MAY 2009 FREIGHT & TRADING WEEKLY
SPECIAL feature
Namibia
A plan comes together
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MAY 2009 | 1
Editor Joy Orlek Consulting Editor Alan Peat Contributors Liesl Venter Advertising Carmel Levinrad (Manager) Yolande Langenhoven Claire Storey Jodi Haigh Managing Editor David Marsh
Far-sighted planning and implementation of the corridors by the Namibian government has positioned the country as a lower-cost entry to SADC countries than its neighbours. With little slow-down in the rebuilding of Angola, and Page 2 Commitment pays off
Correspondents
Advertising
Logistics Page 5 Service geared for Angolan buyers Page 7 Logistics major opens Walvis Bay office
Durban Terry Hutson Tel: (031) 466 1683 Cape Town Ray Smuts Tel: (021) 434 1636 Port Elizabeth Ed Richardson Tel: (041) 582 3750 Swaziland James Hall jhall@realnet.co.sz Co-ordinators Layout & design Circulation Printed by
Zimbabwe now emerging from its economic tail-spin, the signs are good that, while the Namibian freight industry will not entirely escape the global melt-down, it will be protected by its geographic position and political stability on the country’s borders.
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Page 8 First ‘true logistics centre’ opens
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Seafreight Page 4 Walvis Bay targets 200 000 TEUs this year Page 11 Feeder service links SA and Namibia Page 13 First shipments to Zimbabwe move via Namibia Corridors Page 6 Laying future foundations for the economy
Page 12 Regional logistics hub on the cards
Page 14 Mine closures will affect cargo flows Walvis Bay’s two floating drydocks. Cover photo: Ed Richardson
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Transport Page 14 Low-flying company on a roll
2 | MAY 2009
Namibia
– commitment pays off
By Ed Richardson
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ith just 2.1 million people in a country covering 825 000 square kilometres (of which 0.99% is arable), and limited water and power resources, Namibia has had to look beyond manufacturing and agriculture as economic drivers. Even the mineral wealth of the country – while bringing in foreign exchange – is not sustaining jobs. According to the CIA World Factbook, Namibia is the fourthlargest exporter of non-fuel minerals in Africa, the world's fifth-largest producer of uranium, and the producer of large quantities of lead, zinc, tin, silver, and tungsten, accounting for 8% of GDP but over 50% of foreign earnings. However, the mining sector employs only about 3% of the population, which means it does little to create and sustain jobs. What the country does have is 3 936 kilometres of border with Angola, Botswana, South Africa and Zambia, and 1 572 kilometres of coastline. And the once underdeveloped port of Walvis Bay. These natural strengths were packaged a little over ten years ago into a plan to
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turn Walvis Bay and Namibia as a whole into the western gateway for trade into the neighbouring countries and as far inland as the Democratic Republic of Congo. The opportunity was created by the congestion and lack of investment in the Angolan and Tanzanian ports. In 2000, the port of Walvis Bay was deepened to 12.8 metres to take larger vessels. Investment continues, with two new container quays due to be operational by 2012. Subsequently, congestion in Durban has added to the appeal of Walvis Bay, which is the closest efficient Southern African port for Europe and the Americas. Guided by its vision of being a gateway and “alternative port,” Namibia has focused investment on the port of Walvis Bay and four trade corridors – the TransKalahari linking Walvis Bay to Gaborone in Botswana and Gauteng, Trans-Caprivi providing port access to Zambia, Zimbabwe and the Democratic Republic of Congo, the Trans-Cunene through northern Namibia into southern Angola, and the Trans-Oranje linking the port of Lüderitz with the Northern Cape. Millions have been invested in upgrading and maintaining the roads on these corridors, with a crucial bridge being built
An oil rig in Walvis Bay for repairs. The port has become the preferred service centre for the Angolan oil industry.
