trade-watch - delmas · pdf filetrade-watch. for those with a ... whilst grindrod ltd. and...

ECOWAS States Move Closer To Customs Union (Page 8)

PORT FOCUS: Ghana: Port Expansion To Handle Rising Cargo (Page 9)

South Africa At Forefront Of Intra-Africa Investment (Page 20)

TRADE-WATCH

For those with a smartphone, these symbols provide easy access to extra info on our website (3G connection required). Just download a free QR code reader from your app store and scan the code to be directed to relevant content at delmas.com

Disclaimer of LiabilityDelmas make every effort to provide and maintain usable, and timely information in this report. No responsibility is accepted for the accuracy,

completeness, or relevance to the user's purpose, of the information. Accordingly Delmas 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 the reader.

Dominic [email protected]

Rachel [email protected]

REGULAR FEATURES

In this month’s edition!

South Africa’s National Ports Authority has committed R30 billion [£2 billion] to 2-proposed projects, one for a general freight capacity expansion and the other for the development of a new open-access coal terminal, at its Richards Bay Port. Whilst Grindrod Ltd. and Mozambique’s Maputo Port Development Co. [MPDC] plan to invest US$1.7 billion over the next 5-years to upgrade ports. Capacity will be tripled at the Maputo and Matola ports to 50 million tons by 2020. Meanwhile the Namibian Ministry of Trade and Industry [MTI] is in discussions with Dubai World Central [DWC] to gain knowledge in constructing a new harbour for the Namibia Port Authority [Namport] in Walvis Bay.

Tanzania officials are touting an ambitious project to connect Tanga Port with the Atlantic Ocean via a new railway line through Uganda and the DRC at an estimated cost of US$30b. The Zambian government has released US$120m to enable Zambia Railways to start work on a 3-year rehabilitation programme. Rift Valley Railway [RVR], the current operators of the Kenyan and Ugandan rail networks, have announced that the Tororo-Pakwach line in northern Uganda could reopen in August after being out of service for several decades.

CONTRIBUTORS QR CODES

The African Development Bank [AfDB] has approved US$232.5-million in loans for the upgrade of the Arusha–Holili/Taveta–Voi road transport corridor in Tanzania and Kenya. And the Government of Niger has eliminated 7-checkpoints improving the situation in Niger significantly. Drivers are now only stopped once between Kantchari and Niamey.

Ugandan exporters to China are to benefit from a waiver of customs duty and tariffs. From 2013 95% of Uganda's goods exported to China can enter the Chinese market with no customs duty and tariff. Three African countries that have introduced a Single Window now score better than the 3-poorest performing countries of the European Union. One of them is Senegal. This month we review the benefits of a single window system.

2 PORTS3 RAIL

5 TRADE 7 DELMAS8 ECOWAS10 PORTS11 ROAD12 REGULATRY12 TRADE

14 DELMAS14 EAC/COMESA15 PORTS17 RAIL18 ROAD19 REGULATORY19 TRADE/ECONOMY

20 SADC21 PORTS22 RAIL22 ROAD22 TRADE

EURO

PE &

BALT

ICS

PAN

AFR

ICA

WES

TERN

&

CEN

TRAL

AFR

ICA

EASTE

RN

AFR

ICA

SO

UTH

ERN

AFR

ICA

PORTS RAIL

ROAD TRADE

ISSUE #24 | MAY 2013THE AFRICAN TRADE & TRANSPORT REPORT Please consider the environment

before printing this report

This report is brought to you by the Delmas Marketing Department | Monthly Circulation: 13,000

PORTS

EUROPE & BALTICS

TRADE WATCH

EUROPE & BALTICS

01

BELGIUM

Antwerp And Zeebrugge Ports To Sign Container DealThe Antwerp and Zeebrugge port authorities are expected to sign an agreement that will seal months of negotiations between the 2-harbours to join forces and improve their collaboration in respect of container shipping, which is the growth engine of both ports. This step was initiated by shipping and transhipment companies active in both harbours and urged by the Flemish government, which is keen to see an end to the years of fierce competition between the 2-ports.

The partnership is also intended to strengthen their competitive edge and prevent them from losing more traffic to Rotterdam once it opens 2-gigantic container terminals on the port and supporting infrastructure. A proper container joint venture [JV] with one umbrella structure and accounting system is not on the cards for these ports as they are equally set on keeping their own autonomy and infrastructure.

They will however adopt one transparent pricing policy and draft joint market proposals. With their stronger presentation model which will sell Zeebrugge’s prime position as coastal harbour and Antwerp as a major port access to the hinterland, the two port authorities plan to boost container traffic to and from Asia, which is still highly underexplored compared to Rotterdam’s presence on this route.

Improper rail subsidies also result in many large shipping companies choosing Rotterdam over Antwerp when they unload freight in Zeebrugge destined for inland Flemish locations. From Rotterdam the freight is loaded on inland ships or trucks. An improved policy is needed to address this kind of anomalies. Large shipping companies and container terminal operators have been calling for streamlined collaboration between Flemish port for quite some time.[Expatica 15/04/13]

Port Of Antwerp Volumes Fall Despite Slight Rise In Cargo ThroughputAntwerp Port saw container volumes slip 2.8% y-o-y in Q1 2013 despite cargo throughput climbing 1.4%. The Belgian port handled 46,997,502 tonnes of freight and 2,126,254 TEU in the first 3-months of the year. In terms of tonnage the volume fell by 5.7% to 25,463,064 tonnes. In the same period last year the figure was 27,000,161 tonnes.

There was though better news in regards to liquid bulk volumes, which rose 37.4% to 14,208,642 tonnes, an absolute record. The volume of dry bulk on the other hand was down by 33.2% to 3,557,499 tonnes, as coal and ore volumes notably low falling 69.1% and 12.4% respectively.

In the conventional breakbulk sector 2,649,074 tonnes of freight was loaded or unloaded, an increase of 4.4% y-o-y. Gains were also experienced by paper and cellulose, up 23.8% to 260,393 tonnes and non-ferrous metals, up 26.8% to 116,038 tonnes.

The ro/ro volume for its part was down 0.5% to 1,119,223 tonnes, while autos rose 5.5%

to 305,707 units. The number of seagoing ships calling at Antwerp during Q1 2013 was down 1.2% to 3,587, when compared to last year. However, the gross tonnage of vessels rose by 3% to 79.8 million.[Port Technology 30/04/13]

EuroFruitPorts New Coldstore Operational In The Port Of AntwerpEuroFruitPorts has opened its multi-purpose refrigerated fruit terminal in the Port of Antwerp. Construction of the cold store facilities began in September 2012. The 38,700 m2 terminal has a cold store warehouse of 13,600 m2 fully operational. For the Port of Antwerp, the addition of this new cold storage capacity further strengthens its position as main fruit & perishables port in Europe.

Last Cranes Arrive At London GatewayA further two more of the largest container cranes in the world were delivered to London Gateway. The units are the final two in a fleet of five that will be serving the port’s first ships when it opens in Q4 2013. Although the deadline is fast approaching, the port remains confident that all the facility’s handling systems will be fully operational when it opens for business.

According to the port in today’s market around 1m teu goes directly to London and the south-east, and there is a disconnect between our markets and where the ports are located. Cargo owners in that region could save £190 per container on landside and road costs by going through London Gateway rather than other ports. As you move further afield that value saving begins to dilute. Importers and exporters based around Birmingham will save £60 per box. Those figures had been independently calculated by UK maritime and supply chain consultancy Drewry. These savings are achieved simply by nominating London Gateway on their Bill of Lading.

London Gateway is also constructing a 380,000sq ft common-user warehouse which is scheduled to be operational this time next year and in which small plots are to be leased on both a short- and long-term basis to smaller shippers and forwarders interested in developing a port centric approach to their supply chains. [The Loadstar 26/04/13]

FRANCE

Marseilles-Fos Reports First-Quarter Box GrowthFrench Mediterranean hub Marseilles-Fos recorded a 2% rise in container traffic to 265,500 teu in Q1 2013, on the back of 4% growth at the Fos deep-sea terminals, although lower oil volumes saw total cargo throughputs fall 9% to 20m tonnes to the end of March. General cargo slipped 1% to 4.2m tonnes, which included 2.6m tonnes of container tonnage. Ro-ro throughput at Marseilles-Fos was down 7% on 930,000 tonnes for Q1 2013. Conventional cargo fell 1% to 680,000 tonnes.

In 2012, container throughput at the Marseilles-Fos port cluster rose 13% - led by a 16% surge in deep-sea volumes at Fos - to just over 1m teu. The French port benefited from its first full year after national port reforms and from full utilisation of its two Fos 2XL privately run container terminals. [Lloyds List 23/04/13]

GERMANY

Hamburg Port Gets New WorkboatsTwo additional workboats have gone into operation in Hamburg to support some of the wide range of ship services in Germany’s biggest seaport. The crane and diving support workboat HT8 is 30m long HT8 is 8.65m wide and draws 0.9m, making it particularly suitable for shallow and narrow waterway work. The vessel was acquired along with a stern mounted 20 tonne capacity Sennbogen crane already installed for heavy lift jobs. There is also a 60 tonne bow winch.

Also running is the new €1.7m pilot transfer boat Lotse 4 for the Hamburg Port Authority (HPA). At 17.97m long and 4.82m wide the purchase brings to four the number of pilot boats in service with the HPA.[Maritime Journal 02/05/13]

NETHERLANDS

PUMA Completes First Part Of Maasvlakte 2 Koninklijke Boskalis Westminster N.V. [Boskalis] and Van Oord Dredging and Marine Contractors B.V. [Van Oord] have delivered the first stage of Maasvlakte 2 to the Port of Rotterdam Authority on 17/04/13 both on schedule and on budget. More than 2,000 people worked around 6 million hours.

PUMA, the joint venture [JV] of the 2-contractors, started the €1.1 billion expansion of the port of Rotterdam 5-years ago. Today the realization of 700 ha of new industrial sites, 11 km of seawall, 3.5 km of quay wall, 24 km of roads, 14 km of rail and 560 ha of port basin is a fact. The contract includes a maintenance period of 10 years. Boskalis and Van Oord have undertaken to keep the entire seawall at optimum strength until 2023. The Port Authority is also currently working on the nautical accessibility with the installation of leading lights and buoys for shipping that will enable Maasvlakte 2 to be opened to ships on 22/05/13.

During 2013 work will continue on infrastructure on the boundary between the existing port area and Maasvlakte 2, including the construction of a flyover intersection at the ECT terminal, so that the new port terminal can connect seamlessly to the existing one. In addition, APM Terminals [APMT] and Rotterdam World Gateway [RWG] are working hard on the new container terminals which both companies want to have in operation by the end of 2014. [Port of Rotterdam 17/04/13]

Rotterdam Reports 4% Increase In Box ThroughputRotterdam port has seen a 4% rise in Q1 2013 box volumes to 2.8m teu, although the number of empties increased due to the economic downturn across Europe. Total container throughput by weight in the period dropped accordingly by 1% to 30m tonnes, reflecting the rise in empty boxes.

Inbound container weights increased 0.9% to 14.8m tonnes, while outbound there was a 2.1% fall to 15.2m tonnes. Ro-ro traffic remained relatively stable at more than 4m tonnes, with a 1% rise on Q1 2012, but was still affected by the poorly-performing UK economy. [Lloyds List 29/04/13]

PORTS

EUROPE & BALTICS

TRADE WATCH

EUROPE & BALTICS

02

RAIL

CZECH REPUBLIC

New Intermodal Hub in Czech RepublicEuropean intermodal company Metrans has opened a second hub terminal for containers in the Czech Republic at Česká Třebová, 180 km East of Prague. The Hamburger Hafen und Logistik AG subsidiary’s new hub began operations earlier this year and has been handling more than 100 trains a week since the beginning of May.

Česká Třebová is located in pan-European traffic corridor IV and is on Route 22 of the the Trans-European Network [TEN], which extends from Nuremberg/Dresden to Prague, Vienna, Budapest and Sofia. Metrans invested US$21.6 million to build the facility, with funding from the European Union of US$3.5 million. This first phase can process around 150 trains a week and has space to store 4,500 TEU. It has 3-portal cranes and 6-sidings. The terminal may be expanded in the future. [JOC 05/05/13]

NETHERLANDS

Port of Rotterdam’s ‘Portshuttle’Trimodal Europe, a network orchestrator in logistic rail services, has introduced ‘Portshuttle’ for the transport of containers. The Portshuttle is an 80 TEU container train that travels back and forth between Pernis and the Maasvlakte, 7-times a week. The train stops at 3-terminals: CTT in Pernis Rotterdam, Euromax on the Maasvlakte and ECT Delta. In an average rush hour 400 to 500 trucks per hour travel via the highway A15. With the introduction of the shuttle this is reduced by 10%. [Rotterdam Port 12/04/13]

SPAIN

SNCF To Take 25% Stake In Comsa Rail TransportAn agreement for SNCF's logistics business SNCF Geodis to take a 25% stake in Spanish private freight operator Comsa Rail Transport was announced by Comsa EMTE on 29/04/13. The transaction is subject to European regulatory approval. Financial terms were not disclosed, but a representative of Geodis would sit on the CRT board.

