FTW 30 April 2010

FREIGHT & TRADING WEEKLY

FTW1901SD

FRIDAY 30 April 2010 NO. 1908

The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscription

Transnet and workers still at loggerheads South Africa’s port, rail and pipeline systems, with the 50 000-strong workforce If the unions confirm it in Transnet’s six divisions during meetings this week, represented by Cosatu the country’s transport affiliate, Satawu, and the infrastructure could come to a Fedusa affiliate, Utatu. grinding halt next week.

According to an update That’s as far as Jane Barrett, from Satawu, Transnet has put policy officer of the main an 8% wage offer on the table. transport workers’ union, But the unions are demanding Satawu, is concerned.

15% in an attempt to make The tentative date for the up for what it terms a “lessTransnet strike is next week, than-average” wage increase she told FTW. in 2009.

“Our mandate to proceed The fact that massive with the strike has been bonuses were paid to confirmed by the members,” managers in 2009 also raised she added just before our Satawu’s ire. The organisation April 26 copy deadline. “We calculated that the 11 have been meeting with the other union involved, Utatu, to executive managers received an average of R2.5-million in agree on the date. bonuses whereas the average “But Utatu is still waiting for its mandate to be approved, bonus paid to workers in the bargaining unit was R10 000. and the date will be decided at These massive a meeting during this week.” discrepancies were said Conciliation in the wage to have fuelled the idea of dispute between the two “inequality and greed on the recognised unions and part of a few”.

Transnet came to an end last There has also been a week without any agreement.

And this impasse, according union/management dispute overAM maternity to a union statement, could MF00057_2010CTP.fh11 12/1/09 9:59 Page 4 leave. Satawu is unwilling to accept that the lead to strike action across

By Alan Peat

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babies of manager mothers deserve two more months of maternal care than the babies of workers, and this disagreement has still not been settled.

There seems to be a settlement about retrenchments, with the unions having demanded that there be no retrenchments in 2010.

But, while management agreed to this, it is still dependent on the workers and their unions accepting the 8% Transnet offering.

The offer was presented to a national shop steward’s council last week, then to general membership in the provinces. Satawu immediately received a mandate to proceed with strike action, while Utatu members are still to decide.

But, said Barrett, a meeting between the two unions was diarised for April 28, and she expected this to make the final decision on the way forward – including whether or not to continue with the strike next week. C M Y CM

Citrus exports to US looking good

Alex Van Drimmelen, Seatrade trade manager for South Africa … Approximately 2.7m cartons of citrus will be shipped from the Western Cape to the US east coast.

By Carrie Curzon Western Cape citrus growers are looking at a 30% harvest increase this year and much of this is planned to be exported to the USA. Gerrit van der Merwe, chairman of the Western Cape Citrus Producers' Forum (WCCPF), announced last week that MY

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more regular shipments were planned for this year and that Seatrade had been contracted for the job.

Representing Seatrade in South Africa is Anlin Shipping.

Joretha Geldenhuys, CEO of WCCPF, estimates that around 2.7 million citrus cartons will be exported this year.

2 | FRIDAY April 30 2010 FREIGHT & TRADING WEEKLY

Editor Joy Orlek Consulting Editor Alan Peat Assistant Editor Liesl Venter Advertising Carmel Levinrad (Manager) Yolande Langenhoven Gwen Spangenberg Jodi Haigh Divisional head Anton Marsh Managing Editor David Marsh

Correspondents

Durban Terry Hutson Tel: (031) 466 1683 Cape Town Ray Smuts Tel: (021) 434 1636

Carrie Curzon

Tel: 072 674 9410 Port Elizabeth Ed Richardson Tel: (041) 582 3750 Swaziland James Hall jhall@realnet.co.sz

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DUTY CALLS A weekly summary of the main changes to the South African tariff dispensation and amendments to customs and excise legislation. Email dutycalls@nowmedia.co.za.

Customs Valuation – Celebrating 30 Years On 13 April the World Customs Organisation (WCO) Technical Committee on Customs Valuation celebrated the 30th anniversary of the General Agreement on Tariffs and Trade (GATT)/WTO Valuation Agreement.

