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CMA CGM GROUP TARGETS ANGOLA WITH EXTENDED SERVICE COVERAGE Full Story On Page 3 AFRICA TRADE-WATCH Kenya: Mombasa Port Hits 1-Million Mark ISSUE 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27

Trade-Watch - Issue 44 - January 2015 - CMA CGM 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27. Kenya: Mombasa

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Page 1: Trade-Watch - Issue 44 - January 2015 - CMA CGM 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27. Kenya: Mombasa

CMA CGM GROUP TARGETS ANGOLA WITH EXTENDED

SERVICE COVERAGE Full Story On Page 3

AFRICATRADE-WATCH

Kenya: Mombasa Port Hits 1-Million Mark

ISSUE 44 | JANUARY 2015

Kenya: Concessionaire Sought For 2nd Terminal

Namibia: US$19 Billion Transport Development Plan

24 24 27

Page 2: Trade-Watch - Issue 44 - January 2015 - CMA CGM 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27. Kenya: Mombasa

Kenya: Mombasa Port Hits 1-Million Mark

24

CMA CGM Group Targets Angola With Extended Service Coverage

3

24

27

Kenya: Concessionaire Sought For Mombasa’s 2nd Container Terminal

Namibia: US$19 Billion Transport Development Plan

Contents

Top Stories

03 /African Group News

09 /Events Diary & News Briefs

11 /Pan Africa

21 /Eastern Africa

13 /Western Africa

27 /Southern Africa

1

AFRICATRADE-WATCH

ISSUE 44 | JANUARY 2015

Page 3: Trade-Watch - Issue 44 - January 2015 - CMA CGM 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27. Kenya: Mombasa

News Headlines By RegionWestern AfricaRegional: EU Provides €40 Million To Support Trade & Industrial Development

Angola: New Integrated Foreign Trade System For 2015 / Sign Strengthening Cooperation Deal With France / Imports Fall By Tonnage In Q3 2014 / Construction Of Cabinda Deep-Water Port Starts In June

Cameroon: Gantry Crane Maintenance At Douala Port / Douala Container Cleanup

Cape Verde: Palmeira Port Investment

Cote d’Ivoire: AFC Provides €50m Facility For Transport Infrastructure Projects

Ghana: Dedicated Scanning Area For Tema Port Exports / Tema Port Records 9.2 Million Tons Of Cargo / Customs Decentralizes Validation Of Ecowas Certificate Of Origin [COC]

Mauritania: Nouakchott Port Project

Morocco: To Sell Stake In Marsa Maroc

Nigeria: To Privatise Transport Sector / To Strengthen Bi-Lateral Trade With Vietnam / Government Moves To Address Port Challenges / Federal Court Upholds Nigeria Shippers’ Council / Work Begins On Ondo Inland Port

Togo: More Konecranes RTG’s For Lomé Port / Lomé Gets ISO 9001 Certification

Eastern AfricaRegional: New EABC Code Of Conduct To Boost Regional Trade

Ethiopia: Ethiopia Focuses On Port Sudan Trade Route

Kenya: Exporters To Access EU Duty Free / Mombasa Port Hits 1-Million Mark / Concessionaire Sought For Mombasa’s 2nd Container Terminal / Certificate of Origin - KNCCI Automation / Single Window System Challenges

Mozambique: China Annual Trade Approaching US$3-Billion / Maputo Port Processes 19 Million TonsSudan: Government To Push For WTO Membership

Tanzania: Eurobond To Facelift Infrastructure / Freight Forwarders Contest ‘ProhibitiveRules’ / Dar Es Salaam Port Unlock Landlocked Trade Flows / Dar Es Salaam Electronic Single Window / Port E-Cargo Tracking To Boost Collection / TBS Focuses On Inferior Goods

Southern AfricaNamibia: US$19 Billion Transport Development Plan

South Africa: Improved Integrated Transport Planning / Terex Gantry Cranes For Durban Port

Cargo / Customs

2

Website: www.delmas.comEmail: [email protected]: @DelmasWeDeliver

CMA CGM Marseille Head Offi ce4, Quai d’Arenc 13235 Marseille cedex 02 France

Tel : +33 (0)4 88 91 90 00

www.cmacgm.com

Disclaimer of LiabilityCMA CGM / DELMAS make every effort to provide and maintain usable,

and timely information in this report. No responsibility is accepted for

the accuracy, completeness, or relevance to the user’s purpose, of

the information. Accordingly Delmas denies any liability for any direct,

indirect or consequential loss or damage suffered by any person as a

result of relying on any published information. Conclusions drawn from,

or actions undertaken on the basis of, such data and information are the

sole responsibility of the reader.

THE TRADE & TRANSPORT REPORTBrought to you by CMA CGM / DELMAS Marketing

Rachel Bennett Dominic Rawle

Page 4: Trade-Watch - Issue 44 - January 2015 - CMA CGM 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27. Kenya: Mombasa

Group Targets Angola With Extended Service Coverage Angola is the third largest economy and the second largest oil producer in Sub-Saharan Africa and is focused on diversifying its economy opening up opportunities for foreign investors. Growth is expected to average 5.9% annually over 2015-19, with expansion driven by the hydrocarbons sector. To service this expanding market the Group has added a direct Lobito port call to two of its services:

Lobito Added On Southern American SAMWAF ServiceCMA CGM / Delmas is to add a direct call at Lobito on its SAMWAF service from South America East Coast to West Africa with a maiden call on 26th January 2015.

SAMWAF Service Advantages - A direct call at Lobito - sole carrier with a direct service - Lean and direct service from Brazil and Argentina to West Africa - Service in relay from Uruguay and Paraguay via Itajai hub - Improved transit times from East Coast South America to West Africa by 5 days - WAF markets served: Angola, Nigeria, Rep of Congo, Gabon, DRC, Benin and Togo - Rotation: Buenos Aires, Rio Grande, Itajai, Santos, Rio de Janeiro, Pointe Noire, Luanda, Lobito, Buenos Aires

Lobito Added On West Africa - Asia WAX ServiceCMA CGM / Delmas will add a direct call at Lobito on its WAX service from Asia to West Africa. The maiden call will be on February 9th, 2015. WAX Service Strengths - Fortnightly Lobito call - sole carrier with a direct service - Direct service from South China to West Africa - Service in relay from other China ports and Asia through other Group services - Improved transit times to Lobito eg Chiwan-Lobito just 28 days - Rotation: Chiwan, Nansha, Tanjung Pelepas, Port Kelang, Cape Town, Lobito, Tincan Lagos, Lome, Abidjan, Pointe Noire,

Colombo E/B, Port Kelang, Chiwan.

http://www.cma-cgm.com/products-services/line-services/flyer/SAA

http://www.cma-cgm.com/products-services/line-services/flyer/WAX

3

AFRICAN GROUP NEWSCMA CGM / DELMAS

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CMA CGM / Multiparques Join Forces In AngolaThe CMA CGM Group has signed an agreement with the Angolan Multiparques Group to develop an integrated logistic platforms in Lobito, Angola. The MoU was signed on December 18th 2014 in Paris by Multiparques’s General Manager Leonel Pinto in the presence of the French and Angola Foreign Affairs Ministers, Mr. Laurent Fabius and Mr. George Rebelo Pinto Chicoti. Multiparques is a key player in Angola’s logistics sector, with its concession to run Luanda’s general cargo port extended to 2045.

Lobito is Angola second port, and its location and train transportation connections make it a strategic entry point in West Africa. This not only allows Benguela and Huambo – two major Angola cities - service, but also thanks to the new railroad renovation, to link the city to the Democratic Republic of Congo and Zambia Copperbelt mining region to the sea. Those different elements promise the Port of Lobito to a great intermodal future.

