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FREIGHT & TRADING WEEKLY
For import / export decision-makers FRIDAY 25 August 2017 NO. 2260
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Special feature –Bulk Cargo
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Special feature – Terminals & depots
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Adele Mackenzie
Government will step up efforts to clamp down on scrap metal exporters who have not been complying with its price preference system (PPS), vowing to “act against transgressors of the law”, according to Minister of Economic Development, Ebrahim Patel.
This follows last week’s
Constitutional Court ruling dismissing a challenge to government’s PPS rules by the SA Metal Group. The trade policy directive – implemented in 2013 – gives local industry buyers of scrap metal a preferential price of 20% below the international price. Scrap metal exporters are required by law to first offer local buyers the
product at the reduced rate for a period of up to 60 days before the International Trade Administration Commission of South Africa (Itac) will issue an export permit.
The PPS policy was introduced by government to fight continuing deindustrialisation as high volumes of scrap metal exports were depriving the
local beneficiators – such as foundries and mini-mills – of affordable and quality steel which is a key input in their manufacturing process.
The policy directive was contested in the Western Cape and Gauteng High Courts and then referred to the ConCourt where it was dismissed, bringing four years of legislation to a halt.
Government gets tough on errant scrap metal exporters
Patel said in response to the ConCourt ruling that “the decision makes it clear that rational decisions by the state in favour of job creation and industrialisation would be upheld by the courts”.
But while the steel industry lauds the “good intentions” of the policy on paper, it still insists it doesn’t work in practice. Virusha Subban, a partner in law firm Bowmans, pointed out that the beneficiators have accused scrap merchants of circumventing the PPS system using a range of tactics that force beneficiators to forego the mandatory discounted offer.
“Such tactics include inf lating the preference price by charging for delivery over and above the quoted price, demanding impossible sale conditions, upfront cash payment or reams of documentation before selling to local buyers,” she explained.
To page 12
Southern African Development Community (SADC) member states would establish a Regional Development Fund to promote industrialisation and fast-track infrastructure development, said the new chairperson the of SADC, Jacob Zuma.
Speaking at the conclusion of the SADC Summit in Pretoria on Sunday, he said infrastructure had been identified as a key driver of industrialisation but that there was a lack of funding for
bankable projects from both the public and private sectors.
“Currently, the nature of funding or loans from international cooperative partners comes with restrictive conditions. This needs to change so that the region can take the lead in mobilising resources to fund its projects,” said Zuma, highlighting the need for SADC members to integrate their markets and work collectively on a common trade growth and industrialisation agenda.
SADC looks closer to home for development funding
Seen at the official opening of the Council of Ministers Meeting ahead of the 37th SADC Summit last week is Prince Hlangusemphi, minister of economic planning and development of the Kingdom of Swaziland (seated left), King Mswati 111 of Swaziland (outgoing SADC chair), and Maite Nkoana-Mashabane, SA minister of international relations and cooperation. Photo: DIRCO
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The high-level panel includes Peter Lamb, director at Norton Rose Fulbright, Duncan Bonnett of specialist consultants Africa House, and Mike Schussler of Economists.co.zaDate: Wednesday, 6 September 2017Venue: JCC House, 27 Owl Street, MilparkTime: 08:30 - 11: 30Cost: JCCI members and FTW paid subscribers: R449 p/p (incl VAT) Standard admission: R649 p/p (incl VAT)
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Licence to distil spiritsThe South African Revenue Service (Sars) on 18 August announced the proposed insertion of form DA 104 – ‘Application to own, possess or keep a still’, and form DA 105 – ‘Application by an Agricultural Distiller for a licence to distil spirits’, in terms of the Customs and Excise Act No 91 of 1964 on which comment is due by 1 September.
The reasoning for the notification is that at present only the Afrikaans versions of the forms exist. Form DA 105 states that ‘A licence issued in terms of the Customs and Excise Act, No 91 of 1964 to a person as an agricultural distiller is not transferable and expires upon the death of the licence-holder. It should be noted that: (a) The licence is non-transferable, not even to any family member of the licensed holder, and (b) A licence shall not be issued to any person who was not licensed as an agricultural
distiller during the previous calendar year.’
WTO fights illegal wildlife tradeOn 12 August the World Customs Organisation (WCO) joined the international community in celebrating World Elephant Day under the theme “Bringing the world together to help save the elephants”. It provides an opportunity to underline the WCO’s continued support to its members in the fight against illegal wildlife trade and ivory smuggling in particular, which has become a daily occurrence that requires effective coordination among customs administrations and other border agencies, according to the WCO.
The recent seizure by Customs in Hong Kong of a consignment of 7.2 tons of ivory is of great concern to the customs community and the WCO is closely monitoring the situation concerning illegal wildlife trade across
jurisdictions, a WCO spokesman says.