To mark the event delegates were invited to take stock of the agreement and examine the challenges it continues to pose to many Customs administrations in the modern international trading environment.

It was recognised that the commercial world had changed radically over the past 30 years and that difficulties had arisen in the application of the agreement (which hasn’t changed over that period). Topics included obstacles to implementation of the agreement, the use of valuation databases, exchange of information,

transfer pricing and the needs of the business sector.

Rule Amendment – Tariff Quota The South African Revenue Service (Sars) has amended Rule 49A.26.04(a) to the Customs and Excise Act No.91 of 1964 (the Act) headed “Tariff Quotas”.

The amendment reads as follows “Tariff quotas for imported goods are specified in Note IJ of the General Notes to Schedule No. 1 and are, as provided, allocated on a first-comefirst-served basis at the time of presentation of a valid bill of entry entering the goods for home consumption supported by the required proof of origin document, any permit from the National Department of Agriculture, if applicable, and an application for such quota.”

The amendment only amends “Note I” to “Note IJ”. “Note IJ” of the General

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Notes to Schedule No.1 is headed “Goods Imported from the Commodity”, which refers to the 27-member European Union (EU).

Tender – Large Cell Lithium-Ion Batteries The Industrial Development Corporation (IDC) has extended a Request for Proposals to Conduct a Pre-Feasibility Study for the Manufacturing of Large Cell Lithium-Ion Batteries in South Africa.

According to the tender, the IDC is seeking to appoint suitably qualified and experienced consultants for a study to investigate the viability of establishing a large cell lithium-ion battery manufacturing plant in South Africa through a proposed industrialisation partnership with Optimal Energy Innovation Group of South Korea.

The tender closes at 12:00 on 19 May 2010.

dated 16 April 2010 the following notices were published in respect of the Marketing of Agricultural Products Act: (i) Marketing of Agricultural Products Act: Contribution of Statutory Measure: Registration of Bottlers, Grape Producers, Wine Exporters, Wine Producers and Wine Traders; (ii) Marketing of Agricultural Product Act: Continuation of Statutory Measure and Determination of Guideline Prices: Information Levy on Grapes, Grape Juice Concentrate, Drinking Wine; and (iii) Marketing of Agricultural Products Act: Establishment of Statutory Measure: Records and Returns relating to Vine, Grapes, Grape Juice, Grape Juice Concentrate, Drinking Wine, Distilling Wine and Wine Spirit.

Marketing Of Agricultural Products In Government Gazettes

Note: This is a noncomprehensive statement of the law. No liability can be accepted for errors and omissions.

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FRIDAY April 30 2010 | 3

‘High-speed rail link misses the point’

BY Joy Orlek The proposal by Transport Minister S’bu Ndebele for a possible high-speed rail link between Johannesburg and Durban has stirred up heated industry debate, with the South African Road Federation (SARF) suggesting that the money would be far better spent on a truck superhighway.

Durban-based SA Association of Freight Forwarders consultant Dave Watts however points out that it’s not the speed of the train that needs to be addressed, but rather the efficient service delivery at source and destination.

“With a block train taking around 18 to 20 hours on rail, not that much longer than a truck between the two cities, one really questions why the need for a high speed rail link,” says Watts.

“What is needed is "high speed" delivery to and from rail at both source and destination. I believe TFR understands this, but whether they are able to address it to the satisfaction of potential rail users

is another question altogether.

“My understanding is that even with TFR's ongoing efforts to improve service and delivery times the "super highway" route that is block trains between Durban terminals and City Deep currently operates well below maximum capacity which I understand is around nine trains per day in each direction – or during a 31 day month almost 56000 TEUs.” The SARF meanwhile points out that although high-speed rail links have proved effective in other parts of the world, they have all been prone to intensive teething problems, and in most cases, considerable cost overruns.

SARF president, Mutshutshu Nxumalo points to an independent broad economic study conducted four years ago, which demonstrated that for the same capital outlay of R15 billion the dedicated roadfreight highway option could create up to four times more new freight transport capacity than if the same amount were spent on the rail mode.