Alexis Michel, CMA CGM Group Logistics and Reefer Senior Vice President

The new terminal will be operational during 2015 and will enhance the efficiency and effectiveness of the port’s operations. Such private sector investment will help boost Angola’s trade expansion and revitalize the sector.

The move will relieve congestion at the port and also reduce transportation and storage costs. Concurrent with this development state-of-the-art tracking technology, providing a linked and integrated process offers cargo clearance within 24 hours. The service even extends to pre-clearance of imports so that when the cargo arrives, all that’s needed is a stamp, everything else is already done electronically.

In order to strengthen our Angola network, where 7-services regularly call, the CMA CGM Group capitalizes on its intermodal expertise, with land infrastructure, ports, terminals and multimodal investments. In Angola, 122 staff work in 5 offices providing expertise on the entire transportation chain.

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FACTBOX: Lobito, Angola – A Regional Transport HubThe Benguela Railway was once Angola’s bloodline, carrying goods to and from the interior and onwards to Zambia and Democratic Republic of Congo [DRC]. The line served as a bridge between the Angolan Atlantic and some of the richest mining areas in the world. It has been impassable for almost 40 years until now. Today it is the most important of 3-railways that, with technical and financial support from China, promise to take trade and development into the heart of Angola and of Africa.

The project for reconstruction of the main railway lines in Angola, by the China Railway Engineering Corporation, started in 2005 at a time when Angola had difficulty accessing financing, at an estimated cost of US$3.5 billion. Now 3-parallel connections are fully restored: 900km between Namibe port and Menongue near the Cassinga iron mine; 540 km from Luanda to Malanje, a diamond area; and 1,350km of the Benguela Railway. The focus now is on ensuring service quality to drive growth and development.

Benguela RailwayThe railway was initially intended to be the shortest route for export of ore from the region of Katanga [S Congo] and the Copperbelt [NW Zambia] through the port of Lobito. But the line also passes through agricultural and forested areas with great potential. At the eastern end, in Moxico province, near the DRC border, is the famous bridge over the River Kasai. Beyond is the province of Katanga where deposits of copper and cobalt account for 40% and 50% of the world’s total reserves. In 2011 the recovery of the line was considered a key part of the Master Plan for Transportation in the Southern African Development Community [SADC] as the route offers transport between Angola, DRC and Zambia and is strategic as it is the shortest and cheapest route from landlocked SADC countries to the markets of Europe and the US.

The Ministry of Transport estimates that in 2015 the line will carry 20 million tons of goods by attracting the flow of Zambian and Congolese minerals for export. At the moment most of these goods are transported through South African ports, 8,000 miles away. A refinery under construction in Lobito has the capacity to process 200,000 barrels of oil per day, creating the potential for another major stream: exports of Angolan fuels to neighbouring countries by land. The line will attract investment, improve regional transport facilities and have an important role to play in economic growth in Angola and neighbouring countries. It will allow Zambia to import products directly from Angola, such as oil, and connect to the sea through Lobito port. Once the Lobito Corridor is fully operational it will enable further development of Zambia, re-launching sectors such as copper production, agriculture and joint ventures between the 2-countries. Angola could become a “regional hub, given its privileged location, including its ports, particularly in terms of international trade. And Angola is geo-strategically positioned to be a regional power in central and south-south trade.

Rail Network MergerThe development plan of Angola’s Integrated Railway System provides for the connection of the 3-lines to the rail networks of neighbouring countries. The Benguela Railway will connect to Zambian Railways, through a special branch line starting at Luacano station, in Moxico province, and the new Lumwana line, under construction in Zambia. The 343 km Moçâmedes Railway will connect to the Namibia railway system, starting from Cuvango station to Oshikango in Namibia close to the border with Angola’s Cunene province. A study is underway for construction of the Congo Railway, which will link Luanda to the provinces of Bengo, Uige, Zaire and Cabinda, over a distance of 950 km, linking up later with the Chemin de Fer du Congo Ocean, in Congo Brazzaville. Angola’s government over the last year has given out signs that private companies may have a role in the development and management of these facilities and is considering the merger of 3-railway companies, into a new public company, Caminhos de Ferro de Angola [Railways of Angola], with operational and commercial activities handed over to private companies.

Lobito PortLobito Port is to become a focal point having been modernised and expanded with a container terminal, an ore terminal and a fuel terminal. Work carried out by the China Harbour Engineering Company will see the port’s current capacity of 3.7 million tons of cargo per year will be increased to 4.1 million tons when the Benguela Railway, rebuilt by China Railway Construction, is working at full capacity. The Angolan government’s project has always involved the reconstruction of the railway. But now it is expanding to include a wider set of infrastructure initiatives designed to support growth and development of areas of high potential. The corridor project also includes the Catumbela international airport with ‘A’ roads and highways to complement. For example in Luau on the border with the DRC a new international airport is also under construction and a container depot and warehouses are to be built soon.

5

AFRICAN GROUP NEWSCMA CGM / DELMAS

Page 7: Trade-Watch - Issue 44 - January 2015 - CMA CGM 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27. Kenya: Mombasa

Lobito

BenguelaHuambo

Luau

Ndola

Lubumbashi

Luanda Malanje

Namibe Menongue

Port of LobitoPort of Namibe

Port of Luanda Angola Railway

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Page 8: Trade-Watch - Issue 44 - January 2015 - CMA CGM 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27. Kenya: Mombasa

CMA CGM / Delmas Upgrades EURAF Services CMA CGM / Delmas is to upgrade its EURAF services from Europe and the Mediterranean to West Africa. Two weekly services will now run instead of 1-service offering increased port coverage, service quality, reliability and cost effectiveness.

EURAF 1 A weekly direct service from Europe and Mediterranean countries to Senegal, Ivory Coast, Mali and Burkina Faso. - Rotation: Dunkirk, Antwerp, Le Havre, Montoir,

Tangiers, Dakar, Abidjan, Dakar NB, Tangiers, Dunkirk - Vessels: 6 x 3500 TEU - Frequency: Weekly - 1st voyage: 22 January 2015 with CS Discovery at

Dunkirk - Mali and Burkina Faso served via Abidjan

EURAF 2 A weekly direct service from Europe and the Mediterranean to the strategic markets of West Africa central countries including Nigeria, Ghana, Ivory Coast exports and landlocked Burkina Faso. - Rotation: Antwerp, Hamburg, London Gateway,

Tangiers, Tin Can, Tema, Abidjan, Antwerp - Vessels: 6 - Frequency: Weekly - 1st voyage: 25th January 2015 with MV Frisia Helsinki

at Antwerp

Advantages Of Restructuring - Lean port coverage to increase reliability and punctuality - Strategic call at Hamburg and London Gateway to Nigeria, Ghana, Ivory Coast, Senegal - New bi-weekly calls at Antwerp instead of 1-weekly call - All services connect worldwide via Tangiers with excellent transhipment management - Restructuring offers improved links to landlocked countries with bespoke intermodal solutions and integrated logistics

services.

7

AFRICAN GROUP NEWSCMA CGM / DELMAS

Page 9: Trade-Watch - Issue 44 - January 2015 - CMA CGM 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27. Kenya: Mombasa

CMA CGM Log Network Expansion Into MoroccoWorking in partnership with ACOMAR [Moroccan Consignment Agency], a Group-owned subsidiary of Comanav, CMA CGM Log Maroc has been operating in Casablanca since November. Under the management of Abdelouahed Belalia Commercial Manager, the ACOMAR team which has specialised in freight forwarding for many years, has now joined the CMA CGM Log network.

