Embed Size (px)
Citation preview
October 2016
Corruption costs Mozambique big time
Port investment stays on track
NAVIGATING THE EYE OF THE STORM
MOZAMBIQUEFREIGHT & TRADING WEEKLY
MAPUTOAv. Da União Africana, 4341T: +258 21 720 482T: +258 21 723 355F: +258 21 720 452E-Mail: [email protected]
BEIRARua Sanches Miranda/Av. Sousa AraujoT: +258 23 354 819T: +258 23 353 312E-Mail: [email protected]
NACALACruzamento de MatibaneMaveveneCel: +258 84 834 7865E-Mail: [email protected]
TETERua Nr. 7 – ChitataMoatizeT: +258 84 744 9287E-Mail: [email protected]
JOHANNESBURGUnit H2 Supreme Industrial Park408 Southern Klipriviersberg RdSteeldaleCel: +27 83 305 5646
www.lalgy.co.mzFTW7840
Your end to end solution for project cargo
SERVING MOZAMBIQUE
FTW3493SD
www.ftwonline.co.za
Editor Joy OrlekConsulting Editor Alan PeatAssistant Editor Liesl VenterDeputy Editor Adele MackenziePhotographer Shannon Van Zyl Advertising Yolande Langenhoven Claire Storey Neo MangopePublisher Anton Marsh
CorrespondentsAfrica/Port Elizabeth Ed Richardson
Tel: (041) 582 3750Swaziland James Hall
Advertising Co-ordinators Tracie Barnett, Paula SnellLayout & design Zoya LubbeeCirculation [email protected] by JUKA Printing (Pty) Ltd
Annual subscriptionsCombined Print & Internet - (SA only) R640.00
Southern Africa (Free Internet) - R1 165.00International Mail (Free Internet) - R1 535.00
Publisher: NOW MEDIAPhone + 27 11 327 4062
Fax + 27 11 327 4094E-mail [email protected]
Web www.ftwonline.co.za
Now Media Centre 32 Fricker Road, Illovo Boulevard,
Illovo, Johannesburg. PO Box 55251, Northlands,
2116, South Africa.
CONTENTS
October 2016 Mozambique 1
Donovan Govender +27 82 959 2592 [email protected]: +27 11 881 0075 Sandy Long +27 71 302 8335 [email protected]
• Mozambique • Namibia • Zimbabwe • Botswana • Zambia• Swaziland• Malawi• Lesotho
Hassle free over border logistics solutions
FTW7258
A well-known landmark, the Macuti Lighthouse in Beira.Cover Design: Zoya Lubbee
SYSTEMS UP AGENTS’ PRODUCTIVITY
dry port offers solas-approved weighbridge
SEAFREIGHT
6
nacala the next boom port8
maputo port investment stays on schedule14
r20m truck investment boosts expansion drive
LOGISTICS
4
lower rates keep beira corridor competitive7
logistics companies watch the weather22
ressano garcia border revamps road clearance
GENERAL NEWS
18
‘unfair’ banana tariff helps fill tax coffers22
india now a top agri export destination26
10
MSC ADDS MAPUTO CALLS
23
REGIONAL RAIL BOOSTS MCLI
23
CORRUPTION COSTS MOZAMBIQUE BIG TIME
3
M ozambique’s logistics sector is navigating its way through possibly the
stormiest period since the official end of the civil war in 1992.
Collapsing commodity prices, a rampant dollar, the economic implosion of Zimbabwe, the drought and corruption are all contributing to the tempest.
In the face of the challenge logistics companies are keeping goods and commodities moving by slashing costs, improving efficiencies and offering new services. When the storm is over the Mozambican logistics sector will be in a position to help its customers become much more competitive. FTW’s Africa correspondent, Ed Richardson, takes a closer look.
www.ftwonline.co.za
2 Mozambique October 2016
Mozambique’s ranking at 112 out of 168 countries in the latest Corruption Perceptions Index is
just a number until one sees what impact corruption has on business and the related flow of goods.
Corruption – or the perception of it – is having an impact on imports as the country has run out of foreign currency.
Recognising the dangers Mozambican president Filipe Nyusi, has been on an anti-corruption drive since he took power in 2014 – but it has proven to be too little too late for the international community.
In April this year the International Monetary Fund suspended funding to Mozambique after the discovery of more than $1bn in previously undisclosed government debt.
The World Bank followed by stating that it would withhold funding on a number of projects, and then the G14 – a group of 14 countries which together contributed 12% to the annual government budget of the world’s
seventh poorest country, according to the World Bank.
One of the results of the scandal has
been an almost 70% depreciation of
the metical against the US dollar and a roughly 40%
depreciation against the rand.
This has had a direct effect on the buying power of Mozambican
businesses and consumers.The problem with corruption
is that it is contagious and it fuels rumours and uncertainty.
Take the current spate of attacks on vehicles and trains in the northern Tete and Sofala districts.
Depending on who you talk to, the perpetrators could be a resurgent Renamo, government Frelimo troops extorting money, bandits – or a combination of all three.
Whoever is responsible, reported attacks on trains resulted in Brazilian mining company Vale stopping shipments through Beira and rerouting all its coal through Nacala – along a rail line it owns and controls and through its own terminal.
There are reported to be significant savings.
When FTW visited Zambia – a prime market for Beira – forwarders showed footage of trucks burning on the Beira corridor.
In order to reduce risks they were advising their clients to move their cargo through Durban, Walvis Bay or Dar es Salaam.
Mozambican hauliers, on the other hand, continue running on the route
because they believe that the attacks are isolated and the chances of a truck with its cargo being lost is less than that of having an accident.
But, they too are unsure just who is responsible for the attacks.
A favourite – perhaps anecdotal - quote from Renamo leader, Alfonso Dhlakama, is that if he wanted to stop a train he would destroy the locomotive and not just have his troops fire one or two shots through the cab.
This was repeated a number of times in conversations during a recent visit by FTW to Mozambique.
What is not so anecdotal is the return of road blocks in which soldiers or police target cars with foreign registrations in order to extort money.
Having seen the reports on social media or hearing about it first-hand from friends, tourists are now choosing other destinations – perpetuating the cycle of poverty and further reducing the demand for goods.
Nyusi will have to do a lot more to persuade donors and lenders that the ruling Frelimo party is serious about tackling corruption.
Corruption costs Mozambique big time
Mozambican authorities have started issuing heavy fines
to South Africans doing business in the country without a valid visa. That includes just being at a meeting.
It is not unknown for officials to walk into a meeting and demand to see the visas of all those present, according to Hanlie Lloyd, director of PacMoz.
Work visas need to be applied for at the Mozambique embassy in Pretoria before entering Mozambique.
Lloyd says the Mozambican authorities have started implementing the provisions of a 1952 regulation (Labour Law, Chapter V, Article 12 & 13) that requires South Africans to have valid visas to work in Mozambique.
“Fines can run as high as 10 x the annual salary of the highest-paid person in the room – whether or not they have a visa or are a Mozambican citizen,” says Lloyd, pointing out that previously the regulations were not enforced and South Africans were free to move
in and out of the country provided their stay did not exceed 30 days.
Companies based in Mozambique are also at risk of falling foul of regulations that are either new or had not been enforced previously.
Some, such as the compulsory changing of the sticker containing TARE information on the side of commercial vehicles from black ink to red ink, can go unnoticed or ignored until the company is fined.
In other instances, lodges have had to pay import duty on equipment – such as fridges, beds and linen – that was not correctly declared at the border.
With all equipment being imported, PacMoz is in constant demand to help companies respond to the issues raised during inspections, Lloyd says.
Identifying the need for business support services that help companies meet the regulatory requirements, Lloyd established PacMoz in 2012. It now has a network of offices in Maputo, Beira, Nacala and Pemba, and is
part of the Australian RBR Group.Services include company
registrations, permits and licences; human resources (immigration, expatriate visas, recruitment, labour broking, contracts and payroll); legal; and financial.
It also helps companies with managing project applications with the Investment Promotion Centre (CPI); identifying reputable and cost-effective service contractors across almost any business discipline; logistics support; the planning of investment projects in Mozambique and due
diligence reviews, she says.Labour requirements need
to be spelled out during the planning phase of a project as the authorities want specifics on how many expats will be employed, their skills level, and the duration of the contract – down to the last day – Lloyd highlights.
Authorities clamp down on work visas
October 2016 Mozambique 3
A balance of import and export container volumes
makes Beira attractive to shipping lines, according to Cornelder executive managing director Adelino Mesquita.
