ot africa line's trade-watch report 2010

8/8/2019 OT Africa Line's Trade-Watch Report 2010

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July 2010 >> 1OT Africa Lines Trade-Watch >>

In this months edition!All nine UEMOA Member States will implement new axle weight rules as part of a first phase implementation in July. Welook at the lessons leant from Ghana, Togo and Niger and how they implemented the new regulations as the UEMOAcountries install weighbridges and roll out new rules.

Toxic waste has been a hot topic this month. A laboratory has been set up in Abidjan to improve the monitoring of hazardousmaterials under a project backed by the United Nations Environment Programme [UNEP]. Nigeria has followed with theNational Environmental Standards Regulatory Agency [NESREA] fully implementing the law governing illegal shipment oftoxic electronic/hazardous waste materials into the country.

On the financial side a bond issued by Abidjan port has been oversubscribed by over 30%, raising US$56 million to financeport developments. And on 29/06/10 The World Bank approved a US$255 million IDA grant to promote economic growth inDRC through the rehabilitation of key transport infrastructure. We take a look at The Multimodal Transport Projectsdevelopment objectives.

In other news Liberia and Mali have contracted to the International Convention on the Harmonized Commodity Descriptionand Coding System [HS Code - Harmonized System] as regulated by the World Customs Organization.

EUROPE & BALTICS >> .............................Europe Box Port Capacity Set To RiseLe Havre Port To Build Canal Linking To SeineAntwerp Unveils 28 Point Action PlanRotterdam - More Space At MaasvlakteBarges Grab Bigger Share At RotterdamPort Of Amsterdam Connected To The BetuwerouteCMA CGM and APM Terminals Announce New Terminal Agreements In Dunkirk, FranceFelixstowe Container Handling Depends On Chinese And German Technology

Dredging Debate Continues Over Elbe, HamburgTruckers Launch Strike At Valencia

PAN AFRICA >> ...........................Closing The Gaps In Regional IntegrationFrancophone West Africa Business Forecast Report Q3 2010EU Votes 6.5 Billion Euros for Ecowas NationsAfdb To Trim Africa 2010 Growth ForecastSuccessful conclusion to the 2010 WCO Council SessionsAAOE [UK] Agree MOU with BIGChina Extends Import Exemption List

ANGOLA >> ..............................China Export-Import Bank Lends Angola US$500 Million

Modernisation And Extension Of Lobito Port In Angola To Cost US$1.2 Bil lionLuanda Port's Modernisation to Benefit ConsumersConstruction Project For Angolas Cabinda Port Presented To Transport Minister

Luanda/Ndalatando/Malanje Railway, In Angola, To Start Operating Again This YearRehabilitation of Dondo Road Starts This MonthPolice to Install Radars On National RoadsAngola / USA Hold High-Level Trade and Investment Talks

CAMEROON >>.................................................Road Project Seals Cameroon, Nigeria Economic TiesCEMAC Number Plate - Repressive Control Begins

COTE DIVOIRE >>...................................................Ivory Coast's Abidjan Port Bond Oversubscribed

UN Agency Helps Set Up Laboratory To Monitor Toxic Waste

DRC >> ........................................................................................................IMF, WB Announce US$12.3 Billion Debt Relief For DRC

CONTENTS >>

Trade-WatchThe West African Trade and Transport Report

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Multimodal Transport Project

GAMBIA >> ...............................Enhance Integrated Framework [EIF] Trade Project LaunchedGambia Boosts Economic Ties With Taiwan

GHANA >> .............................

Ghana Anticipates Lead Over Lagos, Neighbouring PortsLessons From Ghana Can Help Others Implement Axleweight Rules

LIBERIA >> .............................APM Terminals Set To Finalise Monrovia DealIMF Agrees Liberia Debt ReliefLiberias Foreign Remittances, Trade Increase in First QuarterNew National Transport Policy LaunchedLiberia Becomes The 138th Contracting Party To The Customs Harmonized System ConventionSwedish Development Team Inspects Feeder Road Projects

MALI >> ...............................................Mali Introduces Bordereau de Suivi Cargaison/Cargo Tracking Note [BSC/CTN]Mali Accedes To The Revised Kyoto Convention

NIGERIA >> ..............................FG Orders Refund Of Illegal Charges, Moves To Decongest PortsCTN Increases Import Costs by 20%, NaccimaFree Trade Zone Commission UnderwayN150 Billion Spent On Importation AnnuallyFG to Confiscate Ships With Toxic WasteShip Owners Jostle for US$100 Million Vessel FundFG to Standardise Agric Export to U.S. and UKNigeria / Japan Signs MoU to Boost Trade RelationsNEPC - Export Committees Urged to Seek Solutions to ProblemsBilateral Trade With China, Increased by 76.3%Germany Imported N205 Billion GoodsFCTA Defies Senate Resolution On US$500 Million Chinese LoanGovt Unveils Rail Project For Niger DeltaEnugu-Cameroon Highway - a Boost to International TradeLCC to Collect Toll on Lekki RoadNew Holland Construction Delivers Fleet of Heavy Equipment for Niger State Road Building Program

SENEGAL >> ...............................................Senegal Recovering, On Track To Meet TargetsIMF Bond Launched To Fund Road Projects

SIERRA LEONE >> ................................................President Launches First National Export Strategy

DIARY OF EVENTS >> ................................Round Up Of Events Relating To West African Maritime & Trade

This report is brought to you by the OT Africa Line Marketing Department.

This document aims to give our customers a thorough insight into the latest transport news affecting WestAfrica. By using our local agency network within West Africa we will provide you with up-to theminute strategic information.

FeedbackOT Africa Line values your comments!We offer a feedback facility on our website at http://www.otal.com/feedback.asp

Disclaimer of liabilityOT Africa Line make every effort to provide and maintain usable, and timely information in this report. No responsibility isaccepted for the accuracy, completeness, or relevance to the user's purpose, of the information.Accordingly OTAL denies any liability for any direct, indirect or consequential loss or damage suffered by any person as a

result of relying on any published information.Conclusions drawn from, or actions undertaken on the basis of, such data and information are the sole responsibility of thereader.


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Europe Box Port Capacity Set To RiseUp to 55-million teu of annual handling capacity will be added to Europes Baltic, North Sea and Atlantic coast containerterminal asset base over the next 10 years, more than sufficient to accommodate modest volume growth, a new report byDynamar [www.dynamar.com] has found. The 74-million teu of terminal capacity in Europes 21 top box ports [excludingMediterranean hubs] will increase 72% by 2020, keeping pace with a forecast average 5.5% annual volume growth for thesame period. A further 20-million or so of additional identified container handling capacity is planned after 2020, with anumber of projects waiting in the wings. The 94-page report, Container Throughput & Terminal Capacity in Europe, looks atBaltic/Scandinavia, NW Europe, UK/Eire and SW Europe ports.

Based on the volume and capacity growth parameters used, occupancy calculated to be 61% of [100%] capacity in 2010 willbe at the same%age by 2020. Of course, this differs again area by area. The report estimates occupancies of between 58%and 83% by 2020. Container terminal congestion kicks in when 75% of total capacity is being reached, althoughtemporary excess volumes can usually be managed without too many negative consequences.

Using the 75% recalibration, capacity seems to be at its limits by the end of 2010 in the UK, if all volumes and capacitiescome as described and calculated, it will ease to 77% in 2020. In Baltic/Scandinavia, more additional capacity than in theplanning today must be added from 2018 onward. The NW Europe development remains moderate, while Sines in Portugalseems to be adding much more capacity than looks to be required at the moment.

Considering the current capacity and known expansion plans, including new projects, container terminal supply in Europelooks to be [more than] sufficient to accommodate the forecast overall moderate 5.5% growth of volumes in the forthcoming10 years, even if basing occupancy at 75% of capacity.

One wildcard in the port terminal equation is footloose transhipment traffic, which can be switched relatively swiftly bycontainer lines from port to port. This has been proven by Hamburg, which lost around one quarter of its container traffic lastyear, including substantial transhipment volumes. With massive container terminal capacity coming on stream at Rotterdamand London Gateway in the next 5-years and existing box space at Antwerp and Le Havre, shipping lines will be able toleverage their bargaining power for transhipment traffic between competing ports. Most container terminals have aprogramme of capacity phases, which can be postponed or rescheduled according to demand. This makes the terminaloperators much more flexible in when they can bring on additional capacity. [LL 28/06/10]

Container Throughput & Terminal Capacity in Europe: EUROPE container terminal capacity 2010

Areas Quay length [metres] 2009 teu throughput Present teu capacity Expected extension to 2020

Grand total 68,269 42.3m 73.9m 72%Baltic/Scandinavia 3,700 1.5m 3.1m 13%

UK/Eire 9,360 6.6m 9.5m 123%

Northwest Europe 54,829 33.9m 60.8m 66%

Southwest Europe 380 0.25m 0.5m 220%

Le Havre Port To Build Canal Linking To SeineThe port of Le Havre [GPMH] has announced its intention to continue its project to build a canal linking the Seine to itsfacilities after a recent public debate. The GPMH will undertake detailed studies on 4-options whose cost varies between

150-250 million. The capacity of this channel is set to double that of Tancarville Canal, which already provides a servicelinking to the Seine. Among the options under consideration is a plan to delay construction of the new channel andredevelop the Tancarville Canal to allow an increase in traffic. This option is one of the most expensive but according GPMHis advocated by environmentalists who oppose a new channel due to the damage its construction would do natural

environments in the surrounding area. [PAH 28/06/10]

Antwerp Unveils 28 Point Action PlanAntwerp has identified a 28 point action plan to develop volumes in response to the economic recession. One proposal is toencourage greater use of the River Scheldt, the inland gateway to Antwerp, following the completion of long-awaiteddredging work next year. Works are progressing with 80% of the deepening work completed.