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4 | FRIDAY April 30 2010

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The ban on the importation of all SA animal products into Zimbabwe is definitely being enforced by customs at the border posts, according to Lin Botha of Sediba Clearing and board member of the SA Association of Freight Forwarders (Saaff).

This followed the ban imposed by Zimbabwe Revenue Association (Zimra) customs from March 30, after instructions from the Ministry of Agriculture, on all animal and animal products. It was because of a series of outbreaks of rift valley fever in the Gauteng, Eastern Cape and Free State Provinces.

Saaff was advised that this restriction included: Milk in all forms (cheese, butter, yogurt, dried milk, dairy juices, ice-cream and chocolate); chickens, table eggs and hatching eggs; beef and pork products; salamis; pies;

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processed meats – including packeted and tinned stuff like canned beef, meat balls and Viennas – and fish.

The ban is so tight, Botha told FTW, that a lot of products which bear only a slim resemblance to “animal products” are being stopped.

“A lot of items that are really crazy options are included,” Botha added.

Even milk products in transit via SA and Zimbabwe to their final destination have met with the heavy hands of border customs in Zimbabwe.

Vufi Madzorera of Professional Clearing in Zimbabwe confirms that the customs ban is for sure.

“They’re enforcing the ban, definitely,” she said.

She also added that, if you want to see the effect of the ban, “just look at the supermarket shelves. There are no frozen chickens from SA there any more.”

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FRIDAY April 30 2010 | 5

‘King Shaka unlikely to attract int’l cargo’

By Alan Peat Hopes that the new King Shaka International Airport (KSIA) just north of Durban will attract a lot of international cargo are a bit over-optimistic, according to FTW contacts in the airfreight industry.

We have been told that most of the air import cargo currently coming into SA is bound for the country’s industrial hub in Gauteng, just as it is the origin of most of the export air traffic.

Durban’s spread of industry is relatively limited, and not even a lot of perishable products are grown in Kwa Zulu Natal, with the largest proportion of agricultural land producing sugar cane.

Emirates is the only international air carrier yet committed to using the new airport with any sort of frequency.

“And I can’t see a lot of

other airlines running into Durban because of the low potential volumes,” said Mike Todd of AMI. Garry Marshall, MD of Express Air Services (EAS), agreed.

“There’s a domestic freight facility which is aimed at handling about 5 000-tonnes of cargo a year, and that is shared

by EAS and the national carrier, SAA,” he said.

“Then there’s the international cargo sector which is being handled

by Worldwide Freight Services (WFS) – with all the electronic, high-tech bells and whistles you can imagine. But I don’t see very much international cargo passing through there.”

Another problem is that use of the King Shaka airport is relatively expensive.

It’s only after extensive negotiation between the aviation industry and the

Emirates is the only international air carrier yet committed to using the new airport with any sort of frequency.

Airports Company of SA (Acsa) that charges have been reduced to a “more affordable level” according to Marshall.

“But the cost impact for airlines is still comparatively high,” he said, “and this will be linked to the cost of airfreight.

“I don’t see too many international airlines hauling in there.”

A lot of Durban’s industry and business, especially in the freight sector, is currently situated to the south of the city centre, and therefore conveniently close to both the port and the present international airport.

But forwarding and clearing agents specialising in airfreight are just going

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to have to move, according to Todd.

“There’s a lot of uncertainty about how this is going to impact,” he said.

“But we’ve just got to move, and that is going to add to the costs.”

And just where they’re going to find space near the airport is still very much in question.

“There is a cargo agents’ section still being built,” Todd added, “which is expected to be finished off in August.

Marshall agreed that this was one of the several issues that were currently a subject of conversation.

“But they all have to do with relocation,” he said. “From a company

perspective, there’s the problem of relocating staff and premises. That’s an added cost for us all.

“Most business is currently based in the city centre and the south, and this new airport is in the back of the beyond.”

Marshall did acknowledge that there had recently been a lot of growth along the north coast area.

“So it’s a bit of a mix of the good and the bad, I suppose.”

He’s also happy about the facilities at the airport, which “are much, much better than they are at the moment” at the present airport. But you’re going to have to pay for the privilege of using them.