The WCO, as a signatory of the United for Wildlife Transportation Taskforce (UFW) Buckingham Palace Declaration, also continues to work closely with the UFW partners to identify possible weaknesses in the air-transport industry with regard to wildlife smuggling, and identify means by which the sector can break these trade chains.
Ghana Trade FairThe Department of Trade and Industry (the dti) has invited exporters to participate in the Ghana International Trade Fair 2018, scheduled to take place from 21 February to 11 March 2018 in Tamale, Ghana.
The deadline date for submissions is 21 September.
Anti-counterfeiting and piracy stingThe World Customs Organisation (WCO), in cooperation with the WCO
Regional Intelligence Liaison Office (RILO) for the Asia/Pacific region, has successfully concluded an enforcement operation aimed at combating counterfeiting and piracy in the region.
The 19-day operation resulted in the interception of a large quantity of illicit products
The largest number of cases (40) involved foodstuffs, making it the most frequently intercepted counterfeit product, followed by pharmaceutical products (38) and spare parts (22), all of which could have devastating health and safety consequences for the region’s citizens.
FRIDAY August 25 2017 | 3
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South African state departments should lead the way in addressing the problems of non-tariff barriers at home while working with SADC countries to implement a long-overdue transit scheme to improve trade f lows to landlocked countries.
This is the view of Dave Watts, consultant to the SA Association of Freight Forwarders (Saaff), who raised concerns over the high cost of non-tariff barriers (NTBs) during a Shepstone & Wylie Shipping and Logistics Summit in Durban recently.
These include the “serious problem” of bribery of truckers along certain routes in the SADC region which ultimately raises the cost of business and the price of goods in inland provinces
and countries. NTBs
include any barrier to trade or transport ranging from police road blocks, import and export licensing and non-tariff customs delays to health and veterinary controls.
He said coastal transit countries such as South Africa had a responsibility in terms of the United Nations’ law of the sea to facilitate the movement of goods to landlocked countries.
“NTBs are a real barrier on the great north road between Chirundu and Lusaka.”
Watts said there had been reports that truckers driving along the road would come across a row of empty 45-gallon drums, a police stop, always late on a Friday afternoon.
“To get past there you need to pay and there will probably be another one on the other side of Lusaka,” Watts said.
“At one stage I had a report from truckers that they
were approaching 30 stops on the road, all of which wanted some money. It is absolutely outrageous.”
Watts said recent figures provided by truckers who were moving goods indicated that it cost US$10400 to move a 40-foot container or a 45-foot semi-trailer from Durban to Lubumbashi in the DRC.
The US$10400 comprised permits, levies, taxes and fees with no mention of bribes. However, he said the actual trucking cost of moving the cargo was around US$ 7000.
“But if you ask a trucking
company on that route they give their drivers cash, suspiciously mostly in US dollars – in order to get them through. If they haven’t got it they will be stopped and have all sorts of problems,” Watts said.
“It would be $1000 at best through Lusaka; can you imagine the impact of that on the cost of living in a country like Zambia and in the Katanga province of DRC? Spending that kind of money is really seriously a problem.”
However, Watts said East African countries had proved that if there was a political will to change the situation it could be done. The corridor between Kenya and Uganda, for example, cost US$ 283 to transit and it was taking six hours to get a truck through the Malaba border which was a “huge improvement”.
Watts added that there was a need to address the faster facilitation of state interventions in Durban where freight forwarders currently had a problem with the state’s veterinary services that were taking up to five and seven days to be completed, impacting costs because beef, chicken and pork had to be kept at huge cost in a cold store or connected to a reefer facility.
“We need to see government stepping in to say we must facilitate trade, not just talk about it, really facilitate it, and that goes for all departments, customs as well. They talk good
talk about facilitating trade but from all the talk we get I am not sure that happens,” Watts said.
Transnet National Ports Authority’s Lwandile Mabuza said it was important for the industry and the port to communicate
and collaborate in the supply chain to improve transparency and reduce inefficiencies.
Mabuza said the port was planning to create a single supply chain data platform as part of its smart people’s port initiative.
“We are hoping to create end-to-end visibility of the supply chain. Information is king, you can plan better when you have more information.”
Mabuza said a single window platform for cargo clearance for the rest of the continent was also in the pipeline.
“This we see as a major bonus. It is making the internet of things work for us and it will reduce costs of doing cross-border business,” Mabuza said.
Transport consultant quantifies the outrageous cost of NTBs
At one stage I had a report from truckers that they were approaching 30 stops on the road, all of which wanted some money.– Dave Watts
“12m container
Durban-LubumbashiUS$ 10 400
(including permits, levies, taxes, fees)
Actual cost $7 000
4 | FRIDAY August 25 2017
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FTW3988SD
Tristan Wiggill
The National Railways of Zimbabwe (NRZ) should have been sold for $1.