Cornelder de Mozambique (CdM) is a private joint venture between Mozambique Ports and Railways (CFM) and Cornelder – based in Rotterdam, Holland.
Among the factors contributing to the balancing of container imports and exports are the improved efficiency of the port.
Investment in container yards, new gantry cranes and other equipment is increasing the capacity of the port to 450 000 TEU a year.
The Finnish-made
Konecranes can lift up to 65 tons, have a reach of 40 metres and can handle two containers simultaneously.
International lines CMA CGM, PIL, Maersk and MSC make direct calls at Beira, which is also served by smaller lines and feeder services.
The lines operate a named-day service, with little or no waiting time in the channel.
For importers and exporters the dwell times in the port have been reduced from 20 to below 10 days thanks to increased productivity and a much better planning and collaboration between the port operator and the other actors in the logistics chain.
Customs and clearing
agents are also working together more closely to ensure that cargo is cleared faster. Truck turnaround in the port has been reduced from four hours to 45 minutes.
Shippers are using the port due to the improvements in productivity and reliability, and because of its proximity – it is less than half the distance to Durban or Dar es Salaam for shippers based in Zimbabwe, Zambia, the Democratic Republic of Congo and Malawi, according to Mesquita.
Beira is becoming more widely recognised as a good option. This is evident from the fact that the export volumes from Zambia and
Zimbabwe are holding steady or are growing despite the regional economic slump, he says.
Mesquita believes cargo owners recognise that they obtain significant cost savings in transport costs by switching to Beira.
The road link along the EN6 highway from the port to the Zimbabwean border is being upgraded, and Cornelder is working with the authorities to improve the rail links to the port.
Balanced loads make Beira more attractive for lines
Construction of an extension to the existing
Beira container terminal is progressing well and is nearly completed.
A new agribulk facility has been created that can store over 25 000 tons of cargo. It is currently being used to deal with the large amounts of maize imports due to the regional drought, but will be
used for other commodities in 2017.
Work is expected to start within the next two years on a planned extension of the quayside in the port of Beira.
The 600-metre extension of the existing quayside will also provide vessels with a 14-metre draft, according to Cornelder executive managing director Adelino Mesquita.
Focus on security
A new intelligent camera system and fingerprint-
controlled entry points are among the security upgrades in the port of Beira that are being implemented. All terminals have been fully secured with electric fencing, according to Cornelder
commercial manager Jan de Vries.This year new higher and more
rigid fencing will be installed around the entire port perimeter to further improve security.
A new private security company that specializes in port security has also been appointed.
Access control in the port of Beira is now by fingerprint.
Doubling up to handle maize Pressure is building on
the ports of the region to handle the expected inf lux of millions of tons of drought-relief maize.
With the big volumes arriving later than planned, the port of Beira has had to invest in new equipment and reconfigure existing facilities in order to handle the expected volumes, according to commercial manager Jan de Vries.
Capacity has been doubled through the conversion of
a transit shed into a bulk warehouse, the procurement of material handling equipment
and the addition of a weighbridge.
Two new materials handlers enable the port to pile
the grain close to the roof, so
increasing the capacity of the
warehouse. Four new portable
bagging units will enable the port to
bag maize on site for loading onto f lat beds, while agricultural harvesters are being used to load bulk wagons.
Beira expansion on track
www.ftwonline.co.za
4 Mozambique October 2016
TAKE NOTE: A business visa is required for all non-tourists and information must be given in writing to the labour office closest to where you will do business. Foreign Workers’ Regulation V Article 12 & 13
PacMoz is your first stop. We will prepare and submit all paperwork.
T: +258 20 030 447M: +258 84 642 2980E: [email protected]
FTW7845
Planning to do businessin Mozambique?
T he Mesquita Group, based in Beira, is marking its 25th anniversary of being in business by investing
in new trucks and expanding its head office.
“We have grown from one truck to being one of the biggest operators in the region,” says commercial director Celso Mesquita.
Over the past year Transport Carlos Mesquita (TCM) has invested R20 million in new trucks sourced from South Africa.
At any one time the group can have around 190 trucks on the road in Mozambique, Malawi, Zambia and Zimbabwe.
All are tracked using
the latest technology. “We deliver cost-effective services by regularly updating our technology and developing new facilities to meet the changing needs of our customers,” says Mesquita.
TCM operates a six hectare inland container depot with two 10 000-sqm warehouses and a container yard four kilometres from the port of Beira.
It offers the full range of logistics value-added services in the facility, such as the packing and destuffing of containers.
A sister company, Indico Logistics, provides the full logistics service, including clearing and forwarding.
There are plans for the development of a second inland container depot covering 100 hectares outside Beira. It will be one of the biggest container depots in Mozambique.
New offices are currently under construction for the Mesquita Group, which includes TCM, Sermoz, Multiservicos (MTS), Dammo Service System, Indico Logistics, Mozambique Solucoes e Equipamentos and Agriverde.
Over the next year Mesquita will be focusing on growing the group while the day to day running of TCM will be handled by his nephew, Orlando Mesquita.
R20m truck investment boosts expansion drive
Shipping lines are taking note of improvements in the
port of Beira and the growth of volumes – along with the potential for additional traffic once the drought breaks and certain big projects come on line.
“If the draft allowed, we would be optimistic about bringing bigger vessels into the port of Beira. Already our vessels are leaving the port full,” says Carolyn Kathewera, Safmarine’s Mozambique sales and country representative.
Safmarine serves Maputo, Beira and Nacala. Beira is well connected to the rest of the world.
The M-Express is a weekly service. West-bound it calls on Port Reunion and Tomasina
before Maputo Beira and Nacala.
From Maputo, calling Port Louis and terminating in Port Klang and Tanjung Pelepas.
Cargo is transhipped in Port Louis to the Middle East, Asia and the Far East.
Safmarine runs an additional feeder service that connects Beira to Durban and the SAECS service to Europe.
Kathewera, who moved to Maputo from the Nacala office earlier this year, says the line is keeping a close watch on developments in the port.
Road and rail links to Malawi and northern Zambia are also being upgraded.
“Nacala port is exciting. We are staying close to the developments and ee will be ready to provide the
stellar service we are have mastered in our 70 years as a company when the volumes pick up,” she says
“We are optimistic that volumes will pick up through Nacala.
There are a number of exciting projects in the pipeline for the North of Mozambique. This is a great opportunity to stimulate the economy.”
Lines see big potential for Beira
Production at a new steel factory in Tete is set to start
in January 2020, according to the western Mozambican region’s provincial governor, Paulo Auade.
He said the new factory – with the capacity to produce 500 000 tonnes of steel bars annually – will be built in the Revobue Industrial Free Zone, which is located on the border between Moatize and Chiuta districts.
A local representative of the United Kingdom-based Baobab Resources, Capitol Iron and Steel, has committed to investing US$770 million dollars in the Tete Iron and Steel Project. Baobab owns the majority share (87%) while the International Finance Corporation (IFC) holds a 13% share.
Steel factory earmarked for Tete
The port of Beira.
October 2016 Mozambique 5FTW3488SD
LET THE EXPERTS HANDLE YOUR CARGO
www.macship.com
Your multipurpose service connecting North West Continent with Southern Africa & USA/Mexico
CPT +27 21 405 3400 | DUR +27 31 365 6800 | JNB +27 11 340 0499 | RCB +27 35 797 9161PLZ +27 41 581 3994 | WVB +264 64 201 2911 | MPT +258 21 35 6500
[email protected] | WWW.MACSHIP.COM
FTW7578QR Code
FTW7835
YOUR A to Z MOZAMBIQUE LOGISTICS SOLUTION PROVIDER
• Intermodal transport • Groupage • Warehousing • Stevedoring • Project cargo
Contact: Monica TemporarioTel: +258 23 327 313 Mobile: +258 84 513 8277
www.ftwonline.co.za
6 Mozambique October 2016
FTW3497SD
Connect with us and we’ll connect you with ...Mozambique • Angola Malawi • Zambia • Zimbabwe
new offices, new warehouse, new directionDoor to door into Africa
FTW7836
ProcurementProject CargoHazardous CargoFresh and Frozen Produce
MozambiqueT +258 21 311 616 C +258 843 110 [email protected]
Fluent in English and Portuguese
South Africa T +27 11 387 8880/1 C +27 76 294 8988 [email protected]
T hree warehouses covering a total of 14 000sqm have been added to the Independent
Beira Logistics Terminals and Services (IBLT&S).
