TRADE-WATCH
AFRICA
ISSUE 39 | AUGUST 2014
INAUGURAL US-AFRICA LEADERS’ SUMMIT SEES PLEDGES OF US$37 BILLION Full Story On Page 9
Cote D’Ivoire: Funding Secured For Second Terminal
16
Mauritania: Nouakchott Holds Completion Ceremony
19
Kenya: Lamu Port In US$479 Million Chinese Deal
27
TRADE-WATCH
AFRICA
ISSUE 39 | AUGUST 2014
Contents 03 / African Group News
15 / Western Africa
07 / Events Diary & News Briefs
25 / Eastern Africa
09 / Pan Africa
29 / Southern Africa
Top Stories 9 Inaugural US-Africa Summit Sees Pledges Of US$37 Billion
16 Cote D’Ivoire: Funding Secured For Second Container Terminal
19 Mauritania: Nouakchott Holds Completion Ceremony
27 Kenya: Lamu Port In US$479 Million Chinese Deal
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THE TRADE & TRANSPORT REPORT Brought to you by CMA CGM / DELMAS Marketing Website: www.delmas.com Email:
[email protected] Tweet: @DelmasWeDeliver
Rachel Bennett
Dominic Rawle
CMA CGM Marseille Head Office 4, Quai d’Arenc 13235 Marseille cedex 02 France Tel : +33 (0)4 88 91 90 00 www.cmacgm.com
Disclaimer of Liability CMA 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.
News Headlines By Region Western Africa
Angola: Construction Work At Port Of Caio, In Cabinda / Prohibited Import Decree On Used Tyres, Used Spare Parts / Complementary Study Of The National Transport Master Plan Cameroon: Douala Port Is Under Capacity Cote D’Ivoire: Developers Secure Funding For Second Abidjan Container Terminal / Hollande In Côte d’Ivoire For Trade Talks Ghana: Q1 Maritime Trade Hits 5 Million Tonnes / Acquisition of Mobile Harbour Crane At Takoradi Port / Government Okays Atuabo Free Port / Chinese Loan Cancellation Will Not Affect Takoradi Port Project / Ghana Aims to Double Exports By 2015 Mauritania: Port Autonome Nouakchott Holds Completion Ceremony Nigeria: US$1.5 Billion Lekki Deep Seaport Project Suffers Setback / Government Shops For Private Investors For Warri Port / Indonesia Trade Hits U$3.6 Billion Up 30% Sierra Leone: SLNC Ultimatum As Sierra Leone Loses Billions To Foreign Shippers Togo: Lomé Container Terminal Extended To 1.2 Million Containers / Single Window Project
Eastern Africa
Egypt: Egypt Announces Plans to Build New Canal Alongside Suez Ethiopia: Exports Up 6% Kenya: Kenya Secures Comesa Grant To Speed Integration / Lamu Port In US$479 Million Chinese Deal / Mombasa Port Traffic Up 13% In H1 Mozambique: 22% Trade Increase With China / Government Calls For PPP For Beira Port & Railroad / Maputo Trade Hub For Southern Africa Tanzania: Dar Port Has New Equipment
Southern Africa
Namibia: Port Contractor On World Bank Ban South Africa: Transnet Revises 7-Year Capex Plan To R312.2bn / Ports Regulator Switches To Multiyear Tariff / New Dredger Arrives In Durban
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CMA CGM / DELMAS
AFRICAN GROUP NEWS Improved Service Between Asia And West Africa In order to exact the needs of our customers in terms of Asian port coverage and available capacity, CMA CGM / DELMAS has reorganized the rotation of both its ASAF and WAX lines.
WAX Service From mid-August, the weekly WAX service which offers direct calls from Asia to Nigeria, Cameroon and Ivory Coast will now focus on Central China ports instead of North China. The Port of Ningbo-Zhoushan is the busiest port in the world in terms of cargo throughput. It is located on the coast of the East China Sea, in the rich coastal Zhejiang Province. at the crossroads of the north-south inland and coastal shipping route, including canals to the important inland waterway to interior China, the Yangtze River, to the north. Nanshan port offers onward links to the Nansha Port Expressway an important trunk transportation route in Guangzhou which connects Nansha District to other areas within the Pearl River Delta region. It is also a vital transport hub for industries located in neighboring provinces such as Guangxi, Yunnan, Guizhou, Sichuan, Hunan, Hubei and Jiangxi. Whilst Chiwan port is located in the southern region of the Pearl River Delta in China’s Guangdong province. This area is the economic hinterland for Hong Kong trade with the Mainland. WAX Rotation: Shanghai – Ningbo – Chiwan – Nansha – Tanjung Pelepas – Port Kelang – Cape Town – Tin Can Lagos – Douala – Abidjan – Pointe Noire - Colombo – Port Kelang East Bound – Shanghai Effective: 15th August. Shanghai will be the first port in the rotation commencing with M/V Nordic Macau voyage WW767W
http://www.delmas.com/products-services/ line-services/flyer/WAX
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ASAF Service The ASAF will now include 2- new ports in North China. Xingang and Qingdao have been added to this direct weekly service from Asia dedicated to Angola, Republic of Congo, Gabon, Democratic Republic of Congo [DRC] and Namibia. The service will be operated with a fleet of 13 vessels with a capacity of 5,700 TEU. Xingang [Tianjin] Port is located on the western shore of the Bohai Bay, centred on the estuary of the Haihe River. It is perfectly situated to serve both Beijing 170 km south east and Tianjin city 60 km east. It is the largest man-made port in mainland China and one of the largest in the world. The facility lies within the main special economic zone of Northern China, and is close to the Tianjin Economic-Technological Development Area [TEDA] - the main free market zone in Binhai, Tianjin. The Port of Tianjin is at the core of the ambitious city development program of the Binhai New Area [BNA], and as part of that plan, the Port aims to become the primary logistics and shipping hub of North China. The Port of Qingdao, the 8th busiest port by container traffic in 2012, is situated on the Yellow Sea in the vicinity of Qingdao, Shandong occupying a central position among ports in Northeast Asia. In May, 2014, Qingdao Port International Co. Ltd announced it is seeking to raise up to US$377 million in a Hong Kong initial public offering. ASAF Rotation: Xingang – Qingdao – Shanghai – Ningbo – Nansha – Chiwan – Singapore – Tanjung Pelepas – Port Kelang - Walvis Bay – Pointe Noire – Luanda – Cape Town – Port Kelang East Bound – Xingang Effective: 9th August from MV Cap Andreas voyage DH487W sailing form Xingang.
http://www.delmas.com/products-services/ line-services/flyer/DAPDEL
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CMA CGM / DELMAS
AFRICAN GROUP NEWS
SAMWAF Upgraded: Direct Reefer Links From West Africa To Brazil CMA CGM / Delmas has upgraded its SAMWAF service between South America East Coast and West Africa to cater for the ever expanding reefer trades. A significant increase in reefer capacity and number of reefer plugs have been made available on this service. Furthermore a new direct call in Rio de Janeiro has been added as from 29 August 2014 and the a new call at Ecoporto Terminal in Santos Port from 26 August 2014. Reefer Expertise The Group aims at being the reference in the market for reefer traffics to and from East and West Africa. We closely monitor the trade seeking innovative products, quality of service, high end equipment and fine-tuned yield management. With one of the youngest reefer fleets in the trade we can transport your goods to every corner of Africa.
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CMA CGM / DELMAS
WEBSITE Country Guides: African PSI, Waiver & Import/Export Restrictions Did you know that we offer country guides which outline the various customs regulations which govern imports. These documents offer comprehensive details on Pre-Shipment Inspection [PSI], Destination Inspection, Waivers covering BESC/CTN and import/export restrictions for all relevant African countries. Where available all supporting data is made available including inspection agency datasheets and appendices to include relevant decrees and official documentation.
These easy to download reference guides are available at http://www.delmas.com/products-services/shipping-guide
Ebusiness Platform: Booking Management & B/L Parties Did you know that the third step of your online ‘Booking and Shipping Instructions’ tool has been redesigned to make it more efficient and user-friendly. You can now easily search based on the ‘most used parties’ avoiding manual and repetitive searches. The classification of parties can now be based on previously assigned roles such as Shipper, Consignee, Notify… and we have incorporated an option to customise the party address as per requirement for BL with a ‘Preview on BL’ option.