CRT and Geodis have also signed a partnership to encourage the development of rail freight between France, central Europe and the Iberian Peninsula, taking advantage of the growing standard gauge network in Spain, including the planned Mediterranean Corridor. SNCF Geodis's 'rail motorway' piggyback business VIIA is considering the feasibility of extending its service which run between Bettembourg in Luxembourg and Le Boulou in France into Spain. [Rail Gazette 30/04/13]

UNITED KINGDOM

Siemens Completes Invensys Rail AcquisitionSiemens AG announced on 02/05/13 that it had successfully concluded the acquisition of Invensys Rail, which is to be integrated into the Rail Automation business of Siemens' Mobility & Logistics division. Siemens' €2•2bn acquisition of the signalling arm of Invensys was announced in November 2012, subject to regulatory approval and endorsement by the shareholders.

The sale was formally approved by the European Commission's competition authorities on 18/04/13. Full consolidation of the 2-businesses is expected to take around 18 months. The 2-companies' activities are seen as complementary in terms of both geographical markets and technologies, with comparatively little overlap between their respective ranges.

Siemens and Invensys Rail have been working together on a number of projects in recent months, including the Crossrail signalling contract in London, where Siemens is supplying its Trainguard CBTC and Invensys Rail the interlockings. [Rail Gazette 02/05/13]

UK Gears Up For Longer Freight TrainsRail facilities across the UK are gearing up to handle the next generation of longer trains. Potter Logistics is expanding all three of its UK rail freight terminals, in Knowsley, Selby and Ely, to accommodate 750-m trains.

The new London Gateway terminal and Felixstowe are also preparing to handle 750-m trains, and Southampton will have to follow suit. Potter is acquiring farmland adjoining its Selby terminal and will extend it next year, also increasing the gauge to W10 to allow larger containers to be handled. [IFW 07/05/13]

TRADE WATCH

EUROPE & BALTICS

03

TRADE WATCH

EUROPE & BALTICS

04

Africa Increasingly Dominating Investment AttentionA report by KPMG has found that foreign direct investment [FDI] into Africa would continue to increase and what was seen currently was only the “tip of the proverbial iceberg”. The report, titled ‘African Emergence: Rise of the Phoenix’, was released ahead of the 23rd World Economic Forum [WEF] on Africa in Cape Town.

Increasingly, Africa is receiving a lot of attention with the continent offering multiple opportunities. Africa rode the wave of the global financial crisis better than most other economies and is described as investor hungry. In fact, it currently has an insatiable appetite for growth. The historically limited understanding of investing in Africa is fading, and with growing interest and awareness of the continent, Africa could benefit from the relationships formed at the WEF on Africa.

The continent is increasingly becoming politically stable, with continuing improvements in human rights records, social development, education and health enabling a growing, healthy and stable marketplace. Opportunities are abundant with an untapped consumer market of over 1-billion people; enormous agricultural potential; and continuing growth within the oil, gas, mineral and metals sectors.

However, Africa is very diverse and differs from countries such as China, India and Brazil. The continent holds over 50 very different countries, each with varied cultures, governments, laws, opportunities, restrictions, policies and regulations, besides others, to navigate. A prerequisite to successful investment was thorough market research, an understanding of wealth distribution and location, disposable income levels and government policies regarding trade amongst others. [Engineering News 06/05/13]

UAE-Africa Trade Increased By 700% In Past DecadeOver the past decade, Dubai’s non-oil trade with Africa increased by 700% from Dh10.6 billion in 2002 to Dh84.8 billion by 2011 according to the Dubai Chamber of Commerce & Industry. Over the next few years the Dubai Chamber will target Africa to encourage more trade and investment flows with Dubai by opening a series of overseas offices in key locations across the continent.

The first, which is in the final stages of preparation, will open in Addis Ababa, Ethiopia, and will be followed by more over the next 3-5 year. Historically, Dubai has always been a major transit point for goods and trade flows from Africa, and this is a role that we are seeking to build on over the coming years. 5-key sectors have been identified for investment: trade, logistics, tourism, agribusiness and finance. [Gulf News 02/05/13]

PANAFRICA

TRADE WATCH

PAN AFRICA

05

TRADE WATCH

PAN AFRICA

06

Abidjan Cotonou Dakar Douala Libreville Pointe Noire Rouen 18 21 14 23 26 21 DELMAS Service Tanger Med Destination Service Hebdo Wednesday

Dakar Abidjan Cotonou Douala

PC Sud Friday

Pointe Noire Libreville Port Gentil

Battuta Express loop Nord Saturday Nouakchott Battuta Express loop Sud Friday

Conakry Freetown Monrovia Banjul

Angola Shuttle Monday Luanda Lobito Namibe

DELMAS Announces New Call At RouenDelmas’s Nigeria Express service now offers a direct stop in Rouen. In addition to the main European ports, the Nigeria Express Service calls at Lomé, Tema, Lagos Apapa and Tin Can. All other main West African ports are served via transhipment at Tangier Med.

To ensure a reliable and regular service the Nigeria Express has a dedicated berthing window at Tangier every Tuesday. The first call will be at Rouen Moulineaux Terminal on 16/05/13 by the l ANTJE WULFF ZO343S. Please contact your local agent for details and bookings.

Transit Time Examples

Services Relayed Via Tanger Med

New DELMAS Agency In Niamey, Niger We are pleased to announce the opening of DELMAS NIGER, our new agency office based in Niamey. Mr Mahamane BABA has been appointed as General Manager. DELMAS has extensive experience of on-carriage throughout Africa, we provide through transport services to and from Niger.

Using a single document, the Combined Transport Bill of Lading [CTBL/BLD], we take full responsibility for the safe shipment and delivery of cargo via the ports of Lome [Togo] and Cotonou [Benin].

DELMAS NIGERQuartier Balafon , Rue du Sénégal Ilot B – Lot 401 BP 11 534 NIAMEYNIGERTel: +227 20 73 36 81

CTBL Strengths• Complete and integrated service guaranteed, avoiding the complications and risks of oncarriage in Africa• No demurrage nor deposit at port of discharge• DELMAS dedicated agents in all landlocked countries [for tracking, customer service...]• Single bank negotiable document• Transport of containers to numerous landlocked African destinations with controlled transit times• Optimisation of oncarriage to meet local constraints• Efficient tracking system on request• Secured and integrated logistic network up to delivery at final destination• All inclusive rates available at initial inquiry

P ort O f Discharge

Des tination C ountry

Final Des tination

T ransport Kms Total T ransit T ime To FPD

Terms

Cotonou Niger N iamey Road 1000 19 Free O n T ruck - Door Lome Niger N iamey Road 1100 17 Free O n T ruck - Door

LINE SCHEDULE SERVICE INFORMATION

WESTERN & CENTRAL

AFRICA

TRADE WATCH

WESTERN & CENTRAL AFRICA

07

ECOWAS

Adopting A Common External Tariff, ECOWAS States Move Closer To Customs UnionThe days of finding widely different prices on imported goods in West Africa may have been dealt a serious blow. In March, the regional body ECOWAS announced that finance ministers from its 15 member states had agreed to adopt a Common External Tariff [CET], which would mean each country will apply identical tariffs on goods, according to 5-classifications or tariff bands.

This approach to tariffs coincides with recommendations previously made to ECOWAS by an unpublished USAID West Africa Trade Hub study, which suggested that the 5-band tariff system used by the Francophone West African trading and monetary union UEMOA could be successfully replicated by ECOWAS. Wide price differences might still very well occur – there are many reasons a product is more expensive in one place compared to another – but the CET is important for other reasons, and is already being hailed by economists as a historic step. When implemented, the CET will harmonize tariffs across West Africa and is another rung on the ladder of making the broader West Africa free trade area into a customs union.

Member states were expected to adopt the CET more than 5-years ago, but it was delayed over negotiations concerning what products to place in what band.

The Five BandsThe ECOWAS CET assigns products to one of five tariff bands. The first, the lowest, is designated for “essential social goods,” and exempts the product from any tariffs at all. The tariffs then occur at 5% on 2,146 products, at 10% on 1,373 products, and at 20% on 2,165 products. The fifth, the highest, applies a 35% tariff rate and is designated for “sensitive products” or products made by local industries that countries want to protect. Putting goods in the fifth band really is a form of protectionism.

A CET can also discourage smuggling as the CET eliminates any price variation across borders. Also just as countries do independently now, the region can impose tariffs in a strategic fashion. Under the new CET, for example, the tariff on rice is 5%, rice being in the second band, “goods of primary necessity.” However, milled rice is in the third band [“intermediate goods”] with a 10% tariff, effectively helps protect West African rice producers from having to compete with imports. Palm oil, meanwhile, is, like many other vegetable oils, a fifth-band “sensitive product” with a 35% tariff – this reflects governments’ desires to protect their domestic palm oil industries from international competition.

ECOWAS ministers also agreed on the creation of a 1.5% Community Integration Levy whose scope and operationalisation would be the subject of further regional reflection as part of the mechanisms to enable the region cope with the challenges of implementation of the new tariff regime. The levy will replace the two existing community levy regimes in the region comprising the ECOWAS Community levy and the counterpart Community Solidarity levy for the UEMOA. The replacement will help ensure uniformity in port charges in compliance with the requirements of the World Trade Organisation [WTO]. [WATH 30/04/13]

AFRICA

TRADE WATCH


08

PORT FOCUSGhana: Port Expansion To Handle Rising Cargo

TRADE WATCH


09

Ports in Ghana are struggling to keep up with the demands of the expanding economy, which are being fuelled by the rapidly developing energy industry and increasing domestic consumption. However, new investments being channeled into the maritime services sector should ease some of the pressure.

Domestic maritime trade is served by two ports: Tema, around 25 km east of Accra, the capital; and Takoradi, 230 km to the west. The two ports handle more than 90% of the foreign-trade volume. Tema in particular has also increasingly served as an outlet for Ghana’s landlocked neighbours, Burkina Faso, Niger and Mali – especially as shippers began to shift over from the Port of Abidjan in 2011, following the spate of post-electoral violence in neighbouring Cote d’Ivoire – further adding to the total throughput at the Ghanaian facilities.

GDP growth of nearly 7% has spurred a rise in imports to feed infrastructure and energy developments but also engendered increasing delays in loading, offloading and cargo clearance as freight volumes climb. In 2012 the Tema and Takoradi facilities handled 19.4m tonnes of cargo, comprising 4.4m tonnes of exports and 15m tons of imports and trans-shipments, according to data issued by the Ghana Shippers’ Authority in April 2013. This figure was an 8% increase over the 2011 total, with imports rising by 9.7% and exports up by more than 4%.While the ports have managed to handle the increased volume so far, the strain is beginning to show in the form of congestion and increased waiting time, leading to a higher cost of doing business. Bottlenecks in the transport chain, such as a lack of cargo handling and storage capacity and insufficient inland connections, which slow freight movement in and around the harbor zones, are putting pressure on the logistics network. The biggest challenges faced are operational inefficiencies, as well as inadequate infrastructure. This includes insufficient port and harbor infrastructure, cumbersome cargo clearing and examination processes, and lack of expansion of road links, bridges and rail connections.

Tema Port ExpansionWith the volume of containerised traffic through the ports expected to rise by 12% or more for each of the coming 3-years, the 2-ports need to be expanded and the land-based transport backbone strengthened. Steps to brace the logistics spine are being rolled out. In late March, Bolloré Africa Logistics Ghana [BAL] announced it was planning to invest US$15m to upgrade infrastructure at Tema Port to improve cargo handling and speed up freight movement. The investments, to be made through the company’s joint venture with the Ghana Ports and Harbours Authority [GPHA] – the state agency that owns both Tema and Takoradi – will involve installing new cranes and other cargo-moving equipment.

Takoradi Capacity IncreaseThe need to improve facilities at Takoradi is even more urgent, as the port is now serving the rapidly developing offshore gas and oil fields. Much of the material needed to build the facilities required by the energy sector are being shipped through Takoradi, which is struggling to manage the increase in traffic, having previously handled only around 25% of Ghana’s maritime trade.

Recognizing the need to boost Takoradi’s capacity, the GHPA signed a US$150m contract in August 2012 with the China Harbour Engineering Company to carry out the first phase of a major expansion programme at the port. Under the planned first stage, which is forecast to take up to 36 months, new breakwaters will be constructed to expand the port basin, extended quay walls will be built, dredging conducted to deepen the port to 16m, and road access improved.

The upgrade, which will see local firms assigned 40% of the work, is expected to improve efficiency and cut freight movement times. Further expansion will increase berthing space and allow for larger vessels of up to 10,000 TEUs to use the facility.