“Services” was relatively recently added to IBLT to include the investment in additional facilities such as the warehouses, fumigation and the stripping and stuffing of containers, according to general manager Aleksandrs Kucerovs.
He says space in the warehouses was quickly taken up by forwarders and cargo owners. Designed for short-term storage of mainly high-
value cargo, they have a fast turnover – meaning that space
is regularly freed up. One of the services that
attracts shippers to the terminal is its fully
paperless cargo handling system.
This has reduced delays due
to human
error and has also improved security for the high-value cargo handled by the terminal.
The whole purpose-built precinct is also bonded and under constant surveillance.
The dry port has one of five Solas (Safety of life at sea)-approved weighbridges in Beira, according to Kucerovs.
Situated on the Beira corridor road, it has direct links into the port.
Containers are allocated to specific trucks, and loading will not commence if the numbers do not match up.
The system is compatible with
that used by the shipping lines calling Beira, which enables the lines to keep track of their equipment on a daily basis.
“It will also be able to talk to Navis, which will enable the lines to automate the movement of their containers in and out of the dry port,” he says.
Having empty containers from the different
shipping lines stored on site means that there are no delays when it comes to stuffing and despatching them.
offers Solas-approved weighbridge
One of the services which attracts shippers to the terminal is its fully paperless cargo handling system.– Aleksandrs Kucerovs
“
October 2016 Mozambique 7
Ongoing investment in people, facilities
and vehicles shows that J&J Transport Africa is “here to stay” despite the current downturn in volumes along the Beira Corridor, says deputy chief executive officer Christian Roeder.
“We still believe in the region 20 years after we were established in Beira,” he adds.
J&J Africa is responding to the current downturn by focusing on its own systems to identify “what we can do better in order to reduce costs for our customers,” he says.
Group-wide training is helping the company to reduce costs by working smarter.
“What is exciting is that there is a new generation of talented
local youngsters coming into the industry,” he says.
Savings will be passed on, and road transport rates have been reduced “significantly” to keep the Beira corridor competitive, he says.
J&J Africa has also been looking into reducing costs and increasing the range of services provided at its warehouse operations – Beira Logistics Terminal (BLT) and Independent Beira Logistics
Terminal and Services. Roeder believes the Beira
Corridor continues to offer a viable alternative to Durban and Dar es Salaam for hinterland exporters and importers.
“There are a lot of good things happening – the port operator is investing in the port, and customs have become very approachable. Our roads are also being upgraded.
“Working in partnership with our clients we want to continue playing our part in developing the region in the future,” he says.
FTW3321SD
YOUR BIG LOADSOUR EXPERT SOLUTIONSAbnormal / OOG Cargo | Fuel Transport Tipper Services | General Cargo
Manga Mascarenhas, Brazuca Bar No. 34, Estrada Do Aeroporto, Beira, MozambiqueTel: +258 303464 Cell: +258 82 543 4722 Email: [email protected]
FTW7830
The port operator is investing in the port, and customs have become very approachable.– Christian Roeder“
Lower rates keep Beira corridor competitive
In the five years since the Mozambican Single Electric
Window (SEW) customs system went live in September 2011 it has collected 127 billion meticais (R24 bn), according to a report on MCNet.
The Mozambique Community Network (MCNet) is a public private partnership set up to implement and operate the SEW in Mozambique.
MCNet quoted Mozambique customs deputy director-general, Ambrósio Orubale, who was speaking at a business meeting.
Currently the system covers a network of 71 locations.
One of the challenges still facing the system is providing electronic payment facilities at remote border posts where there are no banks, he said.
Single Electric Window five years on
www.ftwonline.co.za
8 Mozambique October 2016
GR
APH
ITE
2526
FTW1213SD
Nacala is seen by many in the shipping industry as the next boom port on Africa’s eastern seaboard.
The natural deep water harbour is the closest gateway for Malawi and eastern Zambia, as well as the potentially economically booming north of Mozambique.
There is a market of around 45 million people in the Nacala corridor.
At present it is the third-busiest port in Mozambique after Beira and Maputo.
Nacala port and railway is concessioned to Portos do Norte SA, a consortium that includes the Brazilian mining group Vale Mozambique.
Its majority shareholder is state port and rail management company Portos e Caminhos de Ferro de Moçambique (CFM).
Funding for the development of the port has come from Japan, which has lent a total of US$380 million to date for the first
two phases of a three-phase upgrade of the port.
Work has started on Phase 2, which will include the rehabilitation of berths number 1 and 2 in the north terminal, according to the Portos do Norte website.
Berth number 1 will be dredged to 14 metres and become a dedicated container quay.
It will have two ship to shore
gantry cranes, and 2.4 hectares of reclaimed area.
This will be used for warehousing, a new access road for general cargo trucks, improved access roads and gate system for container trucks, and increased space for container storage, according to the company.
It is estimated that the implementation of the project will triple the port’s capacity to
4 738 000 tons of cargo and 234 000 TEUs by 2019.
On the land side a new rail link from the Mozambican province of Tete through Malawi is already operational and work is being undertaken on upgrading road links.
Work on the road between Nacala and Lusaka is scheduled to be completed by 2018, according to media reports.
The road between Malawi and Nacala is also being upgraded.
In July this year the Malawian Roads Authority announced that funding had been obtained for Phase 4 of the Nacala Corridor development project.
This is a 75km stretch from Liwonde to Mangochi in southern Malawi. The work is expected to be completed in mid-2018.
The 707km road from the border post at Chiponde to Nacala is a mixture of asphalt and gravel and is listed as being among the world’s most spectacular and dangerous roads.
Nacala the next boom port?
Capacity to treble by 2019.
October 2016 Mozambique 9FTW3406SD
Maputo has become a major entry point for used vehicles
bound for neighbouring countries as they can be driven on the road. South African regulations require that the vehicles are transported off-wheel to the border.
“We have registered great success with our customers in converting used car imports moving to Maputo and Nacala via ro-ro vessels,” according to Carolyn Kathewera, Safmarine’s Mozambique sales and country representative.
Safmarine showed used car importers that they could save around US$2 300 for every five cars imported to Mozambique in containers.
Shippers are able to pack four to five vehicles in a 40-foot container.
This has led to the establishment of a strategic partnership between Safmarine,
importers in Mozambique and the main exporters based in Japan, making Safmarine a strong carrier on car imports, she says.
“This has proven to be not only
cost-effective but also presenting a faster transit time for our customers due to minimal transhipments. We are able to save up
to US$230 000 a year for customers importing 100 cars,” she says.
Maputo attracts growing volumes of used vehicles
China will send a group of specialists to Mozambique next
year to help establish an industrial park.
Chinese ambassador to Mozambique, Su Jian, said: “The Mozambican government has already identified a number of potential locations. Once that has been finalised, Chinese and Mozambican companies will be invited to tender for the construction of the initial phase of the project.”
China is one of the major foreign investors in Mozambique and has implemented several initiatives to help the debt-ridden country grow its economy, including debt relief programmes and low interest loans.
Safmarine showed used car importers that they could save around US$2 300 for every five cars imported to Mozambique in containers. – Carolyn Kathewera
“
Industrial park on the cards
10 Mozambique October 2016
Truck driversForklift drivers
Heavy equipment handling
Futuro Skills LdaAddress: Rua da Mozal Nr. 371
Beluluane, BoaneTel: +258 20 030 447
Email: [email protected]
FTW7846
A leading training provider in Mozambique
FTW3324SD
Matola Cargo Terminal (MCT) is reconfiguring and expanding its
warehouse space to meet growing demand in Maputo.
Existing warehouses are being “opened up and refurbished” to accommodate modern stacking and storage systems, says administrative and finance manager Carlos Proenca.
This is just one of the ways that MCT has adapted to the changing needs of the market over the past 20 years since it was established primarily as a customs clearing area for cargo transported by truck from South Africa, he says.
“Now that customs clearing has moved to Km4 we are able to reorganise and reinvent ourselves,” he says.
Large multinationals are among the long-term clients because of the strict governance that is part of the MCT culture.
“Everything is done by the book. Multinationals do not want to be caught up in any funny business,” he says.
The terminal has the flexibility to adapt to meet the logistics needs of
a wide range of clients, he says.“We have been reinventing
ourselves for 20 years,” says Proenca, pointing to a framed record of the first oranges handled by the facility when it opened.
Market forces switched orange exports from breakbulk to containers, which then led to MCT converting the citrus cooling and storage chambers into refrigerated chambers for tobacco.
A large slab laid down for the transfer of bulk minerals into containers has also been repurposed for project cargo.