It is not just about deepening the river but also about vessel traffic management, and about the co-operation with the pilotsand tug operators. So with a new division dealing with the management of seagoing vessels, Antwerp pilot and tug operatorswill move into a single port building from September this year, working alongside staff from the joint Dutch and Flemishnavigation authority which oversees vessel traffic flows on the Scheldt.

A new formula for calculating pilot dues which, is more competitive, far more transparent, easier to understand and on amore modest scale will be implemented. It will be no longer be dependent on the volume of the cargo but on the

characteristics of the vessel. The idea is to encouraging more commercial attitudes among River Scheldt pilots, whilevessels owners will be offered an improved frequency rebate.

EUROPE & BALTICS >>


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The port also plans to increase the modal share of barges used to transport maritime containers, currently at 33% to 40%.The port authority, working with barge operators and container terminal companies, is launching a revised barge trafficsystem which aims to consolidate volumes. Whereas barges up until now have carried containers for a number of Antwerpterminals, which increases the journey and berthing times, the idea is to maximise inland waterway volumes and reduce thenumber of terminal calls per barge. [LL 23/06/10]

Rotterdam - More Space At Maasvlakte

ECT, EMO and the Port of Rotterdam Authority have made 175-million of agreements for the further development of theircommercial activities on the existing Maasvlakte. At the beginning of 2011, a start will be made on widening theAmazonehaven. At the same time, EMO will relocate some of its operations to the Hartelstrook on the southern side of theMississippihaven. The Amazonehaven will be widened from 255m to 305m, to accommodate very large container vessels.Such ships will have problem-free access to the Amazonehaven, whatever the circumstances. The EMO terminal will alsohave a rail link. [WCN 16/06/10]

Barges Grab Bigger Share At RotterdamRotterdam, Europes #1 container port, saw barges win market share from rail and road for hinterland transport of maritimeboxes in a recessionary 2009. Although inland shipping fared better than train and truck, 2009 actually recorded a 12% fall intotal hinterland volumes across all modes [excluding sea to sea transhipments] to 6.9-million teu. Inland shipping saw itsmodal split rise from 30% to 33%, the largest gain for more than a decade. However, in absolute terms, the number ofcontainers carried by barge fell by 3% to 2.3-million teu. Meanwhile, rail freights modal share declined from 13% to 11% -back to its 2006 level, while in absolute terms the number of containers hauled by train fell by a dramatic 25% from 1-million

teu to 755,000 teu. Road transports market share at Rotterdam in 2009 dropped marginally, from 57% to 56%, while theactual fall in real terms was 14%, from 4.8m truck loads to 3.8-million.

The blame for rail freights disappointing yearwas blamed on a lack of flexibility: Rail transport did not want to adapt or couldnot adapt its tariffs fast enough to the declining total volume. The Betuwe Route tariffs for example were lowered only late in2009. Inland shipping and trucking are more flexible in their tariffs when there is an oversupply in transport capacity. Besidesthat, inland shipping took advantage of the improved handling capacity at the deep sea terminals. Road transport sufferedrelatively more of the crisis because it transports the vast majority of the ro-ro containers. This intra-European traffic was hitharder by the economic decline.

Port of Rotterdam has the goal of raising inland shipping to 45% of box moves at its Maasvlakte 2 container terminals, dueto open from 2013. Rail is expected to have a 20% share and road 35% at the new development on reclaimed land to thewest of the Dutch port. [LL 14/06/10]

Port Of Amsterdam Connected To The BetuwerouteAmsterdam port has been connected to the Betuweroute, a dedicated cargo rail track towards Germany and into Europeexpanding its railway connections to the hinterland. The Keyrail operated railway connection is a significant milestone instrengthening the position of the Amsterdam port in the European hinterland and indeed allows the city of Amsterdam tobenefit from the rising interest in rail as a sustainable transport alternative. Timetables have also been tuned to allow goodstrains to reach Germany without having to make a stop. By the end of 2010 about 350 freighters will be hitting theBetuweroute on a weekly basis. [OpenPR 24/06/10]

CMA CGM and APM Terminals Announce New Terminal Agreements In Dunkirk, FranceTerminal Link, CMA CGMs subsidiary dedicated to container terminal investment, has increased its shares in Nord FranceTerminal International [NFTI] from 30% to 91% through the acquisition of APM Terminals 61% share. The other 9% remainowned by the Port Authority of Dunkirk. NFTI operates a container terminal with modern super post panamax gantry cranesproviding its customers with direct road, rail and barge access to Northern France, Paris region and Central Europe. [CMA-CGM 08/07/10]

Felixstowe Container Handling Depends On Chinese And German TechnologyApril saw the first rubber tyred gantry cranes arrive from the Chinese manufacturers, Zhenhua Port Machinery Company[ZPMC www.zpmc.com] of Shanghai, each capable of spanning 7-container stacks and lifting up to 40 tonnes. This monththe first three ship-to-shore gantry cranes, biggest in the world for their type and capable of handling containers stacked onboard an astonishing 24 wide on deck. Each crane weighs approximately 2,000 tonnes and is capable of lifting twocontainers simultaneously up to a total of 70 tonnes.

Felixstowe Port [www.portoffelixstowe.co.uk] claims to be the only fully committed deep-water container terminal in theUnited Kingdom, and is being outfitted accordingly at a time when an increasing number of 10,000 TEU container ships arecoming in to service. With the first of the quayside cranes on site, Felixstowe South is quickly becoming a reality. With adelivery of the first batch of yard cranes and the main work on the quay wall complete the port is making good progresslaying the 19 million concrete blocks that will make up the storage yard area and will have everything in place to handle thefirst trial vessels later this year. [HS 30/06/10]


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Dredging Debate Continues Over Elbe, HamburgDebate over deepening, last tackled in 1999, has raged for nearly a decade along the lines of environmental concerns

versus economic growth, This is ongoing as the ships have gotten bigger and fewer of them reach Hamburg independent ofthe tide.Some port operators and shipowners, who have seen deepening promises made and broken over the years, nowbelieve it will never happen.


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Confusion mounted in March when Hamburg Economics Senator Axel Gedaschko said the first preparatory step would beundertaken this year after development plan approval. But modifications and objections continue to roll in and even if theyare sorted quickly by Hamburg, Lower Saxony and Schleswig Holstein still have to have their say before work can start.

The Senate itself has said the first sod will not be turned until Autumn 2011 and that deepening will be completed by the endof 2013. The Wasser und Schiffahrtsdirektion Nord generally agrees with that, adding that once the first dredgers roll thework will take about 21 months, with shipping getting some initial advantage in 2012. Plans are to deepen the rivers

approach channel from the North Sea to Hamburg by one metre to allow tide independent operation for ships drawing14.5m. The work will cost the government an estimated 385m, of which the state of Hamburg will pay 137m and Berlin therest. Already it costs nearly 100m a year to keep the Elbe dredged for shipping and opponents say that would risedramatically with Elbe deepening. [DT 19/06/10]

Truckers Launch Strike At ValenciaOn 03-04/06/10 Valencia Port experienced a strike by the road haulage sector. More disruption is threatened. Transcont, theassociation representing independent road hauliers, was protesting against the delay is it says it is experiencing in receivingpayment for services rendered. Although the law states that payment should be made within 30 days, the majority ofinvoices are now taking substantially longer to be settled. The association also wants freight forwarders to stop charging"abusive commissions," which they claim can make up to 40% of the overall transport cost.

Previous discussions, brought about by an earlier indefinite strike called for the beginning of May, led to an agreementsigned between all parties on May 14. However, this produced no tangible improvement for the hauliers, resulting in the

decision to call the strike again. According to the freight forwarders association, ATEIA, the need for more competitivepricing is being driven by customers, who want market pricing and not a fixed tariff as exists at the moment.

Closing The Gaps In Regional IntegrationAs ECOWAS heads of state met in Cape Verde, to adopt a West Africanindustrial policy, the issue of economic integration and establishment ofa free trade area looms even larger over the sub-region. The ECOWASTrade Liberalization scheme [ETLS] was designed to facilitate trade inWest African agricultural and industrial goods, so that goods, personsand vehicles, could move freely within the region. Although rules tomake this vision a reality have been passed by member states,implementing them has been difficult. The West Africa Trade Hubs[WATH - www.watradehub.com] research in 9-countries in the ECOWASsub-region has helped identify solutions.

A 2-day joint Trade Hub-ECOWAS workshop in June brought togethermore than 40 representatives of the organizations and the private sectorto discuss the gaps in implementing the ETLS. The World Bank, theWest Africa Monetary Institute, and Ghanas ministries of Trade andIndustry, Transport, Foreign Affairs, Finance and Customs alsoparticipated. Private sectors representatives included DHL, Bollore,Maersk, Nestl, and others. In his welcome address to participants, Alfred Braimah, ECOWAS Director of Private Sector, called on thosepresent to find solutions to effective implementation of trade policies inthe region.