The first phase involves the extension of the existing main breakwater, provision of facilities to handle bulk commodities and dredging of the access channels – all of which are progressing steadily. The berths will be dredged to 16m depth and the breakwater extended to 1.75km northwards. Upon completion, manganese, bauxite, clinker, limestone and other bulk cargo operations would be transferred to the new jetty. This will free the existing manganese terminal for the increased oil services activities in the port. The sawn timber shed at the port would be demolished to make way for space to support port operations.

Meanwhile the port is currently negotiating with the Ghana Railway Company to convert the Sekondi Railway Station into a container Terminal intended to free the Port to get more space to handle bigger vessels, cargo traffic, ease congestion and improve ship turn round time for the oil supply vessels.

A consortium of two consultancy firms, Sell Horn Engineering and Hamburg Port Consulting, signed the contract agreement with the Takoradi Port in February 2012 to undertake the port master plan and supervise the development of the new facilities. A loan facility of €197 million has been secured from KBC Bank NV of Belgium. Van De Nulron, a Belgian contractor, is to undertake both design and construction works. The Government of Ghana has also benefitted from a Chinese loan of US$176 million to support the project which is to be used to construct access roads and provide other utility services under phase one of the project.

Economy BolsteredWhile the upgrades will improve the cargo-handling capacity of both ports, the amount of freight will continue to rise as Ghana’s economy maintains its high rate of growth, with expansion tipped to come in at just under 8% in 2013. This could mean there are further opportunities for maritime equipment suppliers in the market, and for building materials and construction firms in the expansion phase. The biggest winner, however, will be the national economy itself, as its links to the outside world begin to flow more freely.

Border BottlenecksHowever Ghana risks losing revenue and experiencing serious congestion and lengthy delays at seaports, borders and road networks if the Government does not step up measures to eliminate time-consuming procedures and multiple checkpoints. The situation has become urgent owing to rapidly increasing trade and transport volumes in Ghana. A new 11-member Borderless Alliance National Executive Committee [BANEC] in Accra have been tasked to foster a productive public-private dialogue, engage appropriate decision-makers and make the required changes that would solve problems as well as promote best practices of trade and transport within Ghana and the wider sub-region. [Oxford Business Group 08/05/13 / GNA 23/04/13]

Figures • Total traffic rose by 32% from 4,948,553 MT in 2011 to 5,310,697 MT in 2012. • Imports recorded in 2012 were 2,314,856 MT against 2,088,533 MT in 2011.• Transit traffic recorded negative growth of -81.3% from 31,883 MT in 2011 to 5,958 MT in 2012.• Transhipments up 77% from 18,226 MT in 2011 to 32,253 in 2012.

TRADE WATCH


10

DRC

Congo River Port Dredging The Alu Marine shipyard has completed the construction of 2-survey launches for the Democratic Republic of Congo [DRC] following a public tender from the Congolaise des Voies Maritimes [CVM] last year. These survey boats will make hydrographic surveys of the Congo River to guide dredging and marking for the development of a transport network as part of the DRC Multimodal Transport Project.

This project aims to improve transport connections between the east and west of the DRC, and thus develop trade and economic activity in this area. 150km of river are concerned, the distance between the mouth of the Congo River, Banana and Matadi. The 2-aluminium boats will be transported to Boma, DRC. After the training period, the boats will start to work on the Congo River from May 2013.[Dredging Today 30/04/13]

LIBERIA

Liberian President Stresses Need to Rehabilitate Port of GreenvillePresident Ellen Johnson Sirleaf has stressed that the rehabilitation of the port of Greenville is a requirement of government as a response to the potential economic boom in southeastern Liberia and to add impetus to the government's "Agenda for Transformation [AfT].” Part of that policy will be the resuscitation of Greenville ports prewar status with facilities fully rehabilitated by the NPA by the end of 2013. The war had left facilities nearly inaccessible due to abandoned marine carriers in the dock area.

The port of Greenville will be the export point for Golden Veroleum Liberia [GVL], a multi-million-dollar oil palm investment company operating in the county; and also for the Putu Mining Company, the iron ore mining company that is exploring iron ore in the Putu Mountains in Grand Gedeh County.[Liberian Government 28/04/13]

Facts & Figures• Greenville, also known as Sinoe, is the capital of Sinoe County in SE Liberia and lies on a lagoon near the Sinoe River and the Atlantic Ocean. • 3rd largest port in Liberia.• 2 quays (70m and 180m long respectively) on the inner side of the 400m breakwater for berthing facilities.• Existing water depth of 6m below chart datum.• Rehabilitated in the 1980’s with a loan from the German Development Fund. • Functions mainly as an outlet for the timber industry.

SIERRA LEONE

Freetown Port Gets New FendersThe port of Freetown in Sierra Leone has had new fenders fixed on piers #3, #4 and #6. Berth # 5 will also be equipped during May.

GAMBIA

Trans-Gambia Corridor Project: Construction Of Trans-Gambia Bridge And Tolling FacilitiesThe Gambian Government has received a grant from the African Development Bank [AfDB] toward the cost of the Trans-Gambia Corridor Project and it intends to use part of the grant for construction of the Trans - Gambia Bridge and Tolling Facilities. The National Roads Authority [NRA] will prequalify contractors for the construction of the 942m bridge in July 2013. [AfDB 23/04/13]

LIBERIA

Liberia Agrees Construction of Ganta-Guinea Border Road The Government of Liberia [GoL] through the Ministry of Public Works has signed an agreement for the construction of the road from Ganta to the Guinea border. The World Bank has earmarked US$80 million for the project. [Heritage 07/05/13]

NIGER

Niger Eliminates Checkpoints As Stakeholders Lobbying Pays OffThe Government of Niger has eliminated 7-checkpoints improving the situation in Niger significantly. Drivers are now only stopped once between Kantchari [on the Burkina – Niger border] and Niamey. Every barrier to trade - no matter how seemingly small - is a menace to economic development.

Checkpoints across West Africa are directly correlated with bribes and delays that slow trade, increase costs and discourage investment.

The government's decision came just weeks after the 2nd annual conference of the Borderless Alliance, the USAID Trade Hub-supported private sector coalition to increase trade, and about a month after a Borderless Alliance membership drive in the country. Niger joined the USAID Trade Hub-UEMOA road governance initiative in 2012.

A preliminary review of data collected in Q4 2012 showed that Niger had the highest level of delays per 100km in the region, the 2nd highest level of checkpoints and the 3rd highest level of bribes. Before the data were published, however, the government acted, eliminating all checkpoints on its national highways except for the first checkpoint manned by the gendarmerie after a border crossing.

More than a year ago, authorities in Togo eliminated all of the police and gendarme checkpoints along the country's national highway and that decision has held up. So, if Togo can do it, why not Niger?[West Africa Trade Hub 30/04/13]

SENEGAL

Senegal Ponders "Pass Sticker" To Reduce Delays, HarassmentThe National Committees of the Borderless Alliance [BA], the West African private sector-led group advocating for reduced costs and delays in cross-border transport, have begun mobilizing their members to address

issues related to trade and transport facilitation at the national level.

In Senegal, National Committee President Etienne Sarr and his fellow committee members met with Gen. Abdoulaye Fall, High Commander of the Gendarmerie and his staff in February, and subsequently with the Director General of Customs.

During the meetings Sarr opened discussions about the possibility of developing a “Regional Transport Pass” sticker system to facilitate free movement of goods within the sub-region.

Under the proposal, Senegalese Gendarmerie, Customs and Police would provide an official “pass” sticker to trucks which are roadworthy, legally loaded and carrying legitimate cargo.

With support and endorsement from the uniformed services, such a system could enable law-abiding trucks to move far more rapidly across the region, and could significantly reduce delays at checkpoints.

Such a pass would not be the first in West Africa. Previous efforts have achieved mixed results. In Togo in the mid-1990s, the Solidarité sur la Mer pass system initially reduced the delays and harassment drivers encountered as they hauled goods from Lomé to Ouagadougou.

However, stakeholders noted that this system lost its effectiveness over time, and within a few years, vehicles with the Solidarité pass faced all the same problems as those without it. [West Africa Trade Hub 30/04/13]

PORTS

ROADS

TRADE WATCH


11

REGULATRY

Nigerian Customs Begins Enforcement Of TINThe Nigeria Customs Service [NCS] has commenced the enforcement of the Tax Identification Number [TIN] and the Nigeria Integrated Customs Information System [NICIS] trade portal for the purpose of clearing cargoes. The Nigeria Custom Service recently warned importers and issued a deadline of 31/03/13. However may importers are not prepared and consequently could not clear their cargo from the port.

There was anxiety at the port as the new portal by the Federal Inland Revenue Service [FIRS] did not accept declarations and reportedly Customs was finding it difficult. The move has slowed down the pace at which cargoes are being exited from the port. [Vanguard 09/04/13]

Dom QR code to http://jtb.gov.ng/utin/node/1

Steps to apply for a TIN• Visit any Tax Authority Office and obtain the relevant application form• Complete the application form and return to the Tax Authority with valid proof of the identity such as driver’s license, international passport, utility bill or any other similar valid document.• Provide the required biometric information.• Upon confirmation of your details and documents, a card will be issued to you.• For further details visit http://jtb.gov.ng/utin/node/1

Nigeria Contracts World Bank To Audit Destination Inspection SchemeThe Federal Government has contracted the World Bank [WB] to audit the Destination Inspection Scheme [DI] before handing it over to the Nigeria Customs Service [NCS]. The DI contract, which stipulates that all goods coming into the country must be examined at the nation’s ports, elapsed last year before it was extended for another 6-months. The WB will audit the 3-current service providers namely Cotecna Destination Nigeria Limited, SGS and Global Scansystems, as well as the preparedness of the NCS to take charge of the scheme. The audit should see if there is need for transition or intervention; and to determine the kind of collaboration that is required. [Vanguard 18/04/13]

TIN INFORMATION

TRADE

Case Study: Senegal’s Single WindowThree African countries that have introduced a Single Window now score better than the three poorest performing countries of the European Union. One of them is Senegal, which introduced a Single Window in 2004. According to The Doing Business – Trading Across Borders indicator Senegal went up from rank 136 in 2008 to 65 in 2012. Senegal now ranks higher than countries such as the Czech Republic [69], Romania [72], Hungary [74] and Greece [84].

In Senegal the time needed to make an export or import has dropped dramatically since the launch of the Single Window in 2004.

BackgroundTraders in many developing countries struggle with excessive regulation when exporting and importing their products. Long processing times and high transaction costs hurt traders’ competitiveness and hinder their access to international value chains. Costs of transportation, customs clearance and ware-housing are directly affected. There are also indirect and hidden logistics costs that are dif¬ficult to monitor. For example there is evidence that traders in developing countries often keep over-sized stocks to compensate the cumber¬some and unpredictable clearance process. In such cases the excessive capital frozen in the value of the goods causes an extra expense that could normally be avoided. The additional logistics costs of trading are transferred to the prices of products and the burden is finally car¬ried by regular consumers.

Benefits of a Single WindowThese problems can be alleviated by intro¬ducing a Single Window, which is an electronic facility that coordinates the exchange of trade related data between traders and government agencies. Other private sector participants may also be involved. The system helps traders to save time and money, because they can sub¬mit all required information through a single electronic interface instead of having to deal separately with each authorizing agency.

Several African countries have successfully introduced a Single Window already and they are now enjoying higher international rank¬ings than many other African coun¬tries. On average, each additional day that a product is delayed prior to being shipped reduces trade by approximately 1%. The time saved by Sin¬gle Window can therefore have significant economic impact on a country. At best, the Single Window reduces clearance time down just to a few minutes.

A Regional Single WindowThe next step in development toward entirely paperless trade is establishment of a regional Single Window arrangement, or rather – a network of national Single Windows. One of the benefits of a regional arrangement is that an exporter’s application to trade can be trans¬ferred to the import country, where the data is received as an import transaction. Traders have electronic access to all the requirements for trade in the destina¬tion country. At the same time, plenty of cost and paperwork are eliminated. A regional Single Window can also facilitate customs transit, particu¬larly if the design involves a regional transit agreement between the participating countries. A fully electronic solution may take years to build but as the evi¬dence shows, it is well worth it because of its enormous potential to facilitate trade and to improve country’s image in the international context, especially within a fierce competition to attract investors.

Implementing Single WindowsAffordable technical solutions for Single Window systems are well available com¬mercially. An entirely African-made Single Window solution “Orbus” was developed and first implemented in Senegal. Encour-aged by the Senegalese example, 13 other countries joined their forces and formed the “African Alliance for e-Commerce to expe¬dite introduction of electronic solutions trade facilitation in Africa. Useful guidelines, standards and recom¬mendations for implementation are available by the United Nations Economic Conference for Europe [UNECE], which coordinates the global work on trade facilita¬tion under UN. It recently launched a new Trade Facilitation Implementation Guide, which contains a number of instruments, case studies and other materials for the sup¬port of implementation. Introduction of a Single Window requires a number of improvements in the trading environment including simplification, harmonization and standardization of documents, procedures and requirements.

