-million tons Maputo coal terminal Phase 3.5 expansion project, to a yearly capacity of 7.3-million tons. Key work streams on Phase 4 are progressing. Meanwhile the Maputo car terminal experienced a 91% jump in volumes in the half-year ended June 30, to 37,155 vehicles imported and exported through the facility.

The South African Pretoria-based manufacturing operations of Nissan, Renault and BMW all made use of the terminal. A 2nd phase expansion, increasing yearly capacity to 121,000 units a year, up from 52,000 units, was completed in July. There are plans in the pipeline to further increase capacity at the car terminal.

Maputo also has strategic value as it is closer to Gauteng than any South African port. It is also well connected with rail access from Swaziland, Zimbabwe, South Africa and also Botswana.

There is also a regional need for the development of the Maputo port, as Durban was “fairly full”, and the Richards Bay Coal Terminal was “close to capacity”. Transnet has also allocated rail capacity to the Maputo coal terminal.[Creamer 02/09/13]

Port of Nacala Expected To Handle 1.5 Million Tons Of Cargo In 2013The cargo handled at the port of Nacala, in the Mozambican province of Nampula, is expected to total 1.5 million tons this year, after totalling 1.3 million tons in 2012. Figures showed that by the end of July the port had handled 1 million tons of cargo, which was an increase of 42.8 percent compared to the 700,000 tons registered in the same period of 2012.[Macauhub 06/09/13]

Ports of Nacala and Leixões in Portugal, Sign Cooperation AgreementMozambican company Portos do Norte, which manages the port of Nacala, and Portugal’s Administração dos Portos do Douro e Leixões have signed a business cooperation agreement that includes training. The cooperation would also boost sea links between the ports of Leixões and Nacala, promoting good port management pricatices and offer internships and training. [Macauhub 05/09/13]

Port Of Beira In Mozambique To Have New DockA new dock is due to be built in the port of Beira, in Mozambique’s Sofala province, as part of investments scheduled to increase the port’s cargo processing capacity. The new dock would be 600 metres long and have fertilizer and container terminals.Construction of the fertilizer terminal is expected to cost US$17 million and the terminal will have capacity for 1.3 million tons of fertilizer per year, in an initial phase. [Macauhub 09/09/13]

Tanzania

Tanzania Investing 3.8trn/ For Rail, Road And Port RenovationAt least 3.8trn/- has been set aside to help renovate railways, roads and the ports authority in an effort to improve the nation’s ability to handle transit goods from domestic producers as well as across the country’s borders. Currently, the central corridor handles only 1-million tonnes of transit goods annually with the view to increase this to 5-million tonnes annually by 2015. To achieve this goal results will depend heavily on the capacity and speed to handle goods at Dar es Salaam Port, improved efficiency in road and railway networks and enhanced efficiency in transportation of the goods.

Dar es Salaam Port captured 14% of import and export from its neighbouring countries in 2012 following an increase in throughput from 7.4 in 2007 to 12.1 million tonnes. At

the same time, the country experienced high domestic growth [7% pa 2005-2010] and predicts growth of 8% which will increase the demand for domestic transport by 16% by 2020.

However, the port remains a source of poor performance with 67% of time wasted in waiting for cargo discharge, documentation and payments currently taking 9-days to complete cargo clearance. To improve operational processes bottlenecks must be eliminated. The port needs to enhance operational efficiency, maximise spatial efficiency, strengthen institutional administration, upgrade lake ports and undertake infrastructure modernisation.

The bad state of rail infrastructure has also contributed to the decline in tonnage transported by train. The Central Railway Line which transported 1.5 million tonnes in 2002 has since dropped to 0.2 million tonnes by 2011 transporting 200,000 tonnes of goods per year instead of 3 million tonnes. Roads along the Central Corridor have also contributed to the congestion. Numerous weigh bridges and police checks lead to delays.