MAY 2009 | 3
Investment in energy and transport will buoy economy
The Port of Walvis Bay .. western gateway for trade into neighbouring countries. over the Zambezi river at Katima Mulilo in 2004 to open up a new transport route into the interior. Development of the corridors is being co-ordinated by the Walvis Bay Corridor Group, which was formed in 2000. It is responsible for marketing the corridors, facilitating inter-government meetings that have led to harmonised customs operations at the border posts, and the adoption of common protocols to speed up transit. There is still much to be done – trucks can spend weeks waiting for passage across the Angolan border, Walvis Bay is seeing
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the first signs of congestion, and there is the ever-present threat that once the Angolan ports start operating efficiently again, Namibia may lose its gateway status. What Namibia has in its favour is the commitment of the authorities to seeing a strategy like the corridors through, combined with a pool of skills needed to develop the logistics value-adding services needed at the port and along the corridors. According to the Factbook, 85% of Namibians can read and write, and services make up around 53.4% of Gross Domestic Product.
Like the curate’s egg – the risk assessment for Namibia is good in parts. According to credit insurer Coface, the country failed to take full advantage of the soaring prices of raw materials in 2008, with the production of minerals limited by a deficient energy supply. And despite the upward trend of copper and uranium extraction in 2009, economic growth is likely to feel the impact of the decline in world prices. On the positive side, public sector investment in energy and transport infrastructure will continue to buoy the economy while the decline in oil and foodstuff prices will help ease inflation in 2009.
A solid but slightly deteriorating financial position
The current account, however, could slip into deficit in 2009, undermined by the rising cost of imports and the depreciation of a Namibian currency pegged to the South African rand.
Political stability but with growing social risk
Despite remarkable political stability, Namibia has been contending with major social challenges, says Coface. A near 20% AIDS prevalence rate compounded by a 28% poverty rate represents an obstacle to development of an economy handicapped by a lack of skilled labour, according to Coface. Another weakness is the country’s insufficiently diversified productive fabric, with its economy largely resting on raw material exploitation and thus vulnerable to external shocks. Economic growth has not succeeded in significantly reducing either a 35% unemployment rate, the highest in the SA Customs Union, or a 28% poverty rate. Namibia is ranked 125th out of 177 countries for its human development index. A 20% AIDS prevalence rate – among the highest in Africa – has also impeded Namibia's development.
4 | MAY 2009
Walvis Bay
targets 200 000 TEUs this year Two additional container quays on the planning boards
Elias Mwenyo ... ‘Financial crisis is working in Walvis Bay’s favour.’ BY Ed Richardson
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“
n these difficult times we are growing,” says Elias Mwenyo, Namport manager sales and services. So much so that the “180 000 TEU” celebratory T-shirt is now out of date.
“We’re going to do 200 000 TEUs this year – maybe more,” he says. Ongoing investment ahead of demand has seen the once sleepy port of Walvis Bay grow to be a bustling alternative to the more traditional ports in South Africa, Angola, Mozambique and Tanzania. The biggest planned investment is an additional two modern container quays, which are planned to be built into the existing channel in the Walvis Bay lagoon. According to Mwenyo, the plans are far advanced and the new berths are expected to be operational by the first quarter of 2012. Most recent investments in the port include a new fleet of trucks and trailers to transport containers and a new mobile harbour gantry, bringing the total of mobile harbour cranes to five. A fleet of rubber-tyred gantries is also on the cards, and is expected to be operational before the new container berths. Funding support for the feasibility study is being provided by the Japan International Cooperation Agency (Jica). Mwenyo says the current financial crisis is working in Walvis Bay’s favour as companies look at ways of reducing costs. “People are realising the benefit of Walvis Bay and the corridors, which offer a shorter route to the main
The Port of Walvis Bay … New berths expected to be operational by the first quarter of 2012. SADC markets.” Walvis Bay is also well situated for cargo from Europe and the Americas. “We have a natural advantage through our location on the west coast,” he says. With the routes to Angola, Zambia and the Democratic Republic of Congo already well established, Zimbabwe and Botswana are starting to open up as well. Both Maersk and CMA-CGM are now calling regularly at Walvis Bay – for both transit and through cargo. According to the Namport annual report, 105 205 of the 170 586 TEUs handled in the 2007/2008 financial year were transhipped. A total of 35 669 was landed, and 29 892 shipped.