In Senegal the time needed to make an export or import has dropped dramatically

TRADE WATCH


12

DELMAS New Call At Maputo Eastbound On ASAF Line A new direct call at Maputo Eastbound has been added to the ASAF line to give customers a direct and reliable service between Mozambique and Asia with short transit times.

Scheduled for the beginning of the citrus season, it will also offer a regular service for fruit and ore exports from the Limpopo and Mpumalanga regions in the North East of South Africa, with scrap and all other cargo from Mozambique and landlocked countries served via the Maputo corridor. EASTERN

AFRICA

TRADE WATCH

EASTERN AFRICA

13

DELMAS New Call At Maputo Eastbound On ASAF Line A new direct call at Maputo Eastbound has been added to the ASAF line to give customers a direct and reliable service between Mozambique and Asia with short transit times.

Scheduled for the beginning of the citrus season, it will also offer a regular service for fruit and ore exports from the Limpopo and Mpumalanga regions in the North East of South Africa, with scrap and all other cargo from Mozambique and landlocked countries served via the Maputo corridor.

LINE SCHEDULE SERVICE INFORMATION

EAC/COMESA

East Africa More Business-FriendlyA trading bloc of East African economies are making it easier for businesses to work, but performance among the 5-varies widely and reforms are needed to boost trade and investment.

The East African Community [EAC] ranks on average 117th of 185 economies in the world, where the No. 1 slot is considered the easiest place to set up and run a business. But the 2012 rankings mask disparities among the five. Rwanda, rising swiftly up the table as it has rebuilt from the 1994 genocide, was ranked 52. Burundi has improved but is still at 159 and Kenya, the biggest economy of the five, is ranked 121.

East African nations have been growing fast in recent years, with Rwanda one of the strongest performers. Its economy expanded about 8% in 2012. Kenya's economy grew by an estimated 4.5% to 5% last year. With a combined gross domestic product of US$84.7 billion, the bloc has drawn investors to manufacturing, telecoms and energy sectors following oil and gas finds in Uganda, Kenya, Uganda and Tanzania that could fuel a hydrocarbons boom.

But executives and entrepreneurs across the region grumble about obstacles hindering their work, including bureaucratic hurdles related to exporting or importing goods and lengthy procedures that stifle the creation of new firms. Improving the investment climate in the EAC is an essential ingredient for successful integration to expand business activity, boost competitiveness and spur growth.

The region's leaders, including newly elected Kenyan President Uhuru Kenyatta, have pledged to work further towards improving trade and other ties between the group. And the report highlights progress in a range of areas supporting businesses. Regulatory changes across the community have already reduced the average time to start a business by 31% between 2005 and 2012 by cutting the steps required. In Rwanda, a new business can be set up in just 3-days, although that extends to 32 and 33 days in Kenya and Uganda, respectively. In Tanzania it is 26 days, while a new one-stop shop set up in Burundi has cut the time there to 8 days from 13.

Though weak in terms of the global average, the 5-east African economies have stronger legal institutions for enforcing contracts, protecting investors and resolving insolvency on average than elsewhere in sub-Saharan Africa. The report details a range of areas affecting small and medium-sized businesses including starting up, obtaining construction permits, securing electricity, registering property, obtaining credit, paying taxes and cross-border trade. More and broader regulatory reforms, however, will be required for the EAC to significantly increase its share of trade and investment including strengthening cooperation between business regulators and adopting common and improved standards for laws and regulation. [Reuters 02/05/13]

East Africa Shippers Set Up New CouncilEast African Community [EAC] Secretary General Amb. Dr. Richard Sezibera has launched the Shippers Council of Eastern Africa. It will be the regional umbrella body seeking to cover the challenges faced by the transport and logistics sector in East Africa and to take part in the integration process as a partner in making shipping more efficient and user friendly to the private sector in the region.[East Africa Business Week 06/05/13]

East Africa Asks For Certifying BodyThe East African Community [EAC] Secretariat has been requested to set up a special agency to certify imports and limit substandard goods flooding the region. According to a report compiled by the East African Legislative Assembly [EALA] Committee, this situation is however made worse by a lack of public awareness about two existing Acts that are related to standards regulation in the EAC: Standard Quality Management and Testing [SQMT] standards and the EAC Competition Act both enacted in 2006. The EAC Competition Act has never been implemented in any of the EAC Partner States.

The committee noted that despite the operationalization of the SQMT Act in EAC partner states, many challenges still existed including poor awareness of product quality marks and the EAC SQMT Act in general, standards related to non-tariff barriers [NTBs] still exist in trade. In some cases there is none compliance with standards and measurements by certified products with quality marks- this affects cross border movement of goods [e.g. petroleum and Konyagi via and or to Rwanda and to Kenya respectively from Tanzania].

They reported that control of importation of substandard goods across the region is incoherent especially goods from Asia. A Pre Shipment Import Verification of Conformity [PIVCO] is not uniformly applied in partner states due to multiple membership to regional economic communities by the EAC partner states that include SADC, COMESA while some partner states develop standards not known by others thus creating confusion. For example, Tanzania was reported to follow SADC member states' standards as opposed to Kenya, Uganda, Rwanda and Burundi who apply COMESA standards. [East Africa Business Week 06/05/13]

To view the World Banks publication ‘The Africa

Competitiveness Report 2013’ scan here.

EASTERN AFRICA

TRADE WATCH

EASTERN AFRICA

14

ETHIOPIA

Dry Port Enterprise Getting Ports in Mekelle, Dire DawaThe Dry Port Service Enterprise [DPSE] is setting up 2-dry ports, in Mekelle and Dire Dawa, to ease congestion at the Modjo Dry Port.

The plots, 42ha in Mekelle [North] and 27ha in Dire Dawa [South], were made available 2-months ago. Construction could begin in the early part of the 2013/14 fiscal year.

DPSE will invite international contractors to compete for the construction, after finalising the study on the design and the capacity the ports will have.

The Dry Port Service Enterprise is already using rented spaces in the 2-towns: a 3,000sqm plot, rented from the Ethio - Djibouti Railway Enterprise, for 30,000Br and a 1,500sqm old bus station, rented from the Mekelle Administration for 12,000Br a month.

The Enterprise currently uses the Modjo Dry Port intensively; with its close proximity to Addis Ababa, and its 6,000 container capacity, it is ideal for distributing imports to the capital.

Established on 63ha of land, 37km east of Addis Ababa, the facility is undergoing an 8-hectare expansion, with a budget of Br617 million.

The expansion includes a 8-ha cargo terminal, parking for heavy trucks and internal roads. Another dry port available to is Semera, with a 1,752 container capacity. The Gelan Dry Port, which is 96% complete and has a 3,000 container capacity, is yet to be operational.

There are close to 300 containers being imported each day into the country, which the existing permanent and satellite ports cannot accommodate. Importers do not pick up their container deliveries on time, causing congestion.

There were 5,600 TEU piled up at Modjo Dry Port by the end of March 2013. Although, 120 teu containers come to Modjo daily, importers only pick up 66% on time.

DPSE also plans to transport containers to the 2-new dry ports using rail in the future. Construction is underway along both corridors. [Addis Fortune 28/05/13]

KENYA

Port Security UpgradedKenya Ports Authority is expected to be the most secure port in Eastern Africa after the completion of the Integrated Security System [ISS] by June 2013. 90% of the project is already complete.

The ISS project is funded jointly by the Kenyan government and the World Bank. It will see the automation of security in line with the International Ship and Port Facility Security Code requirements.[The Star 06/05/13]

MOZAMBIQUE

Grindrod To Lead US$1.7 Billion Mozambique Port Expansion DriveGrindrod Ltd. and Mozambique’s Maputo Port Development Co. [MPDC] plan to invest US$1.7 billion over the next 5-years to upgrade ports in the country as demand grows. Capacity will be tripled at the Maputo and Matola ports to 50 million tons by 2020 from 15 million tons, according to the MPDC. The company has approved investment of US$355 million in 2013 and 2014 to boost capacity at the Matola port terminal. The coal terminal will be handling 7.2 million tons by 2014 from 6 million tons. South Africa’s Exxaro Resources Ltd. [EXX] and Coal of Africa Ltd. are among companies to have used Maputo to compensate for lack of rail capacity to Richard Bay Coal Terminal. The MPDC is a joint-venture between the Mozambique Railway Co., Grindrod and DP World Ltd. [Bloomberg 15/04/13]

Concession Awarded For Construction Of Techobanine PortThe Mozambican Prime Minister announced that the government has awarded the concession for the construction of a deep water port at Techobanine, in Mozambique’s southernmost district of Matutuine. He did not reveal the name of the company involved but stated that the work could be concluded by 2015.

The project will cost US$7 billion which the governments of Mozambique and Botswana are to raise. A deep water port complex will be constructed from scratch to be used by deep draft ships, and will complement the port of Maputo. It will involve the construction of a railway line linking

Techobanine with Botswana via Chicualacuala [in the southern Mozambican province of Gaza] and Zimbabwe, and the building of an industrial complex.

The port will have the capacity to handle 100 million tonnes of cargo per year and could become an important regional strategic fuel reserve. It is expected to be used for the export of minerals from Botswana, South Africa and Zimbabwe. For the project to be viable it will need to handle a minimum of 43 million tonnes of cargo per year. The port complex will occupy 30,000 ha, including an industrial development zone covering 11,000 ha. [Macauhub 20/04/13]

Maputo Port To Build Matola Parking Lot For Trucks The Maputo Port Development Company [MPDC] is negotiating with the Matola municipal area to be granted land to build a parking lot for 1,000 trucks in order to reduce congestion on the port’s access roads. A rise in imports and exports from neighbouring countries via the port of Maputo has led to a significant increase in road traffic, particularly on National Road 4, the main access road to the port.

As well as increasing the cargo to the port, the fact that rail transport was unable to respond to demand due to a lack of rolling stock, means that some of that cargo is now carried by road. At the moment, 41% of the cargo processed at the Port of Maputo arrives by road, and achieving a balance between road and rail transport requires investment in railroads. This is already in the pipeline and involves not only MPDC but also 3-railway companies, from Mozambique [CFM], South Africa [Transnet] and Swaziland [Swazi Rail]. [Macauhub 22/04/13]

Beira Cranes OperationalCrane manufacturer Konecranes was contracted to deliver 2 ship-to-shore [STS] cranes to Cornelder de Moçambique [CdM], the terminal operator of the Port of Beira, Mozambique. The first unit is now operational since 06/05/13. The cranes have been designed to handle twin-lift operation. They have an outreach of 40m and a lifting capacity of 65t under spreader. CdM is a joint venture formed in 1998 by Rotterdam-based Cornelder Holding and Mozambique Ports & Railways Company. CdM manages the multi-purpose container and general cargo terminals of the Port of Beira. The 2nd crane is expected to be operational on the 18/05/13. [Delmas 06/05/13]

You can watch a video of the cranes arriving by sea on 04/03/13 at Beira port on YouTube at http://www.youtube.com/watch?v=YqCZpXJ2-h4

Beira Congestion ResolvedThe port congestion surcharge implemented on containers to and from Beira port has been cancelled as from the 25th of April, 2013 [B/L date]. Back in February and March congestion levels rocketed up to 15 days as the container terminal received 2 new gantry cranes. The cranes took 6 weeks to mount on quay #3 and #4. During this time only quay #2 and quay #5 were available.

PORTS

TRADE WATCH

EASTERN AFRICA

15

ETHIOPIA

Dry Port Enterprise Getting Ports in Mekelle, Dire DawaThe Dry Port Service Enterprise [DPSE] is setting up 2-dry ports, in Mekelle and Dire Dawa, to ease congestion at the Modjo Dry Port.

The plots, 42ha in Mekelle [North] and 27ha in Dire Dawa [South], were made available 2-months ago. Construction could begin in the early part of the 2013/14 fiscal year.

DPSE will invite international contractors to compete for the construction, after finalising the study on the design and the capacity the ports will have.

The Dry Port Service Enterprise is already using rented spaces in the 2-towns: a 3,000sqm plot, rented from the Ethio - Djibouti Railway Enterprise, for 30,000Br and a 1,500sqm old bus station, rented from the Mekelle Administration for 12,000Br a month.

The Enterprise currently uses the Modjo Dry Port intensively; with its close proximity to Addis Ababa, and its 6,000 container capacity, it is ideal for distributing imports to the capital.

Established on 63ha of land, 37km east of Addis Ababa, the facility is undergoing an 8-hectare expansion, with a budget of Br617 million.

The expansion includes a 8-ha cargo terminal, parking for heavy trucks and internal roads. Another dry port available to is Semera, with a 1,752 container capacity. The Gelan Dry Port, which is 96% complete and has a 3,000 container capacity, is yet to be operational.

