NEW GATEWAY FOR WEST AFRICAGULF COMPANIES COMMIT US$19 BILLION TO WEST AFRICA INFRASTRUCTURE PROJECTSFull Story On Page 09

AFRICATRADE-WATCH

Group Announces Strong Positive Financial Results Q2

ISSUE 40 | SEPTEMBER 2014

US$11b Bagamoyo Port Construction Starts

Low Trade Hampers SADC Integration

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New Gateway For West Africa

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Group Announces Strong Positive Financial Results Q2

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23

US$11 Billion Bagamoyo Port Construction Starts This Year

Low Trade Hampers SADC Integration

Contents

Top Stories

03 /African Group News

07 /Events Diary & News Briefs

09 /Western Africa

23 /Southern Africa

17 /Eastern Africa

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AFRICATRADE-WATCH

ISSUE 40 | SEPTEMBER 2014

News Headlines By RegionWestern AfricaAngola: Lobito Port Receives US$1.247 Billion Investment

Cape Verde: EIB Finances Port Works

Ghana: Ports On Course To Handle 1 Million Containers

Mali: Programme de Vérification des Importations [PVI]

Nigeria: Nigeria Targets US$706 Million Ecowas Trade / Ecobank, Brazilian Bank Partner On US$20 Million Import Facility / NBCC Projects £20 Billion Trade Volume Between Nigeria, UK By 2020 / Indonesia Trade Hits US$588 Million / Due Diligence Completed On Lekki Port Project / Ports Record High Cargo Traffic / Ibaka Deep Seaport Take Off / Government Bans Importation of Animals

Senegal: Onion Imports Resume

Eastern AfricaEthiopia: Ethiopia To Join COMESA Free Trade Area

Kenya: Car Importers Protest Over New Port Charges

Mozambique: Japan Supports Competitiveness Of Over 200 Products / Guebuza Lays First Stone for Pemba Logistical Base / Beira Port Sees Growth Of 15%

Sudan: Reforms To Improve Trade

Tanzania: Tanzania, China Trade Hub To Be Located At Kurasini / TICTS Adds New Equipment to Enhance Efficiency / Dar Es Salaam Traffic Up 20% / US$11 Billion Bagamoyo Port Construction Starts This Year

Southern AfricaSouth Africa: New SEZ Regulations To Be Completed By October / Transnet Port Terminals Opts For Kalmar Straddle Carriers / Work Starts On R1.4bn Tugboat Building Contract / Durban Port, Road Congestion

Zambia: India Trade Rises To US$600 Million

Zimbabwe: China To Help Zimbabwe Build SEZ’s

s Record High

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Website: www.delmas.comEmail: lhv.marketing@delmas.netTweet: @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

Group Announces Strong Positive Financial Results Q2The Board of Directors of CMA CGM Group met under the chairmanship of Jacques R. Saadé to review the financial statements for Q2 2014 and reported consolidated net profits of US$94 million.

- Volumes carried increased by 8.0% compared to Q2 2013, for a total of 3.1 million TEUs - Average revenue per TEU decreased by 3.9% over the period. - Core EBIT margin stands at 4.9%, mainly due to a sharp reduction in unit costs, up compared to the Q3 2013 and stable

compared to Q1 2014.

Sustained growth in volumes was mainly attributable to the development of the Group’s Asia-Europe and Africa lines reflecting CMA CGM’s enhanced services portfolio in these regions. As a result the Group achieved record-high volumes for the period.

CMA CGM’s financial position remains stable, with cash maintained at a healthy level. Noting in Q2 2014 Standard & Poor’s raised CMA CGM’s credit rating to B+ with a stable outlook.

The Group is continuing to expand its port terminal operations with new investments in its container terminal network, with new hub terminals planned in Reunion [Indian Ocean], Mundra [India] and Kingston [Jamaica].

3

AFRICAN GROUP NEWSCMA CGM / DELMAS

Port Réunion To Be Group Strategic Maritime Hub New Crossroads Between Africa, Europe And Asia

CMA CGM Group’s Vice-Chairman, Rodolphe Saadé, visited the Reunion Island with President Hollande to lay the cornerstone for the future Port of Reunion Island.

During the ceremony, Rodolphe signed a Memorandum of Understanding [MoU] aimed at making Port Réunion the CMA CGM Group maritime hub in the Indian Ocean within 12 to 18 months. The facility will be a key element in the Group’s development in Africa, where it already has a strong presence. The new hub will act as a strategic center connecting all maritime lines from Africa, Europe and Asia. Cargo from all over the world will be unloaded on the island, before being loaded towards new destinations. This agreement will significantly increase the activity of the port. The island will also benefit from a broader world-wide supply opportunities that will renew its shipping focus.

The Memorandum of Understanding signed in the presence of the President of the French Republic François Hollande will play an active part in the economic growth of the Reunion Island, and will reinforce its commercial ties not only with the surrounding islands, but also with Europe, Africa and Asia. Reunion Island is located at the maritime crossroads. This will be truer than ever tomorrow with the CMA CGM project.

Rodolphe Saadé, CMA CGM Group Vice-Chairman Executive Officer

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West Feeder Service Enhanced In order to provide an improved service and to meet increased cargo levels CMA CGM / DELMAS has enhanced its West Feeder service by increasing capacity. As from 22th September the service will deploy 5 vessels instead of 3 vessels with weekly capacity reaching 450 TEU per week. This coastal service is dedicated to both the Democratic of Congo [DRC] ports of Boma, Matadi and Banana as well as Angolan secondary ports of Soyo-Quinfuquena Terminal, Cabinda, Lobito and Namibe. Onward connections are offered via our hubs at Walvis Bay [Namibia] and Pointe Noire [Congo].

Swahili Service Upgrade - New Nhava Sheva CallTo meet customers’ needs DELMAS is to introduce a new direct weekly call at Nhava Sheva International Container Terminal [NSICT] on its Swahili service. The service focuses on the India, Gulf, Middle East to East Africa trades. The move opens up a direct link from/to Nhava Sheva [India] serving the markets of Kenya, Tanzania and Mozambique offering fast and reliable transit times.

In India the major Inland Container Depots [ICD] of Dadri, Ludhiana, Tughlakabad, Ahmedabad, Baroda, Jaipur and Jodhpur are connected to East Africa through Nhava Sheva port. Operated by DP World the terminal is also connected to India’s major highways and rail networks, which gives access to neighboring Mumbai and to the hinterland of Madhya Pradesh, Maharashtra, Gujarat, Karnataka and most of North India.