Opportunities for value added services Namport is looking for partners to help develop Walvis Bay as a major logistics hub, says Elias Mwenyo, Namport manager sales and services. “We just want to handle the port
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Bulk volumes are also growing, with the port having handled its first 20 000 ton cement vessel, and “more to come”. Walvis Bay handled 4 392 736 metric tons of commodities in 2007/2008 – nearly double the 2 350 120 tons in 2002/2003. The main imports were petroleum (756 108 tons), general cargo (790 624 tons), sulphuric acid (38 839 tons), and vehicles (224 924 tons). The vehicles are mainly second hand trucks heading for the SADC countries. Salt is the biggest export (685 405 tons), followed by general cargo (151 230 tons) and fish products (140 211) and fluorspar (111 746 tons).
operations. The port needs vendors around to add value,” he says. These would include container stuffing and destuffing, container maintenance, and logistics hubs.
MAY 2009 | 5
Service geared for Angolan buyers From 1kg to 32-ton cargoes By Ed Richardson
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pecialist skills and experience are needed to deliver freight safely into Angola, where roads are either being rebuilt or are in disrepair, says Johan Claassen of Windhoek-based Unlimited Logistics. With a fleet ranging from bakkies to Cooling and Superlinks at its disposal, Unlimited Logistics will transport parcels from a kilogram in weight to full 32-ton cargoes from South Africa all the way through to any destination in Angola, Namibia or neighbouring countries. The service is geared for Angolan buyers who have sourced goods in South Africa and Namibia. Claassen says they have specialised in Angola, because of the challenge, which is both physical and administrative. “We often have to repack entire trucks that have come up from Gauteng because they have been loaded for tar roads, and not the conditions in Angola. Sometimes, where there are detours, the truck will be riding on a shoulder of the road and tilting several degrees. There is also constant movement of the cargo as the truck and trailer flex on the roads,”
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‘We go here’ … Johan Claassen of Unlimited Logistics (right) and partner André Liebenberg. says Liebenberg. “Our drivers are all very experienced, which is vital if you are to get freight through safely,” adds Claassen. Routing through Angola is not as simple as following a map. “Often it is quicker and safer to take a roundabout route because the direct route is impassable,” says Liebenberg. Some drivers can take as little as five days from Windhoek to
Luanda in Angola. Major delays often come at the border if the paperwork is not right and there is no-one to walk it through the customs procedures. “Clearance can take days or weeks if you do not have the right people at the border,” says Claassen. An associate company specialising in clearing and bond in transit, has been formed to bring this service in-house at competitive rates.
Music CD promotes AIDS awareness Educating truck drivers about the importance of taking effective precautions against HIV/AIDS is part and parcel of the Walvis Bay Corridor Group’s mission – and a recent initiative using music CDs is bound to find favour with its target market. The American Embassy’s public affairs division donated 500 Namibia Live Music CDs featuring local tracks performed by some of Namibia’s finest artists but preceded by an HIV/AIDS related message. The Walvis Bay Corridor Group HIV/AIDS Help Desk, in collaboration with Namibia’s Roads Authority, is making sure that each truck driver passing through the weighbridge is presented with a copy of the CD to listen to as they continue on their long journey. “As part of its social responsibility the Help Desk will continue to implement feasible interventions for the transport sector to assist especially the most vulnerable groups like the truck drivers,” said WBCG’s Agnetha Mouton.
6 | MAY 2009
Corridors
lay future foundations for Namibian economy developing as a distribution centre for Southern African Development Community (SADC) countries. “We are going after big brands to establish their distribution centre in Walvis Bay,” he says. Future growth of the port will be made possible by desalination plants and a coal-fired power station, both of which are in the feasibility study stages, he says.
BY Ed Richardson
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amibia is building its economy around its strategic position as a gateway to Southern Africa – with the focus on three transport corridors, says Johny Smith, business development executive of the Walvis Bay Corridor Group. Investment in the port of Walvis Bay, as well as the Namibian road and rail infrastructure, is paying off. Smith says traffic along the corridors is “still growing,” despite the economic downturn. This was confirmed by various logistics and freight companies interviewed by FTW in Namibia. Shipping lines are adding to the success of the three main corridors – the Trans-Kalahari link through Botswana to Gauteng, the TransCaprivi to Zambia, and the TransCunene to southern Angola. A fourth corridor, the Trans-Oranje, links the Port of Lüderitz with the Northern Cape province. “We now have regular calls at Walvis Bay by Maersk, Safmarine,
‘Namibia’s rail line to the border with Angola may soon be extended by five kilometres to provide seamless transport for containers from Walvis Bay into Angola.’