6 | FRIDAY April 30 2010

Glut of empties turns to shortage as exports get moving Price of new containers jumps 30%

By Alan Peat The global container market has done a complete 180-degree turn – moving from last year’s glut of empty boxes and container parks bursting at the seams, to a “first come, first served” shortage of empties.

This is particularly true in Asia, where rapidly growing export trade has pushed up the need for boxes. And it’s spreading to Asia’s import partners with the lines rapidly redeploying empties to their home countries.

A major ship’s agency on the Far East sea trade told FTW that they were “sitting short of boxes in SA”.

It’s back to normal, said Lindsey Heynes of Grindrod Intermodal.

“There are, of course, peaks and valleys. But just as

FTW0016SP

they’ve always been.”

The company’s empty container parks have “more space on the ground” compared to last year, as trade returns to normal and SA sends out a lot more exports, Heynes added.

Gareth Weir of container leasing company, Triton, told FTW that his company couldn’t get its hands on empties out of the Far East.

“The lines are looking for equipment,” he added, “and when they get it they keep it.”

At the same time the price of new containers has gone up from US$1 850 last November to about US$2 400 now – a full 30% jump. The wholesale price of second-hand units has followed suit, and these price impacts have certainly filtered into the SA market.

And, although Weir sees

the demand jumping, the supply of new units (almost all from China) is still trailing well behind.

“The problem is that the factories which shut down and laid off staff last year are now battling to find skilled workers, as the whole Chinese industry has revived,” he said.

“Also, factories which used to run three shifts are now struggling to run one shift with the lack of available staff.”

And customers ordering equipment now are having to wait till August for delivery, Weir added.

He also predicts that worse is yet to come.

At this time last year, more than 1.35-million TEUs of shipboard container capacity was sitting idle, with shipowners struggling to get sustainable

On the move ... The global container market has done a complete 180-degree turn.

freight rates, and hundreds of thousands of empty boxes littering ports across Asia – especially in China and Japan, where export volumes had gone for a ball of chalk.

And the idle capacity eventually peaked at over

1.4-m TEUs. But the recent increase in demand led to a rapid reduction of idle tonnage with the idle fleet falling below 1.2-m TEU at endMarch.

In its April 15 weekly newsletter, information

FRIDAY April 30 2010 | 7

Gearing for growth

service provider, Alphaliner, said that idle containership capacity had fallen to about 1-m TEUs (or 7.5%) of the world containership fleet, its lowest level since February 2009. That has eaten up about 400 000 of the available empty boxes.

“And,” said Weir, “as more ships come on line, they will also be looking for boxes.”

But where? he asked.

“In the retail market, no stock is available, and the whole Far East area has just dried up.”

With a relatively new foot in the door in Cape Town, GMA Logistics is determined to expand its business in the Mother City and surrounding Cape Province.

“We have a wellestablished presence in SA,” said company director Frans Smith, “having previously traded as GM Arcache Shipping, until we became a blackempowered company and rebranded as GMA Logistics.

“However, we are a fairly new player in Cape Town, having purchased a company in the city only two years ago. But now we’ve appointed Ernest Burger as our new branch manager there, and we hope that he is the man who will lead us into the future.”

Burger, who was previously with Sturrock Shipping in the Cape,

By Ed Richardson

Ernest Burger … new branch manager.

commented: “We are busy putting in added infrastructure, which is aimed at cornering niche markets in the city.”

An example of this development is a bonded/ excise facility to give the company access to the province’s wine industry, a product which Burger suggested few forwarding operations have to offer.

Cosco and Evergreen adjust Far East service More capacity has been introduced into the Far East, SA, East Coast of South American (Ecsa) trade.

The two Far East lines, Cosco Container Lines and Evergreen Line, are to split their current joint service connecting the three continents into two loops,

according to Jim Cho, president of the Evergreen Agency in SA. From mid May what is presently the ESA (East Coast South America) service will be split into ESA and FAX (Far East Africa Express).

ESA will operate with 10 vessels averaging

3 500 TEUs capacity, with Evergreen providing six and Cosco four. The service will miss out its present SA ports of call, and will have a port rotation of Shanghai, Ningbo, Yantian, Hong Kong, Singapore, Santos, Montevideo, Buenos Aires, Santos, Singapore, Hong

Vehicle production on a roll

Kong and Shanghai.