Numerous flagship projects have begun, such as the development of air freight, in particular from Tetouan in the Rif region to Chicago, and the introduction of a new “Sea-Air” product. CMA CGM Log currently offers a triangular route with the first leg by sea from China to Casablanca, and the second leg by air to Mali. Developing the international network in Morocco and its neighbouring countries is also one of the priorities of CMA CGM Log.

This is a great challenge for the Group in Morocco, since it will be present in all areas of the transport and logistics sectors. ACOMAR/ CMA CGM Log is run by a dynamic team with extensive experience. After Casablanca, which will remain the main office, CMA CGM Log will be both setting up branches in both Tangiers and Agadir and contacting the Moroccan national airline [Royal Air Maroc] and railway operator [Office National des Chemins de Fer] in order to forge new partnerships.

Patrick Joleaud, General Manager CMA CGM Maroc

Group Attends Dakar Forum On Security In AfricaThe inaugural International Forum on Peace and Security in Africa was held from 15-16 December in Dakar, bringing together more than 300 politicians, military figures, and experts from around 40 countries.

Pierre de Saqui de Sannes, Advisor to the President on African & Middle East Affairs, and Philippe Barreau, General Manager for Delmas Senegal, represented the Group and provided their expertise during the “Maritime Safety and Security” workshop. The Group was the only private firm to lead one of these workshops.

Jointly organised by France and Senegal, the meeting is intended to become an annual event aiming to create a security culture in Africa. For more information view http://www.dakarforum.org/

Burkina Faso MD Awarded The National Merit OrderLast month, Hervé Zongo, General Manager of Delmas Burkina Faso, received the title of Knight of the National Merit Order by the new interim President of Burkina Faso, Michel Kafando.

This honorary order rewards civilian or military services given to the nation and is the highest distinction in the nation.

Left to right: Philippe Barreau, GM Delmas Senegal, Pierre de Saqui de Sannes, HO Marseille and the General Louis Duhau commanding the French Troops in Senegal [EFS]

Burkina Faso President, Michel Kafando with Hervé Zongo

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January 201520-22 Offshore West Africa (Lagos, Nigeria) http://www.offshorewestafrica.com/index.html 29-30 9th Indian Ocean Ports & Logistics (Maputo, Mozambique) http://www.transportevents.com/EventsDetails.aspx?EventID=EVE115

February 2015 9-12 Investing in African Mining Indaba (Cape Town, South Africa) http://www.miningindaba.com/

March 2015 19-21 ZAMBIABUILD: Zambia International Building Material & Construction Technology Show (Lusaka, Zambia) www.zambiabuild.com

19-21 ZAMBIAWATER: Zambia Water Infrastructure (Lusaka, Zambia) www.zambiawater.com

26-27 13th Intermodal Africa North 2015 (Lagos, Nigeria) http://www.transportevents.com/EventsDetails.aspx?EventID=EVE117

May 201520-21 UMEC 2014: Uganda Mining, Energy and Oil & Gas Conference and Exhibition (Kampala, Uganda) www.umec-uganda.com

June 2015 18-19 West Africa Anti-Corruption Summit (Accra, Ghana) http://www.c5-online.com/2015/624/west-africa-anti-corruption-summit

July 2015 15-17 POWER-GEN Africa (Cape Town, South Africa) http://www.powergenafrica.com/index.html

September 2015 15-18 Bauma Conexpo Africa (Johannesburg, South Africa) http://www.bcafrica.com

30 - 2 Africa Electricity 2015 (Johannesburg, South Africa) http://www.africaelectricity.com/

October 2015 29-30 13th Intermodal Africa South 2015 (Lusaka, Zambia) http://www.transportevents.com/EventsDetails.aspx?EventID=EVE118

9

AFRICAN SHIPPING

EVENTS DIARY

Page 11: Trade-Watch - Issue 44 - January 2015 - CMA CGM 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27. Kenya: Mombasa

ANGOLA - Kwanza notes launched in 1999 by the National Bank of Angola

have stopped being accepted as a method of payment on 1 January.

BURKINA FASO - Credit Suisse AG elected not to extend its previously

announced commitment to provide US$37.5 million of project finance debt to Roxgold.

- President Michel Kafando said elections will commence beginning of October 2015.

CAMEROON - An economic mission comprising private sector companies

and Cameroonian government officials will be visiting the Netherlands from May 26-30, 2015.

CAPE VERDE - Portuguese hotel group Vila Galé plans to expand on the

islands of Boa Vista and Sal.

GHANA - President Dramani Mahama announced a US$450m package

for the rehabilitation of roads in cocoa-growing areas. Funds will be released in 3-annual installments of $150m to finance selected roads in Ashanti, Western, Eastern and Brong-Ahafo Regions, under the Cocoa Roads Rehabilitation Project funded through the Ghana COCOBOD.

- Government wants to establish a GHc1.5 billion-Ghana Infrastructure Development Fund to facilitate trade and industry.

- Ghana’s cedi ended 2014 as the worst performing African currency. The Cedi lost 27% in 2014, a sign of a fiscal crisis in an economy that grew strongly in previous years on gold, cocoa and oil exports. Economic growth in 2015 is seen slowing to 3.9% from an estimated 6.9% in 2014.

GUINEA - Irish-registered Anglo-African Minerals (AAM) subsidiary

Tougué Bauxite and Alumina Corporation (Toubal) announced mineral resource estimates for the Toubal bauxite deposit [300km NE Conakry] gaving the board/shareholders confirmation of the project’s potential.

NIGERIA - Indian oil companies like GAIL (India) Ltd., Petronet LNG Ltd.

and Indian Oil Corp. are interested in sourcing all-natural gas on a long-term basis.

SENEGAL - The African Export-Import Bank (Afreximbank) secured €25

million credit facility from Dakar-based leasing company, Locafrique Senegal, to further support the Senegalese agricultural sector. The first tranche of €20 million will enable Locafrique to purchase and import agricultural equipment.

Western AfricaETHIOPIA - The Ministry of Transport announced the government will be

importing 50,000 tonnes of fertiliser through Port Sudan. Last week, a 5,000m2 storage facility was opened at Mojo, south of Addis Ababa.

KENYA - The EU will grant an early return to duty-free trade in a range

of agricultural products from E. Africa including that of Kenyan flowers ahead of Valentine’s Day.

MADAGASCAR - World Titanium Resources have advised shareholders to reject

a takeover offer from fellow-listed mineral sands producer Base Resources. Base launched an off market takeover offer for World Titanium in December, offering one of its own shares for every five World Titanium shares held. With the acquisition of World Titanium, Base was hoping to gain ownership of the Toliara Sands project.

MOZAMBIQUE - Government approved the concession contracts of the

hydroelectric Chemba I and Chemba II hydroelectric projects [Zambezi river] that will produce 1,000 MW of electricity.

- Indian company Bharat Heavy Electricals Ltd (BHEL) intends to continue its international expansion and is now analysing business opportunities in Mozambique.

- Hi-Liner Fishing Gear and Tackle Inc, an American company based in the state of Florida, will provide US$1-million fishing equipment for the fleet of tuna fishing company Ematum.

NAMIBIA - Canada-based oil and gas exploration company Eco (Atlantic)

Oil and Gas has decided to acquire Pan African Oil in order to solidify its position as an explorer offshore Namibia.

- Grape company, Capespan, shipped a consignment of grapes to Europe via Walvis Bay - the 1st time that the company, based in Aussenkehr shipped this route - previously shipped via Cape Town.

SOUTH AFRICA - 4-pharmaceutical companies have been jointly awarded a

R10-b (US$800m) tender to provide antiretroviral medication to the health department for 3-years: Sonke Pharmaceuticals was awarded R3-b, Mylan Pharmaceuticals R2.8-b, Aspen Pharma R2.5-b, and Indian Cipla Medpro R2-b. The contracts will be effective from the April 1, 2015 for a period of 3-years.