That’s the view of transport economist Andrew Marsay, who spoke to FTW following the successful $400-million Transnet/Diaspora Infrastructure Development Group (DIDG) Consortium’s bid to recapitalise the country’s state rail operator.
“This consortium is pretending there is an asset here, when in fact there is a liability,” he said, adding that the consortium would have to provide a satisfactory redundancy package to 95% of NRZ workers and then see what they could do with the network.
Recapitalisation of NRZ involves the rehabilitation and renewal of plant, equipment, rolling stock, track, signalling and telecommunication infrastructure – as well as supporting information technology systems. NRZ has a f leet of 168
locomotives and 7 000 wagons, but only 60 locomotives and 3 512 wagons are in use.
“There is always great interest in African railways when there is capex involved, but much less interest when there is operating responsibility to be taken with evidence of a business plan and committed tonnages,” he explained.
Marsay questioned how Transnet or the DIDG could agree to the deal without committed tonnages of freight. “If there aren’t committed tonnages of freight to underpin the business, then somebody must be pulling a fast one somewhere.”
He said that even if 100% of all the freight going to Zimbabwe was on the railway line, it still would not justify the investment.
“To justify $400 million, you need something that is going to generate $40 million of business a year. They won’t get a return on this investment unless it’s a very high-volume, commercially optimised operation.”
Marsay speculated that Transnet could be
considering extending its coal line into Botswana, turning it into an export line for that country and feeding Mpumalanga power stations at the same time.
He pointed out that Vale had built a coal line from Tete through Malawi to the Nacala port. Aiming to export 30 million tonnes, the company was piggy-backing on Malawian and Zambian general freight, at subsidised tariffs.
“That is an investment
which, at current coal prices, is giving Vale a lot of pain. So how an investment of $400m can possibly be justified - without a business case – requires poring over in great detail.”
He said wagons moving through Zimbabwe were either privately or Transnet-owned.
He believes those involved with the recapitalisation bid have not been honest with themselves. “If there is no underlying business, somebody is going to burn
their fingers terribly,” he said.
Transnet declined to comment, saying details of the bid were still being
finalised.
Transport economist pours cold water over NRZ recap proposal
To justify $400m, you need something that is going to generate $40m of business a year.– Andrew Marsay
“
Monumental job losses over the past three years have negatively affected output levels and productivity in the metals and engineering (M&E) sector, according to the Steel and Engineering Industries Federation of Southern Africa (Seifsa).
Earlier this month Seifsa CEO Kaizer Nyatsumba announced that 25 000 people had lost their jobs in the sector between July 2014 and June this year.
Chief economist at Seifsa, Michael Ade, told FTW that as a result of the heavy job losses poor production levels had impacted negatively on the sector’s contribution to the country’s GDP.
“Given the fact that export-led competitiveness is often associated with growth orientation in the domestic economy, poor output negatively impacts the competitive edge of
companies in the M&E industry,” he said.
The impact of substantial job losses was far-reaching, he added, resulting in companies operating below their full potential and productive capacity being under-utilised – leading to an increase in costs.
“When operating under increasing costs, companies miss the opportunity to improve efficiency and effectively utilise new
technology due to the lack of well-trained human capital.
“This affects all tiers of productivity, including labour and capital.”
He said there was a need for government to increase labour market f lexibility and assist businesses with issues regarding tariffs and dumping. “This is important given that the
world economy is expected to recover at a slightly slower pace in the second half of 2017.”– Nicole Jacobs
Monumental job losses affect productivity in M&E sector
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6 | FRIDAY August 25 2017
TERMINALS & DEPOTS
FTW4013SD
Tristan Wiggill
Expansion projects undertaken by Transnet National Ports Authority
(TNPA) at the Durban Container Terminal (DCT) will extend its operating capacity by between seven and 12 years.
This is according to analysis by Stellenbosch University, which suggests the DCT will now reach maximum operating capacity between 2027 and 2036, instead of between 2020 and 2024.
TNPA’s expansion projects – which include the deepening, widening and lengthening of Pier 2 berths, as well as the reclamation of land between Pier 1 and the Salisbury Island naval
base – were calculated to increase annual container capacity to around 5.2 million TEUs a year. But a shortfall has been found between the equivalent container stacking yard capacity and the achievable container throughput. For the terminal to reach its maximum yearly throughput, the container stack yard will have to be adjusted to handle more containers.
The University’s analysis also motivates for a change in stacking system, from straddle carriers to rubber-tyred gantry cranes at Pier 2, which it says would increase annual capacity of the DCT by around 980 000 TEUs annually.
It further recommends adoption of a ‘Masterplan’, which includes a change
in stacking strategy, along with active dwell time control and use of a dry port. The dry port would enable the DCT to implement strict container dwell time control, in which containers exceeding a dwell time of four days could be transported to and from the dry port on a shuttle train, thereby relieving congestion.
The effect of reducing container dwell time would greatly increase the overall container capacity of the DCT, it argues.