As part of its logistics services MCT has invested in a fleet of 25 trucks, some of which are refrigerated.
They carry fresh produce from South Africa and farmers around Maputo to the northern parts of the country for a large supermarket chain.
“There is a market of 20 million people in the north and we help our clients to meet their needs for food and fast moving consumer goods,” he says.
There is also a container handling and storage facility in the terminal.
Containers are destuffed and packed on site.
www.ftwonline.co.za
The minerals terminal at Beira Logistics Terminal has been repurposed to handle pipes for a water project.
Meeting the demand for warehouse space in Maputo
Beira Logistics Terminals (BLT) and the port of Beira have set a
new benchmark for the unloading of bulk cargo – 6500 tons of fertiliser was discharged and offloaded in the BLT facility within 24 hours.
An intensified focus on health and safety meant that the operation was carried out incident-free, according to Jonathan Middleton, BLT general manager.
BLT specialises in the bulk transfer and handling of all grades of fertiliser. It handles the product from vessel to loading onto trucks for the end user.
Two of the warehouses have bagging machines able to handle
up to 1 500 tons a day. A mobile bagging machine adds a further 1 000 tons a day capacity when needed.
The facility can also handle high-value cargo such as copper.
In addition to focusing on health and safety BLT is working towards ISO 9001 accreditation, which will make it a service provider of choice for the mines and international fertiliser companies, as well as other importers and exporters, says Middleton.
Most of the bulk fertiliser being handled by BLT in Beira is dispatched to blenders in Zimbabwe, Zambia and Malawi.
While overall volumes have
been affected by the drought and foreign exchange challenges in the two countries, BLT has secured a greater share of the Beira fertiliser volumes through the implementation of systems which provide customers with greater control of their stockpiles, as well as a focus on costs, says Middleton.
Loading systems in the warehouses allow shippers to use both flatbeds and bulk trailers.
A number of bulk trailers have become available following the closing down or cutting back of coal mining operations in the region.
In addition, BLT clients are able to track and monitor their cargo on-line.
Beira terminal sets new handling benchmarks
Jonathan Middleton, BLT General manager.
FTW3324SD
www.ftwonline.co.za
12 Mozambique October 2016
Fishing, Ships Agency, Shipping & Warehousing, Marine Engineering, Marine &Aviation Safety, Containers
UNITED CONTAINER DEPOTA Division of Novagroup (Pty) Ltd
Cape Town: 021 511 8362 Durban: 031 205 9418 Johannesburg: 087 942 2747 Port Elizabeth: 041 486 1607 Lüderitz: 0026 463 203 241 Walvis Bay: 0026 464 203 946
24 hour reefer call out service centre for Carrier, Daikin, Thermo King & Star Cool
FTW6828
Storage & Handling • Repairs & Cleaning Edi Tracking • Transport • Reefer Services
For all your container requirements
www.ucd.co.za
FTW3402SD
FTW3245SD
Logistics operators in Mozambique have become weather prophets – with
predictions of the return of the rains varying from office to office.
One which has seen it all before is Manica Mozambique, which was founded in 1849, and is one of a handful of companies in the region to have traded its way through booms and busts caused by war and drought over three different centuries.
The company is continuing to invest in people, systems and equipment during the downturn, says liner manager Fabruque Assubuje.
Even if the rains come he points out that agricultural exports will not pick up until harvesting in March 2017.
Prospects for Zimbabwe will be assessed in October, and those for Malawi in November, by which time the rainfall patterns should be established.
As for commodities, Manica started handling chrome, minerals, sugar, maize, copper and rubber exports to Europe after the Second World War.
The Great Depression of 1929 had a similar effect on the region to the aftermath of the 2008 global financial crisis.
In 1929 it was the growth of tobacco exports that kept Manica and the region alive economically.
Beira benefited from the Second World War, and was the gateway for exports of minerals, tea and tobacco.
Today the drought crisis has seen the port once again
become a life-line, this time for the importation of drought relief.
“We are moving both wheat and sorghum,” says Assubuje.
Sorghum is used in school feeding schemes.
“Beira remains the natural port for Zimbabwe, Zambia and Malawi. The port has the potential to continue increasing its volumes,” he says.
Having been part of the growth of Beira and the Mozambican rail network in the 1800s and early 1900s, Manica is now focusing on Nacala.
It is the closest port for
Malawi and northern Zambia. There are a number of mines being developed in the area and agricultural production is increasing.
All that is holding it back is the road and rail infrastructure needed to link it on the land side.
“Manica already has a warehouse and offices in the port. We will be part of its growth,” he says.
Logistics companies watch the weather
October 2016 Mozambique 13
FTW6867
Proud representative and sales agent to
+27 11 395 4156 [email protected]
Italian oil firm, Eni, is likely to hear by the end of this month whether
global banks are willing to finance a major offshore gas development in Mozambique.
The company met bankers in London last month about project financing to develop Coral Field, part of the huge reserves discovered six years ago in the Area 4 concession off the Mozambican coast.
The funding needed is reportedly “billions of dollars” but sources report that some lenders may be concerned about involvement in a
project in Mozambique, given recent financial scandals as well as clashes between opposition guerrillas and government forces.
The International Monetary Fund (IMF) was in Mozambique late September to try to restore trust between President Filipe Nyusi’s government and international lenders after more than US$2 billion in secret loans came to light this year.
The IMF has suspended its own lending to the country, insisting on external scrutiny as a precursor to resuming financial aid.
FTW7379
T: 087 943 [email protected]
www.cwccargo.co.za
Cross Border Consolidation Into Africa
“We Move the Economy”
FTW7432
Tel +268 2404 2486 | Fax +268 2404 5009 www.swazirail.co.sz
A f lexible approach enables Chavda Freight to keep its
clients’ freight moving in and out of Mozambique despite challenges such as armed attacks on trucks, according to chief executive officer Mahaveer Chavda.
“We are accustomed to the challenges. We have planned different routes to avoid any delays and offered clients payment terms.
“Clients are also advised to insure all their cargo to minimise risk for both parties,” he says.
With offices in Johannesburg and Cape Town, Chavda Freight has built up a network which allows for ease of
cargo movement to and from Mozambique.
It has also developed partnerships with clearing agents.
The objective is to provide a one-stop service and to help
clients to do business throughout Mozambique.
At present Chavda Freight runs regular consolidation and dedicated loads to Pemba, Tete, Nacala and Maputo.
“We believe in creating opportunities,” Chavda says.
“The growth in Africa will continue to increase, and there are international investors who are interested in investing in Mozambique.”
Flexibility keeps freight moving
There are international investors who are interested in investing in Mozambique.– Mahaveer Chavda“ Moz project awaits funding
Coral Field is located in the Rovuma basin offshore of the Mozambican coast.
www.ftwonline.co.za
14 Mozambique October 2016FTW3119SD
FTW6311
• Global ISO tank operator• Founded in South Africa in 1996• Safe environmentally friendly transport of bulk liquids, into and out of SA• Specialists in the Oil & Gas Industry• Highest standards of service, quality and safety• ISO tanks are completely multimodal and can be used for bulk storage
A member of the Multistar GroupM&S Logistics
Johannesburg: (011) 510 0011 | Durban: (031) 312 3212 | Cape Town: (021) 418 5870 E-mail: [email protected] | www.mslogisticsltd.com
The sight of dredgers working on the channel leading into the port of Maputo shows that investment in the port
is continuing despite the current global downturn in demand for commodities.
Volumes are down from 20 million tons in the previous financial year to an estimated 14 million in the current financial year, according to Johann Botha, commercial director of the Maputo Port Development Company (MPDC).
This drop has been turned into an advantage, with the MPDC upgrading the ore storage and handling facilities and refurbishing the quays in line with the port’s “terminalisation” strategy.
The strategy is aimed at helping importers and exporters to reduce their logistics costs. “We assist in finding solutions to ensure the corridor remains competitive,” says Botha.
Cargo is now stored closer to the berths where it will be loaded, and a new ring road has been built at the back of the port to allow unrestricted access to the stacks on both the receiving/despatch of cargo as well vessel operations.
The road has allowed the port to completely separate the cargo stacking from vessel handling operations.
Rail facilities within the port have been upgraded, and efficiencies have been improved during a trial in which MPDC took responsibility for the shunting of wagons in the
harbour, leaving the national rail company, Caminhos de Ferro de Moçambique, (CFM) to focus on the long haul.
There has also been time to focus on skills development, with Liebherr training crane operators as part of a purchasing contract for new equipment.