South African Agency Launches Web Area CMA CGM Shipping Agencies South Africa [Pty] Ltd has launched a new local web area to keep pace with the continuously evolving requirements of its customers. The site offers links to schedules and rate notices as well as access to the Transnet Port Terminal Stack Dates for up to date stack opening and closing times.
The CMA CGM area is available at http:// www.cma-cgm.com/local/south-africa or for DELMAS at http://www.delmas.com/local/ south-africa
Senegal Agency Launches Web Area DELMAS SENEGAL - GROUPE CMA CGM has launched a new local web area. Here you will find links to schedules and trade notices such as information on Dakar ICD2 and dredging.
The CMA CGM area is available at: http://www. delmas.com/local/senegal-agencies or for DELMAS at http://www.cma-cgm.com/local/ senegal-agencies
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AFRICAN SHIPPING
EVENTS DIARY August 2014 28-29
2nd Annual Procurement, Supply Chain & Logistics Forum (Zimbabwe) http://www.mbendi.com/a_sndmsg/event_view.asp?I=14425
September 2014 01-03
African Ports Evolution (Durban, South Africa)
16-17
World Export Development Forum (Kigali, Rwanda)
15-19
6th South African Investment and Trade Initiative to DRC
23-24
1st Annual Port Expansion East Africa Conference (Dar es Salaam, Tanzania)
http://www.portsevolution.com/ http://www.intracen.org/itc/events/world-export-development-forum/ http://www.thedti.gov.za/invitations/ITI_DRC_Invitation.pdf http://www.portexpansioneastafrica.com/
October 2014 23-24
12th Intermodal Africa (Durban, South Africa) http://www.transportevents.com/EventsDetails.aspx?EventID=EVE113
November 2014 17-19
9th African Economic Conference (Addis Ababa, Ethiopia)
19-21
5th Africa Public Private Partnership Conference and Showcase (Abidjan, Ivory Coast)
29-30
15th Francophonie Summit (Dakar, Senegal)
http://www.uneca.org/aec2014 www.africappp.com
January 2015 29-30
9th Indian Ocean Ports & Logistics (Maputo, Mozambique) http://www.transportevents.com/EventsDetails.aspx?EventID=EVE115
March 2015 19-21
ZAMBIAWATER: Zambia Water Infrastructure (Lusaka, Zambia)
26-27
13th Intermodal Africa North 2015 (Lagos, Nigeria)
www.zambiawater.com http://www.transportevents.com/EventsDetails.aspx?EventID=EVE117
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AFRICAN PROJECT
BRIEFS Western Africa
Eastern & Southern Africa
ANGOLA - Oxdrill is investing US$2 million in building a drilling and agricultural equipment factory, which will be located in Viana on the outskirts of Luanda. - The Angolan government and the Export-Import Bank of the United States signed a MoU meant to guarantee financing for infrastructures in the areas of energy, telecommunications and transportation.
MALAWI - Japan Tobacco International has announced that it will no longer invest in a cigarette manufacturing plant in Malawi.
COTE D’IVOIRE - Limak Holding will enter the African cement market with a $50-million investment to build a plant in Côte d’Ivoire with partner Afrikbat. GHANA - Quantum Pacific has signed a deal with Golar LNG to build a $500-million liquefied natural gas import terminal. The facility is to be situated offshore from Tema. GUINEA - ArcelorMittal has signed deals to purchase stakes in an iron ore project in Guinea. It will buy a 43.5% stake in Euronimba Limited from Billiton Guinea and a 13% stake from Compagnie Francaise de Mines et Metaux. LIBERIA - Aureus has raised £6.6-million to continue to build on its exploration programmes, particularly the Ndablama gold project. MALI - Endeavour Mining has started production at its Segala underground mine which comprises half of the Tabakoto deposit’s total resources. Endeavour has also been granted a mining permit for its Kofi Nord project, which covers eight gold deposits at Tabakoto. - Mali has cancelled 130 mining permits, about 30% of existing permits, in a drive to clean up the sector. NIGERIA - CAMAC Energy discovered 4-new oil and gas reservoirs in the Oyo-8 development well located offshore Nigeria in Oil Mining Lease (OML) 120. - Oando Energy Resources has completed the acquisition of the Nigerian upstream oil and gas business ConocoPhillips for $1.5-billion cash / deferred cash consideration of $33-million. - Nampak is considering doubling the capacity of its Nigerian beverage can factory. The Nigerian beverage can market, which is about 1.5-billion cans a year, is expected to grow rapidly. SENEGAL - Bassari Resources has inked a strategic alliance with China’s Vanture International for the supply of processing equipment at the Makabingui gold project. - A surimi [fish-sticks] factory backed by international investment fund Hermes-Sojitz is set be opened this year in Senegal.
MOZAMBIQUE - Anhui Foreign Economic Construction Corporation will build a 5-star US$250 million hotel in Maputo located on the Maputo coast road (Avenida Marginal). - GET2C, Fabriwatt, Grupo Lena and Ecochoice, have joined together to build industrial and energy efficient parks in several still unidentified regions of Mozambique. - Rio Tinto has reached an agreement to divest of its Mozambique coal assets, including the Benga coal mine to International Coal Ventures Private Limited. - OGI Group has acquired a 50.7% stake in a licence to prospect for diamonds at the Save River diamond project. NAMIBIA - North River Resources has been granted environmental clearance for the environmental assessment and management plan for the proposed recommissioning of its Namib lead/zinc mine. SOUTH AFRICA - Las Bambas copper mine has been sold by Glencore plc for $7 billion to a consortium owned 62.5% by MMG Limited, 22.5% by GUOXIN International Investment Corporation and 15% by CITIC Metal Company. - CoAL’s sale of its Mooiplaats thermal coal colliery, in the Ermelo coalfield, is expected to be completed during H2 2014. - Tata Motors South Africa hopes to double its annual output at its Rosslyn truck plant, in Pretoria, over the next 2-years. TANZANIA - The National Bank of Commerce has signed a 100bn/- with Star Oils Tanzania Limited as a loan agreement deal to foster the development of oil and petroleum industry in the country. - First stage of the definitive mining feasibility study for Kibo Mining’s Rukwa Coal to Power project (RCPP) will be completed by the end of November. ZAMBIA - Zambezi Resources/Limestone Ventures [JV 50:50] announced that its Mpande limestone project, in Zambia, had been granted a 25-year large-scale mining licence. The JV aims to develop a cement and quick/hydrated lime facility at the area. ZIMBABWE - The government has launched the Zimbabwe European Business Information Centre in Harare to increase the capacity of Zimbabwean exporters to the EU bloc. - China Africa Sunlight Energy, a JV between Old Stone Investments of Zimbabwe and Shandong Taishan Sunlight, intends to establish a colliery and a 600 MW thermal power station. Construction of the mine is expected to start in October. 8
PAN AFRICA
TRADE
Inaugural Summit Sees Pledges Of US$37 Billion President Obama stepped up efforts to forge closer ties with Africa when he hosted more than 40 of the continent’s leaders at a 3-day summit in Washington. The event was the first of its kind in the US, although similar summits have been held in China and Europe. Obama’s administration sought to use the US-Africa Leaders Summit as a way to spur investment in a continent that holds some of the richest mineral deposits, fastest-growing economies and a burgeoning middle class. While China has stolen a march on the U.S., with its trade with Africa surpassing US$200 billion last year contrasting investment styles mean American businesses have the potential to profit.
US-Africa Business Forum More than 100 CEOs of US companies descended on Washington for the 2nd day of the summit to attend the US-Africa Business Forum, co-hosted by Bloomberg Philanthropies and the US Department of Commerce. During high-level panels throughout the day, leaders from both sides of the Atlantic discussed ways to build closer partnerships, break down barriers, and capitalize on Africa’s enormous untapped potential. While the World Bank projects African growth of 4.7% this year, the U.S. is looking beyond securing deals and access to a consumer market of 1 billion people with the US shifting its support for Africa away from humanitarian aid and towards equal economic partnerships. President Obama announced more than US$14bn of investment by US companies in Africa and helped mobilise a further US$17bn in other state and multilateral funds for the continent as well as further funds for peacekeeping and security. The investments are across a range of sectors including construction, energy and information technology projects in Africa including several JV between U.S. and African partners - including Chevron Corp, Citigroup Inc, Ford Motor Co, Lockheed Martin Corp, Marriott International Inc and Morgan Stanley.