The average time taken on weighbridges is 8 hours per truck travelling from Dar es Salaam the border with 30% of time wasted on barriers and road blocks. Plans to reducing 17 non-tariff barriers to only 3, will significantly reduce the travel time and the introduction of motion system weighbridges will minimise time to only 45 minutes. These will be in place by 2015.[Guardian 26/08/13]

TRA Installs Cargo Tracker At Dar PortIn an effort to curb tax evasion and loss of goods, the Tanzania Revenue Authority [TRA] has put in place a computer tracking system at Dar es Salaam Port. It will track containers as they are offloaded at the port taken to the dry ports and up to the stage when they are handed over to the owners. It has been installed in collaboration with the Korean Government.[The Guardian 28/08/13]

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KENYA

Kenya Signs US$5 Billion Deal With ChinaKenya has signed deals worth US$5 billion with China on 19/08/13 to be spent on a standard gauge railway linking the port of Mombasa to its border town of Malaba and numerous energy projects.

The deals were agreed in Beijing after talks by Kenya's new President Uhuru Kenyatta and President Xi Jinping. Kenyatta is on his first State visit to China, which will focus on growing Kenya's business and investment with the East. Kenyatta will press for greater market access for Kenyan exports.

Kenya, Uganda, Rwanda Plan Rail Link In 2018The Dar es Salaam-Isak-Kigali/Keza-Musongati railway that runs from Kenya to Uganda will be extended to Rwanda by March 2018 as part of efforts to deepen trade ties in the region. The countries, part of the East African Community [EAC] trade bloc, previously announced plans to extend the line that starts in Kenya's Mombasa seaport but had not given a timing. Upgrading the track between Mombasa and Nairobi will start by November.

While extending the line, the existing route will also be upgraded. The ministers responsible should put in place a monitoring and evaluation mechanism to ensure the project remains on course, within budgetary provisions. The African Development Fund [ADF] is financing the cost of the preparatory works including the PPP procurement process, marketing, investment risk management, procurement and negotiation assistance and capacity building during the engagement period. The implementation period is 24 months, split over 3 phases. The Ministry of Infrastructure of the Republic of Rwanda, on behalf of the 3-governments, now invites eligible consultants to indicate their interest in providing Transaction Advisory Services. [Engineering News 29/08/13 / AfDB 16/08/13]

Kenya-Uganda: Rift Valley Railways Train Control UpgradeRift Valley Railways [RVR] has begun a US$9.3m roll-out of GPS-based train location on its network in Kenya and Uganda. The Translogic integrated logistics management platform will provide detailed information on train positions and loads. The aim is to enable all movements between Mombasa and Kampala to be managed from a single control centre in Nairobi. This is expected to help cut transit times from 8 to 4-days by 2015. Satellite navigation means RVR can eliminate waiting time at stations and give priority track access to trains carrying cargo.

RVR launched a US$287m 5-year investment programme for the 2,352 km network in 2011, supported by development loans of US$164m. Track renewals on 73 km of the Mombasa-Nairobi route have recently been completed at a cost of US$20m, with modernisation of a further 300 km due to follow. RVR could be listed on the Kenyan and Ugandan stockmarkets by 2017 to raise more funds through an IPO. Under its 25-year concession agreement, RVR has undertaken to be carrying 1.9 billion tonne-km of freight between Mombasa and Kampala by June 2014, and with traffic now at 1.3 billion tonne-km. [Railway Gazette 16/08/13]

ROAD

Rwanda Stifles Tanzania Corridor By Increasing Road TollIn an apparent move to stifle the port of Dar es Salaam and central transport corridor as a whole in favour of northern route through Mombasa port in Kenya, the government of Rwanda has increased road toll for Tanzanian trucks from US$152 to US$500 effective 01/09/13. Rwanda used to charge a road toll (user transit charge) of US$16 per 100km before it introduced a flat rate of US$152. The 228% increment has been slapped on Tanzanian trucks transporting goods from Dar es Salaam through the Rusumo border post to Kigali in Rwanda. Kigali is just 139-km from Rusumo. The Tanzania Truck Owners Association (TATAO) noted truck owners were only informed of the increment 1-week before the implementation date and branded the rates unjustifiable.