Johny Smith … Walvis Bay is developing as a distribution centre for SADC. MSC and CMA CGM,” says Smith. Further expansion of the port is under way to accommodate the growth in shipping. Smith says Walvis Bay is
The attraction of Walvis Bay is its geographic position in relation to Europe and the Americas, as well as the logistics routes into the SADC region, with its 220 million consumers. “We are three or four days to Lusaka, and four or five days to the Copperbelt,” he says. Luanda can be reached in three days, transporters told FTW.
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Neighbouring Zambia, Angola, Botswana and South Africa have also recognised the importance of the Namibian gateway, and have invested in roads, customs and other infrastructure on their side of the border. The corridors are also expanding, with a branch through Zambia to the Democratic Republic of Congo (DRC). This follows a meeting in September 2008 of representatives from the Namibian, Zambian and DRC governments. Namibia’s rail line to the border with Angola may also soon be extended by five kilometres into Angola itself to provide seamless transport for containers from Walvis Bay through into Angola, says Smith. This is expected to be completed by 2011. This is part of a long-term vision. There are over 20 medium and longterm projects in the pipe-line to ensure that the Namibian economy continues to benefit from trade and logistics – even once the ports and land links in Angola have been modernised, says Smith.
MAY 2009 | 7
SDV opens Walvis Bay offices
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he growth of the port of Walvis Bay and its corridors has attracted one of the biggest logistics networks in Africa – Bolloré Africa Logistics. SDV, which is part of the Bolloré Africa Logistics network, recently opened its office in Namibia. Based in Paris, the Bolloré group is present in 42 African countries, with over 200 agencies on the continent. It has a fleet of more than 5 800 vehicles, and five million square metres of warehouses, container yards, workshops and offices. Its Southern African regional offices are in Johannesburg, and are headed by Philippe Deneve. Willy van Meenen, who ran SDV’s operations in Gabon, is responsible for setting up the Namibian operations. The new offices in Walvis Bay are open and operating, with the first staff joining the company at the beginning of April this year. The main focus at the start will be on shipping, ship’s agency, freight forwarding and logistics. These are the services for which there is the biggest demand. “We believe in the development of Namibia as a gateway, and we are here because our clients want us here.” Van Meenen says there has been a constant stream
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Willy van Meenen … ‘There are a lot of uranium projects in the pipe-line and we are aiming at becoming their service provider.’ of enquiries since news first broke that SDV was opening up in Namibia. This is heartening, as the decision to open in Walvis Bay was made “before the economic crisis”, which has brought with it the closure of
Namdeb’s diamond mines for three months, an expected fall-off of copper exports from Zambia and the Democratic Republic of Congo, and the suspension of expansion plans by some mines. “We are still confident. There are a lot of uranium projects in the pipe-line and we are aiming at becoming their service provider,” he says. The fact that one of the new uranium mines also has a French origin will work in SDV’s favour, he believes. Moving from an operation with 250 staff in Gabon to an empty office in Walvis Bay with his wife and young daughter is proving to be an interesting challenge for the highly experienced Belgian Van Meenen. He has also worked in the Ivory Coast, Kinshasa, and Miami in the United States, where he established a branch of a shipping company. “Setting up a company is a special experience. Normally, when you arrive at a new job, the structures are already in place. This is very different,” he says. Not least of the challenges is the language and he has both Afrikaans and German phrase books on his desk. It’s all part of the high levels of service that he says SDV will provide.
With the African network already in place through Bolloré Africa Logistics, the focus will be “on the quality of the service that we give to clients. We will do more than we have to do,” he promises.
‘Despite the expected fall-off of copper exports from Zambia, there’s been a stream of enquiries.’