According to the University, the use of a dry port as part of the ‘Masterplan’ would increase the capacity of the DCT to around 7.05 million TEUs a year. It has identified two possible locations for the facility: a
Bayhead Road site and the old Durban Airport site.
The Bayhead Road site is located a stone’s throw from the DCT and would allow for cost-effective transportation of containers, while the distant Durban Airport site would require much larger capital input.
The University says the Bayhead Road site, unlike the Durban Airport site, could make use of existing rail and road connections that serve the DCT, making it the most feasible location for a dry port in Durban.
Adoption of the ‘Masterplan’ would extend maximum operating capacity of South Africa’s busiest port to at least 2035, the analysis concludes.
TNPA expansion plans buy DCT more time
Two site options - Pros & Cons
Stone's throw away from DCT
Bayhead
Old Durban Airport
Existing rail and road connections
Much larger capital input needed.
Wholly owned CFR Freight subsidiary ZacPak has seen huge growth in volumes this year, with more of
the same expected for the second half of 2017.
“From October last year to date, we have tripled our project growth in Johannesburg alone, with requests coming in for a more regular service – mainly into Africa and Madagascar,” said Yolanda Bernard, operations manager of ZacPak Johannesburg.
Port Elizabeth depot
manager Riaz Ismail and his counterpart in Cape Town, Jerome Wolhuter, pointed out that their branches had also seen good growth thanks to an aggressive sales strategy, “hard work and a focus on accuracy”.
“Furthermore, customers are turning to consolidation in an effort to beat the ongoing economic slump,” said Bernard.
Wolhuter highlighted that current global economic uncertainties had also contributed to a decrease in imports and exports to and from South Africa. “Shippers therefore have to plan their cargo movements far more carefully and that’s where our experience in consolidation comes in,” he said.
Ismail pointed out that
ZacPak’s task was to ensure f lexibility and speed and to continuously respond to the market opportunities arising from a changing environment.
“We, as service providers, also have to learn to strike a balance between investing in technology that ups our efficiency while remaining cost competitive,” he said.– Adele Mackenzie
Growth on the back of demand for consolidation
FRIDAY August 25 2017 | 7
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DP World Maputo forecast a 50% increase in throughput by Q3 2018, with a further progression to 350 000 TEUs by the end of 2020, said Tejas Nataraj, CEO at DP World Maputo.
He told FTW that the terminal operator had now laid the platform for sustained throughput growth, having just completed the refurbishment of the terminal’s operational area, which included 10 hectares of new yard paving, 22x40m lighting masts and six rubber-tyred gantry (RTG) cranes
“Furthermore, with the completion of the new rail siding, DP World Maputo can now offer the essential quick and efficient link to the hinterland areas of South Africa, Swaziland and Zimbabwe,” added Tejas, pointing out that DP World saw Maputo
as the “ideal gateway” for the export of citrus from the Mpumalanga and Limpopo regions of South Africa. “We have committed to providing the infrastructure to support this trade by upgrading our reefer capacity to 400 plugs by March 2018,” he said.
The terminal has also seen a steady rise in containerised mineral exports via Maputo during
2017 and is looking to further grow exports of this commodity through its partnership with the Maputo Intermodal Container Depot (MICD) – which is able to pack 200 million tonnes per annum of minerals within the port area.
According to him, the port’s bulk mineral exports are a “great success story” where cargo owners and shippers are reaping the
rewards of a “superior export link”.
Tejas conceded that the outdated historical perception of Maputo as being a costly and a difficult logistical challenge, along with the traditional logistics practice of “that’s the way it’s always been done”, does hinder the adoption of the Maputo corridor as a clear, viable shipping option.
“But we see this as an opportunity rather than a handicap and now that the terminal’s infrastructure has been developed to support trade, cargo owners/shippers can benefit from a geographically superior option and a terminal operator who is eager to actively collaborate with supply chain players in order to develop trade for the mutual benefit of all parties,” said Tejas.– Adele Mackenzie
Rail siding speeds access to hinterland
Positioning itself as the “long-awaited alternative option to the Port of Durban”, DP World Maputo is “actively” working with other trade and logistics stakeholders to eliminate border crossing delays.
“Delays at the Lebombo/Ressano Garcia border have been known to occur so we have invested in 1500m of rail siding in the terminal which will eliminate delays as cargo is railed directly into the terminal operational area,” explained Tejas Nataraj, CEO at DP World Maputo.
To further address the issue of truck standing time and to cut red tape, DP World Maputo is currently upgrading its Terminal Operating System (TOS), which will remove the need for paperwork through electronic processing.
An aerial view of the DP World Maputo terminal.
Acting to al leviate delays
TERMINALS & DEPOTS
8 | FRIDAY August 25 2017
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AFRICA
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Adele Mackenzie
Cornelder de Moçambique (CdM) – a private joint venture between
Moçambique Ports and Railways (CFM) and Cornelder Holdings based in Rotterdam – has introduced a number of initiatives to improve the competitiveness on the trade corridors to the port of Beira from neighbouring countries.