In reality, Tanzania is the shortest and affordable transport corridor for Kigali at a distance of just 1,350km compared to over 2,700km when goods are transported through Mombasa. There are about 200 trucks which are stuck at the Rusumo border post and this is expected to increase. It is believed, however, that harmonizing axle load in the region to 56 tonnes will eventually lead to harmonized road toll among member states of the regional bloc. As Rwanda increases the road toll, sources within the government of Tanzania have hinted that the country may lower the rates to US$8 per 100km as it has been proposed by SADC. [Tanzania Daily News 03/09/13]

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RAIL

KENYA

Kenya Signs US$5 Billion Deal With ChinaKenya has signed deals worth US$5 billion with China on 19/08/13 to be spent on a standard gauge railway linking the port of Mombasa to its border town of Malaba and numerous energy projects.

The deals were agreed in Beijing after talks by Kenya's new President Uhuru Kenyatta and President Xi Jinping. Kenyatta is on his first State visit to China, which will focus on growing Kenya's business and investment with the East. Kenyatta will press for greater market access for Kenyan exports.

Kenya, Uganda, Rwanda Plan Rail Link In 2018The Dar es Salaam-Isak-Kigali/Keza-Musongati railway that runs from Kenya to Uganda will be extended to Rwanda by March 2018 as part of efforts to deepen trade ties in the region. The countries, part of the East African Community [EAC] trade bloc, previously announced plans to extend the line that starts in Kenya's Mombasa seaport but had not given a timing. Upgrading the track between Mombasa and Nairobi will start by November.

While extending the line, the existing route will also be upgraded. The ministers responsible should put in place a monitoring and evaluation mechanism to ensure the project remains on course, within budgetary provisions. The African Development Fund [ADF] is financing the cost of the preparatory works including the PPP procurement process, marketing, investment risk management, procurement and negotiation assistance and capacity building during the engagement period. The implementation period is 24 months, split over 3 phases. The Ministry of Infrastructure of the Republic of Rwanda, on behalf of the 3-governments, now invites eligible consultants to indicate their interest in providing Transaction Advisory Services. [Engineering News 29/08/13 / AfDB 16/08/13]

Kenya-Uganda: Rift Valley Railways Train Control UpgradeRift Valley Railways [RVR] has begun a US$9.3m roll-out of GPS-based train location on its network in Kenya and Uganda. The Translogic integrated logistics management platform will provide detailed information on train positions and loads. The aim is to enable all movements between Mombasa and Kampala to be managed from a single control centre in Nairobi. This is expected to help cut transit times from 8 to 4-days by 2015. Satellite navigation means RVR can eliminate waiting time at stations and give priority track access to trains carrying cargo.

RVR launched a US$287m 5-year investment programme for the 2,352 km network in 2011, supported by development loans of US$164m. Track renewals on 73 km of the Mombasa-Nairobi route have recently been completed at a cost of US$20m, with modernisation of a further 300 km due to follow. RVR could be listed on the Kenyan and Ugandan stockmarkets by 2017 to raise more funds through an IPO. Under its 25-year concession agreement, RVR has undertaken to be carrying 1.9 billion tonne-km of freight between Mombasa and Kampala by June 2014, and with traffic now at 1.3 billion tonne-km. [Railway Gazette 16/08/13]

ROAD

Rwanda Stifles Tanzania Corridor By Increasing Road TollIn an apparent move to stifle the port of Dar es Salaam and central transport corridor as a whole in favour of northern route through Mombasa port in Kenya, the government of Rwanda has increased road toll for Tanzanian trucks from US$152 to US$500 effective 01/09/13. Rwanda used to charge a road toll (user transit charge) of US$16 per 100km before it introduced a flat rate of US$152. The 228% increment has been slapped on Tanzanian trucks transporting goods from Dar es Salaam through the Rusumo border post to Kigali in Rwanda. Kigali is just 139-km from Rusumo. The Tanzania Truck Owners Association (TATAO) noted truck owners were only informed of the increment 1-week before the implementation date and branded the rates unjustifiable.