- Southern Africa-focused explorer Giyani Gold has announced that its binding letter of intent (LoI) with Horizon Enerji and Sumo Coal has expired, bringing an end to plans to diversify into the oil services / coal sectors.

SWAZILAND - Government commissioned S. African company Kantey and

Templer Consulting Engineers to build a USS$90 million oil storage facility.

Eastern & Southern Africa

10

AFRICAN PROJECT

BRIEFS

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Sino-African Trade Heads Toward US$200 Billion Chinese relations with Africa are set to grow in 2015, with both sides considering upgrading a ministerial-level forum to a leadership summit. The forum, in its 15th term, takes place every 3-years. It acts as a framework to deepen the China-Africa partnership, strengthen economic and trade cooperation, and explore a common path that reflects both China’s and Africa’s realities.

Both President Xi Jinping and Premier Li Keqiang visited Africa in 2014 and China received 13 African leaders throughout the year. Sino-African trade hit US$180.6 billion from January through October 2014, a 4.5% increase compared with the same period last year. Officials predict that figure will pass US$200 billion for the year.

Infrastructure has played a key role in relations. A November agreement to create a 1,402 km coastal railway in Nigeria is China’s single largest overseas project. Meanwhile, the Mombasa-Nairobi railway in Kenya and the Addis Ababa-Djibouti rail projects in East Africa are progressing smoothly. With the Forum on China-Africa Cooperation ministerial conference to be held in South Africa in 2015, more infrastructure projects are around the corner. China will get actively involved in highway, railway, telecommunications, power and other projects in Africa in 2015 to facilitate regional connectivity, with aviation cooperation and a high-speed railway network a focus.

[ECNS 26/12/14]

Germany Gives €2 Million To International Trade CentreThe German government will provide €2 million to the International Trade Centre [ITC] in 2015 to support ITC’s work to promote sustainable development by enabling small and medium-sized enterprises [SMEs] to improve competitiveness and connect to international markets. ITC’s work has an emphasis on sub-Saharan Africa and least-developed countries. A particular focus will be helping businesses improve their export performance, and cope with demands arising from the multilateral trading system.

[ITC 21/12/14]

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PAN AFRICA

TRADE

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West AfricaEU Provides €40 Million To Support Trade & Industrial DevelopmentECOWAS, West African Economic and Monetary Union [WAEMU] and the European Union, together with implementing partners has launched 2-major programmes representing an integrated initiative, which aims at promoting intra- and inter-regional trade, improving the business climate and strengthening the productive capacity of West Africa. These initiatives are aimed at fostering economic growth in the region. The components of these programmes will contribute towards the implementation of the ECOWAS Common External Tariff [CET] and the Economic Partnership Agreement [EPA]. The launch event was attended by high profile dignitaries from ECOWAS, EU, WAEMU, BMZ, GIZ, WBG, UNIDO, representatives of the government of West African countries, regional private sector organisations, and other stakeholders.

[The Inquirer 29/12/14]

Regional Economic Integration & Trade ProgrammeComposed of 4-components with the first 2-aimed at promoting trade integration. They are being implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit [GIZ] with an EU grant of €10m, and additional contributions from the German Government [BMZ] and the ECOWAS Commission of €1m and €0.5m respectively. Component 3 focuses on improving and facilitating trade in West Africa and is implemented by the World Bank Group [WBG] through an EU grant of €3.5million while the fourth component is aimed at deepening the existing customs union of WAEMU Member States and will be directly implemented by the WAEMU Commission with an EU grant of €5million.

West Africa Competitiveness Support Programme The programme has 2-main components. The first, to improve the investment and business climate in West Africa, is implemented by the WBG with a total EU grant of €7.7m. The second goes supports the ECOWAS and WAEMU Commissions to implement the regional quality policy which will boost intra-regional and international trade. The project is being implemented by UNIDO with an EU grant of €12million.

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WESTERN AFRICA

ECOWAS / TRADE

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AngolaNew Integrated Foreign Trade System For 2015A new Integrated Foreign Trade System will be established in Angola in Q1 2015. In order to provide support to exporters the government plans to create an Exporters’ One-Stop-Shop [Guiche Único do Exportador] and the National Export Support Agency. The new system aims to partner with private entities and make use of bank loans for construction of logistics warehouses amongst others.

[Macauhub/AO 31/12/14]

Sign Strengthening Cooperation Deal With FranceAngolan Foreign Affairs minister, Georges Chikoti, and French counterpart Laurent Fabius signed 2-agreements aimed at strengthening cooperation and focusing on the economic sector. The first deal outlined a Joint Action Plan Angola-France 2015-2017, aimed at strengthening economic partnerships. The second is related to a visa facilitation agreement.

[Angola Press 21/12/14]

Imports Fall By Tonnage In Q3 2014Imports in Q3 2014 fell by 2.98% in terms of tonnage to 2.84 million tons according to the National Shipping Council [CNC]. The top imported product continued to be cement, despite registering a drop of 46%, continuing the trend seen since the beginning of the year with a total downturn of 274,790 tons. Among the 20 most imported products in Q3 2014, half were in the food and beverages category. In the food sector there was an increase of 17.76% in sugar imports and 35.87% in meat and offal [including chicken], which were the second and third most imported products. Beer imports increased whilst wine imports remained unchanged and mineral water imports fell by 7.70%.

Among the largest importers was Cimenfort Industrial, which increased it imports by 400% to become Angola’s largest importer. The most significant decrease was registered by Chinangol, which has previously held the top spot, but comes in 22nd place after an 87% decrease in imports. China continued to be the leading provider of products imported by Angola, accounting for 44% of total arrivals in Angola registered by the CNC. Portugal’s exports to Angola rose 6%, while those from Brazil grew 26%. Among the top 10-trading partners, the highlights include South Korea, which doubled exports to Angola, overtaking South Africa, which was sixth in the list.

[Macauhub/AO/CN/BR/PT 05/01/15]

NigeriaTo Privatise Transport SectorThe Nigerian government has announced plans to privatise 8 of the country’s industries by 2015. Officials revealed sectors shortlisted for privatisation are railways, inland waterways, road authority, roads funds, National Transport Commission, ports and harbours, federal competition and consumer protection and postal services. The government is riding on the success story of the previously privatised public enterprises such as banking, power, telecom, marine and steel sectors.

[African Review 22/12/14]

To Strengthen Bi-Lateral Trade With VietnamThe Nigerian-Vietnam Chambers of Commerce and Industry note efforts are being made to strengthen bi-lateral trade. Trading activities have been on the increase for instance the annual rice import bill from Vietnam has hit US$500 million while Vietnam spends about US$100 million to import agricultural products such as raw cashew nuts, cassava, cotton, seafood, minerals and oil palm from Nigeria.

Nigeria’s imports also cover a rubber, electronic products, footwear, plastics, handicraft and construction materials. The chamber is now looking at setting up institutions that will further foster the relationship and is encouraging investors from Vietnam to make in-roads to Nigeria economy such as Viettel telecommunications and PetroVina in the oil and gas sector.

[Daily Independent 08/01/15]

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AngolaConstruction Of Cabinda Deep-Water Port Starts In JuneThe construction of the Cabinda deep-water port, a project estimated to cost around US$600 million, is scheduled to start in June. Preparatory work is already underway with work on the support infrastructure [for construction] being carried out. The work is the largest ever carried out in the province, and will take Cabinda out of isolation, considering that the enclave is around 60km away from the rest of Angola.