In Africa, India traders are further offered inland connections to Uganda, Democratic Republic of Congo [DRC], Malawi, Rwanda and Zambia with our bespoke intermodal service.

The first voyage will start on 9th October 2014 with M/V Bella voyage 2S229S. Seven 2,800 TEU vessels will call with the following rotation Nhava Sheva Thu/Thu, Jebel Ali Mon/Tue, Khor Fakkan Wed/Thu, Mombasa Mon/Wed, Dar Es Salaam Sun/Tue, Zanzibar Fri/Sun, Nacala Thu/Sat, Nhava Sheva.

http://www.delmas.com/products-services/line-services/flyer/WFEDEL

http://www.delmas.com/products-services/line-services/flyer/SWAX2

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AFRICAN GROUP NEWSCMA CGM / DELMAS

New Structure For CMA CGM South Africa!CMA CGM Shipping Agencies South Africa [Pty] Ltd has re-organizational its structure to focus on commercial exchanges. This new configuration, split over 5-regions, aims to enhance customer relationships and provide each area with improved customer focus and efficiencies.

Furthermore the addition of specialist trade desks focusing on both reefer and Crosstrade [CTBL] traffic will enhance service levels to the South African fish and fruit industries as well as to inland on-carriage markets.

This new organization was implemented to favour above all the operational effectiveness and be able to offer our customers a better quality of service. Thanks to these developments, we hope to meet the ambitious development goals that we have set for the entire region.

Estève Servajean, General Manager CMA CGM South Africa.

Headed by Paul Zunckel, Chief Commercial Officer our team of experts are here to help you from quotation stage up to the delivery of your goods.

Region Contact

Kwa-Zulu Natal Regional Manager [Durban] Shandi Summerford - dba.bookings@cma-cgm.com

Gauteng Regional Manager [Johannesburg] Cheryl Posthumus - joh.bookings@cma-cgm.com

Eastern Cape Regional Manager [Port Elizabeth & Ngqura] Tracy Lovemore - plz.bookings@cma-cgm.com

Western Cape Regional Manager [Cape Town] Aida Perumal - cpt.bookings@cma-cgm.com

Botswana Sales & Ops Manager [Gaborone] Kgomotso Batlanang - gbe.kbatlanang@cma-cgm.com

Reefer Desk Clare Berry-Post - cpt.reefer@cma-cgm.com

Crosstrades Desk Edith Zwane - joh.xtrade@cma-cgm.com

E-Commerce Desk Revaj Gianchand - joh.rgianchand@cma-cgm.com

Containers Of HopeCMA CGM Corporate Foundation Renews Support In Madagascar For the second consecutive year, the CMA CGM Corporate Foundation shipped 12 tons of books and school supplies to underprivileged children from the Sofia region in Madagascar, through the Containers of Hope Operation, carried out in partnership with the Group.

The container left Fos-sur-Mer on August 11th on board CMA CGM Fidelio, which is expected in Madagascar in Mahajanga port on September 27th.

Launched in July 2012 in partnership with NGOs, the Containers of Hope Operation allowed to route 197 TEUs representing 1,480 tons of humanitarian material to children and most vulnerable families, mainly in Africa.

ContactCMA CGM Shipping Agencies South Africa [Pty] Ltd24th Floor Durban Bay House333 Anton Lembede StreetDurban 4001Tel: +27 31 319 1 300 Fax: +27 31 319 1 304

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September 2014 16-17 World Export Development Forum (Kigali, Rwanda) http://www.intracen.org/itc/events/world-export-development-forum/15-19 6th South African Investment and Trade Initiative to DRC http://www.thedti.gov.za/invitations/ITI_DRC_Invitation.pdf23-24 1st Annual Port Expansion East Africa Conference (Dar es Salaam, Tanzania) 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) http://www.uneca.org/aec201419-21 5th Africa Public Private Partnership Conference and Showcase (Abidjan, Ivory Coast) www.africappp.com29-30 15th Francophonie Summit (Dakar, Senegal)

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) www.zambiawater.com26-27 13th Intermodal Africa North 2015 (Lagos, Nigeria) http://www.transportevents.com/EventsDetails.aspx?EventID=EVE117

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AFRICAN SHIPPING

EVENTS DIARY

ANGOLA - Sonangol has been given a greenlight by the Angolan

government for oil exploration rights in onshore areas of the Lower Congo and Kwanza basins: KON2, KON4, KON11 and KON12 blocks.

- The China Machinery Engineering Corporation (CMEC) will build a US$985.2 million combined-cycle power plant in Soyo, Zaire province.

CONGO - China Geo-Engineering Corporation International Ltd, CGCINT

is seeking 30,000 ha near Pointe-Noire to invest in cassava cultivation.

DRC - Cathode producer Tiger Resources is to spend $111-million

on remaining 40% interest in its flagship Kipoi project, in DRC, Societe d’Exploitation de Kipoi SA.

GAMBIA - A new national oil company called the Gambia National

Petroleum Corporation, GNPC, which takes over the state-owned Gambia National Petroleum Company Limited has been created by law.

GHANA - Ghana is in discussions with the Turkish Authorities for a free

trade agreement to ensure unimpeded access to each other’s markets. Turkey is the 24th largest supplier of imports to Ghana. In 2013 it supplied imports worth $150.2 million - 1.3% of total imports. exported $87.7 million to Turkey - 0.75% of total exports [gold/cocoa].

- Group Five has secured a 3-year R4-billion engineering, procurement and construction contract for the design and build of a 350 MW gas- and oil-fired combined cycle power plant in Kpone, within the Tema industrial zone.

LIBERIA - Iron-ore developer Tawana Resources appointed mining

design / development groups Tenova Mining and Minerals and Engenium to manage the design and logistics components of a prefeasibility study for its Mofe Creek project.

NIGERIA - 600 tonnes of cocoa due for export from Cross Rivers State

have been delayed since 25/08 after the local government refused to issue certificates to enable buyers ship the beans. The state government on 22/08 directed merchants to pay 20 naira ($0.1235) per bag of cocoa (320 naira per tonne) as an export levy which traders dispute. Warehouses are close to full.

SAO TOME & PRINCIPE - Government is due in the next few days to sign a US$30 million

“food security” agreement with Brazil mainly on imported food and building materials from Brazil provided under a credit line, the “More Food” project.

Western AfricaKENYA - Centum Investment and its local partner Gulf Energy have

joined China Huadian Corporation Power Operation Company, Sichuan Electric Power Design and Consulting Company, and Sichuan No. 3 Power Construction Company to build a US$2 billion 1,000-MW, coal-fired power plant in Lamu.