But, for most visitors to Maputo, the most obvious sign of the investment in the port remains the dredgers – one of which is the largest in the world.
The dredging operations, aimed at deepening the Maputo Port shipping
channel from its current -11 metres to -14.2 metres, are scheduled to last 10 months, with work having started in May this year.
An estimated 30 million cubic metres of sediment will be removed from the 70-kilometre-long channel.
It will be both deepened and widened to smooth out tight curves which restrict the length of vessel the port can accommodate.
“What we are finding is that the new generation of vessels is longer and wider rather than just deeper,” says Botha.
At the same time the berths within the port are being upgraded.
Three of the berths are being transformed into two berths that are each 250 metres long, and 15 metres deep at low tide, according to Botha.
Grindrod is expanding the Matola terminal to accommodate vessels of up to 80 000 tons – which will now be able to pass safely through the channel.
The investment is already paying off. “Despite the challenges we are seeing volumes growing again,” says Botha.
Changes in the mix reflect the dynamics of the market, with drought causing sugar export volumes to drop and maize import volumes to increase.
Volumes of clinker are also growing to feed new cement plants in Mozambique.
“By the end of 2018 we will be back to 20 million tons a year, and we will be handling a larger range of commodities.
“What we are doing right is that we have remained flexible. We are always on hand to help customers, and they know who to talk to. Thanks to our lean structure, decision making is a quick process.
Maputo port investment stays on schedule
Van Oord’s trailing suction hopper dredger (TSHD) HAM 310 working in the Maputo channel.
Volumes of fast moving consumer goods and other
consumer products moving into and through Mozambique are unlikely to recover until the local currencies strengthen against the dollar.
As with South Africa and other countries in the SADC region, consumer spending power has
been severely curtailed by an array of factors.
Local manufacturing of some products has protected South African consumers to some extent, but Mozambique imports close to 100% of its consumer goods – and these are priced in dollars.
Even where there is local manufacturing or beneficiation,
the price has been affected by the dollar cost of inputs of raw materials and equipment.
Over the past year the Mozambican metical has more than halved in value against the dollar.
While it was steady for a number of years at around 30 meticais to the dollar, it has now
fallen to 76 meticais or more.In September the metical was
also trading at 86 to the euro. This has effectively halved
the buying power of consumers shopping for goods priced in dollars.
Even the rate against the South African rand has fallen after rallying a little earlier this year.
Rising dollar decimates FMCG volumes
FTW3119SD
www.ftwonline.co.za
16 Mozambique October 2016
For rates, bookings & enquiries:
Jhb: 011 881 9500 Dbn: 031 536 7440Cpt: 021 418 4848
Maputo: I.Messina Mocambique Limitada+ 258 21 300020/35/37
1921 Ignazio Messina & C. THE ITALIAN LINE
1994 Ignazio Messina & C. Pty Ltd SHIPPING AGENCY IN SOUTH AFRICA
THE ONLY INDEPENDENT RO-RO CONTAINER SERVICE
IN THE TRADE WITH OWN CONNECTING SERVICES
THROUGHOUT THE MEDITERRANEAN
FTW4877
MSC has increased the frequency of its calls into the port of Maputo in order to
reduce waiting times for shippers using the container terminal.
This is part of the line’s long-term commitment to Mozambique.
Service levels have been maintained or increased at the two main ports of Beira and Maputo despite the current downturn in volumes, according to Nicola del Vecchio, general manager of Mediterranean Shipping Company Mozambique.
As a result MSC’s share of the market has grown, he says.
The line’s South Africa to Mozambique/Mombasa service calls on Beira, Maputo and Nacala.
There are now weekly
transhipments between Durban and Maputo, as well as weekly calls by the north and south-bound feeders on Beira, says Del Vecchio.
Beira has been the least affected by the drop in volumes in the region, with MSC seeing “good growth” in transit cargo to Zimbabwe and Malawi.
MSC calls on Nacala once a fortnight, but Del Vecchio is confident that this frequency
will be increased to match growing volumes.
“Volumes have dropped in Nacala over the last two years but we expect them to increase in coming years.
“Over the next four to five years there will be tremendous growth in Nacala volumes. We are already seeing an increase, and investment in the port will support further expansion,” he says.
Del Vecchio believes that having a feeder service to Durban benefits importers and exporters making use of Mozambican ports.
The South African port is connected directly to the main export destinations and sources of imports.
“All lines tranship somewhere. In fact, there is not much difference in the transit time for cargo bound to Shanghai from Maputo between transhipping it in Durban or calling direct,” he says.
Because of the linkages South African shippers – particularly those based in Mpumalanga – can use Maputo as an alternative to Durban.
“We can handle anything in Maputo, and we currently have the capacity on the vessel. There is no short shipping out of the port,” he says.
MSC adds Maputo calls
Over the next four to five years there will be tremendous growth in Nacala volumes.– Nicola del Vecchio“
Beira-based Specialized Transport has become one
of the first cross-border tanker operators in the region to obtain ISO 9001 certification.
This is in addition to its OSHAS 18001 (occupational health and safety) certification.
All customers are benefiting from the certification of the tanker fleet as it has raised standards
throughout the different divisions, which handle out of gauge and general cargo, according to managing director Chris Morris.
Specialized also has a tipper fleet to meet the growing requirements for all construction and civils needs.
“Our focus is on service,” says Morris. The company’s fleet of modern truck/tractors and semi/tankers complies
with all the latest safety technology.Designed for local conditions, the
tankers have separate compartments, each able to carry a different type or grade of fuel.
Drivers have to pass an on-board breathalyser test before they can start the trucks. On-board cameras record the whole journey.
Tracking devices provide customers with peace of mind and
the ability to know where their load is at any time, he says.
Technical teams are on stand-by to provide support all along the routes within Mozambique and neighbouring Zimbabwe, Zambia, DRC and Malawi
“As part of the J&J Africa Group, Specialized is able to provide a full one-stop service to its clients,” says Morris.
Tanker service gets ISO accreditation
October 2016 Mozambique 17
FTW3458SD
FTW3487SD
SERVICES INCLUDE:• Customs Clearing• Cross Border Transport• Dangerous Goods Handling• Insurance• International Forwarding• National Collection / Delivery
• Packing• Perishable Cargo Handling• Pre-Inspections• Project Services• Regional On-forwarding• Warehousing
For complete peace of mind contact the professionals
24 YEARS OF PERFECTING BUSINESSTel: +27 11 823-4806/27/31 Fax: +27 11 823-4955 E-Mail: [email protected] www.kingfisher-freight.co.za
FTW7814
18 Mozambique October 2016
www.jjafrica.com
Leading Transport & Logistics ProviderJ&J offers a superior service, delivered on time to/from Zambia, Zimbabwe, Mozambique, Malawi and Eastern DRC
Mozambique Office: Tel: +258 23 302 956 | e-mail: [email protected] Zambia Office: Tel: +260 972 596 371 | e-mail: [email protected]
Zimbabwe Office: Tel: +263 4 447171 – 6 | e-mail: [email protected]
• Custom Fleet Management solution for accurate real-time reporting
• 39,000m2 of warehouse space Packing and unpacking of containers
• Bulk handling and bagging facilities in Beira 24-hour satellite tracking on all trucks
• Flat Bed, Drop Sides and Low Bed trailers State-of-the-art inland container depot & logistics facility
www.ftwonline.co.za
W ith foreign trucking companies making up 80% of the
transporters moving export goods via South Africa and Swaziland to Mozambique, the Mozambique Revenue Authority (MRA) is proposing changes to the clearance of goods passing through Ressano Garcia.
The changes – designed to reduce congestion at the crossing – were recently outlined in a briefing session facilitated by the Maputo Corridor Logistics Initiative (MCLI).
Currently South African companies are required to present a cargo manifest to Sars before leaving South Africa, while the importer of the goods provides a declaration to the MRA through the offices of a clearing agent.
The World Customs Organisation (WCO) best practice indicates that the transporter should make the declaration as the importer does not transport the goods and should not have to present a cargo manifest.
The intended changes will not only bring the process in line with the WCO recommendations, but will improve the customs procedure and curb smuggling and tax evasion, according to an MCLI briefing note.
The implementation of the new process will be preceded by a pilot project.
Amendments and exemptions have been made to Mozambican customs law to make provision for foreign companies to be allocated a nine-digit NUIT number which codifies the company’s details.
All foreign transporters carrying exports into Mozambique by road will require a NUIT number to access the single electronic window to generate a cargo manifest.
Together with the NUIT
number, the transport company will receive a letter and a card, both of which are obligatory requirements when dealing with the MRA.