Construction of the port, in Caio Litoral, is the result of a public-private partnership [PPP] and will be implemented in 3-phases by Angolan company CAioporto SA. Phase 1 of the project involves construction of port infrastructure and construction of a 100-ha cargo services area. The first phase, whose contractors have already been selected, also involves construction of a 775-m pier.

[Macauhub/AO 08/01/15]

CameroonGantry Crane Maintenance At Douala PortMaintenance operations are underway on one of the Douala ports’ gantry cranes likely to cause congestion. Meanwhile the current condition of the channel, for which dredging has not been done in several months, is leaving vessels needing considerable draught to enter the port.

Over the year Douala with its sediment-ridden channel has seen 23-ships stuck therefore delivering their cargo to Pointe Noire, Congo and Cotonou, Benin.

The Cameroon Minister of Transportation, Robert Nkili, visited Douala on December 17, 2013, where he held working sessions with heads of the Autonomous Port of Douala [APD], the Cameroon Shipyard and Industrial site [CNIC] and Douala International Terminal [DIT], a Bolloré company and terminal concessionary to the Douala Port containers.

These collaborations have enabled the drafting of an emergency plan for off-loading boats and processing containers containing “sensitive food products” to avoid any shortages.

[Business in Cameroon 19/12/14]

Douala Container CleanupCameroonian Minister of Transport, Robert Nkili, has ordered a clean-up of old containers to accelerate the decongestion of Douala port. On 28th December 2014 the Douala International Terminal [DIT] launched an operation to transfer containers which have spent more than 90 days. DIT will transfer nearly 1,000 units from the Douala dedicated container terminal to CACEU-Cotco a new 3-ha area which can accommodate some 2,900 TEU. The transfer will allow smoother flow of operations saving time, reducing dwell time and accelerating the delivery time of containers to trucks amongst others.

[Med Africa 30/12/14]

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Cape VerdePalmeira Port InvestmentThe European Investment Bank [EIB] is to fund the second expansion phase of the Cape Verdean port of Palmeira, a project comprising the construction of a 150m quay and container facilities. The costs are estimated at USD 35 million. The work is reported to be will be carried out by Portuguese consortium Mota-Engil/Armando Cunha and inspected by Royal Haskoning, of the Netherlands. With this modernisation the port of Palmeira will be able receive and dock ships and the safe passage of goods, in line with international port industry standards.

[Dynaliner 02/15]

Cote d’IvoireAFC Provides €50m Facility For Transport Infrastructure ProjectsThe Africa Finance Corporation [AFC] signed a €50 million facility with the Port Autonome d’Abidjan [PAA] for expansion works to the Abidjan Port complex. The AFC facility brought to a close, a €250 million syndicated bridge financing facility arranged by the African Export – Import Bank [Afreximbank]. The funds will be used to finance the advance payment and other related costs for the construction of a second container terminal, the widening and deepening of the Vridi Canal, which connects the Ebrié lagoon to the Atlantic Ocean, and the construction of a roll-on/roll-off terminal. Works at the Abidjan Port Complex will enable larger vessels to dock at the port and should further cement the port’s position as a leading trans-shipment hub in West Africa.

[This Day 22/12/14]

GhanaDedicated Scanning Area For Tema Port Exports

An area has been allocated for the scanning of all exports at the Tema port with effect Week 1, 2015. The Ghana Revenue Authority [GRA] noted the use of a mobile scanner is intended to free the area where imports are scanned, reduce congestion as well as ensure that the goods, particularly fresh fruits, do not over-stay at the port to affect its quality. The GRA, together with the port authorities, decided to scan exports due to export anomalies such as instances where exporters mixed ‘irregular’ items with goods declared on the manifest.

Meanwhile, the government will from this year, start the implementation of a new centralised system intended to end delays in the clearance of import of goods. Known as the ‘Single Window system,’ it is expected to ensure that all documents required by the various stakeholders operating within the port area are centralised to enable easy access for verification and clearance, among other things.

[Ghana Web 07/01/15]

Tema Port Records 9.2 Million Tons Of CargoAs of October Tema Port recorded 9.2 million tons of cargo against 10.01 million during the same period last year showing a shortfall of 900,000 tons of cargo. Figures for November and December have not yet been released. The shortfall has been registered as a result of factors including traders’ agitation against increase in taxes and the falling exchange rate. Transit cargo was not left out as the implementation of the axle load policy compelled most of the Ghanaian truck drivers to relocate to ports where the policy has not been implemented.

[Ghanaweb 28/12/14]

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MauritaniaNouakchott Port ProjectIn the course of 2014, Mauritania’s largest port Nouakchott, also still known as Port de L’Amitié, took control of 4-new multipurpose berths with a total quay length of 900m, also to be used for the handling of containers. The project includes the expansion of its container yard. The Mauritanian President, Mohamed Ould Abdel Aziz, inaugurated the extension on 3rd August 2014. These new installations, carried out by the Chinese group SNCTPC, help to increase the capacity of the PANPA 3 to 6 million tonnes per year and offers 3 additional docks which can accommodate vessels of 450m in length and 69m in width. A 5km dam was installed to protect port facilities and the city against a marine incursions. A Chinese loan of €223 million funded the project repayable over 20 years with a 5-year grace period and an interest rate of 2%.

[Dynaliners/Jeune Afrique]

MoroccoTo Sell Stake In Marsa MarocMorocco’s government launched a tender on December 16th 2014 seeking advisers for the sale of a minority stake in state-owned port operator Marsa Maroc via an initial public offering on the Casablanca stock exchange. Marsa Maroc was established in 2006 and manages terminals at 9-Moroccan ports and provides logistic services. The finance ministry will open bids on February 2nd 2015. The port operator is seeking funds for its expansion, as it plans to bid for two other terminals at Casablanca Port, and the second phase of the Port of Tangiers Tanger Med II. The latter received a 1.5bn dirhams loan from the Arab Fund, the first part of financing needs for the project.

[Peninsula 17/12/14]

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NigeriaGovernment Moves To Address Port ChallengesThe government has set up a committee to address port challenges at the end of a National Economic Management Team meeting chaired by President Goodluck Jonathan. Stakeholders have identified the poor port access road as the major cause of the traffic gridlock and the indiscriminate parking of trucks on the access road. The Manufacturers Association of Nigeria [MAN] noted over 25% cost of clearing goods was a result of the gridlock and until authorities adopt the call-up system whereby trucks can only visit the port when invited, it may be difficult to address the congestion. Stakeholders also called for an urgent need to revitalise the railway system to reduce the pressure on the roads. The Nigerian Shippers Council [NSC] also unveiled it plans for 2015 saying it would spearhead the review of the ports concession agreement in 2015, arguing a need to review the agreement signed with terminal operators in 2006. Players such as the Nigerian Ports Authority [NPA], Bureau of Public Enterprises [BPE], terminal operators, shippers and other stakeholders are expected to hold a series of meetings aimed at repositioning the sector. The NSC has engaged 3-international consultants to look at the Shippers Council internally and the process of cargo clearance, tariffs, efficiency and competition. The NSC became the regulator this year by an executive declaration following unending complaints by shippers and their agents of arbitrary charges in ports which made the cost of doing business high. The council, in a major policy move reversed the container storage charge prompting the association of terminal operators to take the regulator to court. The court upheld the new status of the council and its direction on storage charges.