MOZAMBIQUE - Portugal has removed barriers on exports of Mozambican

products such as bananas after visiting Maputo International Fair.

NAMIBIA - Cronimet Mining Power Solutions broke ground on

construction for a large Namibian photovoltaic power plant in Omburu, NW of Windhoek.

- Walvis Bay plans to lay the foundations for 30,000 plots to construct 40,000 new houses by the year 2030 under the Walvis Bay Integrated Urban Spatial Development Framework.

SOUTH AFRICA - Universal Coal got the green light for mining rights over the

Brakfontein coal project - 50.29% owned by the South African Department of Mineral Resources.

- Coal of Africa reached conditional agreements with existing /new investors to raise cash to pay off debt, modify its Vele colliery and fund its medium-term Makhado project.

- A R9.3-billion mine development project at refined copper producer Palabora Copper’s mine, in Limpopo, is currently awaiting shareholder approval and is expected to increase the mine life by another 20 years to 2033.

- Indian GVK Power (Goindwal Sahib) Ltd, a subsidiary of GVK Power and Infrastructure BSE has got permission to import coal from South Africa as a ‘stop gap’ arrangement.

TANZANIA - A tender has been issue for the proposed construction of

Mizingani Sea Wall and Promenade Phase II in Zanzibar. - To promote development the Eastern and Southern African

Trade and Development Bank has approved grants totaling $138 million for 3 projects and three syndicated loans in Tanzania.

ZAMBIA - Intrepid Mines announced a merger with Blackthorn Resources

to create a copper company with assets in Zambia.

ZIMBABWE - A consortium of private Zimbabwean and Chinese companies,

China Africa Sunlight Energy (CASECO), signed an integrated project worth over US$2 billion that will see the firm constructing a 600-megawatt thermal power station in Gwayi by 2017.

- China Export and Credit Insurance Corporation will give insurance to a loan of $98 million from China Exim Bank to TelOne in order for them to expand fibre optic programmes.

Eastern & Southern Africa

8

AFRICAN PROJECT

BRIEFS

New Gateway For West AfricaGulf Companies Commit US$19 Billion to West Africa Infrastructure ProjectsWest African countries secured commitments from companies in the Persian Gulf totaling US$19 billion to invest in roads, railways and airports at the first West Africa Investment Forum held in Dubai on 9th September. Construction firm Trojan General Contracting LLC, owned by Abu Dhabi’s Sheikh Tahnoon Bin Zayed Al Nahyan, committed to invest up to US$16 billion in roads and railway projects across the West African Economic & Monetary Union [WAEMU/UEMOA], a group of 8-African countries that organized the event in the U.A.E.

Officials from the union, which includes Benin, Burkina Faso, Guinea Bissau, Ivory Coast, Mali, Niger, Senegal and Togo, were in Dubai canvassing investment for 17 public-private partnership [PPP] infrastructure projects in West Africa. The group said it also had received a US$1.98 billion commitment from Essar Projects, the U.A.E. subsidiary of India’s Essar Group, to co-invest in road, bridge, airport and thermal-power-plant projects in Benin, Guinea Bissau and Niger.

A further US$700 million was committed by Oman’s Hasan Juma Backer Trading & Contracting LLC in a dry-port project in the Ivory Coast. No additional financial details of any deal were disclosed. A total of 16 agreements were signed at the investment forum. Other projects cover a range of sectors such as energy and food security. The union added that each party had 6-months to sign a firm deal based on their commitments. UAE companies have been aggressively expanding and investing overseas. The country sees itself as a gateway connecting Africa and the Middle East with Asia, and Asia with Europe.

[WSJ 09/09/14]

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WESTERN AFRICA

ECOWAS / TRADE

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NigeriaNigeria Targets US$706 Million Ecowas TradeNigeria is targeting an increase of its non-oil exports to the Economic Community of West African States [ECOWAS] from 9% to 20% by 2015 and to increase the value of Nigeria’s recorded export to ECOWAS from US$276.5 million in 2011 to US$706.1 million in 2015. The Minister of Trade, Olusegun Aganga, announced the targets during the 7th National Council on Industry, Trade and Investment. The event saw commissioners of industry, trade and investment deliberate on strategies to fast track inclusive economic growth.

The ministry has completed a new National Trade Policy and Strategy which will integrate Nigeria’s trade priorities - the first time in 10-years that the country’s trade policy has been reviewed to boost exports. The Nigeria Export Import Bank [NEXIM] noted Nigeria has shifted from exporting raw materials to exporting finished products with funding placed into capital projects rather than recurrent expenditure.

[Daily Trust 01/09/14]

Ecobank, Brazilian Bank Partner On US$20 Million Import FacilityEcobank Nigeria has signed a US$20 million line of credit with Brazilian Development Bank [BNDES], in a move capable of boosting bilateral trade between the 2-countries.

The facility will address special funding needs of customers and non-customers of Ecobank that import goods from Brazil. Under the arrangement, importers and exporters negotiate export terms and conditions and once commercial negotiation is finalised, the exporter or agent bank in Brazil submits the transaction to BNDES for approval. The areas of interest for the import facility include agricultural products, engineering and construction equipment, oil and gas, industrial goods, electronics, and confectionary among others.

BNDES, also known as National Bank for Economic and Social Development, is one of the largest development banks in the world, with financial net worth of $27.40 billion and total assets of $353.37 billion in 2013. The institution is part of the NEXPORTRADE- a private-public partnership institution formed to drive the volume of trade within the region.

[Guardian 08/09/14]

NBCC Projects £20 Billion Trade Volume Between Nigeria, UK By 2020The Nigerian-British Chamber of Commerce [NBCC] has marked its centenary in conjunction with the United Kingdom Trade & Investment Agency [UKTI]. The NBCC noted trade volume has grown rapidly in the last 4-years, increasing from £4 billion to £8 billion with bilateral trade expected to hit £20 billion in the next 6-years. Key factors enhancing trade includes focused policies, encouraging the process of more export of non-oil products, an efficient export value chain from packaging to storage, transportation and increased standards in processing and product packaging.

[Guardian 26/08/14]

Indonesia Trade Hits US$588 MillionThe Indonesian Trade Promotion Centre [ITPC] disclosed total trade between Nigeria and Indonesia on non-oil and gas transaction amounted to US$588 million - a 26.8% growth. The ITPC also noted that as a result of the cordial bi-national relationship Indonesia has over 15 reputable companies operating in Nigeria. Indonesia is due to hold its 29th Trade Expo in October 2014 at the Jakarta International Expo.