In reality, Tanzania is the shortest and affordable transport corridor for Kigali at a distance of just 1,350km compared to over 2,700km when goods are transported through Mombasa. There are about 200 trucks which are stuck at the Rusumo border post and this is expected to increase. It is believed, however, that harmonizing axle load in the region to 56 tonnes will eventually lead to harmonized road toll among member states of the regional bloc. As Rwanda increases the road toll, sources within the government of Tanzania have hinted that the country may lower the rates to US$8 per 100km as it has been proposed by SADC. [Tanzania Daily News 03/09/13]

TRADE/ECONOMY

Tanzania

TRA Launches Cargo Management SystemsTanzania Revenue Authority [TRA] has launched the Cargo and Risk Management Systems that will boost and bring to the next level customs operations as well as increasing efficiency of cargo clearance at the Dar es Salaam port. The port provides crucial access to 6-landlocked countries: Malawi, Zambia, Burundi, Rwanda, Uganda and Eastern Democratic Republic of Congo [DRC] and clears over US$15 billion [24tri/-] of merchandise annually, an equivalent of 60% of the country's Gross Domestic Product [GDP] last year. According to a World Bank report on port performance, the total global welfare loss resulting from inefficiencies at the port in 2012 reached US$.8 billion [3trn/-] for the Tanzanian economy and US$830 million [1trn/-] for neighbouring countries equivalent to 7% of annual GDP.

The introduction of the electronic systems which is the first ever in the East and Central African region marks the beginning of paperless customs clearance operations at the port that will eventually cut down dwell time to 5-days from around 9-15 days. Paper works will be called off in March 2014 when the new custom systems to enhance ASYCUDA ++ capacity in the flow of cargo becomes operational. The project, which took 2-years, was carried out in collaboration between TRA, Korea Customs UNI-PASS Information Association [CUPIA] and KTNET to monitor the transfer of cargo from the ship to the ICD. [Daily News 15/08/13 & 20/08/13]

Uganda

URA Pilots New Customs Union Tax System in JinjaThe Uganda Revenue Authority [URA] will use Jinja district to run a month long test of a system that links the Kenyan, Ugandan and Rwandan tax authorities as the East African customs union shapes up. Uganda uses the Asycuda World computer system, Kenya uses the Simba computer system and Rwanda uses the Kwatos system for customs tax administration. If everything works well, the system will be launched 15/09/13.

The URA will bulk imports and exports of goods by test companies to review the compatibility between the tax systems of the 3-countries. Cargo manifests will be sent to the Kenya tax authority before vessels arrive at the port of Mombasa with tax rates being determined in Uganda. Importers in Uganda will now be able to clear goods from Mombasa, reducing cargo transit days and related costs.

Before, Kenyan clearing firms had a monopoly over clearing cargo from the port of Mombasa, with Ugandan agents clearing the same cargo from Malaba into Uganda. This made it expensive to import cargo due to handling fees, several insurance bonds and delays along the way due to several weighbridges. The weighbridges have been reduced from 5 to 2.

Trucks carrying cargo into Uganda are required to deposit a minimum insurance bond of US$300 [sh780,000] per container. A separate insurance policy is needed to store cargo in bonded warehouses. Uganda has approximately 120 bonded warehouses handling general cargo, cars and manufactured goods. It will be possible for importers with bonded warehouses to use a simple insurance bond to import and store cargo, making it cheaper to do business in Uganda. [New Vision 22/08/13]

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SOUTHERN AFRICA

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SADC / BRICS

BRICS To Offer Counsel On New Bank, Future Trade ParadigmBusiness leaders from Brazil, Russia, India, China and South Africa [BRICS] converged in Johannesburg for their first formal face-to-face meeting, following the establishment of the BRICS Business Council at the 5th summit in Durban earlier this year. The meeting discussed the creation of a BRICS-led development bank and conclusion will influence the agenda of the 6th BRICS Summit in Brazil early 2014. Attendees deliberated on ways to improve the quality of the trade and investment relations within the bloc, which are still characterised as much by competition as by cooperation.

South Africa was particularly keen to galvanise support for an envisaged overhaul of prevailing trade and investment ties between BRICS countries and Africa. Relations are currently premised on African countries exporting primary products to the rest of the BRICS, especially China, and importing finished products in return. Likewise, investments by BRICS firms are generally directed towards natural resources, or the infrastructure required for the export of those resources. A pattern described as unsustainable and should be replaced by a more balanced and symbiotic relationship. From South Africa's perspective, that would entail greater value addition to African minerals and agricultural products ahead of export, backed by co-investment by BRICS companies into the productive assets and the infrastructure required to facilitate such diversification. The 5-governments committed to promoting trade in value-added products and improving investment relations and officials are due to meet on the issue again in November.