[This Day 02/01/15]

Federal Court Upholds Nigeria Shippers’ CouncilThe Nigeria Shippers’ Council [NSC] has been urged to maintain its position in reversing the tariff structure in the ports and to strengthen its authority now that it has power to implement and enforce regulations. Last month the NSC won a Federal High Court case instituted by the Seaports Terminal Operators Association of Nigeria [STOAN] and the Association of Shipping Line Agencies [ASLA]. The Court upheld the appointment of the Nigerian Shippers’ Council [NSC] as port economic regulator and dismissed a case filed by the ALSA against the NSC over a directive to the agencies to reduce their Shipping Line Agency Charges [SLAC] and refund container deposits within 10 days. The NSC, as the port economic regulator, ordered an increase in the free storage period at the ports from 3 to 7-days. The council equally directed shipping companies to reduce their shipping line agency fees from N26,500 to N23,850/TEU and from N48,000 to N40,000/FEU.

[Daily Independent 07/01/15]

TogoMore Konecranes RTG’s For Lomé Port

Konecranes has won another order from Lomé Container Terminal SA in Lomé, Togo, this time for 10 RTGs. They will be identical to the 12 already delivered during 2014. Delivery is scheduled for end-2015 and 2016. With this delivery, Lomé Container Terminal will operate 22 Konecranes RTGs. The order was booked in the Q4 2014. According to Terminal Investment Limited [TIL], owner of Lomé Container Terminal, the order is in line with Phase 2 development of the new terminal, which will make it capable of handling 1,650,000 TEU.

Units are all-electric, 16-wheel cranes powered by a busbar system with a lifting capacity of 40 tons stacking 1-over-6 containers high and 7 plus truck lane wide. They are also equipped with a Container Positioning system, which is connected to the Terminal Operating System [TOS] to ensure correct, real-time container positioning and an accurate container inventory.

[Konecranes 08/01/15]

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NigeriaWork Begins On Ondo Inland PortThe Government has approved the establishment of Inland Port at Ipare on the bank of Alape River in Mahin land, Ondo state. Preparatory works have commenced on the project with officials of the Federal Ministry of Transport, National Inland Water Ways Authority [NIWA] and Ondo State Ministry of Transport carrying out site inspection and local meetings.

[The Guardian 07/01/15]

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WESTERN AFRICA

INLAND CONTAINER DEPOTS

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Cote d’IvoireCustoms Decentralizes Validation Of Ecowas Certificate Of Origin [COC]Borderless Alliance’s continued advocacy interventions with Ivorian Customs authorities has resulted in a policy change that makes it possible for the validation of ECOWAS/UEMOA certificates of origin at all border posts of Cote d’Ivoire. This was contained in a circular issued by the Directorate General of Customs of the Republic of Côte d’Ivoire with reference # DGD339 and dated 18th November 2014. The circular informed the general public of the decentralization of validation procedures of ECOWAS/UEMOA certificates of origin, in order to facilitate the formalities relating to intra-Community trade. Before this decision, importers were required to send their documents to Abidjan for validation of the certificate of origin resulting n lengthening delays at the borders from 3 to 5 days.

[Borderless Alliance 20/12/14]

TogoLomé Gets ISO 9001 CertificationLomé port is now ISO 9001 certified for the quality of its services. With its third dock which has started working in July 2014 and a transhipment terminal which also stated business recently, the port can now accommodate vessels of very large tonnage and handle containers in a record time. Due to its geographical location, Lomé is a gateway to the sub-region especially Burkina-Faso, Mali and Niger. Among its innovations, the harbour has strengthened its security system to fight against maritime piracy 24/7.

[MedAfrica 27/12/14]

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REGULATORYWESTERN AFRICA

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East AfricaNew EABC Code Of Conduct To Boost Regional TradeThe East African Business Council [EABC] is in the process of developing a code of conduct and ethics for businesses aimed at boosting trade in the region. This will be promoted within the business community in the EAC Partner States and is expected to guide the private sector in provision and acquisition of services across the region. The new code of conduct is expected to be ready by April 2015. The Code of Conduct/Ethics shall ensure compliance with legal requirements and standards of business conduct and will set out responsibilities and values to guide business operations and relationships. In July 2014, EABC was nominated to seat at the World Customs Organisation [WCO], and according to business experts, establishing a code of conduct will help boost competitiveness on the global stage.

[New Times 01/01/15]

EthiopiaEthiopia Focuses On Port Sudan Trade RouteLandlocked Ethiopia, which currently ships 90% of its exports and imports through the port of Djibouti, is to use Port Sudan for importing goods. Ethiopia’s Ministry of Transport announced that it will for example be importing 50,000 tonnes of fertiliser through Port Sudan following the opening of a 5,000m2 storage facility at Mojo, south of Addis Ababa. Ethiopia is keen to avoid complete dependence on Djibouti and has been looking at alternative ports in Kenya and Somalia as well as Sudan. Negotiations have taken place with the port of Berbera, in Somaliland. Although the nearest Red Sea outlet to Addis Ababa is Assab, in southern Eritrea, poor relations between the 2-countries after the war of 1998 have led to that port being ruled out as an option. Development in Ethiopia and Sudan has been hampered by inadequate inland transport, which both countries are aiming to alleviate by the construction of standard-gauge [SG] heavy-haul railways.

1China Civil Engineering Construction Corporation is expected to complete track laying in October from Addis Ababa to Dire Dawa on Ethiopian Railways Corporation’s 756km SG line to Djibouti. This is the first element of a planned 5,000km network of lines radiating out from the Ethiopian capital.

2 Another line will be built northwards into Sudan to connect with Sudan Railways Corporation’s new SG route from Khartoum to Port Sudan

3 A third line will head southwest towards Boma, in South Sudan.

4The fourth route runs south from Addis Ababa to the border town of Moyale, there to join Kenya’s LAPSSET road/SG rail/pipeline corridor to the new deepwater port of Lamu. China Communication Constructions Company has been contracted to build the first three of a planned 32 berths at Lamu.

Completion of LAPSSET and the Ethiopian and Sudanese schemes will link the Red Sea ports with the Indian Ocean, avoiding the sea route round the Horn of Africa and maritime security concerns off the coast of Somalia. Connecting these to the SGR, Tazara and Lobito Corridor opens the possibility of a viable overland route from the Red Sea to the Atlantic.

[IHS Maritime 360 02/01/15]

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EAC / COMESA / TRADE

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KenyaExporters To Access EU Duty FreeOn 24th December the European Union [EU] announced the return of duty free access for Kenyan exports to the EU market. From December 25, 2014, Kenyan exports will once again enter the European market without any tariffs. EU Ambassador to Kenya Lodewijk Briët who terms the announcement as ‘Christmas gift’ to Kenyan exporters noted on November 14, 2014 the European Commission decided that Kenyan exports should again be exempted from all import duties on the basis of the ‘Market Access Regulation’ [MAR].

The EU heeded an appeal made by President Uhuru Kenyatta to the then EU Trade Commissioner Karel De Gucht and has fast-tracked Kenya’s return to the quota-free, duty-free export regime. Kenyan goods including, cut flowers, fresh produce and much more will once again enter the European Union market without tariffs or quota limits. Over Sh200 million worth of goods enter the EU market from Kenya.

Three areas that remained outstanding and which delayed the finalisation of the talks for the better part of 2014 included export taxes, export subsidies and relationship between Cotonou agreement and EPAs. The deal between Kenya and EU was signed on October 14, but had to wait for EU ratification to conclude. Kenya had all along benefited from unlimited and free access to the EU market until the expiry of the Market Access regulation at the end of September this year. Since then, Kenyan exports to the EU have been subject to the EU’s Generalised System of Preferences [GSP] that required the payment of import duties despite the deal being signed in October.

Kenya is the only member of the East African Community [EAC] that does not fall into the category of Least Developed Countries (LDC). As such, it needs an Economic Partnership Agreement [EPA] to export its products duty-free, quota-free to the EU market. The ‘Market Access Regulation’ is a transitory arrangement that offers such preferences to EU partners in anticipation of the ratification of the EPA.