8 | MAY 2009
Manica
opens logistics centre in Walvis Bay
BY Ed Richardson
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anica has invested in the first “true logistics centre” in Walvis Bay, says Hans-Werner Timke, managing director of the Manica Group of Companies. The Manica Logistics Centre is situated in a former Metal Box canning factory and covers 17 000 m2. “It will allow us to ultimately provide all the services under cover,” he says. The Centre is currently being improved to optimise logistics flows. According to Timke, the development of the logistics centre is a natural progression of the formation of a logistics division within Manica that combines the various services provided by the group. These include clearing and forwarding, warehousing, project freight, strategic sourcing including procurement, transport arrangements (road, air, sea), IT logistics as well as logistics consulting to develop integrated supply chain solutions. The facility, which has road and rail links and is in close proximity to the port, is being developed on a “similar business model” as the South African Container Depot (SACD) – a sister company in the
Bidvest group. It will be used to destuff and stuff containers and consolidate freight, among other services. Road and rail trucks will be loaded for transport into the hinterland and neighbouring countries. According to Timke, there is a demand from shipping companies for the service as it takes too long for containers to be returned from destinations like Angola and Zambia. “The shipping companies don’t want containers held up in the transport process. They should be on board vessels moving cargo,” he says. There are also efficiencies in switching to breakbulk, as a container weighs about two tons – which means that the vehicle can carry that much less freight. Manica is strengthening its Windhoek operations to support the Manica Logistics Centre in Walvis Bay. “We will be adding logistics to the current clearing and forwarding services offered in Windhoek,” he says. This will provide support for shippers sending freight from South Africa, and other neighbouring states. The group continues to build on its experience in projects such as support
In the new Manica Logistics Centre in Walvis Bay are, from the left, Horst Gloeditzsch, GM Rennies Consolidated (Manica warehousing division); Patrick Kohlstaedt, GM Manica Logistics Services; and Hans-Werner Timke, MD Manica Group Namibia. to oil rig repairs and heavy equipment moving, providing shore base operations for the oil industry, integrated project management contracts and total freight management for the mining industry.
It recently took over the logistics operations for the Scorpion mine in the port of Lüderitz Bay and handles the export clearing and forwarding processes for the operational uranium mines
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MAY 2009 | 9
Biggest post-independence road project gets going BY Ed Richardson
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near Swakopmund. Timke is among those who see uranium helping stabilise the Namibian economy and the freight sector in particular during the current
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world downturn. He points out that there is growing demand for uranium, and many of the major new uranium mining projects appear too far advanced to be mothballed.
amibia is continuing to invest in its transport corridors. One of the biggest projects is the construction of the eastwest Rundu-Elundu Road via Nkurenkuru along the Angolan border, which was announced last year by President Hifikepunye Pohamba. It is the biggest road tarring project since indepenendence. According to Pohamba, the project involves the tarring of over 300 kilometres of road to enable the “safer movement of people and goods from the Kavango Region to Ohangwena and beyond�. Namibia has spread the construction contracts. According to the Namibia Economist, China's Henan International Cooperation won the tender to construct the first 134 kilometre phase of the road. This phase is scheduled for completion in October 2010. Funding is provided through a
loan from the Japanese Bank for International Cooperation, with repayment over 15 years at an interest rate of 0,9%, according to the Economist. In April this year South African company Raubex announced that it had been awarded a R1-billion contract for two sections of the road. They are situated between Nkurenkuru and Elundu. Work on the contracts is due to start in May and continue for about two years.
10 | MAY 2009
Low-flying company on a roll Windhoek to CT and Gauteng services run six days a week BY Ed Richardson
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onsistency and managing risks to ensure service levels are helping Quality Airfreight Services and Road Specialists to continue to grow. They are also the reasons behind the company keeping its name, although airfreight has been replaced by a fleet of over 20 Mercedes Sprinters, two eightton trucks and a 15 metre cool truck, running six days a week between Cape Town and Windhoek and Gauteng and Windhoek. “We started 14 years ago as an airfreight company between Cape Town and Windhoek, but the needs have changed,” says Steve Leukes, the Windhoek-based partner who opened the Gauteng-Namibia route six years ago. Learning – often the hard way – as the business has grown, he and partner Gary Slamet have built their success by focusing on what they do best – transporting goods between Cape Town and Gauteng and Windhoek. At present, the exception is the cool truck, which takes fresh fish from Walvis Bay to Gauteng and returns with dry goods ranging from spare parts to
glass, clothing, computers and ships’ spares. The company offers a full pick-up and delivery service between the centres, with contracted couriers in Gauteng and Cape Town having their own dedicated areas. “We decided to use contractors because we wanted to empower some of our employees. “We offered them vehicles and dedicated routes because we were convinced that this would result in increased service levels.” Leukes says it was decided to use a fleet of Sprinter-type vehicles, which can take up to 2.3 tons, rather than a single 24-ton truck, because of the greater flexibility the smaller vehicles offer. They can leave at different times, and then double as delivery vehicles in town when needed. Space on the vehicles is sold at wholesale prices to other South African and Namibian couriers who prefer not to run their own fleets. At the border, the trucks are met by representatives from the company’s own clearance agency. Having this facility at the border post means that any problems can be sorted out quickly, ensuring that
Steve Leukes … ‘All cargo is fully insured as part of the fee.’ there are no long delays, he says. All cargo is fully insured as part of the fee. “We found that insurance was the last place you wanted to save. We also found that many shippers tried to save on insurance, which was fine until there was a loss. So, we decided to include insurance in the package to provide everyone with peace of mind,” he says.