Findings from the most recent ETLS gap analysis country reports,

focusing on Burkina Faso, Cte DIvoire, Ghana, Nigeria, and Senegal were presented. Findings compared both public and private sectorsutilization and understanding of the ETLS. The studies have highlightedlimited awareness of protocols, lack of enforcement and consistency in application at borders, high levels of harassment dueto complexity and duplication of procedures. Several participants called for practical solutions and accountability as thevehicle to effectively implement trade policy. Equipped with pertinent information, key regional players have seized the batonto flesh out recommendations. [Next 12/07/10]

Francophone West Africa Business Forecast Report Q3 2010The aftermath of the 2008-2009 global financial crisis and ensuing economic downturn continue to be felt across theFrancophone West Africa region. For energy-dependent economies, lower global oil prices will prevent broader economicgrowth from returning to the double digits, while relatively tight global credit conditions will likely impede foreign investmentactivity across the board. This is particularly problematic given that the burst commodity bubble in particular, and previouscollapse in global demand in general, have renewed the impetus to develop the non-commodity sectors. Broadening the

economic base and reducing the reliance on commodities to drive growth would alleviate risks to macroeconomic stabilityfrom swings in international prices for raw goods. Moreover, improving wealth distribution, alleviating poverty andindustrialisation are key policy objectives necessary to unlock robust and sustainable growth over the medium to longerterm.

PAN AFRICA >>

Case StudyMr Akpenyo collected handcraft orders fromOuagadougou, Burkina Faso, and brought them toGhana to consolidate for shipment from Temaport. Getting the items from Ouagadougou to theGhana border was easy enough, but his difficultiesbegan at Paga, on the other side of the border.Technically this was a transit shipment; no feesshould have been charged and customs shouldhave granted him an escort to the point of export.However, customs would not confer exempt statusand delayed him. Ultimately, faced with timeconstraints, Mr Akpenyo opted reluctantly to paynearly 30% of the value of the consignment inimport duties, taxes and processing fees.

On two accounts this should have been a dutyfree transaction under ECOWAS rules, explained Acting Trade Hub Director Nathan van Dusen.The goods were in transit and importinghandcrafts into Ghana from member states shouldbe duty free. Mr Akpenyo advocates a systemwith greater transparency and accountability, andwould be prepared to pay a deposit on transitgoods, refundable against proof of export.Customs should be made aware... that we are

trying to increase trade, he said. They arefrustrating West African businesses.


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The economic outlook for Equatorial Guinea has improved significantly on the back of the rally in global oil prices, althoughwe warn that a moderation in the pace of price appreciation, coupled with domestic production constraints, will keep growthweighed down over the medium term. An announcement by the government that the country's gas reserves are triple thatpreviously estimated could offer a vital new revenue source over the longer term, although we stress that this will becontingent upon foreign investment to help develop extraction expertise.

Cameroon has similarly benefited from the bounce in oil prices, which will support headline growth and allow the currentaccount to swing back into surplus in 2010 following two years of deficit. Domestic production constraints will also impedethe ability of exporters to fully exploit the increase in oil prices, further highlighting the need to develop the non-energyeconomy. To this end, initiatives to boost output of other commodities such as cocoa, coffee, palm oil and natural gas are astep in the right direction. However, unlocking stronger and more sustainable growth over the longer term will be predicatedon diversification away from commodities.

The economic picture in Senegal tells a similar story as higher oil prices will support headline growth. However, we believethat the recovery will remain fragile, with significant risks emanating from a yawning fiscal deficit, a sizeable current accountshortfall, ongoing power disruptions and the upcoming presidential election in 2012. In the case of the latter, there issignificant scope for political instability, especially in light of allegations by the opposition that delays in printing newidentification cards are an attempt by incumbent President Abdoulaye Wade to prevent young Senegalese from votingagainst him. Should criticism of his policies continue to build, the stage could be set for a turbulent transition in 2012.

In contrast to the energy-driven economies in the region, we believe that the Burkinabe and Mali economies will return torates of growth recorded before the global crisis. Both countries are not exposed to the volatility of global oil prices [havingno domestic hydrocarbon industries], instead relying on exports of gold. The sustained rally in gold prices as investors seeka flight to safety, have bolstered the external accounts for these economies and will allow previous economic growthtrajectories to resume over the medium term. In addition, we believe that the risk profile in Burkina Faso will remain fairlysanguine, with the upcoming presidential election in November likely to see the incumbent Blaise Comaore maintain his gripon power. Meanwhile, the Mali government is set to push forward with structural reforms, making the most of higher goldrevenues and privatisation receipts to improve infrastructure and satisfy its poverty alleviation objectives.

A downward revision to Cote d'Ivoire's 2010 growth forecast marks the only such development in the Francophone region.

The delay in general elections and spate of disruptive power shortages have negatively impacted economic activity and willpush back a more fundamental recovery until 2011. Over the medium term, our projected improvement in economic activitywill be largely dependent on an increase in political stability as well as major government-led infrastructure development anda pick up in consumer spending. [C&M 02/06/10]


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EU Votes 6.5 Billion Euros for Ecowas NationsThe European Union has offered to make available6.5 billion for financing programme initiatives in West African countriesunder the Economic Partnership Agreement Development Programme over a 4-year period [2010-2014]. This came just asthe Economic Community of West African States [ECOWAS] announced the economies of some regional countries hadwitnessed growth. It urged member states to continue their efforts in consolidating these gains notably through thestrengthening of economic reforms, acceleration of macroeconomic convergence and taking ownership of regional

programmes by translating them into national development plans. [TD 05/07/10]

Afdb To Trim Africa 2010 Growth ForecastThe African Development Bank is likely to trim Africa's 2010 growth forecast by between 0.5 and 0.8 percentage points dueto an expected slowdown in Europe. The bank and the OECD forecast in May noted that Africa's economy should expand4.5% this year and just over 5% in 2011, but debt turmoil in the euro zone and its impact on growth has eaten into thatoptimism. The primary impact of Europe's woes would be through reduced trade although a tightening of credit to Africa fromEuropean banks is also likely to crimp growth. [RT 06/07/10]

Successful Conclusion To The 2010 WCO Council SessionsThe 115th/116th Annual Sessions of the 176 memberWorld Customs Organizations Council [WCO - www.wcoomd.org]took place in Brussels from 24-26 June. Customs chiefs discussed a number of policy and technical issues dealing withCustoms in the 21st Century including globally networked Customs, trade facilitation, security, revenue-related matters,intellectual property rights, and capacity building.

The WCOs regional network was expanded by signing the Republic of Congo to its membershiops and establishing aRegional Training Centres [RTC] in the country. [WCO 26/06/10]

AAOE [UK] Agree MOU with BIGThe Association for African Owned Enterprises [UK] [AAOE - www.aaoe.org.uk]and the British-Africans In Government [BIG] have signed a Memorandum ofUnderstanding [MOU]. The coalition will be the most influential of all pro-Africanorganizations in the UK. The MOU ensures that both organizations can work for acommon goal whilst maintaining their individual identities. The Association for African Owned Enterprises [UK] has alsomoved old address and will be launching a new website [www.aaoe.org.uk].

China Extends Import Exemption ListChina is adding 33 states to the list of developing countries whose goods are largely exempt from import tariffs. From July 1it will scrap tariffs on about 60% of imports from Liberia, Mali, DRC, Benin, Togo, and CAR.

China Export-Import Bank Lends Angola US$500 MillionThe Export-Import Bank of China has agreed to loan Angola US$500 million to rebuild roads to help the African nationrecover from a three-decade long civil war that ended in 2002. Chinese loans to Angola since the end of the war havereached around $14.5 billion, the World Bank said in a report earlier this year. [RT 09/07/10]

Modernisation And Extension Of Lobito Port In Angola To Cost US$1.2 BillionThe project to modernise and extend the port of Lobito is now budgeted at US$1.2 billion. Besides enlarging the dock theproject, contracted to China Harbour Engineering Company [CHEC], also encompasses construction of a dry dock andcontainer and mineral terminals, as well as a bridge which was completed in January 2010. The project has been delayedfor 12 months due to constraints affecting Angola in the wake of the international financial crisis, but indicated that if workcontinues at the current pace the project should be ready late 2011. Regarding the dry dock, the reinforced concrete and

stonework are practically finished in all the buildings and about 75% of the pavement is ready in the container storage area.Work should be finished toward the end of 2010. The construction of support buildings for the container terminal has yet tobegin. The modernisation and extension of the port of Lobito is particularly important for channelling mineral resources fromthe DRC [more than 4 million tonnes] and Zambia via the Benguela Railroad [CFB]. [Macauhub 21/06/10]

Luanda Port's Modernisation to Benefit ConsumersThe ongoing modernisation of Container Terminal II at Luanda Port is to cost an estimated US$56.5 million as outlined in arecent agreement signed by Sogester and the National Private Investment Agency [ANIP]. ANIP's chairman, AguinaldoJaime and the deputy director-general of Sogester, Anatlio Barreira signed the agreement. It is hoped this project willreduce congestion/waiting times in the area. [APA 02/07/10]

Construction Project ForAngolas Cabinda Port Presented To Transport MinisterTransport Minister Augusto Tomas was shown a presentation on the first phase of Cabinda port construction. In turn heguaranteed central government support for the project. The port of Cabinda is to be built in the Caio Litoral area about 18-km

north of Cabinda city. The port will have areas to store container cargo, a warehouse, fuel tank, maintenance workshop,offices and a dock able to handle at least two large vessels, as well as a ship entry and exit channel and an area formanoeuvring. Construction will enable the province to reduce its dependency on merchandise imported via Pointe-Noire inneighbouring Congo-Brazzaville which has higher port fees and customs duties. [Macauhub 21/06/10]

ANGOLA >>

AAOE [UK]35A High Street,Barnet, EN5 5UWE-mail: [email protected]: www.aaoe.org.uk


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Luanda/Ndalatando/Malanje Railway, In Angola, To Start Operating Again This YearThe 479-km Luanda/Ndalatando/Malange railway link will start operating again in December 2010 according to Caminhos-de-Ferro de Luanda [CFL]. Technical and administrative procedures are being put in place for the train to link the 3-provinces at a minimum speed of 50 to 60 km/hr. Reconstruction of the Luanda/Ndalatando/Malange railroad, which beganin 2005, made it possible to rebuild 600 hydraulic crossings, 16 stations and 40 bridges and pontoons, as well as clearingland and reducing inclines.