CdM director: commercial, Miguel de Jenga, identified two main obstacles to competitiveness. First the economic constraints – particularly for Zimbabwe and Mozambique – and second delays due to construction on the road that links the port of Beira from the Zimbabwe border.
“We expect to see very positive results in the size of the Mozambican and Zimbabwean markets when the economic issues get turned around and foreign currency
shortages are resolved,” he said. Furthermore, said De Jenga, the road construction would soon be finished and would immediately benefit the corridor.
Port authorities were also finalising the contracting of a further dredging company to deepen the port of Beira, he said. “We expect to be able to receive larger vessels
with deeper draught during the course of 2018. This will enable shipping lines to bring more direct services to Beira, especially from the Middle East and the Indian sub-continent.”
He added that in order to fast-track documentation clearance, CdM would start implementing modules of its Navis N4 system by late this year/early next year. “This will allow better electronic collaboration between the stakeholders in the transport chain, reducing the amount of paperwork required.”
Despite the challenges, the port of Beira has been performing above expectation, returning to double digit growth at the container and general cargo terminals.
Initiatives under way to improve corridor competitiveness
The port of Beira has been performing above expectation, returning to double-digit growth at the container and general cargo terminals.
FRIDAY August 25 2017 | 9
Truck drivers supplementing their incomes by picking up hitch-hikers risk landing in deep financial trouble – particularly on cross-border journeys.
This after a Bulawayo-based transport company was ordered to pay
damages of US$43 000 in a recent court ruling after a passenger was injured during a truck accident.
While South African transporters are protected against claims by passengers, or their families, should a truck driver be involved in
an accident when a passenger is injured or killed, cross-border
regulations are different.“In South Africa,
the only recourse a passenger has if he/she is injured is the Road Accident Fund Benefit Scheme,” said Justice
Project South Africa’s
Howard
Dembovsky, highlighting however that every African country had its own rules and regulations
The practice of picking up hitchhikers for a fee was a hot topic on the SA Long Distance Truckers (SALT) Facebook page recently, with many drivers admitting to doing so. In some cases their employers were aware of this, but many did so without their employers’ consent.
While it’s not illegal, many operators have policies in place that disallow it. “I’ve had a case like this where insurance refused to pay out because the driver had picked up a passenger for a fee. It cost me a fortune,” said a truck operator on condition of anonymity.
A truck driver pointed out that the biggest risk of picking up hitchhikers was hijacking. “The trucks are worth millions and
sometimes even the goods are at risk if it’s a long-distance trip and we pull over to sleep. I won’t take that risk, even though I need the extra money,” he said.
The gist of the debate on the SALT page seems to be that drivers need to supplement their incomes. They claim that they do not receive enough (or any) subsistence money and therefore have no choice but to stop for food at expensive truck stop cafes en route – which is why picking up a hitchhiker for an extra R20-R50 makes sense to them.
“You get a set salary from your boss and you are happy for the work – and while the salary isn’t bad, it is paid at the end of the month.
If you do a long-distance trip, you have to buy your own food on the road. The first few weeks are okay but coming towards the end of the month, when money is needed at home, you have no more money for food. So how do you as a father take money from your children’s
mouths? Instead, you don’t steal fuel or
anything to survive, you just take
on a few passengers,” explained a truck
driver.“To prevent
this, operators have to ensure their
drivers have enough money for their trip to
ensure they can pay for any miscellaneous costs and have enough for food. We give our drivers about R600
per week,” said another operator.– Adele Mackenzie
Truckers lifting hitchhikers risk costly consequences
MBABANE – Swaziland will have its second air carrier providing service into and out of the country when a new airline, Ligwalagwala Airways, commences f lights in December. Named after the red feather worn by Swazi royalty, Ligwalagwala will have one route, departing from King Mswati III (KM3) International Airport for Maputo, Mozambique. The entirely Swazi-owned company will f ly a leased Embraer 145 aircraft with seating capacity of 50. A round-trip ticket for the 20-minute f light is R2500.
The new service will double the number of air carriers at KM3 airport, which since the US$3-billion facility’s opening in 2014 has been utilised by
only one airline, Swaziland Airlink. Swaziland Airlink also f lies one route, to Johannesburg. In July, Swazi Airways, which had set an ambitious agenda to f ly to multiple destinations, officially went out of business without having accomplished a single f light. Swazi Airways was considered a government boondoggle that had not properly assessed the country’s air traffic market. Business analysts give Ligwalagwala Airways a better chance for success because it is a trimmer, privately owned operation launching with a modest and achievable schedule.
Arguing against the new air carrier’s chances are the airline’s primary customers, business passengers, many of whom are accustomed
to driving to Maputo. The trip by car is about three hours, the same amount of time required to drive from Mbabane to KM3 airport, f ly to Maputo and undergo customs procedures and waits at airports of departure and arrival.