Competition With China China’s trade with Africa rose to US$200bn last year – largely made up of Beijing’s imports of oil and minerals, and export of electronics and textiles – more than double the US and far ahead of the EU. Twenty years ago trade between China and Africa was just US$6bn. China has held 5-conferences with ministers and leaders across Africa since 2000 as it fosters ties. While China’s trade with the Africa surpasses that of the U.S., Chinese companies are focused on large infrastructure projects on the continent. China’s Export-Import Bank often provides financing for the projects, with the condition that the construction contracts go to Chinese companies. In November, China said it would extend US$1 trillion of loans to Africa by 2015, most of it via ExportImport Bank. Chinese Premier Li Keqiang also detailed US$10 billion of new loans on a 4-nation African tour in May, including financing for 90% of a 611-km link between Kenya’s capital, Nairobi, and the port of Mombasa. 9
Investment Breakdown Companies - General Electric to invest US$2 billion & double its African workforce by 2018. - Coca-Cola Co to invest US$5 billion with African bottling partners in new manufacturing lines and equipment, as well as safe water access programs, over 6-years. - Dangote will jointly invest US$5 billion in energy projects in sub-Saharan Africa with Blackstone Group funds. Aliko Dangote also formed a JV with the Washington-based Carlyle Group LP to invest an unspecified amount in Nigerian oil and gas ventures and other sub-Saharan projects. - IBM pledged US$2bn. [Ghana’s Fidelity Bank has chosen IBM to manage its technology infrastructure in a 5-year deal worth US$67m] - Hotel group Marriott is to invest $200 million across Africa. - Ford Motor Co. is to expand its manufacturing plants in Africa. - Retailers such as Wal-Mart Stores Inc. and YUM! Brands Inc. are seeking to tap a growing consumer class. State And Multilateral Funds - World Bank committed US$5 billion to support electricity generation. - Sweden pledged US$1bn to support ‘Power Africa’. - Aid to support African peacekeeping forces: US$110m a year over next 3-5 years over 6-countries [Senegal, Ghana, Rwanda, Tanzania, Uganda and Ethiopia] with a further US$65m on helping countries build their security sectors [Ghana, Kenya, Mali, Niger, Nigeria and Tunisia].
Power Africa General Electric [GM], the US industrial group, will invest US$2bn on the continent, in deals linked to the US president’s Power Africa initiative. Sweden also pledged a further US$1bn taking the total money leveraged for the initiative so far to US$26bn. Launched last year, Power Africa will pool billions of dollars of investment, underpinned by state involvement, towards developing energy supplies on the continent. new support for Power Africa, a privately-funded programme launched by President Obama last year to install 10,000 MW of new generation capacity and connect 20 million new customers across Africa by 2018. The programme had already met that goal after just 1-year. This year the project is tripling its goal following a US$5 billion commitment from World Bank. The programme is also likely to be expanded from the 6-nations - Ethiopia, Kenya, Ghana, Liberia, Nigeria and Tanzania - that currently benefit from Power Africa.
Council On Doing Business In Africa Agreed measures included the signing of an Executive Order for the formation of a President’s Advisory Council on Doing Business in Africa, with a focus on sub-Saharan Africa. The secretary of commerce is expected to establish the advisory council within 180 days and appoint, in consultation with the Trade Promotion Coordinating Committee, 15 private sector corporate members who represent infrastructure, agriculture, consumer goods, banking services and other unspecified industries. “The Advisory Council shall advise the president, through the secretary of commerce, on strengthening commercial engagement between the United States and Africa, with a focus on advancing the president’s Doing Business in Africa Campaign...” 10
PAN AFRICA
TRADE Inaugural Summit Sees Pledges Of US$37 Billion [Continued]...
African Growth and Opportunity Act [AGOA] The U.S. is expected to extend the African Growth and Opportunity Act for another 15 years to seek stronger trade and support growth in Africa. During the summit the United States officially launched the campaign for the renewal of AGOA. The act, which offers qualifying African countries preferential trade arrangements by eliminating import levies on more than 7,000 products, expires next year. There will also be significant increases in private sector support for US-backed food and agricultural programmes in Africa, including the New Alliance for Food Security and Nutrition. What is AGOA? The African Growth and Opportunity Act [AGOA] is a US-Africa trade deal that has been in effect since 2001. It grants duty free access to the US market for qualifying African states, without requiring any market opening in return. AGOA expires on the 30th of September 2015, and its renewal is currently being debated before the US Congress. If passed it is anticipated next year’s AGOA Forum will be held in Gabon, the first ever in Central Africa. Which countries qualify for AGOA? The 43 countries of sub-Saharan Africa are eligible for AGOA preferences, provided they meet certain conditions. These conditions include a commitment to the rule of law, a market-based economy, and internationally recognised workers’ rights, as well as a pledge to work towards eliminating barriers to trade and investment with the United States. Four countries have failed to meet these conditions and have lost AGOA preferences - the DRC, Guinea-Bissau, Mali, and Swaziland. How comprehensive is AGOA? The United States categorises their imports into 10,500 tariff lines. 3800 of these lines have no tariffs for all countries, 3400 have no tariffs for developing countries, and an additional 1800 have no tariffs under AGOA. A non-LDC AGOA-eligible country like South Africa would thus qualify for duty-free access into the US market on 9000 tariff lines. Has AGOA increased trade with the United States? Exports from the AGOA group to the United States have increased 78% since 2001, and imports into AGOA countries from the US have increased 239% over the same period. It is unclear what portion of this growth is driven by AGOA, as high African growth rates and the export of commodities and energy products have also had a large impact. For example cocoa and cashew exports from Ghana to the US went up by 300% under the AGOA initiative. AGOA runs a significant trade surplus with the United States. AGOA’s exports to the United States initially grew faster than exports from the rest of the world, however they have recovered more slowly after the global financial crisis of 2008. Which AGOA countries export most to the United States? The three largest AGOA exporters are Nigeria, Angola and South Africa - however Nigeria and Angola primarily export oil. If energy exports are removed, South Africa is by far the largest export partner for the US, followed by Kenya, Lesotho and Mauritius. While overall trade is high, the distribution of trade amongst AGOA countries is unequal. Half of AGOA-eligible countries export less than US$1 million to the United States. What do AGOA countries sell to the United States? AGOA’s exports to the United States are dominated by energy and commodities. Mineral fuels, oils, and distillation products make up 68% of US imports from AGOA, and this figure rises to 88% if South Africa’s exports are removed. Some manufactured goods - particular clothing and others textiles - have been growing fast, but remain small compared to commodity exports. South Africa’s trade with the US does not follow this pattern, and include the export of a large quantity of high-end manufactured goods, particularly vehicles and their component parts. How does the AGOA group’s trade with the US compare to other partners? During AGOA’s lifetime, the United States has been overtaken by China as a destination for exports from AGOA countries, and has fallen further behind the European Union in the aftermath of the financial crisis. 11
CMA CGM / DELMAS US-Africa Service Strengths Weekly service Total coverage of the US ports [East Coast, Gulf, West Coast] and Canada, including rail / road carrier haulage Reliable and regular services to serve all the ports of East, South & West Africa Inland transportation to landlocked African countries Integrated agent network in North America and in Africa Dedicated transhipment hubs for relay to West Africa - North America East Coast via Tangier Med, Le Havre, Antwerp or Rotterdam - North America West Coast via main Chinese ports - Dedicated transhipment hubs in Khor Fakkan or Port Kelang for relay to East & South Africa - North America East Coast via Le Havre, Rotterdam, Malta - North America West Coast via Chiwan or Shanghai - Direct Khulu service from Houston to Southern African ports targeting the oil industry with onward TBL service to Zimbabwe, Zambia, Botswana, Lesotho and Swaziland -
Transits West Africa Le Havre Hub, France
Dakar, Senegal
Abidjan, Ivory Coast
Lome, Togo
Tin Can, Nigeria
Apapa, Nigeria
Tema, Ghana
Cotonou, Benin
Douala, Cameroon
Luanda, Angola
New York, USA
13
25
29
33
34
34
42
43
47
38
Charleston, USA
15
27
31
35
36
36
44
45
49
40
Jacksonville, USA
17
29
33
37
38
38
46
47
51
42
Miami, USA
18
30
34
38
39
39
47
48
52
43
From / To
Transits East Africa Nacala, Mozambique
Maputo, Mozambique
Beira, Mozambique
Pemba, Mozambique
Quelimane, Mozambique
Mombasa, Kenya
Dar Es Salaam, Tanzania
Zanzibar, Tanzania
54
55
60
63
68
41
44
49
Norfolk, USA
54
59
62
67
Savannah, USA
52
57
60
65
From / To
New York, USA
Charleston, USA
55
42
45
50
Jacksonville, USA
56
43
46
51
Miami, USA
57
44
47
52
For full port options please contact your local agency office.