Currently goods are cleared without a cargo manifest document, which has led to an absence of accountability of the goods being transported and the documentation required by Sars cannot be
reconciled to the documentation required by the MRA.
The new procedure will address this anomaly. Each truck will also be issued with an
identification number to access Km4, and will pass through the entry point for Km4 on the truck bypass road at Lebombo.
The identification number will allow customs to access the scanning image of a truck’s contents and will obviate the need for double scanning.
No truck will be able to cross into Mozambique without this identity number.
The transporter will be in a position to issue the single customs manifest with the company NUIT credentials and it will allow declaration of all the goods loaded on one truck.
After completing all the mandatory fields the system will generate a road manifest number which can then be handed over to the importers of the goods.
The process will also require the NUIT number of the importer of the goods, which must be obtained from the exporter.
The necessary training of individuals to draw the single cargo manifest will be facilitated by MCNet.
The time frame for implementation will be announced following successful completion of the pilot project.
The MRA has requested transporters who are interested in participating in the pilot project to apply through the MCLI.
Ressano Garcia border revamps road clearance procedure
Border changes designed to reduce congestion.
All foreign transporters carrying exports into Mozambique by road will require a NUIT number to access the single electronic window.
“
FTW7832
A TURNKEY SOLUTION for the mining, oil & gas industries in Africa
Nucleus Mining Logistics provides high levels of service to clients seeking world-class supply chain management solutions.
+27 (0)71 6788184 | [email protected]
20 Mozambique October 2016FTW3261SD
Nothing can contain usAt Röhlig-Grindrod our commitment to our clients and each other means nothing holds us back.
We ensure optimal container utilisation, negotiate direct carrier contracts and wherever possible secure direct sailings. We take into consideration the impact that extended transit times have on your supply chains, and endeavour to provide you with the fastest most efficient solution.
We evolve constantly and innovate to ensure that cost effectiveness and efficiency are always delivered to our customers as consistently as their goods.
Regardless of designation or cargo, Röhlig-Grindrod leverages the negotiating power of a multi-national organisation and are committed to always doing more.
Röhlig-Grindrod. Creating chains of trust.
For all your logistic requirements visit our new website www.rohlig.co.za
dedicated toTransit...
delivery efficiency
SOUTH AFRICATel: +27 (11) 907 8808 I Fax: +27 (11) 869 3323 I email: [email protected]
ZAMBIACell: 00260 966 860703 I email: [email protected]
ZIMBABWETel: 0027 828 177700 I Cell: 00263 78320 8424 I email: [email protected]
FTW6981
dedicated
Innovative freight solutions ensuring your competitive edge.
Road freight of perishable goods, general & industrial consignments, within the RSA & Southern Africa.
Consolidated loads from RSA to Zimbabwe & Zambia
F r e i g h t C o - o r d i n a t o r s ( P T Y ) L T D
Tel: +27 (11) 907 8808Fax: +27 (11) 907 8969
email: [email protected]
to deliveryefficiency
24hr tracking 24hr tracking
Innovative freight solutionsensuring your competitive edge
Road freight of perishable goods, general & industrial consignments, within the RSA & SADC REGION
Consolidated loads from RSA to Zimbabwe & Zambia
24hr tracking
www.ftwonline.co.za
A much-quoted and quite probably apocryphal quote
doing the rounds of the Mozambican freight industry is Renamo leader Alfonso Dhlakama’s response to claims that his forces had fired on a train in an attempt to stop it.
Pointing to the success of Renamo in destroying bridges and disrupting transport in northern Mozambique during the civil war, Dhlakama is quoted as saying that if he wanted to stop a train he would blow it or the track up.
The story reflects the lack of certainty about just who is behind the attacks on cargo trucks travelling between Beira and Malawi and Zambia.
In June a driver’s assistant was injured when gunmen fired on an empty coal train en route from the port of Beira to the Vale mine at Moatize in the northern Tete province.
Bullets fired by the attackers shattered the windscreen of the lead locomotive, and Dhlakama’s
response was apparently made when Renamo fighters were blamed.
Amidst uncertainty come rumours and conspiracy theories.
It is pointed out that after a second similar incident where a locomotive was fired on, Vale suspended exports along the Sena Line through Beira and rerouted its coal along a newly opened line to Nacala.
A 136-km link through Malawi was largely financed by Vale, and the line is running at below capacity.
In Nacala vessels can be loaded at the quayside at a new terminal also financed by Vale.
Using Beira incurs the additional cost of transhipment at sea as the port is too shallow to take the large bulk vessels.
Depending on who you talk to the attacks on the trains and trucks are blamed on Renamo – the official government line; disgruntled Frelimo soldiers who have not been paid (there are reports of protection money helping trucks to pass through unmolested); and bandits.
Growing speculation around attacks on cargo trucks
October 2016 Mozambique 21
www.manica.co.mz
Fully flagged offices in Maputo, Beira, Quelimane, Nacala and PembaFor all your needs in Ships Agency
Clearing & ForwardingWarehousing Road Haulage Railage Air Cargo Marine Services
FTW7839
FTW3459SD
Bonded WarehousingBagging & WeighingBulk Fertilizer Handling
Container Stripping & StuffingPort Logistics
Liesl Venter
Expectations for growth in the Mozambican airfreight market remain high despite the current adverse market
conditions.While volumes have remained low
in the past few months due to the low market prices for oil and gas, demand is expected to increase once the planned LNG project kicks off in early 2017.
Sanjeev Gadhia, CEO of Astral Aviation, an established cargo airline based in Kenya, says the benefits in Mozambique are enormous.
“But they are linked to the oil, gas and mining sector,” he told FTW. “Due to the insufficient demand caused by the lack of activity in the oil and gas sector this year the current airfreight volumes have remained low, ranging between only five to ten tons a week.”
But, says Gadhia, he is optimistic
that demand will increase as soon as the end of the year.
“The outlook is extremely positive in light of the planned LNG plant,” he says.
With the discovery of more than 75 trillion cubic feet of recoverable natural gas resources, Anardarko is working to develop one of the world’s largest LNG projects in Mozambique. While the project has moved more slowly than was initially expected, indications are that it will be all systems go towards the end of this year and into early 2017.
Experts maintain that the ongoing gas projects in the country following the massive finds will transform Mozambique’s economy, despite confidence being dampened earlier this year following the announcement of the state’s debt.
Gadhia shares the positive sentiment saying the gas projects will bring major opportunity to logistics role-players across the continent – so much so that the company is
considering investing in a cargo terminal at Pemba Airport for its own shipments.
“One of the biggest challenges in Mozambique at present is the lack of infrastructure. The present infrastructure at the Pemba Airport is very limited for cargo handling.
Astral Aviation operates a fleet of seven cargo aircraft from its Nairobi hub to Europe (London and Liege), Mozambique (Pemba and Nacala), Tanzania (Dar-es-salaam, Mwanza, Zanzibar and Mtwara), South Sudan (Juba), Somalia (Mogadishu), Rwanda
(Kigali), Uganda (Entebbe) and Comoros (Moroni) in addition to 50 destinations on a charter basis.
“We have been servicing Mozambique since 2014, offering a weekly scheduled service from Nairobi specifically for the oil and gas sector with cargo consolidations in Houston, Aberdeen, Singapore, Dubai and Johannesburg,” says Gadhia. “The service provides 15 tons of capacity per week.”
The company also operates a weekly air cargo service between Nairobi and Nacala to complement its Pemba service.
Kick-start for airfreight growth
Astral Aviation... serving Mozambique since 2014.
www.ftwonline.co.za
22 Mozambique October 2016
Air freight into Africa and beyond
Road freight into Africa - Zimbabwe, Mozambique, Malawi, Botswana, Lesotho, Swaziland, Namibia and Zambia
Sea freight - Europe and Asia
Cross trades - China and India
Imports
T: +27 (11) 395 3284 | T: +27 (11) 395 4765 | C: +27 (0) 84 516 1736 | C: +27 (0) 72 191 6396 F: +27 (11) 395 3714 | E: [email protected] | E: [email protected]
“For the best quality service.”www.jarplogistics.co.za
FTW7459
INDEPENDENT BEIRA LOGISTICS TERMINALS & SERVICES
OUR SERVICESContainer DepotStripping & StuffingWarehousing
Weighing (VGM Certified)Out of Gauge Cargo
For more information visit us on:www.iblts.com E-mail: [email protected] Te: +258 23 900 512
FTW7823
Bananas are being discriminated against at the
Km4 one stop border post on the Mozambican side of the border.