[Vanguard 23/08/14]

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WESTERN AFRICA

ECOWAS / TRADE

AngolaLobito Port Receives US$1.247 Billion InvestmentThe US$1.247 billion container and ore terminal at the port of Lobito, in Angola’s Benguela province has been inaugurated by the President of Angola. The 414m container terminal cost US$673 million whilst the 310m ore terminal was US$522 million. The 90,000m2dry dock cost US$32 million and is directly connected by road and rail to Lobito port and the Benguela Railroad as part of Angola’s strategy to attract exports from the interior as well as from other countries in the sub-region, such as Zambia and the Democratic Republic of Congo [DRC]. Total investment also included acquisition of a multipurpose tugboat [US$16 million] and a speedboat [US$4 million].

[Macauhub 22/08/14]

Cape VerdeEIB Finances Port Works Financial support for the second phase of the expansion and modernisation of the port of Palmeira, on the Cabo Verde (Cape Verde) island of Sal, has been made available by the European Investment Bank (EIB). The second phase includes the construction of a new 150m quay, a breakwater, a container terminal, as well as 2-buildings for cargo and containers. The works, with an estimated cost of €28.8 million will be carried out by Portuguese consortium Mota-Engil/Armando Cunha and inspected by Royal Haskoning, of the Netherlands.

[Macauhub 08/09/14]

GhanaPorts On Course To Handle 1 Million ContainersThe Ghana Ports and Harbours Authority [GPHA] is expected to handle a combined container capacity of 1-million TEU by close of the year at Tema and Takoradi ports, with best estimates showing the figure could double by 2028. The prospects are due to a consistent surge in traffic over the last 4-years and ongoing expansion projects which are expected to create space for more vessels to call.

Expansion activities at the ports include dredging of new drafts from the current 12m to 16m to accommodate large vessels. The GPHA is engaged in preliminary works leading to the start of Phase 2 of the Tema port expansion project in 2015. GPHA has already received technical and financial proposals valued at between US$400-$1.5 billion from 7-multinational firms selected out of a total of 50 bids received.

GPHA is also evaluating 16 bids received from prospective port operators for the construction of 3-terminals [cruise/ container/Ro-Ro] as part of Phase 2 of the port’s expansion. Ongoing expansion works at Tema comprise the construction of a bulk cargo-handling jetty, construction of breakwaters, development of quay aprons and expansion of utilities and road networks.

For Takoradi port, extension of the breakwater by 1.15km to protect the expanded area of the basin and enhance safe operations is about 90% completed. Phase 2 works, comprising dredging of berths and basin to 16m and reclamation of the bulk ore terminal area, are expected to start by October this year. According to figures from GPHA, the 2-seaports handled container capacity worth a total of 894,362 TEU in 2013. Tema port handled 841,989 TEUs while Takoradi port handled 52,373 TEU. By the end of Q1 2014, the 2-ports handled 214,333 TEU a 2.7% decline over the 2013 figure of 220,436 TEU.

[Ghana Web 26/08/14]

12

PORTSWESTERN AFRICA

NigeriaDue Diligence Completed On Lekki Port ProjectThe Federal Government has completed due diligence [DD] on the Lekki port project thereby raising hopes on the actualisation of the first ever multibillion naira private/public partnership in that sector. The completion comes after earlier doubts on the fate of the project following bickering by major shareholders over their equity participation in the facility. The DD was undertaken by KPMG to ensure accountability, transparency and value for money. Once financial terms have been structured funding can then be made available.

The Lekki port project is said to have the potential to revolutionize the maritime sector and spur unprecedented economic growth on completion. The operational take off date is set for 2018 with the view to kick-off construction works Q4 2014. The US$1.5 billion seaport is a Public Private Partnership project [PPP] between the Federal Government [FG], Lagos State Government [LASG] and the Tolaram Group. A Shareholders agreement was signed in December 2012 amongst all the parties involved. While LASG’s equity and that of the Tolaram Group are in place, the FG refused to make further commitment to the facility in the absence of any DD. The Federal Executive Council [FEC]’s approval for the project and issuance of the finance guarantee was received in December 2013.

Apart from getting the concession from NPA to build Lekki Port, Tolaram has put together leading global consultants such as Standard Chartered Bank, the Louis Berger Group Incorporated, Delta Marine Consultants, BMT Asia Pacific, TBA Netherlands, Jardine Lloyd Thompson Pte Limited and GMaps following which the EPC contractor, China Harbour Engineering Company has been appointed to build the port and the container terminal has been sub-concessioned to International Container Terminal Services, Incorporation, Philippines.

The project will be one of the most efficient and modern maritime facilities, catering for containerised, liquid and dry bulk cargo. It is also expected to contribute more than US$200 billion to the government treasury.

[This Day 29/08/14]

13

WESTERN AFRICA

PORTS

Ports Record High Cargo TrafficDespite the diversion of Nigerian cargo through neighbouring ports such as Cotonou [Benin] and unfavourable business environment including corruption, smuggling and the gridlock in Apapa, Nigerian ports continue to record impressive traffic with throughput rising 15.4%.

First Half Figures

H1 2014 H1 2013 Movement

Total Vessel Calls 2,719 * 2,427 Up 12%

Cargo Throughput MT 41,317,962 35,812,858 Up 15.4%

Liquefied Natural Gas [LNG] 10,418,248 8,462,535 Up 23%

General Cargo MT 5,975,098 5,900,817 Up 1.3%

Dry Cargo MT 4,841,816 4,573,322 Up 5.9%

Refined Petroleum Product MT

10,189,177 9,835,719 Up 3.6%

Vehicle Units 154,846 132,930 Up 16.5%

Total Gross Registered Tonnage [GRT]

70,659,820 60,096,179 Up 17.57%

Apapa GRT 17,367,180 16,189,825 Up 7.2%

Tin Can GRT 23,493,612 19,666,634 Up 0.1%

Rivers Ports GRT 3,676,757 3,418,309 Up 7.6%

Onne GRT 19,769,896 17,586,716 Up 12.4%

Calabar GRT 2,011,358 1,337,475 Up 50.3%

Delta Port GRT 70,659,820 60,096,179 Up 17.6%

* 727 Apapa / 892 Tin Can / 228 Rivers Port / 425 Onne / 137 Calabar / 310 Delta

The NPA attributed the success to the Transformation Agenda of President Goodluck Jonathan which provided the enabling environment for increased participation of both foreign and local investors in the port industry. The Federal Government [FG] also appointed the Nigerian Shippers’ Council [NSC] as a commercial regulator a few months ago to promote efficient trade facilitation.