There are close to 300 containers being imported each day into the country, which the existing permanent and satellite ports cannot accommodate. Importers do not pick up their container deliveries on time, causing congestion.

There were 5,600 TEU piled up at Modjo Dry Port by the end of March 2013. Although, 120 teu containers come to Modjo daily, importers only pick up 66% on time.

DPSE also plans to transport containers to the 2-new dry ports using rail in the future. Construction is underway along both corridors. [Addis Fortune 28/05/13]

KENYA

Port Security UpgradedKenya Ports Authority is expected to be the most secure port in Eastern Africa after the completion of the Integrated Security System [ISS] by June 2013. 90% of the project is already complete.

The ISS project is funded jointly by the Kenyan government and the World Bank. It will see the automation of security in line with the International Ship and Port Facility Security Code requirements.[The Star 06/05/13]

MOZAMBIQUE

Grindrod To Lead US$1.7 Billion Mozambique Port Expansion DriveGrindrod Ltd. and Mozambique’s Maputo Port Development Co. [MPDC] plan to invest US$1.7 billion over the next 5-years to upgrade ports in the country as demand grows. Capacity will be tripled at the Maputo and Matola ports to 50 million tons by 2020 from 15 million tons, according to the MPDC. The company has approved investment of US$355 million in 2013 and 2014 to boost capacity at the Matola port terminal. The coal terminal will be handling 7.2 million tons by 2014 from 6 million tons. South Africa’s Exxaro Resources Ltd. [EXX] and Coal of Africa Ltd. are among companies to have used Maputo to compensate for lack of rail capacity to Richard Bay Coal Terminal. The MPDC is a joint-venture between the Mozambique Railway Co., Grindrod and DP World Ltd. [Bloomberg 15/04/13]

Concession Awarded For Construction Of Techobanine PortThe Mozambican Prime Minister announced that the government has awarded the concession for the construction of a deep water port at Techobanine, in Mozambique’s southernmost district of Matutuine. He did not reveal the name of the company involved but stated that the work could be concluded by 2015.

The project will cost US$7 billion which the governments of Mozambique and Botswana are to raise. A deep water port complex will be constructed from scratch to be used by deep draft ships, and will complement the port of Maputo. It will involve the construction of a railway line linking

Techobanine with Botswana via Chicualacuala [in the southern Mozambican province of Gaza] and Zimbabwe, and the building of an industrial complex.

The port will have the capacity to handle 100 million tonnes of cargo per year and could become an important regional strategic fuel reserve. It is expected to be used for the export of minerals from Botswana, South Africa and Zimbabwe. For the project to be viable it will need to handle a minimum of 43 million tonnes of cargo per year. The port complex will occupy 30,000 ha, including an industrial development zone covering 11,000 ha. [Macauhub 20/04/13]

Maputo Port To Build Matola Parking Lot For Trucks The Maputo Port Development Company [MPDC] is negotiating with the Matola municipal area to be granted land to build a parking lot for 1,000 trucks in order to reduce congestion on the port’s access roads. A rise in imports and exports from neighbouring countries via the port of Maputo has led to a significant increase in road traffic, particularly on National Road 4, the main access road to the port.

As well as increasing the cargo to the port, the fact that rail transport was unable to respond to demand due to a lack of rolling stock, means that some of that cargo is now carried by road. At the moment, 41% of the cargo processed at the Port of Maputo arrives by road, and achieving a balance between road and rail transport requires investment in railroads. This is already in the pipeline and involves not only MPDC but also 3-railway companies, from Mozambique [CFM], South Africa [Transnet] and Swaziland [Swazi Rail]. [Macauhub 22/04/13]

SOMALIA

Somalia: Somalia's Fight To Harness The Power Of Mogadishu PortThe thriving seaport in Somalia's capital, Mogadishu, represents more than just a return to business. It could be the engine of the country's economic resurrection. Decades of war and piracy almost destroyed this once-powerful trading hub. But in recent months, better security has seen the number of ships docking here more than double.

Exports consist largely of fruit and livestock. Imports are mostly aid cargo, spaghetti and cement, the latter for use in Mogadishu's current building boom mainly from China and The Emirates. But even the people who work here say corruption is rife. For 20 years there has been no government and as Somalia does not have an income tax most of the federal budget comes from foreign aid or is sourced from the port. Revenue currently amounts to around US$3.5m per month. [BBC 06/05/13]

Storage & Berthing Facilities

TANZANIA

Tanzania: Cargo Traffic At Dar es Salaam Port Goes Up By 20% Cargo handled at the Dar es Salaam Port between July 2012 and February 2013 has gone up to 8.31 million tons from 6.94 million tons. The rise is equivalent to 20% of all cargo handled during the corresponding period in the year 2011/2012, according to figures from the Tanzania Ports Authority [TPA]. Dar es Salaam port is continuing to take various measures to improve port productivity include acquiring additional cargo handling equipment and transferring containers and motor vehicles to [Inland container depots [ICDs] and Cargo Freight Stations [CFS]. TPA has invested US$13.75 million in the purchase of 4-modern cranes for loading and offloading containers at Dar es Salaam and Tanga ports.

In the same period the port handled 83,440 units of motor vehicles, with almost 10,000 units arriving in the month of February. This impressive performance was due to deployment of more drivers and transferring of motor vehicles to CFS. During the same period liquid cargo and dry bulk cargo also increased by 21.6 and 32%, respectively, because of investments in new equipment. Zambian cars imported through Dar Port have also increased with more than 75,000 motor vehicles imported by Zambians through the Port of Dar es Salaam in 2012 compared to 25,000 for previous year.

The trend of ship calls are however decreasing whereas the cargo traffic keeps on increasing as shipping lines maximize the utilization of their ships carrying capacities. Total vessel calls handled from July 2012 to February 2013 was 592 calls as compared to 676 calls handled in the same period in 2011/12, a decrease by 12.4%. At the same time vessels total GRT during the period from July 2012 to February 2013 was 15,872 as compared to 16,961 GRT from July 2011 to February 2012, a decrease by 6.4%. During the same period overall ship turn-round time decreased from average of 5.7 days per ship to 5.4 days/ship, a decrease by 5.3%. The waiting time also decreased from 3.1 days to 2.1 days, a decrease by 32.3%. [East Africa Business Week 06/05/13]

Turkish Firm Targets US$25 Million Tanzanian Port Investment Istanbul based port operator, Ozuaydin Crane and Port Management Incorporation, has since last year invested some US$3 million in heavy duty cargo handling and construction equipment and plans to invest another US$25 million in Tanzania in the next 3-years. Following is an interview with the company’s Chairman, Mehmet Aydin. [Tanzania Daily News 30/04/13]

Q: When did you officially come to Tanzania and what are you doing in the country?A: We have been in Tanzania since last year operating through our subsidiary called Aydin Tanz Crane Company Limited and we have since invested over US$3 million in port logistics, construction and transportation of heavy loads.Q: Why have you chosen Tanzania as your investment destination? A: Most importantly is the strategic position of the country especially the port of Dar es Salaam which serves a number of landlocked countries and the general co-operation from the government and the people but also the fact that Turkish businesses are now expanding to this country. The Turkish government has set aside US$500 billion of exports value between now and 2023 when the country will celebrate 100 years of independence, we hope that a fair amount of this money will come to Africa and particularly Tanzania. Q: What are you currently doing in Tanzania? A: We are currently in heavy duty equipment and transport logistics whereby we provide machines and trucks on hire to customers, heavy load transportation and warehouse management.Q: Dar es Salaam and Zanzibar ports have been struggling with equipment handling for cargo hence causing delays in clearance of goods. Are you planning to work with landlords at these ports to help solve the problems?A: Indeed our company has already submitted proposals to port managements in Dar es Salaam and Zanzibar and to the governments as to what we can offer to speed up cargo clearance. In fact we also have experienced first-hand the inefficiency of cargo clearance because it took a month to clear our goods from the port last year. Dar es Salaam and Zanzibar ports which are growing rapidly need to have mobile cranes to ensure efficiency in cargo clearance.Q: What is the future of your company in Tanzania ...say in the next 5-years? A: We hope to invest some US$25m in the next 3-years with focus on cargo handling equipment at the port, crane supplying to port operators and heavy duty transportation equipment supplying. We also expect to invest in construction and energy sectors.Q: Precisely what is the size of your company and where are you operating in Turkey and abroad?A: We are a medium size company with over US$50 million of investment especially in our port operations in Turkey where we manage cargo at eight ports including here in Istanbul. Our company also operates in Algeria, Cyprus, Macedonia and Turkmenistan. We have some investments in the construction sector which is new and growing. In 2010 we handled over 4.3 million MT of cargo at 8-Turkish ports and the figure has been steadily growing.

Berth Type of Berth Length Water Depth 1 General C argo 160 m 10 m low tide 2 General C argo 160 m 10 m low tide 3 General C argo and c rude oil, discharging fac ilities 160 m 10 m low tide

4 General C argo 160 m 9 m low tide 5 General C argo 160 m 10 m low tide 6 C ontainers, General Cargo 200 m* 9 m low tide

Mogadishu port1991-2006: Closed for business as rival warlords disagree on who should control it.May-December 2006: Union of Islamic Courts (UIC) takes over control of the entire city and reopens the port.2007-2009: Ethiopian forces, which ousted the UIC, secure the port and the WFP undertakes repair and refurbishment work.2009-present day: African Union and Somali government troops [AMISOM] provide security - trade increases significantly.

TRADE WATCH

EASTERN AFRICA

16

ETHIOPIA

Ethiopia On Negotiation With BRICS Members On Rail ProjectsThe Ethiopian Railways Corporation noted the government is negotiating with Brazil, Russia and India to finance its railway projects. There is a possibility of funding from Russia to build the 587km southern line which will extend to Kenya's port of Lamu on the north-eastern coast. Interest has also been received from Brazilian companies to build a 439-km section of a rail route to South Sudan and India is considering export financing for a rail line to be linked with Djibouti port.

The Railways Corporation has also agreed on terms last year with Chinese and Turkish companies for other routes. China Civil Engineering Construction Corp. and China Railway Group Ltd. are working on sections of the 656 km route connecting Addis Ababa to Djibouti at an outlay of over US$1 billion each. Ethiopia, in its 5-year Growth and Transformation Plan that runs until mid-2015, is building 4,744 km of electrified railway lines at a cost of US$5.9 billion [110.8 billion birr] to satisfy demands of its fastest growing non-oil producing economy. Also included is a plan to build more than 2,000 km of standard-gauge track.[Government of Ethiopia 03/05/13]

KENYA

Rift Valley Railway Will Re-Open Tororo-Pakwach Line in AugustRift Valley Railway [RVR], the current operators of the Kenyan and Ugandan rail networks, have announced that the Tororo-Pakwach line in northern Uganda could reopen in August after being out of service for several decades. In December last year, RVR hired Kato Contractors, a Ugandan engineering company to repair the line at an estimated cost of US$2 million. Kato have made progress. Work on the second phase has commenced involving restoration of washed out areas due to flooding and installation of new culverts which have been successfully fixed at Awoja. The project is crucial in linking trade routes strategically with Sudan which is now becoming a major target for business transaction since it became an independent country. [All Africa 29/04/13]

MOZAMBIQUE

Rio Tinto Among Main Bidders For Mozambique Rail ProjectMozambique has named miner Rio Tinto as one of 6-preferred bidders for a new US$3-billion railway and port development project to boost coal exports. 6 companies from the 21 companies in the pre-selection phase have been selected as preferred bidders, who are now preparing their full bids. The winner will be chosen by July.

The tender is for a 525 km rail line from Tete province to Macuse, in Mozambique's Zambezia province, and for a new port able to initially handle 25 million tonnes of cargo per year, with a potential to double that in the future.

The country boasts some of the world's largest untapped coal reserves and is expected to become a key source of sought-after premium, hard coking coal used in steel making.

Infrastructure bottlenecks have become a major headache for mining companies in Mozambique's coal-rich Tete province, with some projects delayed or put on hold due to problems of getting coal to port.

Rio Tinto wrote down US$3 billion of its Mozambican assets in January, partially because of infrastructure constraints. Winning the bid could be a major boost for its project.

Brazilian mining giant Vale is investing US$4.4 billion to revamp another, much longer railway line from Tete province to the deep-water port at Nacala via Malawi.

The winner will be required to source the funds, and will also have to transport non-coal cargo and passengers, given needs to boost growth. Current transport is limited to the Sena line, the only railway linking the coal-rich Moatize basin with the Beira port.

A much-delayed upgrade of the line to 6 million tonnes from 3 million last year has finally been completed. A further upgrade to 20 million tonnes on that same line is scheduled for completion within 18 to 20 months. [Reuters 11/04/13]

TANZANIA

Tanzania Plans Link To Atlantic - Mwambani Economic CorridorTanzania officials are touting an ambitious project to connect Tanga Port with the Atlantic Ocean via a new railway line through Uganda and the DRC.