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PAN AFRICA
TRANSPORT Brics Bank Eyed To Meet Funding Gaps For Africa’s Infrastructure With financing being key to moving forward with Africa’s infrastructure plans, Africa is optimistic that the Brazil, Russia, India, China and South Africa, or Brics, development bank could be leveraged to roll-out projects across the continent. The Africa Infrastructure conference, in Sandton, South Africa, noted that the number of investment companies, including investment banks and alternative funds, such as sovereign wealth and pension funds needed to be increased to bridge the funding gap that ran into billions of dollars a year. South Africa for one was hopeful of obtaining support and funding for projects as the new Brics Development Bank reserved US$150-billion for a fund aimed at achieving the key developmental initiatives of member countries. Each year, sub-Saharan Africa only manages to raise half of the more than US$93-billion a year needed to meet its infrastructure requirements. The lack of infrastructure and future investments is hampering the continent’s competitiveness and constraining economic development – with 2% GDP growth lost each year – as well as trade and job creation. There are a number of projects in Africa that could unlock the growth potential of the region, but the challenges faced with converting these into bankable projects has frustrated the pace of Africa’s development agenda. The project preparation facility that will be embedded in the business of this bank will bridge the gap in addressing this challenge. [Engineering News 21/07/14]
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PPP And Interregional Shift Needed To Roll Out Pida Despite the progress made by the Programme for Infrastructure Development in Africa [Pida], the initiative is not as far along as it should be due to the lack of national cooperation and private-sector uptake. The multibillion-dollar Pida initiative, established in 2012, aims to address Africa’s infrastructure deficit through 51 regional projects and programmes and over 400 subprojects spanning transborder energy, transport, communications and water projects throughout Africa. The New Partnership for Africa’s Development [Nepad], the African Development Bank [AfDB] and the African Union’s continental infrastructure development blueprint is currently in its implementation phase, as the trio moves to “domesticate” the first projects. However, the complexity of the projects, which cross several regional boundaries, along with insufficient private sector uptake and conflicts between regional and national priorities have hampered progress. While Pida took an overarching view of the programmes needed to boost the continent as a whole, individual countries, faced with their own national priorities, had failed to wholly support some projects, with the regional benefits not immediately obvious to the territories – or the private sector. Countries need to line up resources and build capacity essential for preparing, implementing, operating and maintaining projects. The attractiveness, or lack thereof, of the projects to the private sector, which are expected to play a critical role in the implementation process, has also emerged as a challenge. Many of the Pida projects have been earmarked as public–private partnerships [PPPs] to enable private-sector support for financing, construction, operation and maintenance of infrastructure. The aggregate price tag of the Pida projects - US$360billion over the next 30 years, with at least US$68-billion required by 2020 - was beyond the financing capacities of governments or even donors. And smaller ancillary projects, including resource-driven projects, headed by the private sector have been leveraged to “tap in to” Pida projects. [Engineering News 21/07/14]
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WESTERN AFRICA
ECOWAS ECOWAS Leaders Approve EPA With EU West African leaders wrapped up their 45th ordinary session of the Economic Community of West African States [ECOWAS] with approval of the Economic Partnership Agreement [EPA] with the European Union [EU]. ECOWAS leaders declared: “The 16 heads of state and government decisively approve the EPA negotiated and take due account of the technical concerns raised”. They instructed the West African chief negotiator “to take appropriate steps to begin the process of signing and implementing the agreement”. It described the agreement reached as fair, balanced and mutually beneficial to ECOWAS and the EU. It welcomed the ad hoc committee set up at the last ECOWAS meeting to consider the technical issues raised by some member states, and whose recommendations led to solutions to the issues.
Policies Economic Partnership Agreement [EPA] The agreement fully takes into account the differences in the level of development between the 2-regions. The EU will provide West African firms with conditions that are more advantageous than those that apply to European exports to Africa. In the negotiations, the EU committed itself to open its market to all West African products as soon as the agreement enters into force. In exchange, the EU accepted a partial and gradual opening of the West African market. Only if and when West Africa will be ready to grant more far-reaching concessions to the Europe’s main competitors, will the EU be able to claim those same improvements. West Africa will continue to be able to shield its sensitive agricultural products from European competition either by keeping tariffs in place or, when necessary, by imposing safeguard measures. To support local agricultural production, the EU has also agreed not to subsidise any of its agricultural exports to West Africa. Single Currency [WAMZ] The January 1, 2015 take-off date for the use of a single currency under the West African Monetary Zone [WAMZ] is no longer achievable. The single currency-Eco was first planned to be introduced in 2003, but was postponed several times, to 2005, 2010 and 2014. ECOWAS approved the reduction of the convergence criteria from 11 [4 primary / 7 secondary] to 6 criteria [3 primary / 3 secondary]. Primary criteria are a budget deficit of not > 3%; average annual inflation of 5% by 2019; and a gross reserves that could finance at least 3-months of imports. The secondary criteria are public debt/GDP of not >70%; central bank financing of budget deficit should not be >10% of previous year’s tax revenue; and nominal exchange rate variation of plus or minus 10%. With monetary integration by 2020. The 6-countries that made up the WAMZ are Nigeria, Liberia, Sierra Leone Gambia, Ghana and Guinea. Common External Tariff [CET] The implementation of a CET regime is expected to debut on 1 January 2015 which is intended to integrate customs and duties and help reduce delays at the borders. CET has 4-tariff bands or rates of custom duty: nil% for essential goods, goods of primary nature including raw materials, 5%, intermediate products, 20% and final consumption products, 20%. All members states are to take legal and necessary steps to remove all challenges or bottlenecks to trade and commercial activities. Illegal Checkpoints ECOWAS called for an increase in the rate and volume of trade among member states in the sub region. Obstacles such as the multiplicity of legal and illegal checkpoints and barriers, lengthy inspection times and documentation requirements, plus costly delays-regardless of whether documentation is complete or not should be streamlined or removed. Resident Permits, Biometric IDs Approved the abolition of resident permits, and in their place introduced biometric identity cards for ECOWAS citizens. Biometric features make it easy to carry out quick verification of identity at anytime and anywhere. 15
WESTERN AFRICA
PORTS Angola Construction Work At Port Of Caio, In Cabinda The first phase of construction of the future deep-water port of Caio, in Angola’s Cabinda province is due to begin in December 2014. Construction of the port will be carried out in 3-phases by Angolan company Caioporto S.A. at a cost US$600 million. Phase 1 of the port involves acquisition of land, building infrastructure and creation of a cargo services area covering 100 ha and construction of a 775-m dock. Phase 2 will build a 1,550-m commercial dock and in Phase 3 the dock will be extended to 1,995 m. This is the biggest ever investment in Cabinda and will allow for local exports specifically of wood, coffee and agricultural products. [Macauhub 30/07/14]
Cameroon Douala Port Is Under Capacity According to a report released on July 7 by the National Ports Authority [APN], activity at Douala Port in 2013 increased by 9.8%, passing for the first time in its history the 10 million-tonne threshold in merchandise processing, to reach 10,592,021 tonnes as opposed to 9,642,086 tonnes in 2012. Douala Port was designed to accommodate 10,000,000 tonnes. The current volume being higher means the port is mechanically under-capacity. This extreme demand weighing on Douala Port comes at a time when Cameroon is preparing to launch its new deep water port in Kribi, which is currently in its first phase [building a protective dike, channel access for ships, a docking quay and polyvalent and container terminals] which is 97% complete. [Business in Cameroon 22/07/14]