The air carrier is awaiting certification by the Swaziland Civil Aviation Authority (SWACAA). The small number of new passengers utilising KM3 airport once Ligwalagwala Airlines operations commence will add little to reach the target of 360 000 passengers annually required for the air facility to break even. About 70 000 air passengers make use of KM3 airport annually, reports SWACAA.– James Hall
New Swazi air carrier set for December take-off
DEPARTURES - SWAZILAND KMIIITime Flight Destination Gate Remarks
Ligwalagwala Airways
Maputo DepartingDecember
The newly launched Brics New Development Bank's (NDB) African Regional Centre (ARC) is not a way of evading a ratings downgrade, according to the Minister of Finance, Malusi Gigaba.
Speaking to journalists following the launch of the ARC last Thursday, Gigaba commented: “You cannot evade a ratings grade by establishing an alternative.” He pointed out that that the regional centre was primarily launched to implement its infrastructure
objectives and meet other funding needs.
Gigaba added however that the regional centre could potentially help create a more conducive environment. “We appreciate the commitment by the bank to issue rand- denominated loans because it will assist a great deal in terms of the structure and quality of our debt and our ability to meet our debt requirements. We need to address structural weaknesses in the economy,” he said.
Gigaba refutes ratings downgrade speculation
President Jacob Zuma flanked by the president of the NDB, Kundapur Vaman Kamath (left), and finance minister Malusi Gigaba (right), at the official launch of the African Regional Centre of the Brics New Development Bank (NDB). Photo: GCIS
10 | FRIDAY August 25 2017
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INVITATIONYou are cordially invited to attend the monthly Transport Forum Special Interest Group (SIG)
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AGENDA12:00 - 13:00 Registration, Breakfast and Networking
13:00 - 13:10 AdminMr Harry van HuyssteenCustodianTransport Forum
13:10 - 13:20 Welcome
Prof Jackie WaltersHead: Department of Transport and Supply Chain ManagementUniversity of Johannesburg
13:20 - 13:45The Public Private Sector (PPS) Framework
Mr Themba TenzaChief Director: Research and developmentDepartment of Transport
13:45 - 14:10 Global Trends in RetailingMr Martin BaileyChairmanIndustrial Logistic Systems
14:10 - 14:35Customer Experience changing the Retail Landscape
Ms Lindi LeeHead: RetailT-Systems South Africa
14:50 - 15:15 To be confirmed
15:15 - 15:40Maximum productivity and profitability with focused real-time and historical data
Mr Bisey UirabChief Executive OfficerNamport
15:40 - 16:05 To be confirmed
16:05 - 16:30 Panel Discussion
16:30 - 16:45 Closure and Lucky Draw (Winner must be present)
Date: Thursday 7 September 2017 Time: 12h00-17h00 Venue: School of Tourism and Hospitality, Bunting road campus, University of JohannesburgCost: Attendance is for free, but booking is essential Visit www.transportsig.com to make your bookingTheme: Optimising The Retail Value Chain
Proudly hosted by University of Johannesburg
Brian Ingpen
Seventy years ago, advertisements and articles in local newspapers heralded the arrival of a two-year-old ship, Constantia, belonging to South Africa’s newest shipping company, Safmarine. While other unsuccessful shipping ventures had been tried immediately after World War 2, astute management saw Safmarine emerge as the local leader in the maritime sector.
Besides its establishment in 1946 and its acquisition of a trio of Victory ships, numerous other highlights feature in Safmarine’s history. Aided by the Industrial Development Corporation, a remarkable fleet expansion programme in the 1960s involved the addition of six reefer ships, eight fast dry cargo vessels and four bulkers, enabling Safmarine to compete successfully with the best foreign companies on the South African trade. It also had nearly 30 ships flagged in South Africa and employed around 2000 seafarers.
Its venture into the
operation of two former Union-Castle mailships was a significant public relations coup. For the first time in the long history of the UK-South Africa mail carriage contract, local interests rightly controlled a noteworthy slice
of the action. The sad demise of the mailship service was a product of advances in air travel, high costs of operating the two vessels that were fuel-thirsty, and the containerisation of South African trades.
Entry to the Capesize bulker market, acquisitions and construction programmes kept the technical department busy, but containerisation gave Safmarine new impetus. The four “Big Whites” became
synonymous with the brand that was greatly enhanced when the company’s unique cursive logo appeared on the vessels’ white sides.
Trade sanctions detracted from Safmarine’s success, but the abolition of apartheid and the subsequent rapid growth of trade from 1990 boosted the company’s success.
To remain competitive amid changing markets, Safmarine needed access to international container networks, initially purchasing a Belgian company and moving its headquarters to Antwerp. In 1999, the company was split into its containership division and other operations, the former being sold to the Copenhagen-based AP Moller Group (APM), and the latter – curiously – to the Restis Group of Greece.