Recently, the board of CFL carried out an experimental trip between kilometre 30 [Luanda] and Dondo [Kwanza Norte] andvisited the stations of Catete, Barraca do Zenza do Itombo and Dondo, built as part of the refurbishment and modernisationof the rail facilities destroyed during the civil war. [Macauhub 01/07/10]

Rehabilitation of Dondo Road Starts This Month800-km of road in Dondo, Cambambe and Kwanza Norte province will be rehabilitated this month. The works started inJanuary 2010. [APA 07/07/10]

Police to Install Radars On National RoadsThe National Police are to install radars on the country's main roads, with a view to curbing high speed and reduce accident

rates. [APA 05/07/10]

Angola / USA Hold High-Level Trade and Investment TalksUS and Angolan trade and development officials met to discuss means for strengthening bilateral trade and investment ties.The meeting was the first held under the United States-Angola Trade and Investment Framework Agreement [TIFA], whichwas signed in May 2009. The TIFA provides a high-level forum for advancing cooperation on the full spectrum of trade andinvestment issues between the United States and Angola.

Assistant U.S. Trade Representative for Africa Florie Liser and Angolan Commerce Vice Minister Archer Mangueira co-chaired the day-long meeting, which focused on bilateral trade, implementation of the African Growth and Opportunity Act[AGOA], investment promotion, the business environment, agri-business prospects and development, and trade-relatedtransportation and infrastructure issues. [APA 28/06/10]

Road Project Seals Cameroon, Nigeria Economic TiesCameroon's Minister of Public Works, Bernard Messengue Avom and Nigerian Minister Of Works, Senator MohammedDaggash unveiled a N13.83 billion [US$413 million] transport facilitation programme for Bamenda-Enugu Road Corridor on17/05/10. The 381km road is to run from Mfum in Nigeria to Ekok in Cameroon. The project is part of the trans-African

CAMEROON >>


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highway programme, being co-financed by the African development Bank [ADB] and the World Bank. The JapaneseInternational Co-operation Agency is also a co-financier of the programme, initiated to enhance trade and co-operationbetween Nigeria and Cameron. The programme is expected to boost economic integration between the West Africa[ECOWAS] and Central African [ECCAS] countries and is in line with the objectives of the New Partnership for Africa'sdevelopment [NEPAD].

On the Nigerian side, the programme is being co-financed through a low interest loan of US$161-million from the ADB and

part of a credit of US$330 mill ion from the World Bank. The federal Government of Nigeria is contributing 10% of the costs ofthe works.

CEMAC Number Plate - Repressive Control BeginsVehicles without the CEMAC number plate will be impounded by transport officials. The Ministry of Transport on 05/07/10launched a special control to track down vehicles on circulation which still have Chassis [CH] numbers in place of the carregistration number corresponding to the standards of the Economic and Monetary Community of the Central Africa sub-region [CEMAC]. [CT 05/07/10]

Ivory Coast's Abidjan Port Bond OversubscribedA bond issued by Abidjan port has been oversubscribed by over 30%, raising 30 billion CFA francs [US$56.02 million] tofinance port developments. The port had planned to raise 25 billion CFA. Atlantique Finance is the lead manager in the bond

issue. The 7-year bond bearing 6.95% interest was launched in April and will be listed on West Africa's franc-zone BRVMregional bourse. Marcel Gossio, the port's managing director, said the bond would allow the port to finance new activitiesand modernise equipment. [RT 30/06/10]

UN Agency Helps Set Up Laboratory To Monitor Toxic Waste A new laboratory has been set up in Abidjan to improve themonitoring of hazardous materials under a project backed by theUnited Nations Environment Programme [UNEP] that aims toprevent a repeat of a notorious incident in which thousands ofpeople were sickened by toxic waste. The laboratory, which hasbeen handed over to Cote d'Ivoire's environment ministry, isequipped to test for waste in ships entering the port. The agencydeveloped the laboratory as part of a joint project with theSecretariat of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal.UNEP said the project is the result of wider efforts by the agency to both improve waste management systems in Cted'Ivoire and protect the West African coast from hazardous materials. [UN 25/06/10]

IMF, WB Announce US$ 12.3 Billion Debt Relief For DRCThe International Monetary Fund [IMF] and the World Bank's International Development Association [IDA] have announceda US$12.3 billion debt relief for DRC, observing that as a result of this move the country would no longer face a heavy debtservice burden in relation to its revenue and foreign exchange resources. Debt relief from the IMF will total US$491 millionand from the World Bank's IDA US$1,832 million, with the remainder expected to come from bilateral and commercialcreditors.

The institutions determined that the DRC had implemented the policy measures required to reach the completion point of theHeavily Indebted Poor Countries [HIPC] Initiative. DRC becomes the 30th country to reach this point. The policy measuresincluded satisfactory implementation of the country's poverty reduction and growth strategy, maintenance of macroeconomic

stability, improvements in public expenditure and debt management, and improved governance and service delivery in keysocial sectors such as health, education and rural development. [PANA 05/07/10]

Multimodal Transport ProjectThe World Bank approved on 29/06/10 an International Development Association [IDA] grant equivalent to US$255 million topromote good governance and consolidate macroeconomic stability and economic growth in DRC through the rehabilitationof key transport infrastructure.

The Multimodal Transport Projects development objectives are:

x to improve transport connectivity in DRC so as to support economic integration;x to restore the financial and operational viability of the Socit Nationale des Chemins de Fer du Congo [the national

railway company SNCC];x to support the reform agenda of state-owned transport sector enterprises through the adoption and implementation

of a sector-wide governance plan and strengthening of operational performance.

The bulk of DRCs territory is currently inaccessible. Out of ten provincial capitals, only two [Matadi and Mbandaka] areconnected by road to the capital Kinshasa; two others are only accessible by river [Kisangani and Bandundu] and six only by

COTE DIVOIRE >>

DRC >>

The 2006 Toxic DisasterIn 2006 the cargo ship Probo Koala dumped 500 tons oftoxic waste, belonging to the Dutch company Trafigura, atvarious sites - including local waterways - around Abidjan. The liquid sludge contained large quantities ofhydrocarbons and toxic substances such as hydrogensulphide and caustic soda. Official estimates indicate atleast 15 people died, 69 others were hospitalized and atleast 100,000 more residents complained of nausea andvomiting after inhaling fumes.


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air [Katanga, Mbuji-Mayi, Lubumbashi, Kindu, Goma,,and Bukavu]. Since national unity and economic stability are thegovernments top two priorities, improving the transport sectors performance constitutes a vital goal for the Government .The project will be implemented as a partnership between the Government of DRC, the World Bank and other partners.Though no joint financing is foreseen among partners, most of the projects activities will be complemented through parallelongoing partners and/or government financing. [TF 30/06/10]

Enhance Integrated Framework [EIF] Trade Project LaunchedThe minister of Trade, Employment and Regional Integration, Abdou Kolley, has launched the Enhance IntegratedFramework [EIF] project in order to deal effectively with trade policy development and implementation, trade integration andfacilitation. The 1-day, high-level stakeholders meeting served as a sensitisation forum which brought together cabinetministers, policymakers and development partners. A detailed study identified that the tourism, fisheries and agriculturesectors were trade potentials which should form the Priority Action Matrix". In order to assist its implementation the US$1-

million Tier 1 project was approved last year. [DO 22/06/10]

Gambia Boosts Economic Ties With TaiwanGambia, which has chosen to support Taiwan instead of China, has signed a new economic partnership agreement [EPA].Gambia is one of few African countries who do not support the One-China policy acknowledging Beijing's view that Taiwan ispart of its territory, at a time when China is pumping billions of dollars into the continent. Taiwan is also funding the US$22million construction of a 42km road linking the western part of the country to the capital Banjul. [AFP 17/06/10]

Ghana Anticipates Lead Over Lagos, Neighbouring PortsConstrained by competition from neighbouring ports, particularly Lagos port complex and port of Lome in Togo, theGhanaian government is expanding its Tema port to have advantage over the others. The port is currently expanding itsberthing facilities and working on achieving deeper depth in order to attract more cargo. The government is aiming at

achieving 14m depth [currently at 11.5 meters] and has dredged berths 1-6. The poirt is also focused on reducing the turnaround time for vessels which currently stands at 1.7 days and to ensure that the cost of doing business is one of the lowestin the sub-region. [DI 15/05/10]

Lessons From Ghana Can Help Others ImplementAxleweight RulesHeavy trucks destroy roads, but implementing axleweightrules is not easy. One year ago, Ghana beganimplementing regional rules that limit how much truckscan weigh when using the countrys roads. There wasalmost immediate chaos and the main port wasparalyzed more than 800 trucks were stuck. Driverswere not prepared to leave because they knew they wereoverloaded. The trucks weight was not the only problem.