The target has been to improve clearing process at the ports so that shippers do not suffer delay while clearing their goods. The regulator has also taken some steps to ensure that some inappropriate shipping charges, among others, imposed on shippers are dropped. Importers also noted the ease of obtaining their Pre-Arrival Assessment Report [PAAR] as against what was the case during the first 2-months that it was introduced.

Meanwhile the NPA will continue to pay attention on rehabilitating port infrastructure, regular dredging of the channels and implementation of sound financial policies. With improved cargo handling equipment and complete rehabilitation of the ports infrastructure, including roads in Apapa and Tin Can ports, shipping business would continue to boom.

[This Day 31/08/14]

To assist shippers CMA CGM / DELMAS offers a comprehensive country on Nigeria which includes helpful advice on the Pre-Arrival

Assessment Report [PAAR].

This can be found on our website: http://www.delmas.com/products-

services/shipping-guide

14

Ibaka Deep Seaport Take Off Akwa Ibom government has acquired 14,900ha for the take-off of Ibaka Deep Seaport in Mbo. The development would be undertaken through a Public-Private-Partnership [PPP] and will include a freetrade zone and industrial city. A license has been received from the Federal Government for the commencement of the project. And the Infrastructure Concession Regulatory Commission [ICRC] would partner the government on the development of the facility.

[NAN 31/08/14]

Probes Into Multiple Charges / High Port TariffsThe Federal Government [FG], through the Nigerian Shippers Council [NSC], announced plans to investigate high tariffs and multiple charges at Nigerian ports. The NSC pledged to reverse tariff increases by terminal operators. Meanwhile, the Shippers Association for the Eastern Ports has called for a total review of the tariff regime, including freight, demurrage and terminal charges.

[Guardian 27/08/14]

15

WESTERN AFRICA

PORTS

MaliProgramme de Vérification des Importations [PVI]In recent weeks Malian authorities are strictly applying the Programme de Vérification des Importations [PVI] import audit program. As such CMA CGM / DELMAS wishes to remind you of the rules and regulations enforced by Governmental Decree # 99 /MICA-MF-MEPT issued by the Ministry of Finances on 18 November 1998. PVI is compulsory for all cargo imported to Mali. The program provides that all goods whose value is greater than or equal to XOF 3 million must be inspected before boarding. Any breach will incur a fine of 30% of the value of the goods in addition to the Customs duties imposed by Customs & Excise of Mali. Bivac International, an affiliate of Bureau Veritas, has been nominated since 2007 as the agent authorized to carry out this inspection. Despite being in force for several years importers had been negotiating with the Customs over the ruling. But now following the increase of Customs revenue targets to CFA385 billion officials are ensuring strict and rigorous compliance with the PVI scheme.

[Local Agent 01/09/14]

NigeriaGovernment Bans Importation of AnimalsThe Nigerian Federal Government [FG] has banned the importation of live animals into the country through the nation’s seaports and land borders. The move is part of the measures to curtail the spread of the deadly Ebola virus disease [EVD] in the country.

[This Day 22/08/14]

SenegalOnion Imports ResumeThe Senegalese MRA [Market Regulation Agency], has decided to resume imports of onions from 25/08 midnight. Please see our updated country information sheet for the official notification and useful advice on our website: http://www.delmas.com/products-services/shipping-guide

To assist shippers CMA CGM / DELMAS offers a comprehensive country on Mali which includes

helpful advice on the Programme de Vérification des Importations [PVI] and Cargo Tracking Note [CTN] / Bordereau

de Suivi de Cargaison [BSC].

This can be found on our website: http://www.delmas.com/products-

services/shipping-guide

CONTACTSBureau Veritas Bamako [BIVAC] Avenue Cheick Zahed -HamdallayeBP : E1489 - BAMAKOTel : + 223 20 29 80 51/20 29 58 82Fax : + 223 20 29 58 38

Ministère de l’Economie et des Finances: Direction Générale des Douaneshttp://douanes.gouv.ml/contenu_page.aspx?pa=47

16

REGULATORYWESTERN AFRICA

EU Allocates €85 Million To EACThe European Union [EU] through the European Development Fund [EDF 11] has allocated the East African Community [EAC] €85 million for 2016-20. The funds will focus on peace and security [€15 million], regional economic integration [€45 million], and natural resources [€25 million]. Out of the €45 million meant for regional economic integration, €15 million will be for the implementation of the Customs Union, the Common Market, and the East African Monetary Union, while €30 million will be accessed by partner states to support trade related activities. [EAC 29/08/14]

East Africa Logistics Performance The 2014 Logistics Performance Survey [LPS], annual report published by the Shippers Council of Eastern Africa [SCEA], shows despite recent increases in investment on infrastructure there are other factors inhibiting the efficiency of trade. Included are the efficiency of the clearance process, the manner in which trade disputes are handled and on incidences of corruption. Other factors used to rate countries included timely delivery of shipments, competence and quality of logistics services, percentage of shipments physically inspected and fairness and transparency in customs valuations. Rwanda ranked top of the region.

EthiopiaEthiopia To Join COMESA Free Trade Area

Ethiopia is intensifying the hunt for new markets within the Common Market for Eastern and Southern Africa [COMESA], a significant step that is expected to usher in a new era of trade liberalisation and promotes its manufacturing sector. Ethiopia, which last March pledged to complete the process of joining the regional market’s Free Trade Area [FTA] by December 2014, hopes to tap the growing regional market to expand the market to the country’s growing industries. The government has now finalised preparations to join the COMESA FTA. Ethiopia and Uganda remain the only 2-non-signatories to the COMESA FTA.

By joining the FTA, Ethiopia will commit to a free trade policy by eliminating taxes charged on goods from other COMESA states. There would be no quota restrictions and other tariffs which make it harder for importers and exporters to trade. Recent research shows that by agreeing to join the regional free market area, Addis Ababa, would lose 3% of tax revenues.

Ethiopia is expected to negotiate and reach deals with neighbouring Kenya on a simplified Trade Regime under COMESA, to allow goods into its borders duty free. Ethiopia is counting on the rapid development of the country’s manufacturing sector, through the involvement of foreign-based companies which brought new technology and knowledge to the local market, enabling industries to build their capability.

In 2012/13 financial year, Ethiopia’s total exports totaled US$3.1 billion, mostly driven by 6-main export products responsible for 80% of the revenues. The country’s imports shot up to US$11.5 billion, a 3.7% expansion during the same period. Currently, Ethiopia offers only 10% preferential discount to other COMESA countries, although the government has been in talks for the market expansion. Bilateral agreements have been concluded with 16 countries and efforts to access other sub-regional free markets like COMESA and international markets through negotiations with World Trade Organisation [WTO] continue.