Having been strengthened by adding new, larger tonnage, the familiar containership brand continues, the only APM acquisition to retain its original identity that has lasted more than 70 years.
Safmarine marks 70-year milestone
Safmarine’s first owned ship, Constantia, arrived in Cape Town on 22 August 1947. Photograph : Lawhill-De Vries Collection.
FRIDAY August 25 2017 | 11
GENERAL AGENTS JOHANNESBURG DURBAN CAPE TOWN PORT ELIZABETH RICHARDS BAY SALDANHA BAY www.diamondship.co.za (011) 263-8500 (031) 570-7800 (021) 419-2734 (041) 373-1187/373-1399 (035) 789-0437 (022) 714-3449
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ABJ - AbidjanABU - Abu DhabiANT - Antwerp, BelgiumASI - AsiaBAR - BarcelonaBRH - B’HavenCON - ConakryDAK - Dakar DAM - Damman, Saudi ArabiaDAR - Dar Es SalaamDBN - Durban DES - Dar es Salaam DOH - Doha, QatarELS - East London, SAEU - EuropeGUN - Gunsan, KoreaHAR - Le Harve, France HUA - Huangpu, ChinaIMM - ImminghamJEB - Jebel AliJED - Jeddah JPN - Japan
KIS - Kisarazu, Japan KOB - Kobe, JapanKOR - KoreaKUW - KuwaitKWA - Kwanngyang, KoreaLAS - Las Palmas LAG - Lagos LIB - Libreville LOB - Lobito, Angola LUA - Luanda MAP - Maputo MEL - Melbourne, Australia MDV - Montevideo MOM - Mombasa MUM - Mumbai NAG - Nagoya NAM - NamibePDG - Pointe des GaletsPE - Port Elizabeth, SA PKG - Port Kelang POI - Pointe Noire, CongoPOR - Portugal
PYG - PyungtaekPYU - Pyaungtaek, KoreaQNG - QingdaoROT - Rotterdam SAL - Salvadore, BrazilSAN - SantosSHA - Shanghai China SNR - Sheerness, UKSIN - Singapore SOH - Sohar, OmanSOU - Southhammpton, UKSRI - Sri Lanka TAM - Tamatave TEA - Tema, GhanaTIL - Tilbury, UK ULS - Ulsan, KoreaVIT - Vitoria, BrazilWVS - Walvis Bay, NamibiaYAN - Yangon, Myanmar YOK - Yokohama XIN - Xingang, ChinaZAR - Zarate
VESSEL VOY JPN SHA SIN DBN SAN MDV ZAR VIT DAK TEA/ABS EUMORNING CHAMPION 112 sld 13/08 21/08 02/09 13/09 17/09 19/09 25/09 tba tba 10/10
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VESSEL VOY DBN BRH ANT SOU BAR JED SOH JEB ABU KUW MUMMORNING CORNET 093 sld 07/09 15/09 15/09 21/09 29/09 05/10 07/10 08/10 11/10 15/10
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CUSTOMS MATTERSby The Customs @ Wylie Team
SA Revenue Service has published its Annual Performance Plan 2017/2018 (“the Plan”) which, from a customs perspective, doesn’t contain anything too shocking as according to the Plan, Sars intends increasing both customs and excise compliance and revenue.
There are various plans in place to assist Sars in achieving its goal of increased revenue and compliance. The Plan states that Sars will “Deliver additional customs and excise revenue through targeted compliance and enforcement activities in high risk areas of non-compliance”. Essentially Sars plans to improve revenue inf low through an increased number of customs stops and post- clearance audits.
Sars cites undervaluation as a main reason for the ‘leakage in potential customs duties and VAT’ as well as increased abuse of rules of origin, valuation and tariff classification. It plans to address these issues by building a stronger transfer pricing, valuation and rules of origin system.
The message from the Plan is clear – that there is going to be an increase in stops, interventions and audits with a strong focus on compliance and the additional collection of revenue.
Given the above, it is advisable to ensure that those licensed and registered with Customs
and Excise are fully compliant with the
current legislation and that each
movement of goods is secured by way of a clear paper trail. If there is any doubt
as to whether or not your tariff,
value and country of origin are correctly declared, it is best to seek the assistance of Sars by making
application for a tariff, value or origin determination.
‘Brace yourself for an increase in compliance audits’
LAST WEEK’S TOP STORIES ON
Sars’ performance plan is expected to deliver additional revenue through increased stops and post-clearance audits.
The Southern African Development Community (SADC) and the European Union (EU) last week formally launched trade facilitation projects worth €31.6 (R481m) million.
The projects were launched at the SADC Summit in Pretoria under the Trade Related Facility (TRF) agreement which was established to improve the participation of SADC member states in regional and international trade to
ensure sustainable trade development within the region.