The new FAX service will operate with eight vessels of 2 700-to-3 400 TEUs with a rotation of Shanghai, Ningbo, Kaohsiung, Hong Kong, Yantian, Singapore, Tanjung Pelepas, Durban, Cape Town, Singapore, Kaohsiung and Shanghai.

The freight industry will be given a boost by the powering up of South African vehicle production, which is expected to resume its climb, reaching 595 400 by 2012, according to projections by the National Association of Automobile Manufacturers of South Africa (Naamsa).

Of these, 321 400 vehicles are expected to be exported, with a little more than that (around 340 000) imported.

This will help balance the ro-ro traffic.

Naamsa expects the total local market (cars, commercial vehicles and heavy trucks) to only reach the 2008 level of 533 387 vehicles in 2012, with projected sales of 589 000.

This will make South Africa a net exporter of vehicles, as the projected production is 595 400 vehicles.

Domestic sales are expected to accelerate this year from the 395 000 in 2009 to about 451 000 in 2010 – an increase of around 14,0%.

“However, the improvement will be off a very low base,” says Naamsa director Nico Vermeulen.

Original Equipment manufacturers are gearing up for the expected growth by investing over R4.5-billion this year in new plant and equipment.

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8 | FRIDAY April 30 2010

Businesses must gear up for new ‘green’ legislation Target is 34% carbon footprint reduction by 2020

By Liesl Venter Greenhouse gas reduction is high on the agenda for South Africa – and a green paper on the matter is expected no later than June.

That’s the word from Liesl De Wet, senior manager: sustainability for Barloworld Logistics Africa. She says now more than ever before it is important for South African businesses to get their heads around what is green, how it can be translated into their business offering and the way they conduct business, especially if they want to remain viable and competitive in a carbon constrained future.

“The government has announced a target to reduce South Africa’s carbon footprint by 34%

by 2020 and by 42% by 2025. With these kinds of targets in place and legislation on the horizon to ensure that the targets are realised, it is imperative that businesses become aware of the changes they will have to make.”

‘Non compliance will affect your bottom line sooner or later.’

Having been involved in ensuring environmental sustainability at Barloworld Logistics, De Wet says the first step for any company embarking on the ‘green’ journey is awareness.

“An assessment of your company is necessary to determine what your carbon footprint is as well

as your direct impact on the environment within which you operate. If you do not take this into account and make the necessary changes – which could soon be legislated – your competitiveness as a global player could be impacted significantly.

There is also no doubt that non compliance will affect your bottom line sooner or later.”

While experts agree reducing the carbon footprint of any company is costly to implement, the cost saving of green is huge.

“There is definitely a direct cost benefit to the business,” says De Wet. “When one looks at the enormity of the topic of global warming, going green sometimes is too much to comprehend, but essentially it is not

Liesl De Wet ... ‘Awareness is first step.’

a difficult concept to implement – and apart from the environmental benefits and doing the right thing, it can save

money in the long run.”

With South Africa estimated to be responsible for some 3% of the total greenhouse gas emissions in the world, the country has no choice but to bring about change.

And business is going to have to get on board.

“It is about the bigger picture,” says De Wet. “As a country we will find ourselves being less competitive in the global arena. In the developed world emissions are capped. Companies have very strict compliance legislation and they will not do business with markets that are not even attempting to comply.

For the sake of South Africa Incorporated we have no choice but to become environmentally sustainable – and soon as time is running out.”

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FRIDAY April 30 2010 | 9

DP World’s R110m investments get moving

By Alan Peat Along with the rebranding of the MIPS container terminal into DP WorldMaputo from May 1, a R110-million investment has been committed to increasing the operational capacity, according to MD, Ricardo Schlechter.

The first step has already been taken, he told FTW, with the delivery of 14 new “Kalmar” terminal tractor and trailer units – due to be commissioned this weekend.

Said Schlechter: “Further action includes the total refurbishing of our two shipto-shore cranes. The first set of spares has been ordered and shipped, and work has been planned to commence early next month.