[Capital FM 24/12/14]

MozambiqueChina Annual Trade Approaching US$3-Billion The volume of trade between Mozambique and China rose from US$1.64 billion in 2013 to US$2.94 billion in 2014, according to Chinese ambassador Li Chunhua. China has now become Mozambique’s third most important trading partner after South Africa and the European Union.

[AIM 18/12/14]

SudanGovernment To Push For WTO MembershipSudan is undertaking fresh efforts to join the 160-member World Trade Organization [WTO] according to the Minister of Trade, Osman Omer Sharif. Sudan plans to make a formal request to join WTO this month and are making the final touches in preparation for a meeting with WTO Commissioner General. To join, candidate countries have to offer to cut tariffs and change their laws to guarantee the rights of importers and exporters under WTO rules. Sudan is a WTO monitored state for the last 20 years but has yet to obtain membership due to political reasons and lack transparency.

[Sudan Tribune 03/01/15]

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TanzaniaEurobond To Facelift InfrastructureTanzania is set to have a reliable and efficient infrastructure network following initiatives to find new and alternative sources of finance. Through the Big Results Now [BRN] initiative, the government last month showcased infrastructure projects worth over US$10 billion to large scale financial institutions for potential equity or favourable debt considerations. Another initiative is the floating of an Eurobond for long term infrastructure investments to raise US$1 billion.

With the close involvement of the private sector in the form of public private partnerships [PPP] in raising funds for infrastructure development the ultimate goal is to unlock remote production areas and markets and achieve efficient and improved railways, ports, road networks and power projects. Poor and unreliable infrastructure networks are always associated with high cost of doing business, an aspect that eats business profitability and ultimately discourages investors.

Some of the projects shortlisted in the BRN scheme include the upgrading to Standard Gauge of the 1,263 km Dar es Salaam-Kigoma railway line [US$3.4 billion] and the 378 km Tabora-Mwanza line [US$1 billion]. Others are the deepening of Dar es Salaam port berths #1-7 [US$500 million], the modernisation of Mwanza South Port [US$400 million], the construction of Dar es Salaam-Chalinze Expressway [US$519 million] and the 105 km Arusha-Moshi-Himo Junction Dual Carriageway [US$363 million].

The government is finalising processes that will lead to floating the Eurobond to be ready by March to be outlined in the next budget. The Eurobond will help fill the gap amid the decreasing donors’ support of the development budget. Eurobonds are attractive financing tools as they give issuers the flexibility to choose the country in which to offer their bond according to the country’s regulatory constraints. Rwanda became the first East African nation to raise money through a Eurobond, when it raised US$400 million last year and Kenya recently raised US$2 billion through a debt instrument.

Meanwhile the government has picked out 3-international sovereign rating agencies - Fitch, Standard & Poors and Moodys. Credit rating is important because lenders use it to determine borrower’s credit risk. Key issues to be considered include economic growth rate, control of financial markets, inflation and balance of payment.

[Daily News 06/01/15]

Freight Forwarders Contest ‘Prohibitive Rules’Freight forwarders have opposed new licensing regulations by the Tanzania Revenue Authority [TRA] in which new applicants are required to deposit 150m/-. The forwarders, through Tanzania Freight Forwarders Association [TAFFA], said the requirement was prohibitive and unfair since the business does not need heavy investment. In the new regulation TRA want clearing and forwarding agents to have a working capital of 50m/- and 100m/- bank guarantee which will be accessible by the Custom Commissioner.

[Daily News 01/01/15]

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EAC / COMESA

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KenyaMombasa Port Hits 1-Million MarkMombasa port has positioned itself as the second best port in Sub-Saharan Africa after hitting the 1-million container throughput per annum for the first time following that of Durban in South Africa. Growth was seen at 12% over the 894,000 TEUs handled in 2013 and 903,463 TEUs handled in 2012. The port also posted a new record of 24 million tonnes of total cargo throughput last year, up from 22.3 million tonnes registered in 2013. Transport cabinet secretary Michael Kamau led the port community in witnessing the offloading of the millionth container at berth #19 from container vessel Lilly Schulte. The port now targets 1.4 million TEU’s from this year onward.

Moves to improve port capacity and efficiency have seen the reduction of non-tariff barriers along the Northern corridor that serves the East and central Africa region. Loaded trucks are currently weighed only twice between the port and border points. Road block were also reduced under the president directives which reduced container dwell time and transit time to the land locked countries.

[The Star 01/01/15]

Concessionaire Sought For Mombasa’s 2nd Container Terminal State-run Kenya Ports Authority [KPA] is seeking a concessionaire to operate the first phase of a second terminal it is building at its main Mombasa port to handle increased cargo traffic within the East Africa region. The port handles fuel and consumer goods imports as well as exports of tea and coffee for landlocked neighbours such as Uganda and South Sudan. The first phase of the US$300 million terminal will comprise 2-berths which are due to be handed over by the contractor in March 2016. By 2016, the new terminal is projected to have a capacity of 450,000 TEU and rise to 1.2 million TEU by 2019 during Phase 2. Phase 3 is scheduled for 2020-23. Phase 1 is funded by a Japanese Official Development Assistance [ODA] loan through the Japan International Cooperation Agency [JICA]. Mombasa expects to handle at least 14% more cargo this year, helped by its expanded capacity and a marketing drive. The facility expected a cargo throughput of 25.5 million tonnes this year, up from 22.31 million handled in 2013. Kenya is also building a second port in Lamu, north of Mombasa, with a capacity of 23 million tonnes p.a.

[Reuters 29/12/14]

MozambiqueMaputo Port Processes 19 Million Tons The Maputo Port Development Company [MPDC] noted Maputo port processed 19 million tons of cargo by the end of 2014 achieving an annual growth of 13%. Other advances in 2014 included the conclusion of stages 3 and 4 of the recovery and expansion of the ferrochrome terminals, one of the minerals that South Africa exports to the Asian market via Maputo. Completion of the facility enabled the port to process 4 million tons of ore. MPDC noted that for 2015 the company would continue with work to deepen the port’s access channel, which will allow the port to increase its capacity, thus becoming more competitive on a regional and international level.

[Macauhub 11/12/14]

TanzaniaDar Es Salaam Port Unlock Landlocked Trade FlowsEfficiency and safety at Dar es Salaam Port has improved resulting in increased trade flows. Tanzania Port Authority [TPA] officials noted the time cargo remains in a terminal’s in-transit storage area while awaiting shipment or clearance has shrunk to around 8-days at the end of 2014 from a double-digit figures. This has substantially reduced congestion at the port. To reduce congestion at the port, a number of Inland Container Depots [ICDs] and Car Freight Stations [CFS] have been introduced. As a result the cargo handling capacity increased to 15.4 million tonnes in 2013/14 from 13.5 million tonnes in 2012/13. The target of 18 million tonnes by 2015/16 seems possible now than ever before. Revenue has also gone up by over 20% to 529.3bn/- in 2013/14. Business from countries like the Democratic Republic of Congo [DRC ] has increased by 30% to make them almost at par with Zambia, one of the biggest users of the Dar es Salaam Port.

[Daily News 06/01/15]

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KenyaCertificate Of Origin - KNCCI AutomationThe Kenya National Chamber of Commerce [KNCCI] will receive a US$85,000 grant from TradeMark East Africa to digitise the process of business certification. The 2-organisations will ink a financial agreement covering the first fiscal year. TradeMark East Africa is a non-profit organisation established in 2010 to facilitate growth of regional and international trade in East Africa.