The port weighbridges were not in working condition andthe port had to get mobile weighbridges to assist. Thecustoms service did not have a way to deal with excesscargo that should have been unloaded [to abide by the

GHANA >>

Project DetailsComponent 1 [US$218.85 million] SNCC recovery plan: The collapse of SNCC would have incalculable consequences on theCongolese economy, including on the potential future growth of its mining sector as its network connects DRCs copper belt to its mainexport routes. Due to this urgent need for financial assistance and considering the minimal size of the intervention required to deliversustainable results for SNCC [US$617 million], the MTP will dedicate nearly 90% of its funding to the SNCC Recovery Plan. This moneywill complement the US$373 million already pledged by the government toward the SNCC Recovery Plan as well as the US$25 millionearmarked for it under the existing World Bank Private Sector Development and Competitiveness Project.

Component 2 [US$25.45 million] Operational performance strengthening and improved governance of the sector: This componentwill: [i] finance the acquisition of urgently needed equipment for selected transport state-owned enterprises [SOEs]Rgie des VoiesMaritimes - National Marine Ways Management Agency [RVM], Rgie des Voies Ariennes - National Airways Management Agency[RVA], Office National des Transports - National Transport Office [ONATRA] and Rgie des Voies Fluviales - National WaterwaysManagement Agency [RVF]in order to improve their overall performance while allowing them to devote limited internal resourcestoward restructuring; [ii] pay for the retirement indemnities of 77 RVF agents using an approach similar to that used for SNCC; [iii] payfor an internal diagnostic of the Ministry of Transport so as to identify possible reorganizational scenarios; [iv] finance ministry oftransports agents training and equipment; [v] finance the annual audits of SOEs procurement and financial activities that will be used tostrengthen from the project onset SOE fiduciary governance; and [vi] allow the development of a sector-wide governance plan which will

then be tailored for adoption by each individual SOE.

Component 3 [US$2 million] International trade procedures simplification: This component will prepare for the implementation ofinternational trade agreements and in light of the ongoing study on the facilitation of international trade, the project will support thedevelopment of an international trade procedures simplification strategy and the associated action plan, including materials, equipmentsand basic infrastructure investments designed to facilitate the flow of goods along DRCs main international trade transport corridors.

Component 4 [US$8.70 million] Project management: This final component will fund the cost of the project management entitylocated within the ministry of transport in charge of the MTP. The entity will have two project units.


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rules] and did not have a protocol for issuing a second transit document on that cargo.

Niger had similar chaos at its borders when it implemented the rules months earlier, in January 2009. Hundreds of truckswere stuck at the Burkina Faso-Niger border and prices on basic goods like rice increased. But maintaining the rules hasfueled a significant decline in the number of overloaded trucks on Nigers roads: In 2008, 77% of trucks were overloaded; ayear later, the proportion was 21%.

With the new rules on axleweight set to go into effect across the region on 01/07/10 , Ghanas experience is useful. Thecountrys quick action to address the problems that arose can help other countries avoid similar difficult ies. Beginning inJuly, all UEMOA Member States will implement axleweight rules. The way the Ghanaian authorities handled the problemwas highly commendable and now there are some best practices that can be used to help other countries implement therules successfully.

Nine West African countries are implementing the rules in two phases according to a roadmap they agreed upon at ameeting in March. The first phase begins July 1 and sets somewhat generous limits on axleweights. The second phasebegins Jan. 1, 2011, and requires countries to fully implement the rules. Ghanas difficult experience last year is helpful nowas countries install weighbridges and enforce the rules. Togo began weighing trucks in September 2009 at its port and Nigeractually began first, in January 2009.

Everyone agrees that getting overloaded trucks off the roads is important: Heavy trucks do not just accelerate thedestruction of the road surface, they cause accidents and the roads they degrade send many trucks to the junkyard at an

early age. The stakes are high: Bad roads make moving goods more expensive. Reducing road transport costs 10% leads toa 20% increase in trade, according to the World Bank. But reducing the number of overloaded trucks on West Africas roadsis hard, too, because trucking companies are paid per ton they carry. That creates a powerful incentive to overload trucks,particularly to many small and informal trucking companies. At the same time, there is pressure from cargo owners andclearing agents they want their cargo to go on a minimum number of trucks.

Reduced weight means reduced revenue for truck drivers, said Abraham Ocloo of the Ghana Shippers Authority. Ghana islosing trucking business because of the new rules. We have virtually no trucks today carrying goods to Mali and trucking toBurkina Faso and Niger has declined, too. Other factors may explain the decline, though, experts cautioned. More researchis necessary to clarify the impact of the axleweight rules. The trucks have apparently migrated to ports that do not enforcethe rules. The answer, he said, is regional implementation of the axleweight rules. Thats what will happen on July 1. Overloaded trucks had to unload excess cargo when Niger adopted the rules. The Trade Hub is preparing a report onGhanas experience to help other countries understand better how it resolved problems. [WATH June 2010]

What Ghana Did!Ghana dealt with problems in a variety of ways. First, it fined driversand then sent them on their way. Then, it relaxed the axleweight limits[it will, however, have to strictly enforce the rules on Jan. 1, 2011, ascalled for in the roadmap. But its best move was setting up a focalgroup involving Burkina Faso representatives to deal with the problemsof enforcing the rules as they arose.

Before the focal group, there was a blame game and some peopleseemed to think that the answer was to simply bring the port to astandstill until the authorities backed down on implementing this rule,said Yaya Yedan of the Burkina Shippers Council and a member of thegroup. It was imperative to find neutral parties who could talk toagents, drivers, truck owners, who understood their concerns and liaiseto the authorities.

The Ghanaian focal group has a troubleshooting and facilitation role,rather than merely the monitoring and reporting role specified for thefocal points in the road map. In particular, it aims to help two keyagencies the Ghana Highway Authority [GHA] and the Ghana Portsand Harbours Authority [GPHA] communicate with each other,truckers and other involved organisations to solve problems. The focalgroup comprises senior officers from GHA and GPHA, as well as fromthe National Security Council [NSC], and the Conseil Burkinab desChargeurs [CBC]. This small unit operates flexibly and informally,meeting to solve problems as they arise, as well as planning remedialactivities and brainstorming on challenges, keeping minutes of itsactivities and decisions.

Other insights from Ghanas experience include:


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x Installing weighbridges. Ghana currently has 14 permanent weighbridges on its roads with plans to increase the number to 26. Theharbour authority has four at the port.

x Identifying a weighbridge to measure a trucks weight and axleweight when its empty the tare weight is critical.x Training of weighbridge operators. It was critical to properly train the staff, committee members said. Weigh stations were not new

in Ghana but their systematic use to limit degradation of the countrys roads was. Initially, GHA and GPHA staff operated theirweighbridges. Before initial weighbridge operations started, the focal group ensured that all partners were aware of why weighingwas important and how these operations would work. Training is critical to help operators deal disputes about a trucks weight that

could easily become contentious.x Raising awareness. Ghana paid for ads and printed a variety of materials to raise awareness about the new rules.x Tackling corruption. In practice, the operators of the weighbridges and the truck drivers are corruptible. When a truck arrives

overloaded at a weighbridge, the operators may take a bribe not to weigh the truck or to discard data about the weighed vehicle,thus leaving the driver free to continue but without proof that he passed through that weighbridge. If challenged for beingoverweight at a later weighbridge, the driver will be in limbo and the operator at the earlier weighbridge will insist that the drivermust have found a route that bypassed his weighbridge to reach the later one. The committee has checked weights whendisputes have arisen to weed out corruption and has sacked weighbridge staff when corrupt practices were revealed.


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APM Terminals Set To Finalise Monrovia DealAPM Terminals is hoping to finalise negotiations with the government of Liberia for the development of new port facilities atMonrovia. Negotiations are expected to be concluded by the end of July although it would be some time before the projectgot the official go-ahead. Once negotiations have finished with a government committee the Liberian president then has tobring it to parliament, which will vote on it. Presuming that parliament votes it through the concession then become law.