“While the actual engineering work plan is still being adjusted to fit the shortest possible time criteria, we would envisage the first

crane to be completed by September and the second about two months later.”

Also, an additional mobile harbour crane is due to be shipped in from DP World in Dakar, and to be commissioned in Maputo by early May. A further six new reach stackers have been ordered from manufacturer Linde, which Schlechter expects to arrive in Maputo at the end of this month, and again be commissioned early May. “To improve current mobile harbour crane operations, and assist with training,” he added, “we have brought in four experienced operators from our terminal in Jebel Ali, Dubai. An intensive training plan for new operators is being implemented.”

Implementation of a new “Zodiac” terminal operating system has already started, and – after intensive testing

The Port of Maputo ... New terminal operating system expected to ‘drastically’ improve yard, gate and vessel planning sequence.

and training – it is expected to be fully commissioned by November.

“We envisage a drastic improvement in our yard, gate and vessel planning sequence from this system, which will have the overall benefit of speeding up vessel and truck turn-around times,” Schlechter said.

“Together with this, a strict cut-off discipline will be implemented by no later than June 1.”

DP World also plans – in a joint-venture with partners – to set up an inland container depot just outside the port to handle/store empty containers and provide adequate container stuffing services.

“This” said Schlechter “is aimed at becoming a full container freight station designed to provide all ancillary container services, including the packing of bulk minerals and performing container repairs.

“The first phase is expected to be operational by the end of this year.”

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10 | FRIDAY April 30 2010

Truckers concerned at rapid rise of diesel price R11.43 July 08

R7.51 Current R6.54 January 08

over US$84 a barrel, and still on the rise.”

Paul Rayner, MD of shorthaul container carriers, DTB Cartage agreed.

The other factor in the fuel price equation in 2008 was a rapidly weakening rand price against the US dollar, he added.

“Although the rand currency is currently reasonably strong, the longterm trend is a continuing weakness against the dollar,” Rayner told FTW. “It’s

By Alan Peat With the April rise in the diesel price of 48.5-cents per litre, fuel costs are getting to a worrying level, according to truckers.

“The fuel price is likely to keep going up,” said Mike Scott, executive of long-haul truckers, Cargo Carriers, and chairman of the Federation of Southern African Road Transport Associations (Fesarta). “Look at where the international oil price is – at

worrying if the rand weakens considerably going forward.

We could again hit those price levels of 2008.”

And, with the diesel price presently at 751.95-c/l (Gauteng price, with coastal price about 15-c/l less) it’s well over the price it was in February, 2008 – the precursor to that disastrous price of fuel for the rest of that year.

The Gauteng diesel price rocketed to over 1143.30/ litre in July, and the trucking industry went through nine months of fuel price hell.

It was only in January, 2009 that the price fell to a more reasonable level of 654.35-c, and bottomed out in March to 611.35.

Since then – although there have been a couple of valleys – the price has climbed gradually up to its current 751.95.

And the signs are of a continued rise, our truckers said.

“The fuel cost is already at a worrying level,” Scott added. “And, with it c ounting for 35% of our total operating costs, any major rises impact heavily on a trucker’s overall costs.”

Done deal … Margi van Gogh, MD Damco SA and Arnold Garber, chairman Compu-Clearing Outsourcing (front) with Mario AcostaAlarcon, MD Compu-Clearing and Nadia Hewett, project manager, Damco SA.

Damco South Africa has opted for the CompuClearing programme to integrate its operational and financial systems into one platform.

The programme will

ANGOLA / SOUTH LINE Vessel M.V. BLUE SKY 95/10N M.V. BLUE SKY 96/10N M.V. BLUE SKY 97/10N M.V. BLUE SKY 98/10N M.V. BLUE SKY 99/10N M.V. BLUE SKY 100/10N

Durban * * * * * *

Cape Town (General Agents) Contact: Richard Fortune/ Duncan Kensley Tel: +27 21 440 5400 • Fax: +27 21 419 8952 Email: richardf@meihuizen.co.za Email: duncank@meihuizen.co.za

Walvis Bay * * 18/05/10-19/05/10 * * *

Cape Town 31/03/10-02/04/10 27/04/10-29/04/10 22/05/10-25/05/10 15/06/10-18/06/10 09/07/10-12/07/10 02/08/10-05/08/10

Johannesburg Contact: Jillian Appleby Tel: +27 11 616 0595 Fax: +27 11 616 0596 E-Mail: seascape@iafrica.com

reduce turnaround time, ensure quicker cargo release and improve connectivity between operations and finance, said Damco SA MD Margi van Gogh.