Meanwhile Finance Ministers, together with the central bank governors, are pursuing a ‘work programme’ to interrogate the bank’s mandate and scope of operations, its capitalisation and the sources of funding, as well as where the new bank would be located and when it would become operational. An update is expected when the BRICS leaders meet in Saint Petersburg, Russia, in early September, on the side-lines of the 2013 G20 Summit. The bank will focus primarily on infrastructure in BRICS counties, there is potential for it to help close some of the funding gaps that surround a range of African infrastructure projects including the African Union's North-South Corridor projects, which comprise some large-scale transport, energy and water developments. [Mining Weekly 19/08/13]

BRICS Agree On Bank's StructureBRICS has agreed on the structure of a proposed development bank with US$50-billion in capital, but ironing out details may take months. BRICS officials agreed in early August that the bank's capital should come from 3-payment categories, including subscriptions. The establishment of the bank aimed at providing funds for infrastructure projects has been slow in coming, with prolonged disagreement over funding and management of the institution. At the summit of the Group of 20 in Russia's St. Petersburg, BRICS leaders met in an unofficial format to discuss the progress on setting up the bank and a joint reserve fund. The division of the capital, payment of the capital, location and the bank's management still need to be decided. [Reuters 03/09/13]

South Africa: Transnet Raises R1.5bn Bond For Capex ProgrammeState-owned freight logistics group Transnet has raised another R1.5-billion, 5-year bond through its ‘Domestic Medium Term Note Programme’. The issuance forms part of a larger R15.6-billion fundraising campaign for the group’s 2014 financial year. Orders worth R2-billion had been forthcoming and the bond was priced at 6.43%. The proceeds will be used to finance Transnet’s capital investment programme, which is focused on rejuvenating and modernising Transnet’s rail, port and pipelines logistics infrastructure. The group is in the 2nd year of its R307-billion, 7-year rolling infrastructure programme. [Engineering News 19/08/13]

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Namibia

Halfway To Multi-Billion Port TenderAccording to the CEO of NamPort, China Harbour Engineering [CHE] Ltd has emerged as the only survivor of an original list of 6-hopefuls to land a nearly N$3 billion tender for the construction of a container terminal on reclaimed land for NamPort in the port of Walvis Bay.

During the next 2-rounds NamPort will evaluate the tender price and the proposed structure to finance this project. If China Harbour Engineering is successful in the commercial and financing evaluation phases, then most likely it will be awarded the tender within the next weeks.

NamPort outsourced the evaluation of the tender to Burmeister and Partners of Windhoek, assisted by WSP Africa Coastal Engineers in South Africa, and DLA Piper from the United Kingdom. An additional re-evaluation took place conducted by France-based Egis Ports.

Eliminated tenders: Sinohydro Corporation [China]; Construtora OAS [Brazil]; China Gezhouba Group [China]; Walvis Bay Harbour Contractors [South Africa/Belgium/France]; CCC-STFA-JDN [Greece/Turkey/Belgium]. A consortium of Namibian and South African banks only tendered to finance the project, but failed the eligibility evaluation.[Informante 21/08/13]

Namport Scoops Port Excellence AwardThe Namibian Ports Authority [Namport] has again taken top honours at the African Ports Evolution Forum held in Cape Town, South Africa. Walvis Bay was named winner of the 'Port Excellence Award' for 2013. The award recognizes the most efficient port based on productivity, connectivity and ease of transport. [New Era 02/09/13]

South Africa

Transnet Issues Ngqura ConcessionSouth Africa’s state-owned port operator Transnet Port Terminals [TPT] has issued a request for qualification for a 25-year concession for its Ngqura Container Terminal at Coega, near Port Elizabeth.

The terminal will be stretched along a 1,280m quay line and offer a capacity of 2 million TEU. The facility was launched in 2009 and handled 360,500 TEU in its first full year 2010. Last year’s handlings reached 575,000 TEU, up 10% year-on-year. The deadline is 03/12/13.[Dynaliners 16/08/13]

Africa's Top Coal Port Expands To Open Up Export CapacityAfrica's biggest coal export port is be expanded in a R2-billion investment designed to help smaller South African mining companies send their output abroad.