The deal centres on a 25-year build-operate-transfer [BOT] arrangement with a fixed land lease and variable royaltypayments depending on cargo volumes handled. Current throughput is about 70,000 teu per year and 500,000 tonnes ofgeneral cargo. APM Terminal is expecting to see a 10%-15% growth rate each year for the first 10-years. The concessioncovers the 600m of existing quay, which is close to collapse and a new quay will have to be built. The concession is unusualfor APM terminals insofar as it includes providing general cargo and ro-ro handling operations, as well as also operatingmarine services such as tugs and mooring. [LL 15/07/10]

IMF Agrees Liberia Debt ReliefThe IMF and the World Bank decided to support June 29 the final stage of debt relief for Liberia that in total amounts toUS$4.6 billion. Debt relief reduces Liberias external debt stock by more than 90% to about 15% of GDP. The decision wasreached after Liberia met the requirements for achieving the final step, or completion point, under the enhanced HeavilyIndebted Poor Countries (HIPC) Initiative. Debt relief would allow Liberia to secure additional financing, in initially modestamounts, to help deliver critically needed services and infrastructure necessary for Liberias future prosperity . [WB 29/06/10]

Liberias Foreign Remittances, Trade Increase in First QuarterLiberias foreign remittance inflows rose US$19.5 million to US$234.8 million in Q1, compared with the last 3-months of 2009according to the Central Bank of Liberia. The West African nation recovering from 14 years of civil war that ended in 2003,reported foreign trade increased 13% to $162.7 million in Q1, from Q4 of 2009. Total export proceeds were US$55.1 millionand import expenditures were US$107.6 million, leading to a trade deficit of US$52.5 million in Q1 of 2010. The persistenttrade deficit position of the economy suggests that there is a need for diversification of the export sector with emphasis onactive logging, iron ore, cocoa and coffee activities. [BL 06/07/10]

New National Transport Policy Launched

A new national transport policy strategy [NTPS], a policy document which is an extended component of the PovertyReduction Strategy [PRS] initiated by the Liberian government has been launched. Transport Minister, Alphonso Gaye,noted that preliminary steps had been taken by setting up a national transport implementation technical committee to provide

LIBERIA>>


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technical support to the implementation process. NTPS projects include roads, bridges, ports, maritime and civil aviation.[TA 28/06/10]

Liberia Becomes The 138th Contracting Party To The Customs Harmonized System ConventionOn 26/06/10 Liberia contracted to the International Convention on the Harmonized Commodity Description and CodingSystem [HS Code - Harmonized System] of the World Customs Organization [WCO - www.wcoomd.org]. Considering thatmore than 98% of international merchandise trade is classified in terms of the Harmonized System, the WCO is pleased to

welcome Liberia as the 138th Contracting Party. Liberia has been a Member of the WCO since 07/01/75. The HarmonizedSystem Convention will enter into force in Liberia on 01/01/12, unless Liberia decides to specify an earlier date. Liberiasprincipal export commodities are rubber, timber, iron, diamonds, cocoa and coffee. The countrys principal importcommodities are fuels, chemicals, machinery, transportation equipment, manufactured goods; foodstuffs. [WCO 26/06/10]

Swedish Development Team Inspects Feeder Road ProjectsA delegation from the Swedish International Development Agency [SIDA - www.sida.se] is currently in the country to assessthe viability of feeder road projects jointly being implemented by SIDA and the Liberian Government through the Ministry ofPublic Works in Lofa and Bong Counties. Future hopes include the establishment of a Feeder Road Unit. The Liberia FeederRoad project commenced in October 2009 and is expected to be concluded in August 2012. During that time 300km of roadis to be rehabilitated. [TI 02/07/10]

Mali Introduces Bordereau de Suivi Cargaison/Cargo Tracking Note [BSC/CTN]The Malian Minstry of Equipment & Economy have announced that as from 01/07/10 a Cargo Tracking Note [CTN] /Bordereau de Suivi de Cargaison [BSC] must be obtained at the port of departure/load [POL]. This is mandated by the

MALI>>

HS StructureUnder the HS Convention, the contracting parties are obliged to base their tariff schedules on the HS nomenclature, although parties settheir own rates of duty. The HTS is organized into 21 sections and 96 chapters, accompanied with general rules of interpretation andexplanatory notes. The system begins by assigning goods to categories of crude and natural products, and from there proceeds tocategories with increasing complexity. The codes with the broadest coverage are the first four digits, and are referred to as the heading.The HTS therefore sets forth all the international nomenclature through the 6-digit level and, where needed, contains addedsubdivisions assigned 2 more digits, for a total of 8 at the tariff-rate line (legal) level. Two final (non-legal) digits are assigned asstatistical reporting numbers if warranted, for a total of 10 digits to be listed on entries.To ensure harmonization, the contracting parties must employ all 4- and 6-digit provisions and the international rules and notes withoutdeviation, but are free to adopt additional subcategories and notes.


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Conseil Malien des Chargeurs/Malian Shippers Council [CMC -www.cmchargeurs.com/actualites.html] and decreed under No 08-3718/MET-MF-MEIC of 31/12/08. The Conseil Malien des Chargeurs hasnominated Antaser BVBA to manage the CTN/BSC under contract#0327/DGMP of 2010. Please view OT Africa Lines website for the officialnotice and further details http://www.otal.com/ctbl/maliwaiver.htm

Mali Accedes To The Revised Kyoto ConventionOn 04/05/10 the Embassy of the Republic of Mali contracted to the International Convention on the Harmonized CommodityDescription and Coding System [HS Code - Harmonized System] [revised Kyoto Convention] with the World CustomsOrganization [WCO - www.wcoomd.org]. The Convention is regarded as a blueprint for effective and modern Customsprocedures. Recognized as a major trade facilitation instrument, some of the revised Conventions key elements include theapplication of simplified Customs procedures in a predictable and transparent environment, the maximum use of informationtechnology, the utilization of risk management, a strong partnership with the trade and other stakeholders, and a readilyaccessible system of appeals. [WCO 30/05/10]

FG Orders Refund Of Illegal Charges, Moves To Decongest PortsOngoing efforts by the Federal Government to reduce the cost of doing business in the country gained a boost as YusufSuleiman, minister of transport, vowed to sanction any terminal operator who collects illegal charges from port operators. To

this extent, the minister has directed all the terminal operators to immediately refund all illegal charges collected from variousport users and decongest all the ports across the country. Suleiman stated this while receiving the interim report fromChinwe Ezenwa, chairperson of the ministerial task force on port charges and efficiency in Nigerian ports. The minister, whoexpressed displeasure over the financial exploitation at the various ports, noted that the imposition of illegal charges by theterminal operators contributed to the high cost of doing business in the country.

He said: I have directed all the terminal operators to revert back to old port charges and I want to state that appropriatesanctions will be given according to the law and we will ensure adherence to due process based on the agreement signedby the Federal Government and the terminal operators under concession. You cant just raise your charges unilaterally.

Suleiman explained that the intention is to have the ports that are comparable to other ports across t he world and reducethe time of berthing vessels at the ports. The long time spent in berthing the vessels in Nigeria led to the high cost of doingbusiness. He also tasked management of NPA to concentrate on improving port facilities while the terminal operatorsengage in cargo handling activities.

The report also expressed concern over the lackadaisical attitude of officials of Nigeria Customs Services [NCS] at variousports as well as multiple agencies involved in port operations and that 80% of cargo were physically examined while 20%are scanned. The investigation followed complaints raised by the joint action committee on freight forwarders on the illegalcharges on services not rendered by the terminal operators. Ezenwa also stressed the need for government to reduce thenumber of government agencies at the ports with a view to effectively decongesting the ports. [BD 16/06/10]

CTN Increases Import Costs by 20%, NACCIMAThe Nigerian Association of Chamber of Commerce, Industry, Mines and Agriculture [NACCIMA - www.naccima.com] hasfrowned at the recently introduced Cargo Tracking Note [CTN] levy, payable in foreign currency by the Nigerian PortsAuthority [NPA]. NACCIMA said that CTN does not add any value to the cargo delivery processes yet the levy adds anestimated 20% to cost by the Nigerian importers annually. NACCIMA noted shipping companies already have cargo trackingmechanism by way of the Manifest and the Bill of Lading. The CTN will increase the cost of all imports coming into thecountry and ultimately the cost of goods and services in the country, logistics of a single agent covering shipment locationsall over the world is overwhelming and would inevitably lead to delays, it will worsen the problem of delays of the issuance of

shipping documents and other related documents such as risk assessment report and it will worsen the incidence of cargodiversion to neighboring countries.[VAN 23/06/10]

Free Trade Zone Commission UnderwayNigeria is set to have a Free Trade Zone Commission if the bill seeking to provide legal backing for its establishmentcurrently before the National Assembly is passed into law. The bill, which seeks an Act to repeal the Nigeria ExportProcessing Zones Authority, [NEPZA] Act 1992 and to establish the Nigeria Free Trade Zone Commission, underwent asecond reading in the House of Representatives. The bill seeks to repeal the NEPZA Act, so as to enhance efficiently in thefree trade zone operation of the country, ensure national security and accelerate the transformation of the country into amajor economic hub in Sub-Sahara Africa. [LD 15/06/10]

N150 Billion Spent On Importation AnnuallyThe Presidential Committee on the Review of Tariffs and Incentives, has disclosed that over US$1billion [N150 billion] isspent on the importation of products annually. A committee set up last year was mandated to review the market and has

formulated a 3-point plan:

x confront the lapse grip on illegal importation especially on products such as rice, which floods the market andleaves no room for local competitors

NIGERIA>>

Antaser BVBA Head OfficeANTASER AFRIQUEKeizerstraat 20B 2000 Antwerpen, BelgiumTel : +32 3 233 68 11Fax : +32 3 233 61 12Email: [email protected] / [email protected]


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x create an environment conducive for the growth and production of these farm products in mass quantitiesx inclusion of tariffs that will especially allow and encourage the purchase of locally produced items by big importers

and marketers such as rice, cassava and fruit juice production and distribution, also mentioning the importation offinished tomato products as counterproductive and added a 5% tariff inclusion on cassava. [TD 30/06/10]

FG to Confiscate Ships With Toxic WasteThe Federal Government will adhere to the law

governing illegal shipment of toxic electronic/hazardouswaste materials into the country by arresting and seizingsuch ships and prosecuting owners of the goods. TheNational Environmental Standards Regulatory Agency[NESREA- www.nesrea.org] has since run a trainingand sensitisation workshop for security agenciesoperating at the Tin Can Island Port in Lagos.