Sources say a Private-Partnership [PPP] vehicle is preferred to get the project underway as quickly as possible. Estimated costs for this long term project are US$30 billion, but no time frame has been given for its completion.

The East African Community [EAC] Secretariat has approved the project in principle, but it is the Heads of State who have to sign off on it before it becomes part of the EAC Railway and Infrastructure Master Plan. Once this is done, the project then becomes earmarked for funding as a regional venture.

Mwambani Economic Corridor involves deepening Tanga Port and laying a new standard gauge railway to the DRC western coastline. Under the EAC Treaty, cross-border projects have to be coordinated by the EAC Department of Infrastructure, which was created specifically for that purpose. [East Africa Business Week 23/04/13]

Task Force Appointed For TAZARAThe Government has appointed an independent task force team to look into the issues affecting Tanzania Zambia Railway Authority [TAZARA] focusing on both labour and operational matters. The force will report to both the Zambian and Tanzanian governments.

The team comprises 4-individuals, 2-appointed by the Zambian government and 2-appointed by the Tanzania government. TAZARA is facing a lot of challenges and is currently not operating at its optimal level.

TAZARA faces historical liabilities such as statutory debts that have not been paid over the years. Recently the company announced it required US$770.1 million to improve its operations and infrastructure.[Zambia Daily Mail 14/05/13]

RAIL

TRADE WATCH

EASTERN AFRICA

17

GENERAL

EAC Roads Over Used While Rail Option LagsThe East African Community [EAC] has renewed concerns about the strain regional roads have to bear. Currently less than 5% of cargo in East Africa is moved by rail. With cargo volume in the region expected to triple in the next 15 years more cargo must to be shifted to the rail system. Only last month Rift Valley Railways [RVR], who hold the concession to run the Kenya and Uganda rail network announced a US$300 million strategic plan to increase its cargo capacity 5-times over by 2018. Bur more projects like this are needed. Referring to non-tariffs barriers [NTBs] the region still has various bottlenecks that businesses continue to face at the ports and borders. Recent statistics show that it is still costly to transport goods within East Africa compared to other regions economic regions around the world.

Studies have revealed that truck transport from Mombasa to Kampala, a distance which can be covered in 5-days, 19 hours are spent in paperwork crossing borders and at weighbridges. A conservative estimate is that a 1-hour reduction in such crossing time at each point would bring US$7 million per year in benefits to the EAC region.The EAC highlighted the importance of the EAC One Stop Border Post [OSBP] Bill, 2012. The Bill was passed by the East African Legislative Assembly during a sitting in Kigali, Rwanda recently. The law is expected to speed up processing at major regional border posts. This in turn will help support the ultimate goal of having an efficient movement of goods within the region. [East Africa Business Week 06/05/13]

Afdb Provides US$232m In Funding For East Africa Road UpgradeThe African Development Bank [AfDB] has approved US$232.5-million in loans for the upgrade of the 157.5 km Arusha – Holili / Taveta – Voi road transport corridor in Tanzania and Kenya. Kenya will receive US$113.12-million in funding to upgrade the road from Taveta to Voi, while Tanzania will receive $120-million in funding to upgrade the Aursha to Holili road. The AfDB funding represented 89.1% of the overall project cost, with the governments of Kenya and Tanzania contributing a further $15.6-million and $12.3-million respectively to the project.

The project, to be completed by December 2018, is aimed at reducing the cost of transportation and enhancing access to agricultural inputs, larger markets and social services within the East African Community [EAC]. When completed, the corridor will link the port of Mombasa, in Kenya, to northern and north-western Tanzania and the landlocked countries of Rwanda, Burundi, DRC and Uganda, providing an alternative route to the sea. Further, the Africa Trade Fund has extended a US$740 000 grant for a small component for trade facilitation at the Namanga border. [Creamer Media 18/04/13]

TANZANIA

Tanzania’s Transport Demand To Increase Over Four Times By 2030Transport demand in Tanzania will more than quadruple by 2030 as stipulated by the Japan prepared Comprehensive Transport and Trade System Development Master Plan launched last month.

As such, more emphasis should be put on the development of truck roads to full pavement especially the corridors that serve international traffic, the Central, Dar es Salaam and Mtwara corridors but also the country’s portion of the Trans African Highway from Cairo to Cape Town.

A loan agreement has been signed with the Japan International Cooperation Agency [JICA] for 129.48bn/- to support phase two of the road programme.

The funds are co-financed by the African Development Fund [AfDF] and will be used to upgrade the road stretches between Mayamaya and Bonga and then Mtambaswala, Mangaka and Tuduru. [Guardian 09/04/13]

Grand Road Project UnveiledThe Works Ministry unveiled a 1.23tri/- 2013/14 budget that will fund road projects countrywide and curb traffic jams in Dar es Salaam.

Among the projects is the expansion of the 200km Dar es Salaam - Chalinze - Morogoro Highway and the development of the 100km Dar-Chalinze stretch into a 6-lane expressway.

Other projects include the 422km Usagara - Geita - Kyamyorwa (10.8bn/-), 443km Kigoma - Kidahwe - Uvinza - Kaliua - Tabora (51.67bn/-), 78km Dumila - Kilosa (6bn/-), 95km Mbwemkulu - Mingoyo (2bn/-) and 311km Marangu - Ta r ake a - Kamwanga / Bomang'ombe-Sanya Juu as well as Arusha-Moshi-Holili (10bn/-).

ETHIOPIA

Ethiopia On Negotiation With BRICS Members On Rail ProjectsThe Ethiopian Railways Corporation noted the government is negotiating with Brazil, Russia and India to finance its railway projects. There is a possibility of funding from Russia to build the 587km southern line which will extend to Kenya's port of Lamu on the north-eastern coast. Interest has also been received from Brazilian companies to build a 439-km section of a rail route to South Sudan and India is considering export financing for a rail line to be linked with Djibouti port.

The Railways Corporation has also agreed on terms last year with Chinese and Turkish companies for other routes. China Civil Engineering Construction Corp. and China Railway Group Ltd. are working on sections of the 656 km route connecting Addis Ababa to Djibouti at an outlay of over US$1 billion each. Ethiopia, in its 5-year Growth and Transformation Plan that runs until mid-2015, is building 4,744 km of electrified railway lines at a cost of US$5.9 billion [110.8 billion birr] to satisfy demands of its fastest growing non-oil producing economy. Also included is a plan to build more than 2,000 km of standard-gauge track.[Government of Ethiopia 03/05/13]

KENYA

Rift Valley Railway Will Re-Open Tororo-Pakwach Line in AugustRift Valley Railway [RVR], the current operators of the Kenyan and Ugandan rail networks, have announced that the Tororo-Pakwach line in northern Uganda could reopen in August after being out of service for several decades. In December last year, RVR hired Kato Contractors, a Ugandan engineering company to repair the line at an estimated cost of US$2 million. Kato have made progress. Work on the second phase has commenced involving restoration of washed out areas due to flooding and installation of new culverts which have been successfully fixed at Awoja. The project is crucial in linking trade routes strategically with Sudan which is now becoming a major target for business transaction since it became an independent country. [All Africa 29/04/13]

MOZAMBIQUE

Rio Tinto Among Main Bidders For Mozambique Rail ProjectMozambique has named miner Rio Tinto as one of 6-preferred bidders for a new US$3-billion railway and port development project to boost coal exports. 6 companies from the 21 companies in the pre-selection phase have been selected as preferred bidders, who are now preparing their full bids. The winner will be chosen by July.

The tender is for a 525 km rail line from Tete province to Macuse, in Mozambique's Zambezia province, and for a new port able to initially handle 25 million tonnes of cargo per year, with a potential to double that in the future.

The country boasts some of the world's largest untapped coal reserves and is expected to become a key source of sought-after premium, hard coking coal used in steel making.

Infrastructure bottlenecks have become a major headache for mining companies in Mozambique's coal-rich Tete province, with some projects delayed or put on hold due to problems of getting coal to port.

Rio Tinto wrote down US$3 billion of its Mozambican assets in January, partially because of infrastructure constraints. Winning the bid could be a major boost for its project.

Brazilian mining giant Vale is investing US$4.4 billion to revamp another, much longer railway line from Tete province to the deep-water port at Nacala via Malawi.

The winner will be required to source the funds, and will also have to transport non-coal cargo and passengers, given needs to boost growth. Current transport is limited to the Sena line, the only railway linking the coal-rich Moatize basin with the Beira port.

A much-delayed upgrade of the line to 6 million tonnes from 3 million last year has finally been completed. A further upgrade to 20 million tonnes on that same line is scheduled for completion within 18 to 20 months. [Reuters 11/04/13]

TANZANIA

Tanzania Plans Link To Atlantic - Mwambani Economic CorridorTanzania officials are touting an ambitious project to connect Tanga Port with the Atlantic Ocean via a new railway line through Uganda and the DRC.

Sources say a Private-Partnership [PPP] vehicle is preferred to get the project underway as quickly as possible. Estimated costs for this long term project are US$30 billion, but no time frame has been given for its completion.

The East African Community [EAC] Secretariat has approved the project in principle, but it is the Heads of State who have to sign off on it before it becomes part of the EAC Railway and Infrastructure Master Plan. Once this is done, the project then becomes earmarked for funding as a regional venture.

Mwambani Economic Corridor involves deepening Tanga Port and laying a new standard gauge railway to the DRC western coastline. Under the EAC Treaty, cross-border projects have to be coordinated by the EAC Department of Infrastructure, which was created specifically for that purpose. [East Africa Business Week 23/04/13]

Task Force Appointed For TAZARAThe Government has appointed an independent task force team to look into the issues affecting Tanzania Zambia Railway Authority [TAZARA] focusing on both labour and operational matters. The force will report to both the Zambian and Tanzanian governments.

The team comprises 4-individuals, 2-appointed by the Zambian government and 2-appointed by the Tanzania government. TAZARA is facing a lot of challenges and is currently not operating at its optimal level.

TAZARA faces historical liabilities such as statutory debts that have not been paid over the years. Recently the company announced it required US$770.1 million to improve its operations and infrastructure.[Zambia Daily Mail 14/05/13]

ROAD

TRADE WATCH

EASTERN AFRICA

18

REGULATORY

SOUTH SUDAN

Juba Tax CertificatesFor all non-exempted imports to Juba [South Sudan] a tax exemption certificate is required to cross the border. Shippers must then send a copy of the B/L, commercial invoice and packing list which will allow their consignees to request such certificate. As the Tax Exemption Process is rather long, all documents must be sent at time of loading at POL, to avoid delays at POD. Consignee address and phone number are compulsory on the B/L to allow easy follow up in South Sudan.

It is important to note that for now on, each and every shipment that requires a tax exemption but is without the tax exemption certificate at the time of discharge will be held in Mombasa port until we receive the required tax exemption letter. Shippers will be held responsible for any extra charges which may occur for non-compliance. This also applies for UN/WFP and all related diplomatic institutions.

TANZANIA

One Stop Center Maximizes Efficiency at Port of Dar es SalaamIn June 2012, the One Stop Center [OSC], a USAID/East Africa [USAID/EA] supported initiative, means instead of spending several days to clear cargo at the Dar es Salaam Port, paperwork can now be finished within hours.The OSC ensures that all 10 necessary government agencies are present and ready to execute their duties in one place.

The OSC is an example of the soft infrastructure that the USAID/EA Competitiveness and Trade Expansion [COMPETE] Trade Hub accomplishes. The Trade Hub works with the public and private sectors to build relationships and human capacity that streamline operations and make routine procedures more efficient. With minimal hard infrastructure investment - USAID contributed $50,000 to equip the OSC - the partners improved trade at a crucial entry and exit point for all goods travelling from Tanzania west to Rwanda and the Democratic Republic of Congo, and south through Zambia and Malawi.

The OSC also reduces corruption and encourages collaboration. Its office promotes transparency and proximity makes communication easy so the level of corruption has gone down as all the agencies see what the others are doing. The OSC has reduced congestion at the Port of Dar es Salaam through greater efficiency. To further the impact of the OSC and continue improved transparency, the Trade Hub created a procedure manual for the port. In addition to being able to find the government agents they need, businesses now have a guide to the paperwork and costs associated with clearing cargo at the Port of Dar es Salaam. [USAID 22/04/13]

UGANDA

Uganda Pleased With Border Bill On OSBPUgandan business people are pleased with the recently passed One Stop Border Posts [OSBP] Bill by the East African Legislative Assembly [EALA] that formalises the creation of OSBP to ease trade across national borders. Uganda’s see the move as an advantage, as stakeholders can clear goods at 1-point instead of being checked at every border. The move saves time, costs and eases free movement of goods and services. [East Africa Business Week 06/05/13]

TRADE/ECONOMY

TAZANIA

Tanzania: Dar es Salaam to Host Africa Freight Forwarders' ConferenceThe Tanzania Association of Freight Forwarders [TAFFA] has won a bid to host the International Federation of Freight Forwarders Association [FIATA] regional conference for Africa and the Middle East [RAME] this June. Themed 'Towards more sustainable regional freight forwarding partnership' the conference will bring together public and private-sector participants in the field of transport logistics. The conference comes at a time when the country is embarking on an expansion and modernization of ports and railway lines with much of the new financing coming from the Chinese government.