While botanists classify banana as a fruit – more specifically a berry produced by herbaceous plants in the Musa genus – Mozambican customs treat it differently to citrus, another fruit.
This is highlighted in a US Agency for International Development (USAid)-funded study on the Km4 border post near Ressano Garcia.
It points out the difference in treatment between citrus fruit and bananas.
Citrus fruit is included in the tariff schedules of the Kudumba and Km4 (GT) terminal management’s goods in transit category, with a tariff of 1 008 metical (R217) per truck.
Banana is classified as an export product, and despite both
products belonging to the fruit category, the tariff charged is 2 160 metical/truck (R464) – or twice as expensive.
This difference in tariffs is also applicable to parking tariffs.
Trucks carrying bananas pay US$ 1.9/ton, while trucks piled with citrus fruit pay US$0.75/ton.
In the process the Mozambican authorities harvest rich pickings from the country’s own banana growers.
Mozambique exports approximately 100 000 tons of bananas to South Africa each year, which equates to around four thousand trucks moving through Km4, or around 8 511 million metical in additional taxes.
Fixing tariffs charged on the export of bananas at the same level as those practised for
citrus fruit in transit, would reduce the export costs of bananas by approximately 50%, according to the authors of the report.
They point out that the tariffs are detrimental to Mozambican producers and exporters.
“The banana industry is restarting its growth. A penalising tariff structure
does not encourage domestic production and removes competitiveness from the banana value chain.
“Thus, it is recommended that the possibility of fixing similar tariffs (to citrus) be considered, thereby returning the competitiveness to the export of bananas to the South African market,” says the report.
‘Unfair’ banana tariff helps fill tax coffers
October 2016 Mozambique 23
FTW7748
Tel office: + 27 11 513 2900 | The Pivot Office Park, Block C, Third Floor, Montecasino Boulevard, Fourways North, Gauteng, 2086, South Africa
www.hoeghautoliners.com
The Middle East, India and Africa to the Americas service
2 sailings per monthDirect and Transhipment
Partnership, Efficiency and Progress on the
Maputo Corridor
www.mcli.co.za
Tel: +27 13 744 0293 Address: 94 Columbus Street, Steiltes, NelspruitEmail: [email protected]
FTW7831
A ll three regional rail operators have agreed to fund the Maputo Corridor Logistics
Initiative (MCLI) in full for the next year at least.
This is good news, in the long term, for the development of multimodal transport along the corridor and the reduction of costs and delays, according to chief executive officer Barbara Mommen.
Transnet Freight Rail, Swazi Rail and the Mozambican rail utility CFM have agreed to cover the operating costs of the corridor management institution, which has been largely funded by the private sector for the past 12 years.
There is also some project funding in the pipeline from the World Bank’s Sub-Saharan Africa Transport Program which will see an MOU drafted to set up a public private partnership between the public sector in the form of the three government utilities and the MCLI as the private sector.
“Authorities in all three
governments understand that they have to speak to the private sector in order to overcome challenges on the corridor, and vice versa, and at the moment we are the private sector,” she says.
Mommen says the funding will enable the MCLI to concentrate on “predictability, reliability and efficiency.
“To achieve this we will ensure that we do not become a rail organisation. We will continue to be an inclusive corridor organisation,” she says.
There is potential on the corridor for developing a multimodal transport system which makes the most productive use of the
investments by both the private sector in the form of trucks and trailers and the rail authorities.
“Road and rail need to work more symbiotically. This means fresh thinking
by both rail and road operators. “Now is the time for
multimodal transport if we are to preserve the regional infrastructure.
“The ministries of transport in Mozambique, South Africa and Swaziland are all very supportive of this process,” she says.
Being part of a public private partnership will give the MCLI greater lobbying power in the government sector.
“What it does is to bring both the policy and implementation arms of government into a corridor institution. It is very exciting to combine that with private sector users, investors and service providers,” she says.
Going forward she says the focus will be on the provision of “proper corridor services that allow us to add value to all the stakeholders.”
The provision of services will also ensure the future sustainability of the MCLI.
Regional rail operators put weight behind MCLI
Now is the time for multimodal transport if we are to preserve the regional infrastructure.– Barbara Mommen“
www.ftwonline.co.za
24 Mozambique October 2016FTW5619
WALVIS BAYTEL: (+264) 64 209-600
PORT ELIZABETHTEL: (041) 505-4800
EAST LONDONTEL: (043) 702-8293
PRETORIATEL: (012) 335-6980
CAPE TOWNTEL: (021) 405-2000
DURBANTEL: (031) 360-7911
JOHANNESBURGTEL: (011) 263-4000
MEDITERRANEAN SHIPPING COMPANY SATHE DEPENDABLE INDEPENDENT GENEVA SWITZERLAND
THE GLOBAL SERVICESWISS
PRECISIONTRULYWEEKLY
SY
STEM CERTIFICATION
SGS
ISO9001:2008
Companies that are in Mozambique for the long haul are using the current downturn
as an opportunity to invest and build up their capacity.
“We are continuing to invest during the downturn so that we are able to help our customers when the market turns. Our official position is that we are open for business 24 hours a day, whatever the trading conditions,” says Paulo Faia of AMI Africa Mozambique.
AMI International has a strong focus on Africa, according to Faia.
The company’s Mozambican
office was opened in April 2009. It specialises in ships’ agency and logistics services, and serves Malawi, Zimbabwe, Zambia and the Democratic Republic of Congo.
Through Mozambique, AMI is able to link exporters and importers in the region to the Middle East, Pakistan, India and China, as well as a growing
number of African countries.
The Mozambican office has experienced “roller coaster”
growth over the past few years.“In 2015 we handled over
3 600 TEUs and are on track to do better than that this year,” says Faia.
In order to control costs, the Mozambique company has invested in its own f leet of 32 trucks with modern trailers
Operations in the group are split across four companies, offering transport, clearing and forwarding, stevedoring and terminal operations.
Some US$10 million is being invested in a new warehouse, which will be one of the biggest in Beira.
“It will be able to store 35 000 tons of fertiliser – which is two vessels at a time,” he says.
Building capacity to prepare for future growth
$10mThe investment in a
new warehouse in Beira.
Safmarine has grown market share significantly
in agro commodities, textiles and apparel in Mozambique through the downturn by focusing on the needs of its customers, says Carolyn Kathewera, Safmarine’s Mozambique sales and country representative.
“We have a dedicated and passionate team that specialises in knowing and understanding our our customers’ business,” she says.
Growing against the grain
October 2016 Mozambique 25
A single port of call for Importers and Exporters on the EN4
Nelson Costa Florbela Trancoso Joao Cardoso / Toyota [email protected] [email protected] [email protected]: + 258 843 120 120 Cell: + 258 84 384 6020 Cell: + 258 84 337 2112
FTW7843
www.mozspan.co.mz
Transport, Handling & Distribution Warehousing SolutionsCold & General StorageToyota Forklift Agents Citrus HandlingWeighbridgeRail SidingHigh SecurityMineral TerminalContainer Yard
Facilities for all cargoes. Modern Warehouses.
MATOLA CARGO TERMINAL SARL
YEARSCELEBRATING
With daily direct flights to over 5 destinations in Mozambique, Airlink Cargo is your preferred choice to get your goods to and from Mozambique.
Airlink Cargo can connect cargo in South Africa, across southern Africa and from southern Africa to a wide range of destinations throughout the world in conjuction with our strategic partners. To find out more about our airfreight service offerings, contact Airlink Cargo on +27 11 978 1128, [email protected] or www.airlinkcargo.co.za
FTW7458
FTW3388SD
www.ftwonline.co.za
26 Mozambique October 2016
GLOBAL LEADERS IN CLEARING & FORWARDING
Sea freight | Air Freight | FCL, LCL & TanktainersWarehousing & Distribution | Logistics
ISO 9001:2008 & ISO 14001:2009
JHB T: 011 397 7420 / 2369 | F: 011 397 7123 / 3921DBN T: 031 301 0241 / 8250 | F: 031 301 [email protected] | www.leschaco.com
FTW7723
Global Presence
FTW3484SD
Roadfreight experts into
ZAMBIAANGOLAMOZAMBIQUE
FTW7825
also offering LCL services to Namibia
also servingNAMIBIA MALAWIZIMBABWEBOTSWANASWAZILAND
For competitive rates contact:
T +27(0)11 395 3472 E [email protected] www.namgola.co.za
Indian companies have become the major buyers of agricultural produce from Mozambique and surrounding countries,
according to Paulo Faia of AMI Africa Mozambique.