Shipping and logistics group Grindrod is forming a joint venture with investment group RBT Resources to expand its Navitrade terminal at Richards Bay.

Under the plan, Grindrod's Navitrade terminal, which has a capacity of 3-million tonnes a year, will be upgraded to handle 20-million tonnes as it aims to open up capacity for new entrants. Grindrod will have a 49.9% stake in the JV and RBT will hold 50.1%. The cost to develop the fully mechanised coal export terminal would be in excess of R2-billion ($192-million).

Richards Bay Coal Terminal, the largest coal export facility on the continent, handles output from major established mining companies and would-be exporters have complained it is difficult to acquire slots from its owners, which include Anglo American, BHP Billiton, Exxaro and Glencore Xstrata.

Another key component of the JV would be to develop an inland coal hub allowing junior miners the chance to consolidate their volume in such a way that those with low volume production could also access export markets. The terminal, with a maximum design capacity of 91-million tonnes a year, is on track to top 70-million this year, up from 68.3-million in 2012.[Reuters 28/08/13]

Second Coal Terminal At Richards Bay PortTransnet National Ports Authority [TNPA] is looking at building a 2nd coal terminal at Richards Bay port. The parastatal unit is doing front-end loading studies, the research that would give concrete ideas on how the terminal would be built. Transnet wants to increase the port’s capacity to 90 million tons a year by 2017/18 from the current 70 million tons.[Business Report 27/08/13]

South Africa & Namibia Port Authorities Promote Regional IntegrationSouth Africa’s Transnet National Ports Authority [TNPA] and the Namibian Port Authority [Namport] on 14/08/13 signed a MoU paving way for cooperation between the 2-entities.

This is the 2nd in a number of memoranda, the first of which was signed with Maputo Ports Development Company Mozambique in June.

The collaboration is expected to result in the sharing of maritime experiences and exchange of technical expertise, particularly, in relation to port management, port operations, port environment and security, as well as the training of employees.

Regional integration is in line with Transnet’s Market Demand Strategy, which reviews its role in the development of the East-West logistics corridor lifting intra-regional trade within the SADC region from its current level of 12%. [Engineering News 14/08/13]

PORTS

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ROAD

South Africa

Kazungula Bridge: Bridging The Regional DivideSouth African engineering consulting company GIBB will construct the 960m Kazungula Bridge through a joint venture with Nippon Koei. Works are scheduled to commence in March 2014 with completion expected for early 2018. The bridge is expected to accommodate both road and rail and will cost about US$248 million. Other players working on the project include Bothakga Burrow Botswana, CPP Botswana and Zulu Burrow Development Consultants.

The bridge is a key crossing over the Zambezi River along the North-South Corridor, a vital trade route linking the port of Durban, South Africa to the inland countries of Botswana, Zambia, Zimbabwe, Malawi, DRC, and up to Dar-es-Salaam in Tanzania. Kazungula lies at an almost quadriphonic where 4-countries nearly meet. For years ferries were used to cross the river. It took transporters more than 8 days at times to navigate, impacting negatively on trade.

The AfDB has played a crucial role in making this key bridge construction happen, financing feasibility and design work and supporting institutional capacity at SADC Secretariat for its project management, co-financing with JICA the construction work, mobilising additional resources for trade facilitation component. In addition, as the North-South Corridor is one of the PIDA Priority Action Plan [PAP] projects and is one of the projects being politically championed by President Jacob Zuma of South Africa, under the AU endorsed Presidential Infrastructure Champion Initiative [PICI]. [AfDB 15/08/13]

Gauteng 25-Year Transport PlanGauteng Department of Roads and Transport has unveiled the province’s proposed 25-year integrated transport master plan [ITMP25]. Key proposals include building specialised freight bypass roads through the province as well as upgrading and expanding the existing commuter rail network. The current budget is around R5-billion. Gauteng experiences a number of constraints from a freight logistics perspective which can be limited by setting up a number of freight hubs in growth nodes, developing road links to these freight hubs and decreasing the number of heavy truck freight [5 and more axles] in city centres through the user-pay principle. A ‘weight-distance levy’ would allocate responsibility for structural impact on the road.