* Indicates Inducement Ports Namibe * * * * * *

Walvis Bay Contact: Piet Reichert Tel: +264 64 205859 Fax: +264 64 20651 E-Mail: expserv@iafrica.com.na

Soyo * 06/05/10-07/05/10 * * * *

Sonils/Luanda 08/04/10-09/04/10 08/05/10-09/05/10 01/06/10-02/06/10 25/06/10-26/06/10 19/07/10-20/07/10 12/08/10-13/08/10

Soyo 10/04/10-11/04/10 N/A 03/06/10-04/06/10 27/06/10-28/06/10 21/07/10-22/07/10 14/08/10-15/08/10

Durban Contact: Richard Fortune Tel: +27 21 440 5400 Fax: +27 21 419 8952 Cell: +27 (0)83 455 5006 E-Mail: richardf@meihuizen.co.za

Cabinda/Malongo 11/04/10-21/04/10 10/05/10-14/05/10 05/06/10-08/06/10 29/06/10-02/07/10 23/07/10-26/07/10 16/08/10-19/08/10

Dates indicated above are for port calls and are not indicative of cargo load dates. Load dates are obtained from local agents

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Johannesburg Contact: Jillian Appleby Tel: +27 11 616 0595 Fax: +27 11 616 0596 E-Mail: seascape@iafrica.com

Walvis Bay Contact: Piet Reichert Tel: +264 64 205859 Fax: +264 64 20651 E-Mail: expserv@iafrica.co

Durban Contact: Richard Fortune Tel: +27 21 440 5400 • Fax: +27 21 419 8952 Email: richardf@meihuizen.co.za

FTW0463

Price per litre

IT contract signed

FRIDAY April 30 2010 | 11

Last week’s top stories on www.cargoinfo.co.za Airspace restrictions sharply criticised The International Air Transport Association (Iata) has sharply criticised European governments for their lack of leadership in handling airspace restrictions in light of the Icelandic volcano eruption and urged a re-think of the decision-making process.

Consumer Protection Act – know your rights With the phasing in of the new Consumer Protection Act (CPA) due to begin this month, companies are gearing up their operations to ensure compliance.

Fines of up to R1-million or 10% of turnover can be imposed.

Logistics university launches new course The recently established Kühne Logistics University in Hamburg is launching an MSc Global Logistics for the 2010/11 winter semester. The 2-year programme will be taught in English.

VAT fraudster to serve 10 years A labour broker found guilty on 4228 counts of fraud amounting to R6.4 million for issuing false VAT invoices will now have to serve his full 10 year sentence in prison.

Hogan speaks out on CEO vacancies Minister of Public Enterprises Barbara Hogan expressed her concern at the vacancies at senior management level, especially the positions of CEOs (at SAA, Eskom and Transnet) in her budget vote speech last Thursday.

is working actively with Mozambique International Port Services (MIPS) or DP World directly and through the Maputo

Corridor Logistics Initiative (MCLI) on all issues affecting container throughput through Mozambique.

‘Maputo a viable alternative to Durban’

Alex de Bruyn... 'Small percentage of SA volumes move through Maputo.'

By Ray Smuts The port of Maputo can offer an alternative to Durban and

through Maputo and Beira historically through regular feeder connections via its investment in its southern African feeder operator, Ocean Africa Line.

“In addition, Safmarine, together with Maersk Line, launched a direct Maputo weekly service to/from Asia in 2009.”

As to whether Safmarine is satisfied with the commitment by the Maputo port investors, which include DP World, Grindrod, the Portuguese company Portus Indico, and Mozambique Gestores, De Bruyn says the line

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does not necessarily have to pose a threat to its immediate South African neighbour, says Safmarine’s Southern Africa trade executive, Alex de Bruyn.