Cote D’Ivoire Developers Secure Funding For Second Abidjan Container Terminal The terminal operators Bolloré and APMT, together with the French construction firm Bouygues, have secured loans totalling US$272 million for the development of Abidjan’s second container terminal [CT-2]. The 3-banks that have provided funding for the project are the Lome [Togo] based Banque Atlantique [US$136.21 m], the French Societe Generale [US$68.10 m] and the Egyptian Afreximbank [US$68.10 m]. Once fully-developed, the new container terminal at Abidjan will provide a berth length of 1,100 m and an annual design capacity of 2.1 Mteu. While the developers did not provide a detailed construction timeline, the new Abidjan terminal will most likely launch operations with a shorter pier length and lower capacity, before being extended to its full design specifications. The terminal development is part of a wider port expansion program which will also see a deepening of the Channel that links Abidjan’s commercial port to the Atlantic Ocean. The new CT-2 will add to Abidjan’s first container terminal, Vridi, also known as SETV-Terminal [Societe d Exploitation du Terminal de Vridi]. The award of the concession to Bolloré and APMT gives the companies a quasi-monopoly at the port of Abidjan: Bolloré already controls 60% of SETV, while APMT holds the remaining 40% share. [Alphaliner 15/07/14]
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WESTERN AFRICA
PORTS Ghana Q1 Maritime Trade Hits 5 Million Tonnes Ghana recorded over 5-million tonnes of maritime trade at Tema and Takoradi during Q1 2014, according to Ghana Shippers Authority [GSA]. Tema Port handled over 3.56 million tonnes equating to 75% of total trade. This was a decrease of 10% compared to the 2013. While Takoradi handled the remaining 25% showing a 3% increase. Total transhipment cargoes passing through both ports amounted to 282,781 tonnes or 6% of total trade - 267,422 tonnes import and 15,359 tonnes export. This was 17% more than what was recorded in Q1 2013. Of this 84% or 238,002 tonnes representing 5% of total throughput, was recorded as transit for the landlocked countries of Burkina Faso, Mali and Niger. Transit trade recorded a 17% increase for the review period. It however decreased by 29% at Takoradi whilst Tema recorded a 16% increase. The total liner tonnage for the review period amounted to 1.3 million tonnes, 17% less than 2013. Liner import trade was made up of processed foods 66,569 tonnes; polythene raw materials 151,465 tonnes; frozen meat and foods 137,019 tonnes; chemicals 108,091 tonnes; and tiles 107,419 tonnes. The total break bulk import trade amounted to 1.17 million tonnes. This was over 100% more than was obtained in the 2013. Items in this trade include iron, steel, plates, pipes 602,689 tonnes; bagged sugar 298,822 tonnes; bagged rice 152,389 tonnes; and bagged cement 116,216 tonnes. Export trade amounted to 1.1 million tonnes with the majority of items exported to the Far East and the North Continent ranges. The Far East range received a total of 610,059 tonnes representing 53% of total export, while the North Continent range had a tonnage of 220,405 or 19% of total export. A total of 170,096 tonnes which amounted to 15% of the total export was shipped; while the Mediterranean range had 53,969 tonnes or 5%, the United Kingdom, North America and Africa ranges each had 3%. [Ghanaweb 16/07/14]
Acquisition of Mobile Harbour Crane At Takoradi Port Ghana Ports and Harbours Authority [GPHA] has acquired a postpanamax mobile crane for Takoradi port. The unit arrived in May 2014 and was fully assembled by June 2014. The crane became operational on 28th July. [Local Agent 16/07/14]
The crane is capable of handling: -
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Project cargo from 144 tons @ 12-22m up to 46 tons @ 54m Twin lift of containers from 50 tons @ 11-38m up to 27 tons @ 54m Single lift of containers from 41 tons @ 11-54m up to 29 tons @ 54m Bulk cargo using 15 ton grab Big cargo using 8x2.1 ton big bag spreader per lift. The use of other cranes including ships derricks in the port will only be permissible if and when the GPHA crane is not available.
Government Okays Atuabo Free Port A commercial agreement between Government, Lonrho Ports Ghana Limited and Atuabo Free Port Company Limited for the facilitation of the Ghana Oil and Gas Free Port Project has been ratified by Parliament. The project, situated at Atuabo in the Western Region, is expected to be fully operational in 2016 to meet the logistics and support requirements of Ghana’s oil and gas industry. It involves the construction of a harbour protected by a rock breakwater to the west and a rock groyne to the east, a dredged approach channel, a turning circle, berth pockets and quays. The project would deliver an airstrip, power generation, hydrocarbon fuel storage area and roads amongst others. Under the terms and conditions of the agreement, the project would be a private sector joint venture [JV] with government as ‘the developer’ and totally funded by the private sector with government guarantee. Highlights of the Concession Agreement, include an exclusive right granted Lonrho to operate the Freeport, with tax exemption for 25 years, further rights for another 25-year extension, provision of 2,000 acres of land at the project site, which is strategically located opposite the Jubilee Fields, provision of security, immigration and custom by government, tax free zone for companies operating in the port and for materials imported or in transit, and the development of the only Petroleum and Hyrdocarbons Logistics Port in the Western Region. 35% of initial capital contribution is being made by Ghanaian institutions such as SSNIT,GPHA, GNPC, VRA, SIC to acquire equity in Atuabo free Port Limited. The Government will be given a 10% stake of the initial share capital of the developer at a per value zero premium. The remaining 55% of the equity will be held by international investors, to include Lonrho Ltd, Africa Finance Corporation and China Habour Engineering Company [CHEC]. [Spy Ghana 21/07/14]
Chinese Loan Cancellation Will Not Affect Takoradi Port Project The Ghana Ports and Harbours Authority [GPHA] notes the cancellation of the 2nd tranche of a US$3 billion China Development Bank [CDB] loan will not affect the ongoing Takoradi Port expansion project. According to the Director of the Takoradi Port, Captain James Owusu-Koranteng, as a special purpose vehicle [SPV], the GPHA could borrow on its own balance sheet to complete the project. The project is progressing steadily and on completion would position Takoradi Port as a petroleum hub providing services for offshore operations in Ghana and the West African sub-region. The project involves the construction of bulk terminals and an oil and gas services terminal on a reclamed land area of 53,000 ha. It also involves the creation of an open storage area for oil pipes, plants and other heavy-duty equipment to service the needs of the new oil and gas industry. The 2nd phase of the project will ensure physical infrastructure development within the port, good road network in and out of the port and the construction of a container terminal in Sekondi. Currently, the extension of the breakwater, which is one of the critical parts of the expansion project, is almost complete. It will pave the way for other aspects of the project to begin. [Ghanaweb 18/07/14]
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PORTS Mauritania Port Autonome Nouakchott Holds Completion Ceremony On 3rd August a completion ceremony was held at the Port Autonome Nouakchott otherwise known as the Port of Amitie marking the finish of works by the China Road and Bridge Corporation [SNCTPC] on Berth 4 and 5. The port is expected to reach a throughput capacity of 4-million tonnes this year, nearly 90% of the import transportation of Mauritania. The new facilities offer an increased capacity from 3-million to 6-million tonnes and can now receive tankers with a capacity of 40,000 tons and a draught of > 12-m. Li Bin, Chinese President Xi Jinping’s special envoy and Mauritanian President Mohamed Ould Abdel Aziz attended the completion ceremony. Port expansion work had been launched in 2009 in the presence of the Chinese Deputy Minister of Foreign Affairs Zhai Jun. The project was financed by a soft loan from the People’s Republic of China of US$288.5 million repayable over 20 years with a grace period of 5-years and an interest rate of 2%. [China News 04/08/14]
Mauritanian President Mohamed Ould Abdel Aziz
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CMA CGM / DELMAS Committed To Mauritania Services In February 2014 CMA CGM / DELMAS opened a new Group Agency CMA CGM MAURITANIE to strengthen local assets with a view to addressing all the demands of companies operating in Mauritania, especially those in the oil and gas and mining sectors. The Group serves both Nouakchott and Nouadhibou ports on our weekly PC Nord service. We call at the SOGECO Terminal in Nouakchott and the SAMMA Terminal in Nouadhibou. Mr Ange Antoine Leccia was appointed as General Manager. CMA CGM MAURITANIE Immeuble du Stade, BP 7761, Ilot A Lot 18, NOUAKCHOTT Tel: (+222) 45 25 20 16
CMA CGM MAURITANIE Immeuble Société Générale, Boulevard Maritime, NOUADHIBOU Tel: (+222) 45 74 00 05
PC Nord - Weekly - 4x 1,600 TEU - Tangier Med, Nouakchott, Banjul, Conakry, Freetown, Nouadhibou, Tangier Med
http://www.delmas.com/productsservices/line-services/flyer/PCNORD
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WESTERN AFRICA