FIATA is a nongovernmental organization, representing an industry covering approximately 40,000 forwarding and logistics firms. The event will be co-hosted by the Ministry of Transport and involve 300 senior clearing agents and freight forwarders, business delegates, government officials, ambassadors and trade representatives from the African and Middle East regions. [East Africa Business Week 15/04/13]

UGANDA

China Waives Tax On Uganda GoodsBusiness people exporting goods to China, will benefit from a waiver of customs duty and tariffs this year. From 2013 95% of Uganda's goods exported to China can enter the Chinese market with no customs duty and tariff.

Bilateral trade between Uganda and China is on the increase. In 2012 levels reached US$538 million, an increase of 34.6% from 2011. In 2012, 45 Chinese enterprises registered in Uganda with planned investments amounting to US$86 million. China is one of Uganda's biggest trading partners with the Uganda Investment Authority [UIA] estimating that between 1993 and 2012, 310 Chinese enterprises were registered in Uganda with planned investments of US$683 million.

Last year, the China National Offshore Oil Company [CNOOC] signed a farm down agreement with Tullow Oil for the exploration of oil in the country. China's Export and Import Bank during the year also agreed to provide US$350m buyer's credit for the construction of the Kampala-Entebbe Express Highway.

The China Road and Bridge Construction Company is also undertaking various projects in the country including the construction of the first ever tarmac road in the Karamoja region in North Eastern Uganda. [East Africa Business Week 22/04/13]

TRADE WATCH

EASTERN AFRICA

19

SOUTHERN AFRICA

SOUTHERN AFRICA

SADC

Southern African Customs Union [SACU] SummitThe Southern African Customs Union [SACU] Summit was held on 19/04/13 in Gaborone, Botswana. The 1-day summit was attended by Heads of State and Governments of the SACU member states, which include South Africa, Botswana, Lesotho, Namibia and Swaziland. Items discussed related to regional trade and industry, under the customs union.

Specifically the event focused on the progress of the 5-point programme that was adopted in March 2011, which includes regional industrialisation, the review of the revenue sharing agreement, trade facilitation, the development of SACU institutions and a unified engagement in trade negotiations. As well as funding for regional programmes and projects, and industrial collaboration through the development of regional value chains to promote complementary industrial development.

South Africa At Forefront Of Intra-Africa InvestmentSouth Africa has been at the forefront of growth in intra-African trade and broader emerging market investment during 2012, with intra-African investment showing a 33% compound growth rate according to a survey by advisory firm Ernst & Young’s. The report combined an analysis of international investment into Africa over the past 5-years with a 2013 survey of over 500 global business leaders about their views on the potential of the African market.

Launched in Johannesburg, the report stated that South Africa had been the single largest investor in foreign direct investments [FDI] projects in the rest of Africa in 2012. Although Kenya and Nigeria had also invested heavily in the continent, other countries such as Angola, which has a US$5-billion sovereign wealth fund, were expected to become increasingly prominent investors across Africa over the next few years. Further, investments from emerging markets into Africa grew again in 2012, continuing the trend over the past 3-years, while investment in FDI projects from developed markets fell by 20%.

From 2007, the rate of FDI projects from emerging markets into Africa had grown at a healthy compound rate of over 21%, while investment from developed markets had grown at 8%. The top contributors from the emerging markets over the period included India, South Africa, the United Arab Emirates, China and Kenya, besides others. While investment into North Africa had largely stagnated, FDI projects into sub-Saharan Africa had grown at a compound rate of 22% since 2007. Among those countries attracting growing numbers of projects were Ghana, Nigeria, Kenya, Tanzania, Zambia, Mozambique, Mauritius and South Africa.

Further, highlighting the growing interest in Africa by foreign investors was the finding that Africa’s share of global FDI had increased over the past 5-years. The latest data showed that, despite a fall in project numbers from 867 in 2011 to 764 in 2012, as dictated by the global trend, project numbers remained significantly higher than those that preceded the peak of 2008.

The continent’s global share of FDI had also grown from 3.2% in 2007 to 5.6% in 2012. Despite the on-going challenging global economic situation, the size of the African economy had more than tripled since 2000. The outlook also appeared positive, with the region expected to grow by 4% in 2013 and 4.6% in 2014. A number of African economies were predicted to remain among the fastest-growing in the world for the foreseeable future. Those surveyed ranked Africa as the second most attractive regional investment destination in the world, after Asia.

However there remains a stark perception gap between those respondents who were doing business in Africa, compared with those yet to invest in the continent. Only 47% of those who had no business presence in Africa believed the continent’s attractiveness would improve over the next 3-years and ranked Africa as the least attractive investment destination in the world. Two fundamental challenges, namely transport and logistics infrastructure, as well as bribery and corruption were highlighted as barriers.

The report suggested that at a macro level, Africa’s growth would be inherently constrained until its infrastructure deficit was bridged. Yet there were 800 active infrastructure projects across different sectors in Africa during 2012, with a combined value of over US$700-billion with the majority of which were related to power and transport.

Meanwhile, the trend of growing diversification continued, with an ever-increasing emphasis on services, manufacturing and infrastructure - related activities. In 2007, extractive industries represented 8% of FDI projects and 26% of capital invested in Africa; while in 2012, it was 2% of projects and 12% of capital. In comparison, services accounted for 70% of projects in 2012, up from 45% in 2007, and manufacturing activities accounted for 43% of capital invested in 2012, an increase from 22% in 2007.

Although mining and metals were still perceived by survey respondents as the sector with the highest growth potential in Africa, less than one-third of the continent’s growth had come from natural resources. In contrast, interest in African infrastructure was increasing, with 21% of respondents identifying it as a growth sector versus 14% last year and only 4% in 2011. Other sectors where there has been a noticeable shift include information and communications technology, financial services and education.

The majority of respondents indicated that they viewed South Africa as the most attractive African country in which to do business. This was seemingly owing to its relatively well-developed infrastructure, stable political environment and a relatively large domestic market.

With an increasingly solid foundation of economic, political and social reform, together with resilient growth rates, Africa was on a sustainable upward trajectory. [Engineering News 06/05/13]

TRADE WATCH

SOUTHERN AFRICA

20

BOTSWANA

South Africa Coal LinkThe South African coal line to Richards Bay is to include a Botswana link in 7-years’ time. The proposed border-straddling connection would form part of Transnet’s investment in the upcoming Waterberg, the coalfield in South Africa’s north-west, close to the Botswana border, which would be the source of significant future tonnages of coal for both domestic consumption and export. A rail line would then couple the developing Mmamabula coalfields, in Botswana, to Lephalale, and then pass through Thabazimbi on its way to the coal area of Oogies, in Mpumalanga, and then on to Richards Bay in KwaZulu-Natal.

Railing coal from Botswana via Durban had already begun on a moderate scale. The first few trains have moved from Botswana to BMA, Bidvest group’s Bluff Mechanical Appliance, which handles 2-million tons of exports a year. South Africa’s major coal-export outlet is the private-sector-owned Richards Bay Coal Terminal [RBCT], through which 68.3-million tons of coal was exported last year and which has a capacity of 91-million tons. Transnet moves more than 95-million tons of coal a year and also serves other smaller export outlets, including Navitrade Dry Bulk Terminal, also in Richards Bay, and Matola, in Mozambique, and rails large volumes domestically for State power utility Eskom and other entities.

Rail is seen as integral to the success of emerging juniors and Eskom’s plan to source a billion tons of coal from emerging coal miners would be a game-changer. Transnet will be railing more than 32-million tons of coal for Eskom by 2019 and 60-million tons by 2030 as the Waterberg mine comes into play. Rail capacity on the Richards Bay line to the RBCT would be increased to 95-million tons by 2018 and investment in the Swazi rail link would take non-coal freight off the coal line and thus open up more capacity for coal.

MALAWI

Moatize-Nacala / Blantyre-Sena Railway To Be AcceleratedPresident Joyce Banda noted Malawi and Mozambique have discussed in great detail and agreed to look at the acceleration of the construction and rehabilitation of the Moatize-Nacala Railway line and the rehabilitation of Blantyre-Sena Railway line as one way of boosting trade and investment between the 2-countries.

Brazil’s Mining giant Vale initiated the Moatize-Nacala and Blantyre-Sena Railway lines project under the then Bingu wa Mutharika government in 2010 through the Ministry of Transport and Public Infrastructure with a proposal for constructing and rehabilitating a rail line between Vale’s Moatize coal mine in Tete, Mozambique, to the port of Nacala that would run through Malawi as part of the logistical solution for the export of about 18 million tonnes of coal annually. The deal was signed in 2011.

Malawi’s President Banda only officially inaugurated the project in December 2012, 2-years after the DPP government had already concluded the deal. Malawi’s imports from Mozambique stood at US$205 million in 2012 against US$20 million exports.

NAMIBIA

N$100 Billion Namibian Railway Deal SuspendedAn agreement on a N$100 billion railway deal between Namibia and Botswana that was scheduled to be signed in Namibia on 20/04/13 has been postponed until further notice. According to Namibia's works and transport minister, Errki Nghimtina, there may be a need for amendments to the agreement.

The idea of linking and expanding the railway infrastructure in southern Africa has come a

long way, especially due to the growing global demand for coal, of which Botswana has vast resources. The railway line, to be known as the Trans-Kalahari Railway, will be about 1,500 km long from the landlocked Botswana's Mmamabula coal field to the port of Walvis Bay.

A pre-feasibility study, funded by the World Bank, was completed in 2012. Much of the coal from Botswana to Namibia would have been used at a 800 MW coal-fired power station that was planned for Walvis Bay. This idea has in the meantime been abandoned in favour of an alternative site at Arandis, which was eventually put on hold because the government is giving priority to the Kudu Gas project.

The railway project would be financed by the private sector, and would be implemented and overseen by a company jointly controlled by the Botswana and Namibian governments.[The Namibian 18/04/13]

ZAMBIA

Zambia Railways Rehabilitation ProgrammeThe government has released US$120m to enable Zambia Railways to start work on a 3-year rehabilitation programme. A second track is planned on the 900km line from Chingola to Livingstone, along which the launch of a second weekly passenger train. The Ndola – Luanshya branch is to be upgraded to carry copper ore to processing facilities, and copper for export. The Mulobezi line will also be modernised.

Tazara has restarted container services between Dar-es-Salaam, Makambako, Kasama and the connection with Zambia Railways at New Kapiri Mposhi, after China Civil Engineering Construction Corp restored its gantry cranes to service. Two new shunting locomotives are to be supplied, and three modernised. [Rail Gazette 15/04/13]

NAMIBIA

Namibia Look To Dubai To Help Build New HarbourThe Ministry of Trade and Industry [MTI] is in discussions with delegates of the Dubai World Central [DWC] to gain knowledge in constructing a new harbour for the Namibia Port Authority [Namport] in Walvis Bay. In this regard, Trade Minister Calle Schlettwein met with the DWC representatives responsible for the development of Dubai's second airport, Al Makhtoum International Airport.

The Port of Walvis Bay is getting congested as it is surrounded by residential and industrial areas. Available land some 3km north of Walvis Bay belonging to the State, is envisioned to construct a new industrial park for Namport which includes linking the Walvis Bay Airport to the planned industrial development of Namport. The facility will be similar to the one being developed in Dubai by the DWC.

Namport plans to create a new northern harbour, estimated to cost N3 billion, to position Walvis Bay as the premier port in the southern African region. The project involves dredging a deep entrance channel and excavating the land to make way for a proposed deep-water basin and a 10km long berth/quay wall.

The harbour plan also makes provision for new marinas and small boat harbours, a liquid bulk terminal, tanker berths and tank

farms, a small craft harbour for tugboats, the rerouting of the existing trunk road, and a container terminal with potential throughput capacity of more than 2-million TEU per annum.

It would also have a break-bulk and multi-purpose terminal, as well as high-capacity railway link to the bulk terminal, and an under-cover bulk terminal with estimated capacity in excess of 100 million tonnes of dry bulk per year - linked to stockpiles behind Dune 7 heavy industrial area. Included in the plan are ship and rig repair yards, plus a major oil and gas supply base terminal, with backup storage areas.[Bernama 02/05/13]

SOUTH AFRICA

South Africa - Proposed Port Infrastructure & Capacity Expansion Projects At Richards Bay PortSouth Africa’s National Ports Authority has committed R30 billion [£2 billion] to 2-proposed projects, one for a general freight capacity expansion and the other for the development of a new open-access coal terminal, at its Richards Bay Port.

These are part of its R300 billion [£21.4 billion] expansion plan. As a result Richards Bay, currently the country’s main port in terms of bulk and break bulk commodities, will see new facilities and increased current capacity.