Gauteng should also continuously update its existing road network. The province should upgrade the R28, N4, N3, R24 and R59. It should also construct the proposed PWV9, PWV2 [proposed freight bypass road], PWV5 [proposed freight bypass road], PWV13, PWV15, PWV16, PWV17 [proposed freight bypass route] and PWV3 roads. Assuming a typical cost of R28-million a freeway km and R12-million a lane-km for other roads, the cost to provide the 2037 road network will be around R125-billion. [Engineering News 19/08/13]

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CSR Zhuzhou Rolls Out First Transnet Electric Locomotive

RAIL

The first of 95 electric freight locomotives ordered by Transnet was rolled out at CSR Zhuzhou Electric Locomotive's factory in China on 20/08/13. The initial 2-locomotives are scheduled to be shipped by the end of September, with 8-months of testing planned. The US$400m contract for the SA95NEL locomotives was signed in October 2012 and forms CSR's largest single export order for electric locomotives. The first 10 are to be produced in China, with the remaining 85 to be assembled in South Africa. [Railway Gazette 21/08/13]

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CSR Zhuzhou Rolls Out First Transnet Electric Locomotive

TRADE

Namibia

Corridor Group in LusakaThe Walvis Bay Corridor Group [WBCG] hosted an information session held in Lusaka, Zambia earlier in August to improve awareness of the benefits of utilizing the Walvis Bay - Ndola - Lubumbashi Development Corridor [WBNLDC] via the Port of Walvis Bay as the preferred trade route between Zambia and international markets. The session highlighted the efficiencies of the port as well as the latest developments to expand its capacity.

Among the benefits of utilising the corridor, were noted the short transit time from Walvis Bay to Lusaka, about 3-4 days, the safety and security of moving cargo along this corridor, the fast turnaround time at the port and the efficiency of utilising the corridor as a viable alternative trade route especially for cargo from the Middle East and Far East.

WBCG said Zambian importers and exporters benefit even more through the dry port facility at Walvis Bay, that has been established to strengthen trade with Zambia through the port by using this facility as an entry and exit point. WBCG opened a branch office in Lusaka in 2005 to focus on establishing and maintaining key business relationships with the transport community to enhance the utilisation of both the corridor and the Walvis Bay port. [Namibian Economist 30/08/13]

South Africa

New Automated Customs System Successfully ImplementedThe new automated customs management system implemented by the South African Revenue Service [SARS] on 18/08/13, is proving successful with close to 39,000 import declarations and more than 55,000 export declarations processed since its introduction representing more than 500,000 consignments. Goods with a total trade value of R40-billion moved through South Africa’s borders since the implementation of the new system with more than R2.5-billion having been collected in duties. It also cuts the time required for physical inspections to about 2-hours.

The new customs management system centralises the clearing of all import and export declarations using a single processing engine. The new automated system entailed converting 26 older legacy- and paper-based systems into a fully automated system to be used for all commercial trade across South Africa borders, and aims at reducing delays at border posts. The move was required to reach the target set by the National Development Plan of increasing intra-regional trade in Southern Africa from 7% to 25% by 2030, and increasing South Africa’s trade with regional neighbours from 15% of the country’s total trade to 30%. [Engineering News 23/08/13]

Zimbabwe

Zimra Set To Improve Vehicle Clearance The Zimbabwe Revenue Authority [Zimra] is set to move the payment of import duty on motor vehicles to Manica Transit Shed in a move set to improve efficiency and convenience for car dealers and individuals - a one-stop shop where the whole vehicle clearing process is done under one roof. Presently car importers have to shuttle between the warehouse and the border post to make payments to Zimra.[Zimdiapora 16/08/13]

Institute Set To Analyse Zimbabwe's Transport Sector ChallengesZimbabwe's Chartered Institute of Logistics and Transport [CILT] is to undertake stakeholder research into the challenges facing the country's transport sector. Researchers have been invited to present papers on a range of transport-related topics, including 'transport and the environment', 'transport modelling and simulation', 'sustainable urban mobility', 'integrated public transport systems' and 'traffic integration and control'. These will be presented at a seminar in October 2013. [African Review 16/08/13]

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