Having the smaller vehicles has also made it possible to offer a Saturday delivery service for products such as flowers, emergency mining equipment and vehicle parts, which was needed in Windhoek. As for the name. “We have a good brand, and have built the company from zero to one of the top two volume-wise on the routes we operate,” he says.
‘Port-centric’ logistics the new buzz word Distribution centres close to ports cut down inland haulage Now is the time for shippers to reassess their logistics patterns and seek out more cost-effective solutions. And it’s up to all service providers to come up with the goods. This was one of the conclusions at the recent UK conference and exhibition, Multimodal 2009. “The name of the game is to find
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ways and means to cut costs,” said Vincent De Saedeleer, vice president of the Port of Zeebrugge Authority. He admitted that volumes through the port had dropped “at a rate we have never seen before” but said this was encouraging the port to be more responsive to what the market wanted. Martyn Pellew, group
development director PD Ports, said the recession was forcing people to think differently. “When times are good, people are not quite so focused on logistics costs – they just need to keep the volumes flowing to the retailers’ shelves. Now everyone is looking at every aspect of their supply chains.” PD Ports is a strong advocate of
portcentric logistics and already Asda and Tesco have built huge distribution centres at Teesport in north-east England. The strategy is to build logistics facilities as close to ports as possible to reduce the costs of hauling containers to and from inland distribution centres. The goods are then picked and packed to serve the more local market directly.
MAY 2009 | 11
Feeder service links SA and Namibia Angola plays important role Pointe Noire, Congo, and back to Durban. new feeder service “Eventually the intention is to between SA and Namibia put a second vessel into service,” is now into its second said Brook-Hart, “with calls at month of successful operation, Luanda in Angola added to the carrying breakbulk and container rotation.” traffic – including reefers And Angola already plays an (refrigerated containers) – on the important role in the cargo flow on West African leg. this feeder route, he added. According to Richard Brook-Hart “An enormous amount of cargo of Alpha Shipping, it’s being – like construction materials served by a 20 000-ton deadweight bound for Angola already goes (dwt) multi-purpose vessel owned through Walvis Bay because of the by Maruba. congestion in the port of Luanda. “The idea,” he said, “is to offer Most of it travels by road from a service from South America and Walvis up the corridor through the Far East into Walvis Bay – Oshikango, because the cargo Namibia’s main port. The cargo is owners can’t afford the transhipped in Durban, then carried port delays.” onward to Walvis or the other West There is also cargo bound from African ports on the schedule.” South America direct to Walvis Bay The current port rotation like reefers carrying chicken and is Durban, Cape Town (on beef, and consignments of china inducement), Walvis Bay, Douala, tiles and construction materials, Cameroon; Libreville, Gabon; Brook-Hart added. Project2 7/22/08 12:40 PM Page 1 By Alan Peat
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12 | APRIL 2009
Sungate project
to create regional logistics hub Dry port with degroupage and distribution facilities By Joy Orlek
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hen it comes to the three major priorities for the success of any property development – position, position, position – the new Sungate project in Namibia has it all. Strategically located at Namibia’s Hosea Kutako Airport along the Trans Kalahari highway, the 650-hectare mixed-use property development is the first over-border venture by SA-based Accolade Properties. “Our vision is to establish a regional trade and logistics hub for sub-Saharan Africa,” Peter Collins, director: marketing of Accolade Properties Namibia, told FTW. “There has been a 150% increase in traffic on the Trans Kalahari Highway year on year over the past four years,” said Collins. “Currently freight is being transported via Walvis Bay to Gaborone, Johannesburg, Livingstone, Lubumbashi and Luanda. “Our ambition is to establish a dry port with degroupage and distribution facilities in addition to a tourism hub.”