[Diplomat 01/09/14]

Country Rank

Rwanda 3.52

Uganda 3.07

Tanzania 2.89

Kenya 2.82

Burundi 2.78

17

EASTERN AFRICA

EAC / COMESA / TRADE

MozambiqueJapan Supports Competitiveness Of Over 200 ProductsMore than 200 Mozambican products are being made more competitive for national and international markets as part of a programme supported by the Japan International Cooperation Agency [JICA]. After selecting the products and companies for this programme in 2013, work is currently focusing on training producers, particularly in terms of quality, product presentation, business registration and management and development plans. The idea is to have at least 200 products of an acceptable quality by 2017 to supply the domestic market and for export. Pilot projects are underway with chilli peppers, copra oil and forest fruits. The programme initially planned to cover 100 products, but after the work carried out in 2013 the number of products more than doubled.

[Macauhub 01/09/14]

SudanReforms To Improve Trade Sudan policy makers met to discuss and finalize key policy actions to help tackle trade challenges holding back the economy, including increasing trade capacity and diversification of exports. The policy actions were drawn from the World Bank’s latest draft Diagnostic Trade Integration Study [DTIS] Update.

Despite implementing several critical and difficult reforms to help restore macroeconomic balances and improve the business enabling environment during the last two years, Sudan is still experiencing a large deficit that is being met by short term borrowing. Apart from addressing the economic imbalances, the country also needs to ensure proper alignment of its exchange rate in order to pave the way for building competitiveness and increasing investments. This includes implementing a package of reforms aimed at lowering the barriers to trade through reduced trade taxes, streamlined border and regulatory policies, and improved transport and logistics. The current onerous regulatory polices hinder competition and increase trade costs, while policies which protect the domestic agriculture market undermines production for regional and export markets.

Over 100 representatives from the government, private sector, and donor community attended a 2-day workshop to discuss the proposed actions and recommendations from the draft DTIS Update. The workshop is part of the Integrated Framework initiative, sponsored by the World Bank Group, the IMF, UNDP, WTO, UNCTAD, and the ITC, and was facilitated by the World Bank.

[World Bank 02/09/14]

18

TanzaniaTanzania / China Trade Hub To Be Located At Kurasini The Tanzania China Logistics Centre, expected to be the largest in East / Central Africa, is to start construction following the release of 53bn/- that will be used to pay compensation to residents. The government has already given the money to the Export Processing Zones Authority [EPZA], which will oversee the exercise. The project involves construction of a modern trade hub covering 60.4 ha at Kurasini. To be run under a Public Private Partnership [PPP] with the government of China represented by Yiwu Pan-Africa International Investment Corporation and Tanzania represented by EPZA. The project is a result of Sino-Africa Cooperation Meeting held in Cairo, Egypt, in 2009 where China expressed interest to start trade hubs in 4-African countries. China chose Tanzania to start implementing such a project. The project will be implemented in 2-phases. Phase one will see construction of a hub to be used as a distribution point and phase two will involve construction of industries to add value to agriculture and mineral raw materials. The government of China will finance the project to the tune of 660bn/-.

[Daily News 21/08/14]

Government Urges China to Increase Investments The Minister for Industry and Trade, Dr Abdallah Kigoda and Ambassador of China to Tanzania, Dr Lu Youqing, cut a ribbon during the launch of Brands of China African Showcase 2014. Over 1,000 Chinese companies will be attending. In 2013 bilateral trade between reached US$3.7 billion and China’s investments in Tanzania reached US$2.5 billion with nearly 500 Chinese companies doing business in the country. Trade has increased rapidly over the last decade, particularly China’s exports to Tanzania which comprise largely of manufactured goods; electrical appliances, garments and vehicles. China largely imports ores mainly copper and precious metal ores, but also smaller quantities of niobium, tantalum, vanadium, zirconium and manganese, vegetable and animal products from Tanzania. When the preferential market access by China was introduced in 2006 Tanzania’s exports jumped to US$71 million 17 times more than the previous year. The Government hopes this trend will continue.

[Daily News 22/08/14]

19

EASTERN AFRICA

EAC / COMESA / TRADE

MozambiqueGuebuza Lays First Stone for Pemba Logistical BaseOn 20th August President Armando Guebuza laid the first stone in the construction of the logistical base for the petroleum and gas industries in the northern city of Pemba.

The Pemba logistical base is intended to provide integrated port and logistics services to satisfy the needs of the hydrocarbon companies operating in the Rovuma Basin, off the coast of Cabo Delgado province, and their suppliers. Initially, the Pemba base will have 300m of quay. But that is only the first phase, due to be complete in 2016. Three further phases are envisaged, and will be built as required by the hydrocarbon operators. The final vision for the Pemba base is for 5-km of quays. The first phase requires investment of around US$150 million, but for all 4-phases, the sum will rise to a billion dollars. Plans for the future involve a shipyard to repair vessels, and an LNG terminal.

The base is operated by Ports of Cabo Delgado [PCD], a venture which is owned by 2-public companies, the National Hydrocarbon Company [ENH], and the Port and Rail company, CFM. The government has granted PCD a 30 year lease on the Pemba base, and on the oil and gas port to be built 400 km further north at Palma. PCD’s strategic partner in developing the Pemba base is ENH Integrated Logistics Services [ENHILS], with which it has signed a sub-lease. ENHILS, in turn, is a partnership between ENH Logistics [100% owned subsidiary of ENH] and the Nigerian company Orlean Invest. Orlean Invest operates the largest hydrocarbon port in West Africa, at Onne, in the Niger Delta, and the plans for Pemba are clearly based on Orlean Invest’s success at Onne.

[AIM 20/08/14]

Beira Port Sees Growth Of 15%Beira port is expected to post annual growth of 15% in processing cargo from countries such as Zimbabwe, Zambia, Malawi and DR Congo, as well as goods to and from Mozambique. In 2013 cargo processing rose by 17% compared to 2012 handling 184,000 containers and 6.6 million tons of general cargo, including 4-million tons of coal from Moatize. Although there were some problems that were overcome with the commissioning of the Single Electronic Window – a scheme to reduce bureaucracy. The rise was due to increased productivity from March onwards following the arrival of new equipment that increased container processing from 12 to 29 per hour and reducing the time ships spent at the port from 6 to 2-days.

[Macauhub 05/09/14]

TanzaniaTICTS Adds New Equipment to Enhance EfficiencyTanzania International Container Terminal Services [TICTS] has commissioned new equipment to enhance efficiency in clearing cargo at the Dar es Salaam port. Equipment received include 2-Panamax Quay Cranes [QC] and 7-1-over-6 hybrid Rubber-Tyred Gantry Cranes [RTGC]. The addition will significantly reduce vessel waiting time and optimise overall operational efficiency at the port.