“The Indians are buying up all the cotton and pulses that Mozambique and Malawi can produce,” he says.
Export volumes to India are expected to continue growing.
In July 2016 Mozambique and India signed three agreements, including a long-term deal for the importation of pulses.
There is a positive balance of payments for Mozambique in the trading of agricultural products, according to the Indian agriculture department.
It says that in the 2014-2015 financial year exports through Mozambique totalled US$80.87
million, while Indian exports to Mozambique were worth around US$30.81 million.
The main agricultural commodities being exported primarily through Beira are beans, cow peas, oter beans, pigeon peas and cashew nuts.
Mozambique and Malawi supply around 15% of India’s pigeon pea imports.
Indian agricultural exports from India to Mozambique are primarily rice, cane sugar, confectionery, biscuits and oil cake, according to the Indian agriculture department.
However, Mozambique’s biggest imports from India are medicines, textiles and plastics, according to Infodrive India.
The average agriculture tariff rate for India and Mozambique is 33.5% and 8.9% respectively, according to the World Trade Organisation.
now one of Mozambique’s top agricultural export destinations
Pigeon Peas
Cow Peas
Cashew Nuts
October 2016 Mozambique 27FTW3499SD
FTW3492SD
Your carriers fromPort – Warehouse Local – Crossborder
Contact details:+27 11 626 1741/2998+27 82 447 8794
www.jgjtransport.netFTW7696
Automation and the creation of online platforms in
Mozambique are making certain elements of doing business easier and more efficient, according to the World Bank 2016 “Doing Business” index.
Among the improvements listed by the index are:
Trading across borders An electronic single-
window system, along with administrative improvement at customs, has reduced the time required to clear goods.
Paying taxes Paying taxes has been made easier for
companies by introducing a new corporate income tax code with a simplified scheme. For those with annual revenues of up to 25 million meticais, a new value added tax act with a simplified scheme for smaller companies (those with revenues
between 750 000 and 2.5 million meticais) and electronic tax forms for social security taxes.
Enforcing contracts The country’s contract enforcement system
has been strengthened by the addition of more than 20 judges, all of whom have received formal training; introducing court administrators to ease the administrative burden on judges; and introducing performance measurement for judges.
Starting a businessThe time required to start a business has been
shortened by implementing electronic publication of the incorporation notice and eliminating provisional registration. In addition, the country has made the use of notaries optional, computerised its registry and introduced f lat registration fees.
Automation makes it easier to do business in Mozambique After 30 years of helping
customers navigate their way through highs and lows in Mozambique and around the world, the LBH Group is confident that it will be able to weather the present wave of challenges in this difficult market, according to company managing director, Athol Emerton.
LBH Mozambique and LBH South Africa were two of the first offshore ventures of the Rotterdam-based LBH Group of Companies.
The Mozambican company has offices in eight ports – Maputo, Beira, Quelimane, Moma, Angoche, Nacala, Pemba, Mocimboa da Praia and an inland office in Nampula.
With its presence in all the commercial ports and its years of experience in Mozambique the company has expanded beyond its traditional focus on bulk shipping.
In 2014 LBH Mozambique introduced LBH Xpress, a
specialised transport business, which runs from Johannesburg and Durban along the full 2 500 km length of Mozambique.
A partnership signed with Barloworld in 2015 offers total dry bulk commodity supply chain solutions in and out of Mozambique.
The partnership combines LBH’s knowledge of the movement of bulk commodities with Barloworld’s supply chain capabilities, giving clients a single point of contact with the multiple service providers found along the dry bulk supply chain.
Services offered by LBH Mozambique include ships agency, clearing and forwarding, tally and sampling, marine surveys, supply of support vessels, and warehousing in Nacala and Maputo.
The Mozambican operations are complemented by associated services in South Africa and Namibia, also operating under the LBH brand.
Riding out the storm
www.ftwonline.co.za
28 Mozambique October 2016
THE FTW ADVERTISERS’ INDEX
Advanced Customs Solutions .............7Airlink Cargo ......................................25AMI Africa Mozambique ....................5Astral Aviation .....................................6ATC Aviation ......................................13BidAir Services ...................................27BLT Beira Logistics Terminals ............21Chavda Freight...................................15CMA CGM ...........................................25CML – Cargo Management & Logistics ..............................................12Consolidation and Wholesale Cargo ...............................13Cornelder de Mozambique .............. 11
DAL Transport ......................................1ECUWORLDWIDE ...............................12Futuro Skills Lda ................................10Grindrod South Africa ........................9Höegh Autoliners ..............................23IBLT Independent Beira Logistics Terminals ............................................22Ignazio Messina .................................16J & J Transport ...................................18Jarp Logistics ......................................22JGJ Transport Management .............27Kingfisher Freight Services ...............17Lalgy Transportes, Lda .....................IFCLBH MOZAMBIQUE LDA ...................17
Leschaco .............................................26M&S Shipping ....................................14MACS Maritime Carrier Shipping ..................................5Maersk South Africa .........................17Manica Freight Services (Mozambique) ...................................21Maputo Corridor Logistics Initiative ..............................23Matola Cargo Terminal .....................25MSC Logistics .......................................8MSC Shipping .....................................24Namgola Logistics .............................26Nucleus Mining &
Africa Logistics ...................................19PacMoz Lda ..........................................4Port of Maputo .............................. OBCPrestmarine International ...............26Professional Aviation Services .........27Röhlig Grindrod .................................20Safmarine .............................................5Specialized Transport ..........................7Swaziland Railway .............................13Transit Freight Co-ordinators ...........20Transitex Global Logistics Operations ............................6United Container Depot ...................12UPS .................................................... IBC
The need for local knowledge to keep goods moving through Mozambique is evident from the 2016
World Bank Logistics Performance Index.
It ranks Mozambique 115th out of 167 countries in a combination of scores over the past four editions.
It fares better among the top ten low-income economies, where it ranks sixth.
At the top of the low income list is Uganda (58th) Tanzania (61st), Rwanda (62nd) and Burkina Faso (81) as the four African countries ahead of it.
South Africa is ranked 25th in the global index.
Mozambique scores relatively high for international shipments (83), but is ranked 131st under “logistics quality and competence,” and 134th under “infrastructure”.
Customs is ranked 119th in the four-year list.
But there is improvement. The country comes out at 84th
in the 2016 ranking, where South Africa is ranked 20th.
Customs procedures are ranked at 88th out of 160 and infrastructure 116th.
International Shipping is again
the best-performing measurement, with Mozambique being ranked 58th in the world.
It is ranked 109th on logistics competence and 97th on tracking and tracing.
The country has, however, dropped in the World Bank “Doing Business” rankings – from 128 in 2015 to 133 in 2016.
The biggest drop was in starting a business (-6), while the biggest gain was dealing with construction permits (+6).
Also improved was getting electricity (+2 rankings to 164th in the world).
Logistics performance in a nutshell
INDICATOR MOZAMBIQUE SUB SAHARAN AFRICA
TIME TO EXPORT: BORDER COMPLIANCE (HOURS) 78 108
COST TO EXPORT: BORDER COMPLIANCE (US$) 602 541
TIME TO EXPORT: DOCUMENTARY COMPLIANCE (HOURS) 70 97
COST TO EXPORT: DOCUMENTARY COMPLIANCE (US$) 435 246
TIME TO IMPORT: BORDER COMPLIANCE (HOURS) 14 160
COST TO IMPORT: BORDER COMPLIANCE (US$) 354 643
TIME TO IMPORT: DOCUMENTARY COMPLIANCE (HOURS) 24 123
COST TO IMPORT: DOCUMENTARY COMPLIANCE (US$) 310 351
ENFORCING CONTRACTS (DAYS) 950 653
COST (% OF CLAIM) 119 44.9
Export documents required
º Bill of ladingº Certificate of originº Commercial invoiceº Customs export declaration
(Documento Único)º Exit authorisation º Packing listº Terminal handling receipt
Import documents required
º Cargo release orderº Commercial invoiceº Customs import declaration
(Documento Único)º Delivery orderº Inland bill of lading º Inspection report from
scanner (Kudumba)º Packing listº SADC certificate of originº Terminal handling receipts
Source: World Bank Doing Business indicator.
Germany: 1
South Africa: 20
Namibia: 79
Mozambique: 84
Zambia: 114
Angola: 139
DRC: 125
Zimbabwe: 151
Syria: 160
Logistics Perfomance Index 2016
FTW3493SD
FTW3486SD