The first project, expected to cost R15 billion [£1 billion] will focus on increasing the general freight capacity at the port from 23 million tonnes to approximately 59 million tonnes and up to 100,000 TEU per annum. Related to this general freight expansion will be port infrastructure projects and terminal expansions as well as new near port-rail infrastructure. Work has begun on engaging with stakeholders and it is anticipated that a full environmental impact assessment will take place from mid-2013, pending a final investment decision. If necessary approvals are met, it is likely that construction would be scheduled for mid-2015.

The second project will focus on the development of a new open-access coal terminal at the port. Currently being privately-run, it is proposed that a new terminal operator would be appointed to develop the project in stages, starting at a capacity of 14 million tonnes per year and increasing to approximately 32 million tonnes.

Funding would be shared by the terminal operator and the National Ports Authority, who is the landlord and infrastructure provider. It is anticipated that an expression of interest for the development of a new coal terminal would be issued in 2013 according to the process set in South Africa’s ports legislation. The objective of these developments is to establish Richards Bay as the main bulk commodity gateway for chrome, ferrochrome, fertilisers, magnetite, coal and discard coal, forest products and liquid bulk. [UKTI 18/04/13]

MALAWI

Afdb Earmarks US$73 Million For Malawi RoadThe African Development Bank [AfDB] has approved a total US$33.2-million for the construction of the Mzuzu–Nkhata Bay road. The road is one of the major trunk roads prioritised in government’s Road Sector Programme, as it links the northern region of the country to the central and southern regions. The road, once rehabilitated, will support economic growth sectors in the northern region. The road is located on the Mtwara Development Corridor and therefore serves international freight traffic from Zambia and Tanzania. It is an important road link, not only for domestic connectivity but also for regional trade and integration. [Creamer 05/04/13]

ZAMBIA

Sata Launches Chalimbana - Lwimba - Katoba Road ProjectPresident Michael Sata launched the 61km multi million Kwacha Chalimbana - Lwimba - Katoba road project in Chongwe district of Lusaka province. The project is part of the link Zambia 8000. The road will link Chongwe district via Kafue to Chirundu and Luanga districts respectively. [Lusaka Times 03/05/13]

Construction Of Chama-Matumbo Road On CourseConstruction works for the KR371 million Chama-Matumbo road linking Northern, Muchinga and Eastern provinces have progressed.

The works on an 84km stretch under Lot 2 from Muyombe junction passing through the Boma to Luangwa Bridge, are part of the Link Zambia 8000 Project under the Road Development Agency [RDA] being undertaken by China Civil Engineering Construction Corporation.

Chinese Jiangxi Limited has been engaged to manage Lot 1 of the project at a cost of over KR399 million stretching from Matumbo junction to Luangwa river [115km].[Post 13/05/13]

PORTS

TRADE WATCH

SOUTHERN AFRICA

21

BOTSWANA

South Africa Coal LinkThe South African coal line to Richards Bay is to include a Botswana link in 7-years’ time. The proposed border-straddling connection would form part of Transnet’s investment in the upcoming Waterberg, the coalfield in South Africa’s north-west, close to the Botswana border, which would be the source of significant future tonnages of coal for both domestic consumption and export. A rail line would then couple the developing Mmamabula coalfields, in Botswana, to Lephalale, and then pass through Thabazimbi on its way to the coal area of Oogies, in Mpumalanga, and then on to Richards Bay in KwaZulu-Natal.

Railing coal from Botswana via Durban had already begun on a moderate scale. The first few trains have moved from Botswana to BMA, Bidvest group’s Bluff Mechanical Appliance, which handles 2-million tons of exports a year. South Africa’s major coal-export outlet is the private-sector-owned Richards Bay Coal Terminal [RBCT], through which 68.3-million tons of coal was exported last year and which has a capacity of 91-million tons. Transnet moves more than 95-million tons of coal a year and also serves other smaller export outlets, including Navitrade Dry Bulk Terminal, also in Richards Bay, and Matola, in Mozambique, and rails large volumes domestically for State power utility Eskom and other entities.

Rail is seen as integral to the success of emerging juniors and Eskom’s plan to source a billion tons of coal from emerging coal miners would be a game-changer. Transnet will be railing more than 32-million tons of coal for Eskom by 2019 and 60-million tons by 2030 as the Waterberg mine comes into play. Rail capacity on the Richards Bay line to the RBCT would be increased to 95-million tons by 2018 and investment in the Swazi rail link would take non-coal freight off the coal line and thus open up more capacity for coal.

MALAWI

Moatize-Nacala / Blantyre-Sena Railway To Be AcceleratedPresident Joyce Banda noted Malawi and Mozambique have discussed in great detail and agreed to look at the acceleration of the construction and rehabilitation of the Moatize-Nacala Railway line and the rehabilitation of Blantyre-Sena Railway line as one way of boosting trade and investment between the 2-countries.

Brazil’s Mining giant Vale initiated the Moatize-Nacala and Blantyre-Sena Railway lines project under the then Bingu wa Mutharika government in 2010 through the Ministry of Transport and Public Infrastructure with a proposal for constructing and rehabilitating a rail line between Vale’s Moatize coal mine in Tete, Mozambique, to the port of Nacala that would run through Malawi as part of the logistical solution for the export of about 18 million tonnes of coal annually. The deal was signed in 2011.

Malawi’s President Banda only officially inaugurated the project in December 2012, 2-years after the DPP government had already concluded the deal. Malawi’s imports from Mozambique stood at US$205 million in 2012 against US$20 million exports.

NAMIBIA

N$100 Billion Namibian Railway Deal SuspendedAn agreement on a N$100 billion railway deal between Namibia and Botswana that was scheduled to be signed in Namibia on 20/04/13 has been postponed until further notice. According to Namibia's works and transport minister, Errki Nghimtina, there may be a need for amendments to the agreement.

The idea of linking and expanding the railway infrastructure in southern Africa has come a

long way, especially due to the growing global demand for coal, of which Botswana has vast resources. The railway line, to be known as the Trans-Kalahari Railway, will be about 1,500 km long from the landlocked Botswana's Mmamabula coal field to the port of Walvis Bay.

A pre-feasibility study, funded by the World Bank, was completed in 2012. Much of the coal from Botswana to Namibia would have been used at a 800 MW coal-fired power station that was planned for Walvis Bay. This idea has in the meantime been abandoned in favour of an alternative site at Arandis, which was eventually put on hold because the government is giving priority to the Kudu Gas project.

The railway project would be financed by the private sector, and would be implemented and overseen by a company jointly controlled by the Botswana and Namibian governments.[The Namibian 18/04/13]

ZAMBIA

Zambia Railways Rehabilitation ProgrammeThe government has released US$120m to enable Zambia Railways to start work on a 3-year rehabilitation programme. A second track is planned on the 900km line from Chingola to Livingstone, along which the launch of a second weekly passenger train. The Ndola – Luanshya branch is to be upgraded to carry copper ore to processing facilities, and copper for export. The Mulobezi line will also be modernised.

Tazara has restarted container services between Dar-es-Salaam, Makambako, Kasama and the connection with Zambia Railways at New Kapiri Mposhi, after China Civil Engineering Construction Corp restored its gantry cranes to service. Two new shunting locomotives are to be supplied, and three modernised. [Rail Gazette 15/04/13]

NAMIBIA

Namibia Look To Dubai To Help Build New HarbourThe Ministry of Trade and Industry [MTI] is in discussions with delegates of the Dubai World Central [DWC] to gain knowledge in constructing a new harbour for the Namibia Port Authority [Namport] in Walvis Bay. In this regard, Trade Minister Calle Schlettwein met with the DWC representatives responsible for the development of Dubai's second airport, Al Makhtoum International Airport.

The Port of Walvis Bay is getting congested as it is surrounded by residential and industrial areas. Available land some 3km north of Walvis Bay belonging to the State, is envisioned to construct a new industrial park for Namport which includes linking the Walvis Bay Airport to the planned industrial development of Namport. The facility will be similar to the one being developed in Dubai by the DWC.

Namport plans to create a new northern harbour, estimated to cost N3 billion, to position Walvis Bay as the premier port in the southern African region. The project involves dredging a deep entrance channel and excavating the land to make way for a proposed deep-water basin and a 10km long berth/quay wall.

The harbour plan also makes provision for new marinas and small boat harbours, a liquid bulk terminal, tanker berths and tank

farms, a small craft harbour for tugboats, the rerouting of the existing trunk road, and a container terminal with potential throughput capacity of more than 2-million TEU per annum.

It would also have a break-bulk and multi-purpose terminal, as well as high-capacity railway link to the bulk terminal, and an under-cover bulk terminal with estimated capacity in excess of 100 million tonnes of dry bulk per year - linked to stockpiles behind Dune 7 heavy industrial area. Included in the plan are ship and rig repair yards, plus a major oil and gas supply base terminal, with backup storage areas.[Bernama 02/05/13]

SOUTH AFRICA

South Africa - Proposed Port Infrastructure & Capacity Expansion Projects At Richards Bay PortSouth Africa’s National Ports Authority has committed R30 billion [£2 billion] to 2-proposed projects, one for a general freight capacity expansion and the other for the development of a new open-access coal terminal, at its Richards Bay Port.

These are part of its R300 billion [£21.4 billion] expansion plan. As a result Richards Bay, currently the country’s main port in terms of bulk and break bulk commodities, will see new facilities and increased current capacity.

The first project, expected to cost R15 billion [£1 billion] will focus on increasing the general freight capacity at the port from 23 million tonnes to approximately 59 million tonnes and up to 100,000 TEU per annum. Related to this general freight expansion will be port infrastructure projects and terminal expansions as well as new near port-rail infrastructure. Work has begun on engaging with stakeholders and it is anticipated that a full environmental impact assessment will take place from mid-2013, pending a final investment decision. If necessary approvals are met, it is likely that construction would be scheduled for mid-2015.

The second project will focus on the development of a new open-access coal terminal at the port. Currently being privately-run, it is proposed that a new terminal operator would be appointed to develop the project in stages, starting at a capacity of 14 million tonnes per year and increasing to approximately 32 million tonnes.

Funding would be shared by the terminal operator and the National Ports Authority, who is the landlord and infrastructure provider. It is anticipated that an expression of interest for the development of a new coal terminal would be issued in 2013 according to the process set in South Africa’s ports legislation. The objective of these developments is to establish Richards Bay as the main bulk commodity gateway for chrome, ferrochrome, fertilisers, magnetite, coal and discard coal, forest products and liquid bulk. [UKTI 18/04/13]

MALAWI

Afdb Earmarks US$73 Million For Malawi RoadThe African Development Bank [AfDB] has approved a total US$33.2-million for the construction of the Mzuzu–Nkhata Bay road. The road is one of the major trunk roads prioritised in government’s Road Sector Programme, as it links the northern region of the country to the central and southern regions. The road, once rehabilitated, will support economic growth sectors in the northern region. The road is located on the Mtwara Development Corridor and therefore serves international freight traffic from Zambia and Tanzania. It is an important road link, not only for domestic connectivity but also for regional trade and integration. [Creamer 05/04/13]

ZAMBIA

Sata Launches Chalimbana - Lwimba - Katoba Road ProjectPresident Michael Sata launched the 61km multi million Kwacha Chalimbana - Lwimba - Katoba road project in Chongwe district of Lusaka province. The project is part of the link Zambia 8000. The road will link Chongwe district via Kafue to Chirundu and Luanga districts respectively. [Lusaka Times 03/05/13]

Construction Of Chama-Matumbo Road On CourseConstruction works for the KR371 million Chama-Matumbo road linking Northern, Muchinga and Eastern provinces have progressed.

The works on an 84km stretch under Lot 2 from Muyombe junction passing through the Boma to Luangwa Bridge, are part of the Link Zambia 8000 Project under the Road Development Agency [RDA] being undertaken by China Civil Engineering Construction Corporation.

Chinese Jiangxi Limited has been engaged to manage Lot 1 of the project at a cost of over KR399 million stretching from Matumbo junction to Luangwa river [115km].[Post 13/05/13]

TRADE

Economic Relationship Between SA And India BlossomingBilateral trade between South Africa and India increased by 135% between 2007/2008 and 2011/2012, while Indian companies have invested US$328.25-million in this country over the past 5-years according to the Overseas Indian Facilitation Centre. India is forecast to be the world's fastest-growing economy over the period 2006 to 2020. In terms of incoming foreign direct investment, India ranked second in Asia, after China. South Africa currently ranks #2 in the list of African exporters to India. Nigeria is in first place, and Angola is third followed by Congo-Brazzaville and Tanzania. African/India trade totalled US$1-billion in 2008, in 2012 it amounted to US$42.8-billion. [Creamer 25/04/13]

RAIL

ROAD

TRADE WATCH

SOUTHERN AFRICA

22

trade-watch - delmas · pdf filetrade-watch. for those with a ... whilst grindrod ltd. and...

Documents