[Daily News 23/08/14]

Dar Es Salaam Traffic Up 20%By working closely with counterparts, including the East African Community [EAC] states in the implementation of the Single Customs Territory, Dar es Salaam port has seen the number of ship calls improve by 20% during the last financial year. In 2013/14, the port handled 14.6 million tons as compared to 12.7 million tons in 2012/2013, up by 15.6%. Overall cargo increase was 15.6% p.a. Cargo traffic has also spread over 6-countries; Zambia, DR Congo, Burundi, Rwanda, Malawi and Uganda. Major challenges affecting port productivity include capacity limitation with few berths and restricted channels and hinterland connectivity hampered by poor roads. The port is upgrading 7-berths and cargo handling.

[EA Business Week 05/09/14]

20

PORTSEASTERN AFRICA

US$11 Billion Bagamoyo Port Construction Starts This YearThe government of Tanzania has announced that successful negotiation with Chinese officials will allow work to start on the US$11bn Bagamoyo megaport this year, rather than January 2015, as originally scheduled. The port is to be developed by China Merchants Holdings International, the world largest independent port operators. In the first phase of work, the quay, the container yards, the cargo terminals and all dredging work will be completed by 2017. These facilities will then be expanded in stages over a period of 30 years, to give an eventual capacity of 20 million containers a year. This will include the supporting infrastructure of 2-railway lines: TAZARA and TRL. This is likely to make the port the largest on the east coast of Africa, with a capability to handle roll on, roll off ships and container vessels with a 10,000 TEU capacity. The project compares with Mombasa’s installed capacity of 600,000 and Dar es Salaam’s 500,000.

Underwriting the development is the discovery of some 200 trillion cubic feet of natural gas, which is going to make the country a leading exporter over the next decade. Bagamoyo is seen as a Tanzania’s trump card in the sharpening struggle with other east African companies for foreign investment, export markets, industrial development and business from landlocked countries in the interior. In particular, Tanzania is competing with the Kenyan port of Mombasa for investment and the handling of exports from Uganda, Burundi, Zambia and Rwanda.

Although it looks to be in the lead in terms of port infrastructure, Kenya has taken the lead in the development of effective rail links, and Mozambique is closer to bringing its liquid natural gas deposits to market. When completed, the port will cover about 800 ha. Around it will offer a 1,700 ha special economic zone. The intention is to encourage set up industries that process or refine Tanzania’s raw materials, such as coffee roasting or ore processing, thereby capturing more of the value chain. The zone is expected to be fully developed by 2024.

[AIM 24/08/14 / GCR 05/09/14]

21

EASTERN AFRICA

PORTS

KenyaCar Importers Protest Over New Port ChargesMotor vehicle importers are opposed to the new charges by the Kenya Ports Authority [KPA]. The Car Importers Association of Kenya now wants the charges reviewed saying the new levy pushed up the cost of business leading to losses. KPA revised its shore charges for motor vehicles and machinery imports last month. The increase is said to discourage dealers from doing business.

[Star 21/08/14]

Tariffs Effective August 1st 2014

2014 2013

Shore handling charge of vehicles not exceeding 1.5 MT [saloon cars, station wagons, vans and crossover utility vehicle - cars with a bigger seating capacity but not exceeding 1.5 MT].

US$83 [Sh7,221] US$80 [Sh6,960]

Wharfage charges [handling through the port] of vehicles not exceeding 1.5 MT

US$67 [Sh5,829] US$65 [Sh5,655]

Shore handling charges for vehicles not exceeding 10 MT [buses, trucks, tractors and light folk lifts]

US$665 [Sh57,855] US$580 [Sh50,460]

Shore handling charges for construction, industrial vehicles and heavy duty lifting equipment over 10 MT

US$1,065 [Sh92, 655] US$950 [Sh 82, 650]

Shore handling charges for construction vehicles, industrial vehicles and heavy duty lifting equipment over 10 MT

US$700 [Sh 60,900] US$775 [Sh 65,875]

22

REGULATORY EASTERN AFRICA

Low Trade Hampers SADC IntegrationSouth Africa and Namibia’s refusal to sign a trade protocol during the recent SADC summit in Victoria Falls clearly underlined the regional grouping is still far from achieving its main goals of economic and political integration. The summit was held under the theme ‘Strategy for Economic Transformation: Leveraging the Region’s Diverse Resources for Sustainable Economic and Social Development through Value Addition and Beneficiation’, did not move any closer towards economic integration after the 2-countries requested more time to study the protocol before appending their signatures.

“We appeal to South Africa, which is highly industrialised, to lead us in this [industrialisation] and work with us, and co-operate with us and not just regard the whole continent as an open market for products from South Africa.”President of Zimbabwe / New SADC Chairman, Robert Mugabe

Economic integration is hard to achieve as the countries are at different levels of development. While some are in urgent need of financial injections to spur economic recovery, the more developed ones like South Africa find it prudent to pool their resources with the BRICS [Brazil, Russia, India, China and South Africa] countries outside the regional grouping which serves their interests better. In fact, there are advanced plans to establish a US$100 billion bank in the Chinese capital Beijing for BRICS in which South Africa is the only country from Africa. South Africa also has a Trade, Development and Co-operation Agreement with the European Union [EU].

Analyst do not expect South Africa to push for a monetary union along the lines of the Euro for EU member states because it is already benefiting from the use of the Rand in the South African Customs Union [SACU, which includes Namibia, Lesotho, Swaziland and Botswana] that it has dominated since its inception in 1910, making it the oldest customs union in the world.

SADC has largely failed in its quest to achieve economic integration, but has however scored notable successes in ending or mitigating some intra-state conflicts. However studies show African countries, including those in SADC, have less trade among themselves compared to the business they do with countries in other continents. In 2013 intra-trade stood at just 10% in comparison to the EU at 70%, 52% for Asian countries, 50% for North American countries and 26% for South American countries.

Africa’s trade is also overly dependent on a narrow range of primary products. In 2010, fuels and mining products constituted 66% of Africa’s total merchandise exports. Very little diversification in terms of export products and markets has taken place. Poor infrastructure also hampers economic integration. But spending on infrastructure has picked up pace, but actual spending does not match identified needs. According to the African Development Bank, African countries need to spend around US$93 billion a year to upgrade their infrastructure, but only spend about half of this amount.