PORTS Nigeria US$1.5 Billion Lekki Deep Seaport Project Suffers Setback Disagreements over the equity contributions of partners in the Lekki deep seaport are currently threatening the take-off of the project. Disagreements over the value of 805-ha of land donated by the Lagos State Government for the establishment of the facility have been identified as the cause of the delay. The seaport is a joint venture project of the Federal Government represented by the Nigerian Ports Authority, the Lagos State Government and a Singaporean based investor, the Tolaram Group. The final document for the project, which is expected to begin operations in 2017, has yet to be signed as a result of the disagreements, with the NPA insisting on the revaluation of the land, which the Lagos State Government is contributing as its equity. The NPA and Tolaram Group are expected to provide the funds for the project. The Federal Government holds 20% equity in the project; Lagos State Government, 18.5%; and Tolaram Group, 61.5%. Upon completion, that deep seaport is expected to decongest the current ports in Lagos, which were built to handle 60,000 tonnes, but are now handling over 100,000 tonnes of cargo. [Punch 11/08/14]
Government Shops For Private Investors For Warri Port The Government has intensified efforts to seek private investors in the concessioning programme for the Terminal “B” of Warri old Port. The concessionaire will be required to invest in the construction of the stacking area, administrative block, warehouse, rehabilitation of existing facilities and undertake further developments in the Terminal. As part of the contract terms, applicants must have a minimum of US$150 million tangible net worth. The deadline for submissions has been extended to August 8th. [Guardian 21/07/14]
Togo Lomé Container Terminal Extended To 1.2 Million Containers The Port Autonome de Lomé [PAL] capacity will be increased in a few months with the commissioning of a third dock and new infrastructures being installed by Togo Terminal a subsidiary of Bolloré Africa Logistics at a cost of FCFA300 billion fully funded by Togo Terminal. The extension project, launched in 2011 by PAL, includes development and modernization of the container terminal from the current 300,000 containers to 1.2 million p.a. The new dock will offer a depth of 15 m and length of 450 m providing a total of 900 m of linear docks and triple the current storage capacity. This price also includes dredging operations and the redevelopment of the port area. Modern computer equipment will also offer real time transhipment and storage operations management. PAL aims to increase traffic by 25% from 2016, including developing its trade with Burkina Faso, Mali and Niger, including imports and exports which account for more than 20% of the volume of its activities. A new transhipment terminal is being built by Global Terminal Limited and China Merchants Holdings. [iciLome 07/08/14 / Jeune Afrique 23/07/14]
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WESTERN AFRICA
REGULATRY Angola Prohibited Import Decree On Used Tyres / Used Spare Parts Due to a new law in Angola the shipment of used spare parts and used tyres are now forbidden goods in Angolan ports. Customs will block all shipments and such items will not be cleared. Furthermore Customs could auction or destroy these goods. [Local Agent 23/07/14]
Togo Single Window Project After obtaining the concession in October 2013 for the establishment and operation of a single window, Bureau Veritas and Soget have created a company with the Togolese authorities: Togo (Seguce). The window will be set up at the port and Lomé airport as well as at border crossings which will allow logistic operators to file standardized documents under one operation: logistics, customs and regulatory. The objective is to reduce the duration of stay of the goods at the port. The project should be fully operational within 3-years. The pilot phase allows the testing of the electronic platform for its technical and organizational dimensions and will permit the assessment of user acceptance. The arrival of ships at the port of Lomé will determine which players will be selected to participate in the Pilot Phase. All other players in the import trading community traffic will then be gradually merged into the scheme based upon the scalability over the next few weeks. [Marine Link 27/07/14]
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WESTERN AFRICA
TRADE Angola Complementary Study Of The National Transport Master Plan Government has received a loan from the African Development Fund [ADF] of UA2.90 million for the National Transport Sector Master Plan. Its objective is to provide an integrated master plan built on existing plans and studies with a clear strategy, priority and justification in terms of transport infrastructure development including the Railway Link between Caminho de Ferro de Benguela [CFB] and Zambia. [AfDB 31/07/14]
Ghana Ghana Aims To Double Exports By 2015 Ghana has launched a national export strategy that would enable it to double exports to US$5 billion by the end of 2015. Minister for Trade and Industry, Haruna Idrissu, said the government was seeking to establish a non-partisan export advisory council to improve the export growth of the economy to include former trade ministers, chief executives of the Ghana Investment Promotion Council [GIPC] and the Ghana Investment Promotion Authority together with private sector players to advise government on export opportunities. This comes at a time when government has taken major decisions regarding trade relations with the European Union under preferential trade agreements. Furthermore the government has expanded the Export Development and Investment Fund [EDIF] in order to support agricultural exports. [CAJ News 16/07/14]
Nigeria Indonesia Trade Hits U$3.6 Billion Up 30% Trade volume between Nigeria and Indonesia reached US$3.68b by 2013, with a projection leaping by 30% in 2014. Director of Indonesian Trade Promotion Centre [ITPC], Pontas Tobing, noted trade imbalance stands at $2.5b. Imports from Indonesia were US$558b while exports from the Nigeria oil and gas sector stood at US$3.1b. As the biggest exhibition in Asia, the 2014 Trade Expo Indonesia [TEI] intends to address this imbalance and aims to strengthen trade relationships with a target of US$2m in business transactions. It is supported by the Indonesian Ministry of Trade. The target of the Indonesia government is to increase the trade volume by at least 30% before the end of 2014. Nigeria is Indonesia’s 2nd largest trade partner in Africa after South Africa, while Nigeria is the first sub-Saharan African country that established diplomatic mission in Indonesia. [Guardian 24/07/14]
Sierra Leone SLNC Ultimatum As Sierra Leone Loses Billions To Foreign Shippers The Sierra Leone National Carrier [SLNC] has slated 15th August as the deadline for all shippers to be in compliance with regulations relating to registration of cargo and bulk sea transportation. The implementation of the Certificate of Compliance is a statutory provision of the SLNC Amendment Act 2014. Before shippers load or clear cargo for export or import into or out of Sierra Leone they must register with the SLNC and obtain a Certificate of Compliance from the latter to certify them. Compliance will strengthen the monitoring of the accurate volume of cargo exported or imported in and out of Sierra Leone. The Certificate of Compliance indicates that shippers abide with the rules and regulations by giving 40% of their cargo to be carried by the SLNC which is a joint venture [JV] between the Government and parent company Premuda Group. [The Times 14/07/14]
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Cote d’Ivoire Hollande In Côte d’Ivoire For Trade Talks French president François Hollande visited Côte d’Ivoire for trade talks. France is Côte d’Ivoire’s main trading partner. Hollande met President Ouattara who hosted Hollande for the first time in Abidjan. The President was accompanied by a delegation of around 40 business leaders, including top people from Bouygues, Alstom and Suez-Environnement. There are around 150 small businesses run by French people in Côte d’Ivoire as well as about 200 subsidiaries of larger French companies. Hollande then went to Niger and Chad. [RFI 17/07/14]
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EASTERN AFRICA
EAC/COMESA Ethiopia Exports Up 6% Ethiopia secured US$3.3 billion from exports in the last fiscal year, a 5.8% increase compared to the year before. Partly attributable to the increase in oilseed revenue, the nation’s second highest export earning item, the country also collected US$642.7 million from sesame and niger seeds, a 46% increase. However coffee showed a 3.7% decline in exports and a 4.1% decline in volume, earning US$718.8 million. Ethiopia has an ambition to earn US$6.6 billion from farming exports and US$1 billion from textile and garment by mid-2015. In order to achieve this, the government is striving to attract investment into processing agricultural products and diversifying the nation’s economy. Textile and clothing sales jumped to US$111 million up 13%. Shoe sales climbed 57% earning US$28.8 million. However the value of gold declined 21% to US$456.2 million. Sale of khat rose 9.5% to US$ 297.4 million and shipments of flowers jumped 7% to US$199.7 million. [Bloomberg 04/08/14]