The TRF supports projects with a focus on customs cooperation, technical barriers to trade, sanitary and phytosanitary measures, rules of origin, trade facilitation, industrial development, trade promotion and development, and trade in services.
“In addition, the TRF projects also focus on specific areas that relate to
the EU/SADC Economic Partnership Agreement (EPA) including trade defence instruments, trade- related adjustment and competition policy,” said SADC director of policy planning and resource mobilisation, Mubita Luwabelwa.
EU representative, John Taylor, reiterated the EU’s financial commitment to supporting projects which promote regional integration.
Over R481m committed to boost SADC/EU trade
ConCourt dismisses export ruling appealGovernment has welcomed the Constitutional Court’s ruling to dismiss a challenge to its scrap metal export rules, with the Minister of Economic Development, Ebrahim Patel, vowing to act against transgressors of the law.
Two new scrap metal factories to open KwaZulu Natal (KZN) will see the launch of two factories in Durban by Chinese company Jingmen Hubei.
Zuma to launch African division of Brics bankPresident Jacob Zuma has launched the African Regional Centre of the Brics New Development
Bank (NDB) in Sandton, Johannesburg.
MCLI initiative targets cross-border corruptionThe Maputo Corridor Logistics Initiative, in conjunction with The Ethics Institute, has undertaken to draft a Code of Ethics for MCLI members targeting cross-border corruption.
Seifsa CEO calls for more protection from cheap importsGovernment needs to consider additional measures to protect local metals and engineering manufacturers from cheaper and subsidised imports says the CEO of the Steel and Engineering Industries Federation of Southern Africa (Seifsa), Kaizer Nyatsumba.
12 | FRIDAY August 25 2017
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Adele Mackenzie
South African online spend is forecast to grow to over R53bn by 2018, according to recent statistics by PayPal – and this dramatic rise is driving an increased adoption of technology by the transport and logistics industry.
“Globally, and locally, the transport and logistics industry is facing more and more e-commerce demands and increased investment in technology is one of the key ways in which they can optimise
their operations to meet these demands efficiently and cost-effectively,” said Daniel Dombach, director of strategic sales for transportation and logistics at Zebra Technologies.
He told FTW on the
side lines of a supply chain
conference recently that these demands included increased parcel volumes, escalating parcel processing, faster delivery expectations and rapid responses to seasonal deliveries. “These demands in turn place logistics businesses under a number of pressures,” said Dombach.
“The first of these is cost pressures where the per delivery mile expenses go up as you have to factor in added fuel, increased vehicle maintenance costs and higher labour costs as you need more
staff to get the goods out very quickly,” he explained.
Secondly, there is a higher safety risk as an increased quantity of orders – and thus more boxes to load and unload – leads to more parcel damage and the potential for more workforce injuries and downtime.
“Lastly, there is an environmental impact with more CO2 and other harmful gases emitted as more vehicles are deployed. This also impacts on cost competitiveness,” commented Dombach.
He pointed out that while there were several ways in which technology could help minimise the impact of the pressures, small changes such as adding tracking and data analysis could make a huge difference.
“Real time tracking gives one immediate insight into a logistics supply chain – from the warehouse to delivery – and allows operations managers to see where the problems or opportunities are and make small adjustments,” he said.
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Government gets tough From page 1
The scrap metal merchants have in turn blamed beneficiators for making frivolous offers to purchase scrap just so that Itac will deny or delay the permits and thus frustrate their exports. “They complain that some local buyers object to the permit but do not provide payment terms and do not collect the good. Or fail to pay on time,” said Subban.
She added that scrap dealers also complained of tonnes of waste metals
piling up in their scrapyards due to the time delays involved in first offering local industry, then
applying for a permit and waiting for it to be granted.
“The scrap dealers argue that although most applications may be approved, all delays in the movement of the metal increase their exposure to commodity market risks and precipitate
cash-f low issues,” highlighted Subban.
Chairperson of the Metal Recyclers Association (MRA), Quintin Starkey, pointed out that the scrap industry had seen a number
of closures, noting that the scrap industry was estimated to have lost 40% (9 000 employees) of its formal workforce since the introduction of the PPS.
He conceded however that much of that could be attributed to the economic downturn as a whole.
Patel is however upbeat about the success of the PPS, pointing out that prior to the policy directive SA had seen a significant increase in export of the raw material to the detriment of local industry.
“Volumes of ferrous scrap metals increased by 340% between 2003 and 2012, while the value (in rand) increased by 1 060%. Since the introduction of the trade policy directive, export levels have dropped and local foundries and mini-mills have reported an improvement in the supply of scrap metals,” he said.
Export levels have dropped and local foundries and mini-mills have reported an improvement in the supply of scrap metals.– Ebrahim Patel
“
Increased investment in technology is one of the key ways of optimising logistics operations.– Daniel Dombach
“Rise of e-commerce drives investment in technology