KNCCI is the sole issuer of the Certificate of Origin, a function it regained last July from the Kenya Bureau of Statistics [KBS]. Exporters require the certificate for goods shipped to other markets, and automation is expected to cut costs and time taken in facilitating the process. KNCCI will also be equipped to avail trade information electronically. The process of integrating the manual and digital systems will commence immediately. More than 1,000 Origin certificates are issued monthly to traders, who will now not need to make physical visits to KNCCI offices for the same. The certificate is required for exports destined for the Middle East, India, Russia, Eastern and Central European markets. Besides cutting the paperwork, the online platform will also be interlinked with counterpart chambers in export destinations to ease the process for businesses.

[The Star 08/01/15]

Single Window System ChallengesClearing agents want the government to address lapses in the Kenya National Electronic Single Window System which they say are slowing down cargo clearance at Mombasa port. According to the Kenya International Freight and Warehousing Association [KIFWA], the system faces duplication of processes, slow approvals by government agencies and slow bank transactions. Currently, importers are using both the Kenya Revenue Authority’s ORBUS and the Single Window System to process documents such as import declaration form and import permits while KRA’s Simba is used to process entries. The clearing agents say they prefer the Orbus system which is faster than the new SWS.

The SWS converges more than 15-systems and government institutions including Simba, Orbus, KPA’s systems, Kenya Plant Health Inspectorate Service and Kenya Bureau of Standards among others. The system which went live on October 31, has 20-modules which provides a one-stop shop for lodging import and export documents by traders in the East Africa trade bloc. The Kenya Trade Network Agency is behind the implementation.

Orbus was to stop working on December 1, but KIFWA urged customs not to switch it off as the single window system takes longer to lodge and get approval of an import declaration form. Clearing agents support the government’s efforts to speed up trade through the port of Mombasa among other entries, but proper measures must be put in place to ensure the system succeeds.

[The Star 01/01/15]

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REGULATORY

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TanzaniaDar Es Salaam Electronic Single WindowAn Electronic Single Window System [eSWS] at Dar es Salaam port will become operational by the Q3 2015. Tanzania Ports Authority [TPA] noted that the €5m [10.1bn/-] project which is being implemented by Belgian based Phaeros BVBA is progressing well. A meeting is planned with all port community stakeholders to discuss implementation of the project in January.

The eSWS is an integrated computerised network of cargo clearance and tracking which will enhance transparency and accountability. The system will also benefit importers and exporters as dwell time will be halved to 5-days from the current 9-days. The eSWS allows various government regulatory agencies including Tanzania Food and Drugs Authority, Tanzania Bureau of Standards, Tanzania Atomic Energy Agency and many others to process import and export papers electronically.

[Daily News 26/12/14]

Port E-Cargo Tracking To Boost CollectionEngagement of stakeholders in the introduction of the Electronic Cargo Tracking Note [ECTN] system as ordered by Surface and Marine Transport Regulatory Authority [SUMATRA] will start next month. Tanzania Ports Authority [TPA] note the ECTN will help boost the Tanzania Revenue Authority’s customs duty collection. It is also hoped efficiency at Dar es Salaam port will be improved, with a target to reduce dwell time from the current 9-days to 5-days by the end of 2015.

In 2013 ECTN introduction was suspended after SUMATRA intervened following an official complaint lodged by Tanzania Shipping Agents Association [TASAA] contesting the awarding of a contract to Belgian Antaser Afrique BVBA without proper procedures. SUMATRA then instructed TPA to conduct meaningful consultations with all key stakeholders with a view to establishing potential benefits and costs of the envisaged system. Meanwhile stakeholders fear that introduction of ECTN at Dar port will make its services more expensive hence fail to compete with Mombasa, Beira and other ports in the region which have no ECTN system.

[Daily News 30/12/14]

TBS Focuses On Inferior GoodsDays are numbered for importers of sub-standard products as the Tanzania Bureau of Standards [TBS] has introduced the International Standard Mark [ISM], to curb poor quality products. All stakeholders will be trained on how to identify the goods with ISM including Tanzania Revenue Authority [TRA], Tanzania Port Authority [TPA] and all local government councils.

[Daily News 26/12/14]

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Page 28: Trade-Watch - Issue 44 - January 2015 - CMA CGM 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27. Kenya: Mombasa

NamibiaUS$19 Billion Transport Development PlanNamibia will start tapping markets and investors to finance a 5-year, US$19 billion development plan as early as 2015 as the country seeks to become a regional transport hub. The government has said it will finance 73-billion Namibian dollars of the budget and use a variety of methods to raise the rest of the money for ports, railways, roads and airport upgrades. It will pursue various alternatives including public-private partnerships [PPP] and listed infrastructure funds, among others.

Namibia intends to position itself as a channel for trade by landlocked neighbours including Botswana, Zimbabwe, Zambia, the Democratic Republic of Congo [DRC] and Malawi. Namibia is expanding capacity and building bulk cargo handling capabilities at its deep water port at Walvis Bay and upgrading the harbour at Luderitz. It will also target customers from southern Angola. The state-owned Namibia Ports Authority plans to build a harbour to be known as the SADC Gateway Port, about 5km north of the existing Walvis Bay port. The project will have a dry bulk terminal and a 5-berth coal facility, primarily to cater for 65-million MT of projected shipments from Botswana’s Mmamabula coalfields to Asian markets.

Namibia’s economy will grow by 5.6% in 2015, up from 5.3% this year, buoyed by construction, retail trade, diamond mining and manufacturing. The country is the world’s 5th largest producer of uranium and the biggest source of offshore diamonds. The government is working on a policy framework that will encourage and enable the private sector to participate in funding Namibia’s infrastructure gap.

[BD Live 19/12/14]

South AfricaImproved Integrated Transport Planning To accelerate transport planning the Minister of Transport, Dipuo Peters, officially launched the National Transport Forum [NTF] and the Transport Sector Broad-Based Black Economic-Empowerment [BBBEE] Charter Council.

The NFT will set out the future of the transport network and deliver a pro-national growth agenda for transport in the short, medium to long term. It will comprise experienced members from local and international public and private sectors to share best practices and deliver on the vision contained in the National Development Plan, as well as facilitate investment through a funding framework that would fast-track the expansion of the country’s transport network. By 2030 South Africans should be able to enjoy an integrated transport system, a transformed transport sector, world-class infrastructure and increased connectivity. The permanent members will represent all cities, key national and provincial departments, transport agencies and transport stakeholders, acting as a catalyst for policy creation. The BBBEE Charter Council will promote the entry of black people into the transport sector and will be mandated to advise government and compile reports on the status on BEE in the transport sector.

[Engineering News 11/12/14]

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Page 29: Trade-Watch - Issue 44 - January 2015 - CMA CGM 44 | JANUARY 2015 Kenya: Concessionaire Sought For 2nd Terminal Namibia: US$19 Billion Transport Development Plan 24 24 27. Kenya: Mombasa

South AfricaTerex Gantry Cranes For Durban Port Terex Port Solutions [TPS] has increased its foothold in the Durban Container Terminal, the largest container terminal in Africa, following the installation of 2 rail-mounted gantry cranes [RMGs]. The machines, are in operation at Durban Container Terminal, which is run by Transnet Port Terminals [TPT] a subsidiary of state-owned Transnet SOC. The Terex RMGs have been specified with a rotating trolley with a span of 22.5m and a lifting height of 11m, as well as a lifting capacity of 41 tonne under spreader. The machines are powered by the terminal’s electricity supply, and are serving the rail terminal on pier 2, replacing two 25-year-old cranes in the process. The latest installations expand the ongoing relationship between both firms, which has involved Terex providing TPT with 50 straddle carriers and 12 heavy-duty Terex forklifts. The new cranes will boost both productivity and availability at the terminal.

[Hoist 12/12/14]

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