Kenya Kenya Secures Comesa Grant To Speed Integration The Common Market for Eastern and Southern African [COMESA] has advanced €2.46 million from the Comesa Adjustment Facility [Comesa-CAF] to Kenya to support regional integration programmes. The facility will tackle hurdles in the way of enhancing trade and other cross border activities within Comesa and East African Community [EAC] blocs, including tariff barriers along major transport corridors. The agreement was signed by Cabinet Secretary National Treasury, Henry Rotich and Sindiso Ngwenya, Comesa Secretary General. An additional €4.7 million will be available over 2-years disbursed based on progress. The support provided to Kenya has already contributed to eliminating Non-Tariff Barriers [NTBs] that hinder trade and to setting up of a co-ordinating committee and secretariat that deals with regional integration matters at the national level. In an effort to enhance regional integration, Kenya has restructured the Government institutional structure pooling together departments implementing regional integration programmes and institutionalised wide stakeholder participation in policy and implementation of regional commitments. Kenya is to ensure that the transit transport facilitation instruments such as vehicle dimensions and axle load limits are configured in line with Comesa and EAC. [Standard Digital 23/07/14]
Mozambique 22% Trade Increase With China Trade between Mozambique and China in the first 5-months of 2014 rose to US$717 million a 22.62% increase on the same period in 2013. Exports to China totalled $199 million, an increase of 28.36% whilst imports increased by 20.54% to $518 million. Mozambique is China’s 4th largest trading partner in the Lusophone world. In the same period, trade between China and the 8-Portuguese speaking countries came to $53.345 billion, a 9% increase. Exports stood at US$16.995 billion, with imports of US$36.349 billion. More than half of the total trade, US$34.173 billion, was with Brazil. The second largest trading partner was the oil exporter Angola, with imports and exports totalling US$16.491 billion. Portugal was the third largest partner, with trade worth US$1.896 billion. The other countries, Cape Verde, Guinea Bissau, East Timor and Sao Tome and Principe had only US$66 million of trade with China. [AIM 05/08/14]
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EASTERN AFRICA
PORTS
Egypt Egypt Announces Plans to Build New Canal Alongside Suez Egypt has announced plans to build a new canal alongside the Suez. The multibillion-dollar project is aimed at expanding trade along the fastest shipping route between Europe and Asia. The Suez Canal Authority said the agency would build a new 72 km canal parallel to the 145-year-old historic waterway. Total estimated cost of digging for the project is US$4 billion which would involve 35 km of dry digging and 37 km to expand and deepen the channel. 17-Egyptian companies will be involved in implementing the project under the supervision of the military. Plans include building an international industrial and logistics hub in the Suez Canal area. The current canal, which was completed in 1869 and stretches 193 km,, brings in about US$5 billion in revenue per year. [Reuters 05/07/14]
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EASTERN AFRICA
PORTS
Kenya Lamu Port In US$479 Million Chinese Deal The Kenya Ports Authority [KPA] and China Communication Construction Company [CCCC] have signed a US$478.9 million deal to build 3-berths at Lamu Port, Kenya. The project is part of the Lamu Port South Sudan Ethiopia Transport [LAPSSET] corridor, a US$24 billion international project. Construction is to begin in September 2014. On completion, Port Lamu will have a total of 32 berths. Kenya looks set to play a key role in the burgeoning east Africa oil and gas industry with a new export terminal at Lamu and a crude oil pipeline enabling oil exports to Asia beginning in 2017. [Port Technology 04/08/14]
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Mombasa Port Traffic Up 13% In H1 Container traffic through Mombasa port increased by 12.8% in H1 2014 after new cargo handling infrastructure was built to shorten the turnaround time for ships. Total cargo rose by 12.8% to 11.9-million tonnes from 10.5-million tonnes in the January to June last year. Container traffic increased by 11.5% to 463 920 TEUs this year from 415 948 TEUs. The port, The port, the biggest in east Africa, is seen as a measure for economic activity in east Africa as it handles imports for Uganda, Burundi, Rwanda, South Sudan, Democratic Republic of Congo [DRC] and Somalia, and exports of tea and coffee from the region. The volume of goods destined for neighbouring countries also increased, rising by 9.6% to 3.53-million tonnes after the opening of a new berth at the port in August last year, with Uganda and Rwanda bringing in more imports. Kenya is building a US$300-million second container terminal at Mombasa to handle increased trade within the region, driven by a sharp growth in construction, vast infrastructure development and an emerging middle class. Kenya also plans a second port in Lamu, north of Mombasa, with a capacity of 23-million tonnes per year. [Reuters 30/07/14]
Mozambique Government Calls For PPP For Beira Port & Railroad Mozambique’s Transport Minister, Gabriel Muthisse called for public-private partnerships [PPPs] to maintain rail and port facilities in Beira. Traffic is projected to increase over the next 10 years to 23 million tons, including 18 million tons of coal. There is a need to start studying the needs and growth of the “Zimbabwe Corridor,” which includes Zambia and Congo. Work is underway on the Sena Railroad to increase its capacity but a solution needs to take both port and rail capacity into account. In order to improve access to the port and Marine Services in Beira Mozambican state rail company Caminhos de Ferro de Moçambique and dredging company EMODRAGA, E.P. urgently need to dredge the port’s access channel. [Macauhub 17/07/14]
Maputo Trade Hub For Southern Africa Maputo port is regaining its traditional place as a trade hub in Southern Africa thanks to investment in port and transport infrastructure which have driven economic growth. Cargo through Maputo hit 17 million tons in 2013 beating a previous record from 1973. New works will cost an estimated US$2 billion to include dredging to improve access to the port as well as construction of a new terminal. By 2020 total cargo handled is expected to hit 40 million tons, more than double the figure for last year. Investments also include a rail link from the South African capital, Swaziland and Zimbabwe. The discovery of important mining and natural gas reserves have made Mozambique one of the biggest destinations for foreign investment in the world, with particular interest from Asian companies. Investments from China, Brazil, India and Australia will boost trade whilst Portugal and South Africa will continue to have a strong relationship with Mozambique. The consortium that manages the port [MPDC] includes Dubai Ports World [24.7%], Grindrod [24.7%], Mozambican port and rail company CFM – Portos e Caminhos de Ferro de Moçambique [49%] and Moçambique Gestores [1.6%]. Attracting investment to infrastructure, natural resources and services, will be key priorities over the next few years for the Mozambican authorities considering average economic growth in Mozambique, in the 2014-18 period, will be 7.7% p.a. Development of Maputo and the railway lines used by companies from South Africa and Zimbabwe, will be great drivers of growth in 2014-18. Last year the construction sector saw growth of 11.3% whilst transport grew by 16.1% diversifing the “drivers of economic activity beyond coal mining. As new mines start operating this has allowed for substantial growth in the ports of Beira [centre] and Nacala [north]. Whilst Maputo is gradually recovering as a great transit point for the Southern Africa region. [Macauhub 14/07/14]
Tanzania Dar Port Has New Equipment Tanzania Ports Authority [TPA] has bought 4-heavy-duty 100-tonne mobile cranes at a cost of €104 million to improve service at Dar es Salaam port. In addition, private container terminal operator Tanzania International Container Services plans to buy 2-shipto-shore and 7-rubber-tyred gantry cranes by the end of September. The TPA measures have seen cargo clearance improve and dwell time reduce from 20 days in 2008 to 8 to date. The port is now operating on a 24-hour basis to ease trading. TPA has also installed an advanced communication system at the harbour, resulting in the reduction of docking days from 15 in 2008 to 3 enhancing vessel and cargo clearing. [Daily Mail 05/08/14]
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SOUTHERN AFRICA