Speaking against the background of two recent attemptsto bring in ship-loads of used electronic /electrical products considered toxic and hazardous to the environment and humanhealth, the agency is able to rally the port security agencies with foreign assistance to track the ships and force them torevert back to their country of origin. [TD 23/06/10]

Ship Owners Jostle for US$100 Million Vessel Fund

Indigenous ship owners have begun a fierce battle to have a cut of the Cabotage Vessel Financing Fund [CVFF], eventhough the modalities for its disbursement are still being worked out. The four banks appointed as the Primary LendingInstitutions [PLI], Skye Bank, Equitorial Trust Bank, Diamond Bank and Fidelity Bank, have received 92 applications forloans from the US$100 million available for the cabotage vessels financing. The four banks were appointed PLIs for the loandisbursement a few months ago by the Nigerian Maritime Administration and Safety Agency [NIMASA] and are still in theprocess of putting their acts together for the disbursement of the fund. [LD 02/07/10]

FG To Standardise Agricultural Export To US and UKPoised to improve the quality of Nigerian-made goods to meet international standards, Standards Organisation of Nigeria[SON] has collaborated with a United Kingdom-based Best Produce international and Global GAP [EUREGAP] to establishGlobal Agriculture Produce Standards for Certification of Nigeria agricultural produce for export. The Global GAP standardsis an international reference system across the globe and can easily be applied by all parties of the primary food andagricultural sector. It equips members with reliable tool kit which allows each partner in the supply chain to position itself in aglobal market with respect to consumer requirements.

Establishing the Nigeria GAP would undoubtedly address the issue of barriers and challenges that are currently facing theexport of our agricultural produce to UK, US and other EU countries. Once implemented the Global Standard would will leadto production of agricultural produce that will be competitive advantage in terms of markets, economics of scale andprofitability. Also it will ensure product integrity as unique identities will be provided to the producers with record of allrelevant products and certification information for veritable market advantage including labeling. [DC 23/06/10]

Nigeria / Japan Signs MoU to Boost Trade RelationsThe federal government and its Japanese counterpart have signed a Memorandum of Understanding [MoU] that will boosttrade agreement and bilateral relations between both countries. The Nigerian Investment Promotion Council [NIPC] signedon behalf of the Nigerian government, while the Japanese External Trade Organisation [JETRO] signed on behalf of theJapanese government. [LD 28/06/10]

NEPC - Export Committees Urged to Seek Solutions to ProblemsThe Nigerian Export Promotion Council [NEPC] has stressed that inadequate funding due to frequent change of government

and the lack of proper understanding of the function of SCEPT has hindered the development and promotion of non-oilexports. A recent stakeholders conference discussed implementable strategies to enhance the sector. [LD 26/06/10]

Bilateral Trade With China, Increased by 76.3%The Consul General of the people's Republic of China in Lagos, Guo Kun said that the volume of bilateral trade betweenNigeria and China in 2009 grew steadily to US$6.373 billion. Bilateral trade between Nigeria and China has grown steadily.In 2009, export to Nigeria was US$5.476 billion, while import from Nigeria stood at US$0.897 billion, an increase of 76.3 %compared to 2008. Mechanical and electronic products, textiles, light-industrial products constitutes the major commoditieswhich China exports to Nigeria. The major commodities China imports are agricultural products, minerals, textile rawmaterials, and in the future further cooperation in the field of energy and infrastructure.

China provides subsidies such as preferential policies in tax and subsidized interest to companies which invest in Nigeriaand has already invested US$7.24 billion and created more than 30,000 jobs in Nigeria. Among them, Lekki Free TradeZone is a good example. If this project becomes successful, Nigeria's capability of manufacture will be largely enhanced,

which definitely will contribute to Nigeria export. [VAN 23/06/10]

Section 6 of the Harmful Wastes Act of 2004

Any person found guilty under the Act shall on conviction besentenced to imprisonment for life and in addition any carrier,including aircraft, vehicle, container or anyother thing whatsoeverused in the transportation or importation of the harmful waste and anyland on which the harmful waste was deposited or dumped shall beforfeited to the Federal Government.

The law introduced in the wake of the Koko toxic waste dump saga inthe mid 1980s, prohibits the carrying, depositing and dumping ofharmful wastes on land and territorial water of Nigeria.


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Germany Imported N205 Billion GoodsThe German Government has imported raw materials worth over1.3 billion [N205 billion] in 2009 from Nigeria, Mr AbdulRimdap, the Nigeria Ambassador to Germany has said. Namely petroleum, liquified natural gas, precious stones andagricultural items such as cereals, cocoa, among others. In 2009 Germany exported goods such as machinery, vehiclesspare parts, chemicals and electrical goods worth 1 billion [N187 billion] to Nigeria. The ambassador said Nigeria wasGermany's second most important trading partner in Sub-Saharan Africa, after South Africa. [DT 23/06/10]

FCTA Defies Senate Resolution On US$500 Million Chinese LoanDespite a Senate plenary resolution to the contrary, the Federal Capital Territory Administration [FCTA] has decided to signan agreement for the US$500 million [N75 billion] loan facility from the Chinese Government for the construction of the AbujaLight Rail. Ministerial debate is on-going over the 10% interest applied on the loan. The contract for the US$840 millionAbuja Light Rail was awarded to China Civil Engineering Construction Corporation [CCECC] in 2008 was part of the inter-modal transportation system to alleviate the transportation problems of Abuja residents. A 15% mobilization fee had beenpaid to CCECC while additional budgetary provision was also provided in the 2010 Appropriation Act for the project in orderto meet the 2012 completion date. [TD 06/07/10]

Govt Unveils Rail Project For Niger DeltaTransportation in the coastal states has received a boost from the Federal Government, which opened bids for a rail projectto link the 6-states in the Niger Delta region. The eastern rail section, which connects Warri in Delta State to Maiduguri inBorno State is also receiving attention as the government is set to award the contract for its rehabilitation. Bids for theproject had been opened and undergoing evaluation for subsequent contract award to the qualified contractors. The

government has also set up a committee to look into the establishment of a National Transport Commission. [TG 02/07/10]

Enugu-Cameroon Highway - A Boost To International TradeAs part of its resolve to link up strategic African cities and particularly to lift trade between Nigeria and Cameroon, along theBamenda- Enugu corridor, the African Development Bank [AfDB] has recently flagged of construction activities on theMultinational Highway. Minister of Works, Senator Mohammed Sanusi Daggash and his Cameroonian counterpart, Mr.Benard Messengue Avom conducted the ceremonial take off at the Nigeria-Cameroon Joint Border Post, Mfum along Ikom-Cameroon Border Road.

The scheme is to be driven by a Public-Private-Partnership [PPP] with inputs coming from WorldBank, Nigeria, Cameroon and AfDB. The project isto be co-financed through a low-interest loan ofUS$161 million from the African Development Bankand part of a credit of US$330 million from theWorld Bank and the Japanese International co-operation Agency. Nigeria is to contribute about10% of the cost of the works as counterpart fundsof the project which stretches from Bamenda toEkok covering 203km within Cameroon, and adistance of 240km from Mfum to Eungu withinNigeria territory. The project was inter-regional, andformed part of the on-going Trans-African highwaythat would link Lagos to Mombassa, Kenya whencompleted.

The project also involves the construction of a bridge over River Munaya [100m long] in Cameroon and a new border bridge,Cross River bridge [230m long], at the international border. Also a joint security post that will bring the border agencies atbilateral level under common commission to be supervised by a project steering committee and a joint technical committee

chaired by the ECOWAS with the Economic Community of Central African States [ECCAS] and representatives ofCameroon and Nigeria as members.

Recent findings by the United States Agency for International Development [USAID] West Africa Trade Hub and UnionEconomique et Monetaire Ouest Africaine [UEMOA] show that the region has infrastructure problems especially in thetransportation sector. The West Africa Trade Hub, said that the cost of road transport in West Africa rank among the highestin the world, making imports more expensive and finished goods less competitive in the global market. A quarterly report bythe Hub in collaboration with ECOWAS and UEMOA in November, showed that West Africa, excluding Nigeria which is notpart of the Union, has the most expensive but least efficient road transport in the world.

The Hub is currently gathering statistics through truck drivers from Abidjan, Ivory Coast, to Lagos, Nigeria, to determine thenumber of checkpoints and amount spent on routes in the region. Imports and exports in the region move along transportand logistics chains from ports to offloading points and vice versa, noting that any weak link[s] in these chains hinder tradeand make commercial activities more expensive. Corroborating the suspicion of the unreleased report, Nigerian traders and

businessmen say they spend more money paying illegal fees and bribing uniformed security operatives to enable themtransport their goods both within and outside the country.