Sub-Saharan African countries also impose more non-tariff barriers on trade between themselves than on trade with third countries. Efforts at harmonising technical regulations and standards, sanitary and phytosanitary measures as well as rules of origin have been slow adding to the costs of doing business. Africa is almost the most expensive continent in which to do business: whereas it costs around US$900 to ship a container from South-East Asia, it costs almost US$2,000 to ship the same container from Africa. Likewise, whereas it costs US$935 to import a container from South-East Asia, it costs almost US$2,500 to import the same container from Africa. This has had serious consequences on investment in Africa. In 2013, Africa attracted less than 5% of global FDI [foreign direct investment] flows. Whereas China attracted US$124 billion in FDI flows, African countries only attracted US$52 billion. Africa is also very vulnerable to external shocks. The over-exposure to European markets and those of the United States and Japan meant that with the recession in those countries, there was reduced demand for Africa’s exports which negatively impacted on its growth.

Several studies have indicated that if African countries were to increase their share in global trade by only 1%, this would represent an additional annual income of over US$200 billion which is approximately 5-times more than the amount the continent receives as Official Development Assistance. A steady source of income would help underpin the transformation of African economies and enable them to compete globally.

The other consequence of this is limited participation in global value chains. Currently, trade in intermediate products accounts for more than 60% of non-fuel merchandise trade and it is the most dynamic sector of international trade. The trade in parts encourages specialisation in ‘trade in tasks’ by different countries which add value to a product in the production chain. The high fragmentation of markets in Africa and high transaction costs are not conducive to the integration of African firms into regional and global value chains.

[Zimbabwe Independence 28/08/14]

23

SOUTHERN AFRICA

SADC / TRADE

South AfricaNew SEZ Regulations To Be Completed By OctoberWith the preparations for 10-new Special Economic Zones [SEZs] to be completed within the next 6-months, Trade and Industry Minister Dr Rob Davies is in the process of appointing an SEZ advisory board, as stipulated by the SEZ Act of 2014, signed into law by President Zuma earlier this year and will be implemented once SEZ regulations are completed. The regulations are being developed by the DTI in consultation with various departments including National Treasury and the South African Revenue Service. This would be completed by October. The SEZs will be based in Mthatha, in the Eastern Cape; Harrismith, in the Free State; Johannesburg, in Gauteng; King Shaka International Airport, in KwaZulu-Natal; Tubatse and Musina, in Limpopo; Nkomati, in Mpumalanga; Upington, in the Northern Cape; Rustenburg, in the North West; and Atlantis, in the Western Cape.

[Engineering News 20/08/14]

ZambiaIndia Trade Rises To US$600 MillionZambia-India bilateral trade volumes have reached US$619 million in 2014 from US$568 million in 2013 according to the Indian High Commission in Lusaka. India-Zambia trade reached US$568million in 2012/2013 from the US$379.6 million in the previous year. India’s major items of exports to Zambia are pharmaceuticals and fine chemicals, machinery and instruments, transport equipment, metals and electronic goods. Others were plastic and linoleum products, non-ferrous metals and man-made yarn fabrics. Zambian exports comprised non-ferrous metals, pearls, precious and semi-precious stones, cotton raw and metaliferrous ores and metal scrap. The first 8-months of the last financial year of April to November, Indian exports to Zambia posted an impressive growth of more than 60% crossing US$243 million, as compared to US$151million during the same period in the previous year. Both countries are keen to enhance the value of their bilateral trade.

[Times 27/08/14]

ZimbabweChina To Help Zimbabwe Build SEZ’sZimbabwean President Robert Mugabe made a 5-day China tour and held talks with Chinese President Xi Jinping where he witnessed the signing of cooperation deals covering food, finance and tourism. Mugabe also visited the northwestern province of Shaanxi and southern province of Guangdong. Since his return China has committed to help Zimbabwe build special economic zones [SEZ] and industrial parks to jump-start exports. Investors in the zones will benefit from special tax breaks and officials said they would not have to comply with black economic empowerment laws that force foreign companies to sell majority shares to black Zimbabweans. Back in January China’s Exim Bank agreed to lend Zimbabwe US$319 million to add 300 MW to Kariba hydropower plant, an upgrade that is expected to ease daily power shortages in the southern African country.

[Zimbabwe Government 04/09/14]

24

South AfricaTransnet Port Terminals Opts For Kalmar Straddle CarriersKalmar is to supply 10 straddle carriers to Transnet Port Terminals [TPT] Durban Pier 2 in South Africa. The facility, which currently handles 2.4m teu per year as part of a 7-year investment project by government-owned parent company Transnet SOC, is expected to take delivery of the new straddle carriers in October this year. The 10 Kalmar ESC 450w electric straddle carriers have a lifting capacity of 61 tons, and are capable of improving fuel efficiency and reducing emissions by up to 20%.

[Seatrade 13/08/14]

Work Starts On R1.4bn Tugboat Building ContractA R1.4-billion contract, awarded by Transnet National Ports Authority [TNPA] to Durban-based Southern African Shipyards, for the supply of 9-tugboats for South Africa’s harbours has got under way with the cutting of the first steel. The tugboats would replace ageing vessels and increase TNPA’s fleet in the ports of Durban, Richards Bay, Port Elizabeth and Saldanha Bay, with the first tug to be launched in November 2015. All tugs would be delivered by Q1 2018.

[Engineering News 22/08/14]

Durban Port, Road Congestion Although Durban Port operates 24 hours a day, 7 days a week, there are critical problems with access. There are times when the port and the roads and yards are deserted. At other times, the traffic is backed up so that drivers have to wait for hours, sometimes days, to get into the port. Transnet KwaZulu-Natal Operations GM Zeph Ndlovu noted the greatest concern was the escalation of this problem, especially in light of increased activity in the port. Durban’s port is already regarded as the biggest and busiest in Africa. With Transnet’s proposed R300-billion infrastructural investment, it will get even bigger, especially when it comes to container traffic. The port’s container-handling capacity is expected to grow from the current 3.2-million containers a year to 4.6-million containers a year by 2018. The biggest problem is the constricted and congested road network through Durban.

Transnet is trying to encourage freight companies to dispatch their trucks to take advantage of slow times at the port in order to decrease waiting time and congestion. With a limited number of access roads to the port, it might sound simple to design some kind of computerised stacking system, which would regulate the flow of traffic, but the main sticking point is the fragmented nature of the freight and transport industry. The South African Shippers Council is working on a strategy to bring together all the role-players in the freight industry to agree on a system to control and regulate the flow of traffic into the city and the port.

[Engineering News 14/08/14]

25

SOUTHERN AFRICA

PORTS

26