Responding to comment

by Dole SA’s Andy Connell, that Maputo’s problem has nothing to do with capacity but rather a lack of commitment from shippers, De Bruyn concedes “a very small percentage of our South African volumes move through the ports of Mozambique currently.”

He says: “Safmarine has been supporting its customers’ cargoes

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12 | FRIDAY April 30 2010

The ban on SA-origin animal products being imported into Zimbabwe is definitely being strictly imposed, according to Moira Ambler, business development manager at MSC Logistics.

She confirmed the statement by Lin Botha

TFR backlog persists

By Alan Peat Despite the assurance by Transnet Freight Rail (TFR) on Monday, April 19 that the backlogs from the Durban strike the week before had all been cleared, the latest port information forwarded to FTW by Lawrie Bateman, MD of rail users, MSC Logistics, indicated there was still a considerable backlog on Friday, April 23.

“This backlog has been on for the whole week,” he

FTW1942SD

told FTW. Monday morning figures showed the equivalent of 1 240 TEUs of imports still sitting at Durban container terminal (DCT) waiting for trains; and seven trains (containing 550 export containers) still waiting at Kings Rest.

By Wednesday the waiting containers at the docks had eased somewhat, but more trains were jammed up.

Port stats showed there were 12 trains stacked up

at Kings Rest waiting to get into the port area with about 447 export containers aboard, while there were 1 024 TEUs of imports still on the docks waiting to be uplifted.

The delays were still persisting on Friday.

The stats revealed that there were 1 116-TEUs of imports still to be railed to various rail destinations, with eight trains carrying 283 containers of exports waiting at Kings Rest.

Logistics operators upbeat

By Liesl Venter With commodity prices increasing, logistics companies are expecting business growth in the months ahead.

Analysts are predicting that even though the speed and extent of the global economic recovery remains uncertain, commodity prices are likely to put in a strong performance in 2010, boosting the worldwide mining industry.

Kriba Naiken, managing director – shipping for ICM Group, a mineral packing logistics company, this is good news.

“We will face two major challenges in the next few months to ensure that opportunity is turned in to profit, and that is the strength of

the rand and the cost of logistics.”

Naiken told FTW that while the impact of the global recession had severely impacted logistics companies involved in the mining industry, it had also levelled the playing field.

“If anything positive has come out of this it is that the cost of logistics has stabilised. Before the recession companies were creaming it and logistics was expensive.

Last year we saw logistics costs having to subsidise the cost of the product.”

Naiken said many companies had also found innovative ways of doing business. “There is no doubt that the next few months are offering us an opportunity to recover some of the losses.”

BUNKER WATCH (Fuel Prices) Last week

$511

This week

$503

$ Per Metric Ton

By Alan Peat

tricky problem.

“We have a shipment of personal effects bound from its overseas source to a country’s embassy in Zimbabwe,” said Ambler.

“On the manifest it declares that one of the things in the container-load is a small tin of milk powder for personal use.”

This gave the company three choices. Not to send the whole shipment until the ban was over, or could be circumvented; the costly exercise of de-stuffing and searching the whole container-load to find the offending product (and risk possible claims for damages if things go wrong); or ask the embassy to get special clearance for the shipment.

“We’re still waiting for a decision from the shipper on which option to choose,” Ambler added.

Durban

Moira Ambler... 'Even goods in transit through SA to Zimbabwe are being stopped.'

(See page 4) that even goods in transit through SA to Zimbabwe are being stopped.

“We had two 40-foot and one 20-ft container of foreign milk powder straight off the ship in Durban stopped at the Beitbridge border post, and the trucks turned back,” Ambler told FTW. They were actually stopped on this side by SA customs. “But our customs have to get clearance from the Zimbabwe authorities before they start the crossing.”

And the truck drivers waving pieces of paper saying that the goods were in transit through SA had no effect. It was still a no-go, said Ambler.

And this blatant overimposition of the ban has given MSC Logistics another

Recession has forced down logistics costs

Cape Town

‘Over-imposition’ of Zimbabwe ban causes headaches

This week

$560

Last week

$556

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