The Bamenda - Enugu Road CorridorComprises of the Bamenda-Mamfe-Ekok road sections in Cameroon andthe Mfum-Ikom-Mbok [Ogoja Junction-Abakaliki-Enugu] road sections inNigeria [443km]. The project will include:

x pavement strengthening of Ikom-Mfum Road [25km],x reconstruction of Abakaliki - Mbok [Ogoja Juncton] Road [86km],x

rehabilitation of Enugu Abakaliki Road [77km] and Ogoja Junction-Ikom Road [52km] under World Bank Fundingx building of a Joint Border Post at Mfum to accommodate border

officials of Nigeria and Cameroonx rehabilitation of Bamenda - Batibo Road [42km]x rehabilitation of Bachuo Akagbe-Mamfe Road [21km]x development and paving of Batibo-Numba Road [20km]x development and paving of Mamfe-Ekok Road [62km]x construction of a bridge over River Muanyax construction of a new 280m long brige over Cross River.


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The Lagos Chamber of Commerce and Industry [LCCI, said extortion on the roads and the payment of illegal fees to policeofficers and other personnel needs to be checked. "The extortion is too much, the various illegal checkpoints are crazy;counting the checkpoints from Seme, Benin-Nigeria border to Mile 2 in Lagos is over 30. There is no reason for most of themto be there, especially the police.

A recent study by the United Nations Economic Commission for Africa [ECA] revealed that transport costs in Africa areamong the highest in the world. In landlocked African countries, for example, transport costs average about 14% of the value

of exports compared to 8.6% for all developing countries. The causes of the high transport costs have been attributed toinadequate road and rail infrastructure, limited direct sea links and inefficient commercial transport operating systems. Theproblem is compounded by delays at border checkpoints.

The ECA study noted that there were a total of 69 checkpoints on the trade route between Lagos [Nigeria] and Abidjan [IvoryCoast], a distance of only 992km; 34 checkpoints between Lome [Togo] and Ouagadougou [Burkina Faso], a 989km traderoute; and 20 checkpoints between Ouagadougou [Burkina Faso] and Abidjan [Ivory Coast], a distance of 529km. It is hopedthat when the Enugu-Bamenda highway is completed it will boost trade in the West African sub-region. [WATH 18/07/10 &DC 08/07/10]

LCC to Collect Toll on Lekki RoadLekki Concession Company [LCC] under the Public Private Partnership [PPP] project with the Lagos State Government willeffect a toll on Lekki-Epe Peninsular road with effect from August 2010. Electronic devices tagged 'Swift Pass' and e-Tag willbe employed. LCC was incorporated specifically to design, finance, rehabilitate, upgrade, operate and maintain the LekkiToll Road under a 30-year Concession mandate from the Lagos State Government. LCC has completed the first phase ofthe project, which includes rehabilitation and upgrade of the existing road as well as creating new road infrastructure along49km of Lekki Express Way. The phase is aimed at constructing of 20km of Coastal Road in the same axis. [DI 30/06/10]

New Holland Construction Delivers Fleet of Heavy Equipment for Niger State Road Building ProgramNew Holland Construction officially handed over 75 heavy line machines for road building in Minna, Niger State. The project,financed by Unity Bank, is part of a statewide infrastructural development plan to support economic growth in rural areas.The fleet included W190B wheel loaders, D255 crawler dozers and F200 graders was supplied by Zanasasi Limited, whowas the general contractor awarded for this project. The machines will be distributed among the 25 local governmentcouncils to provide them with the necessary equipment to carry out the Niger State road building program. [Marketwire

22/06/10]


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Senegal Recovering, On Track To Meet TargetsThe International Monetary Fund [IMF] noted Senegal was showing signs of economic improvement and was on track tomeet key targets for a soon-to-expire IMF oversight program. Senegal's economic performance through May wassatisfactory with monthly indicators of economic activity and revenues picking up, pointing to an ongoing economic recovery.

Inflation remains low. IMF staff held discussions with Senegalese officials on reforms that could raise trend growth and formthe cornerstone for a new program supported by the Fund. It said boosting growth would require more steps to increase thepublic sector's efficiency and structural reforms to increase productivity in the private sector. These include graduallyreducing Senegal's fiscal deficit to a medium-term target of about 4% of gross domestic product [GDP], increasing thequality of government spending and boosting tax revenue. The IMF also said Senegal needed to improve its businessclimate, adopt better private-sector governance and accelerate reforms of its energy sector. [RT 03/07/10]

IMF Bond Launched To Fund Road ProjectsSenegal is looking to sell a US$300 million bond in 2011 to finance road projects. Senegal in December successfullylaunched a US$200 million Eurobond arranged by Citigroup to fund road-building. The country is working with the IMF tofinalise the bond plan, but that the proceeds would be used to extend the motorway to the new airport from the capital Dakarand beyond to Senegal's second biggest city Thies.

President Launches First National Export StrategyPresident Ernest Bai Koroma has launched the first National Export Strategy [NES] of Sierra Leone at the recent SierraLeone Investment and Export Promotion Agency [SLIEPA - www.sliepa.org] conference. The government is looking to builda strong partnership with the private sector, which was why in his 'Agenda for Change' the private sector was deemed"integral to efforts at mobilizing the resources, expertise, and technology to implement programmes in government's fivepriority areas of agriculture, infrastructure, energy, health, and education. We believe that a strong private sector-led exportperformance is one of the drivers of economic growth. The National Export Strategy that that we are launching encapsulatesour vision of a country that grows its economy through strong exports," the Head of State noted. [CT 28/06/10]

July 2010

July 20 Africa Economic Outlook Conference

Johannesburg, South Africawww.ihsglobalinsight.co.za/events/goevent.asp?e=9

July 20-25 27 FILDALuanda, Angolawww.afrikaverein.de/de/index.php?node_id=11&termine=1295

July 25-27 Africas Big SevenGallagher Convention Centre, Johannesburg

1 - DrinkTech Africa 2010Equipment, technology, systems and beverage raw materials for the manufacture, filling, packaging,distribution, wholesale/retailing, trading and marketing of beverages and liquid foods.http://www.exhibitionsafrica.com/2010/exhib_2010_big_7_drinktech.asp

2 - Agri Food 201010th Field to Shop expo featuring the products, the ingredients and the processes that take Agri-industriesto market.http://www.exhibitionsafrica.com/2010/exhib_2010_big_7_agrifood.asp

3 -FoodTech Africa 2010http://www.exhibitionsafrica.com/2010/exhib_2010_big_7_foodtech.asp

4 -FoodBiz Africa 2010Targets the food service and hospitality industrieshttp://www.exhibitionsafrica.com/2010/exhib_2010_big_7_foodbiz.asp

5 - Pan Africa Retail Trade Exhibition 2010Dry goods, groceries, frozen foods, convenience foods, fresh produce, confectionery, toiletries, OTC

medicines, stationery and health and beauty products.http://www.exhibitionsafrica.com/2010/exhib_2010_big_7_retail_trade.asp

DIARY OF EVENTS >>

SENEGAL >>

SIERRA LEONE >>


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6 -Retail Solutions Africa 2010http://www.exhibitionsafrica.com/2010/exhib_2010_big_7_retail_solutions.asp

7 -Interbake Africa 2010http://www.exhibitionsafrica.com/2010/exhib_2010_big_7_interbake.asp

July 26-30 Africa Gas and LNG Summit 2010

Johannesburg, South Africahttp://www.neo-edge.com/africagasandlngsummit2010

August 2010

Aug 26 4th Hamburger Logistik-SommerfestHamburg, Germanywww.hamburg-logistik.net

September 2010

Sept TBA 5th African Cashew Alliance [ACA] Annual ConferenceTBAwww.africancashewalliance.com

Sept 2-3 HICL 2010 Hamburg International Conference on LogisticsHamburg, Germanywww.hicl.org

Sept 14-15 Coastlink Annual Conference 2010Antwerp, Belgiumwww.coastlink.co.uk/calendar_of_events.htm

Sept 15 Afrika Vereins 3rd Africa Circle: Rhineland-Palatinate/Saarland, Saarbrckenhttp://www.afrikaverein.de/de/index.php?node_id=11&termine=1340

Sept 15 DR Congo Business Dayhttp://www.afrikaverein.de/de/index.php?node_id=11&termine=1345

Sept 16 Board Meeting of the African Association of German Business in Berlin

Berlin, Germanyhttp://www.afrikaverein.de/de/index.php?node_id=11&termine=1389

Sept 20-21 3rd German - Nigerian Business ForumHamburg, Germanyhttp://www.deutsch-nigerianisches-wirtschaftsforum.de/de/index.php

Sept 20-22 Cool Logistics 3rd Global Conference for Perishable Transport & LogisticsHamburg, Germanywww.coollogisticsconference.com

Sept 21-22 4th Steel Logistics ConferenceAntwerp, Belgiumwww.metalbulletin.com

Sept 21-24 InnoTrans 2010Berlin, Germanywww1.messe-berlin.de

Sept 27-30 Africa Energy Week 2010Cape Town, South Africahttp://www.cwcaew.com/

Sept 29-30 ProLogistics 2010Brussels, Belgiumwww.easyfairs.com

Sept 29-30 Transport & Logistics 2010St Petersburg, Russiawww.easyfairs.com

Sept 29-Oct2 3rd Annual German European Business in Ghana GEREU Trade Fair 2010Accra International Conference Centre, Accra, GhanaContact:[email protected] Website: www.ggea.net

8/8/2019 OT

ot africa line's trade-watch report 2010

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