SADC 6-SADC Nations Sign EU Deal Following 10-years of talks, chief negotiators initialed the Economic Partnership Agreement [EPA] at a meeting in Pretoria on July 15, ahead of the October 1st deadline imposed by the European Union [EU] for the conclusion of the reciprocal trade arrangement. The longrunning and highly contested negotiations between 6-Southern African countries and the EU preserves coherence within the Southern African Customs Union [SACU] and improves access to the EU market. The countries making up the Southern African Development Community EPA group comprise Botswana, Lesotho, Mozambique, Namibia, Swaziland and South Africa. Angola did not sign. A failure to conclude a deal by October 1 would have resulted in Botswana, Namibia and Swaziland losing their preferential access to the EU for exports of beef, fish and sugar. The EU reportedly gave an assurance that the act of initialing was sufficient to sustain current market access until the EPA entered into force. The finalised text of agreement, confirmed already by the chief negotiators, is now going to be presented for signature and ratification according to the domestic procedures of each partner by no later than October 2016. South Africa The EPA will be subjected to a 2-month vetting process and the agreement will be presented to its Cabinet for approval before being submitted to Parliament for ratification likely to take place in early 2015. The EPA preserved SACU’s functional coherence, particularly in regard to maintaining the common external tariff, although the EU continues to provide the other members of the SADC EPA Group better access to its market than it offers South Africa. The EPA terms represented an improvement on the TDCA, with South Africa securing superior market access for 32 agricultural products. The EPA rules of origin also represented an improvement over the TDCA, while an agreement was also secured that the EU would eliminate export subsidies on agricultural goods destined to SACU, as well as more effective safeguards to address damaging surges of imports. In return, South Africa agreed to negotiate a protocol on geographic indications [GIs], which are place names used to identify products, such as Champagne, Tequila, or Roquefort. For its part, South African would seek to protect the names of specialised South African agricultural products, such as Rooibos and Honeybush. South Africa’s exports to the EU had not recovered from the economic crisis, with exports to the EU having been €22-billion in 2008 and only €20-billion in 2012. By contrast, EU imports to South Africa increased to €25-billion in 2012, from €22-billion in 2008. Namibia Namibia also signed the declaration this month. Namibia had been reluctant to sign the interim EPA based on an assessment that the EU demands would amount to an unjustifiable encroachment into the country’s development policy. Namibia’s concerns were on the Most Favoured Nation [MFN] treatment that the EU insisted upon, the abolition of quantitative restrictions upon entry into force, the freezing of existing export taxes and the prohibition of new export taxes. Namibia negotiated for no automatic extension of the MFN treatment to the EU regarding any better treatment the country may in future negotiate with another major economy, thereby keeping options open for future South-South trading arrangements. Namibia also achieved a significant reversal in export taxes in that Namibia would be able to apply export taxes. Botswana, Lesotho, Namibia and Swaziland The EU agreed to eliminate export subsidies on agricultural goods destined for the SACU market and to restore a safeguard safety-net for Botswana, Lesotho, Namibia and Swaziland sensitive products, which had previously been liberalised and reduced to zero tariffs under the Trade, Development and Cooperation Agreement between South Africa and EU.
Market Access South Africa: The country’s quota for duty-free wine exports would be increased from 47-million litres to 110-million litres. In addition, for the first time, 150 000 t/y of South African sugar would be able to flow into the EU duty free, 50,000 t of which could be refined sugar. It would also be able to export 80,000 t/y of ethanol to the EU duty free and had received improved access for canned fruit. There was also some improved access for South African flowers and dairy exports. The season for duty-free citrus exports has been extended by 6-weeks. The treaty also allows some policy space for the introduction of mineral export taxes. Namibia: The agreement was well received by Meatco as well as the Ministry of Fisheries. The EU is the biggest consumer of hake exported from Namibia contributing over N$6,1 billion to GDP. Namibia also exported 10,229 tonnes of beef to the EU valued at N$613 million. Swaziland: Sugar exports to the EU currently account for 8% of total EU imports - the local sugar industry will now increase production in the next 5-years. The apparel sector will also benefit saving 17,000 textile jobs that it is likely to lose following possible loss of benefits under the African Growth and Opportunity Act [AGOA] from January 1, 2015. 29
ECIC Inks Deal With Brics Export Credit Insurance Agencies The Export Credit Insurance Corporation of South Africa [ECIC] has entered into a Memorandum of Understanding [MoU] on cooperation with the export credit insurance agencies [ECAs] of the other Brics member countries – Brazil, Russia, India and China. The MoU establishes a framework of cooperation to support and encourage international trade as well as facilitate the supply of goods and services. The agencies would also cooperate on joint projects targeted at developing trade and manufacturing ties to enhance exports. The 5-Bric export credit agencies are the Brazilian Fund and Guarantee Management Agency, the Export Insurance Agency of Russia, the Export Credit Guarantee Corporation of India, China Export & Credit Insurance Corporation and the ECIC. They are all State-owned agencies and members of the Association of International Union of Credit & Investment Insurers. [Engineering News 18/07/14]
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SOUTHERN AFRICA
PORTS Regional Port Expansion Southern Africa countries are undertaking major expansion or constructing completely new ultra-modern ports to accommodate the growing global trade using waterways. Growing volumes have forced port authorities and operators to increase capacity, analyse operations to increase efficiency, and employ measures to allow bigger ships into their ports. The East Africa region has various projects underway. Kenya’s US$5.3bn Lamu port and US$11bn Bagamoyo port are preparing for ever growing port capacity needs. Reconfiguring port layout, and increasing berths at existing ports and conducting dredging more often, have been other strategies that numerous ports have employed to meet this need. Maputo port will be undertaking dredging to increase its channel depth from 11m to 14m this year to allow larger vessels entry and Tanzania will invest US$523 million for new berths 13 and 14 to more than double its container capacity at Dar es Salaam Port. Meanwhile, organisers of the first annual Port Expansion East Africa, Infrastructure IQ are calling on participants to register for the conference which will be held in Dar es Salaam next September. [Tanzania Daily News 17/07/14]
Namibia Port Contractor On World Bank Ban China Communications Construction Company [CCCC] Limited, the parent company of the China Harbour Engineering Company [CHEC] that won the N$3.9 billion contract for the construction of the Namport terminal at Walvis Bay, has been reported to be under a World Bank ban over tender rigging. The company and subsidiaries were banned in 2009 which extends to 2017. The Walvis Bay port terminal is being bankrolled by the African Development Bank [ADB] under a deal that was underwritten by the Ministry of Finance. According to the Tender Bulletin, the ban on CHEC and CCCC does not extend to the ADB and the company is eligible for the tender to construct the Walvis Bay Port. [Namibian 01/08/14]
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South Africa Transnet Revises 7-Year Capex Plan To R312.2bn State-owned freight logistics group Transnet has revised its 7-year rolling capital investment figure to R312.2-billion, from R307.5billion, and reveals in its latest annual report that sustaining capital will comprise 51% of that total. The documents reaffirmed the centrality of the Market Demand Strategy [MDS], with its emphasis on counter-cyclical investment. But they also stressed that the MDS required ongoing attention to “bring aspirations closer to economic reality”, with volumes having been adjusted downwards in line with market sentiment. Transnet Freight Rail [TFR] was poised to consume the lion’s share of the investment from 2015 to 2021, with capital expenditure of R209.9-billion planned for the purchase of locomotives and wagons, as well as the expansion of infrastructure. During 2013/14, Transnet invested a record R31.8-billion and plans to invest a further R33-billion in 2014/15. [Creamer 18/07/14]
Ports Regulator Switches To Multiyear Tariff The Ports Regulator of South Africa has issued a multiyear tariff methodology to govern the National Ports Authority’s [NPA’s] tariff setting process in an attempt to create transparency and regulatory certainty. The tariff would be applicable to the 2015/16, 2016/17 and 2017/18 tariff years, as opposed to only 1-year. While a single methodology would be used for the entire period, the multiyear tariff application would have different calculations for each tariff year in the period, consisting of forecasts and calculations of each of the components of the required revenue approach to create greater certainty from a planning and investment perspective, both for the NPA, as well as for port users over the next 3-years. The regulator would, however, allow for the yearly review and adjustment of tariffs within the 3-year period, as opposed to fixing the prices for the period, as this would protect users from possible large step changes in the tariff. [Creamer 06/08/14]
New Dredger Arrives In Durban A new dredger to help maintain South African ports arrived in Durban from Bulgaria on 1st August. The vessel, Italeni, will replace the ageing Crane dredger and joining the Islandlwana grab hopper dredger. The dredger was built by Dutch ship builder IHC Merwede in the shipyard of its partner, MTG Dolphin, in Varna. The Italeni will be used mainly for maintenance work in various ports throughout the country, especially keeping the channels clear that allow ships to enter the port. Fully loaded, it can carry 750 m3 of dredged material. [Sapa 08/08/14]
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