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It’s the company’s first venture into industrial development and will follow its tried and tested formula of providing the bulk infrastructure in the form of roads, sewerage, power and the like and then selling off the erven to interested participants. “Situated 45km out of Windhoek, Hosea Kutako is the only place an international plane can land in Namibia,” said Collins. “And it’s the only airport in the world that doesn’t have infrastructure around it. We therefore identified a need for a development of this nature.” In May 2007 the council rezoned the area between Windhoek and the airport as peri-urban and this opened the doors for the creation of an industrial park and tourism hub. Construction is expected to begin in September. While logistics providers will begin operating next year, the facility will be complete in January 2011, creating 6000 jobs over the next 10-12 years. Collins firmly believes there is value in Africa. “Infrastructural development in Africa
Peter Collins … ‘Infrastructural development in Africa is the value for the next 25 years.’ is the value for the next 25 years,” he told FTW, “and the long-term view always wins.” The Sungate trademark has been registered in all 15 Sadec countries. “We intend taking all our big brand names on this development. We have looked at sites in Livingstone, Nairobi and Rwanda.” While Collins was not at liberty
to release the names of current stakeholders, he said agreements had been signed with a multinational mail and logistics distributor for sub Saharan Africa, hotel operators, a truck port, local logistics players, a car rental company and warehouse operators. “We have critical mass for Phase 1 and are forging ahead with our plans,” he told FTW.
APRIL 2009 | 13
First shipments to Zimbabwe move via Namibia
Z
imbabwe’s reconstruction is already having a positive spinoff for Namibia, with Walvis Bay-based Trade Ocean Shipping Namibia handling its first shipment of goods for the neighbouring country. The consignment of frozen goods was taken by road along the Trans-Caprivi Corridor, which enters Zimbabwe through the north, according to marketing director Michelle Kirov. She hopes the Zimbabwe-bound traffic will grow as more clearing
and forwarding companies realise the advantage of using Walvis as an alternative port for in transit cargo to Angola and landlocked Southern African countries. Imports for the rebuilding of Zimbabwe – together with the already booming transport routes to Angola – are expected to help Namibia weather the current economic downturn around the world. Trade Ocean Shipping Namibia has strategies in place to form alliances and represent companies abroad to
promote business via the Walvis Bay Corridors, offering both clearing and forward and ship’s agency services, says Kirov. The holding company, Trade Ocean Shipping Services, has offices in Cape Town and Durban.
Michelle Kirov … hoping Zimbabwe-bound traffic will grow.
Full supply chain management for dangerous goods Within a year of opening, Trade Ocean Shipping Namibia has handled the first two shipments of ammonium nitrate to be imported through Walvis Bay for the mining industry. The company has recently become a member of the “Dangerous Goods Logistics Network” in Namibia, according to marketing director Michelle Kirov. The company has the systems in place to handle the cargo through the full logistics chain, says Kirov.
“We provide full supply chain management, with daily updates, including stock controls.” Being able to offer a total logistics service for anything from a small parcel to perishables to dangerous goods has seen the company grow and move to bigger offices within a year of opening. Kirov and fellow director Bogdan Kotchoubei, who handles the ships agency side of the business, launched the operation. He says there has been a steady
increase in business as the Angolan oil industry increases its reliance on Walvis Bay for repairs and maintenance. There is a steady stream of support for the two floating drydocks, as well as regular calls by the fishing fleet. Kirov believes that one of the reasons for the success of the company is that representatives regularly visit their customers abroad to put a face to anonymous e-mails and to learn about the latest trends
in logistics. It is a constant learning experience for the staff in the office, most of whom have more than 20 years’ experience in the shipping industry, she says. “Our focus is on the client and on service.” Part of the service is to provide an office for clients, such as ship’s representatives, ship owners or fish buyers “so they have access to the internet, make private calls and carry on with their business,” says Kirov.
Concordia International celebrates it’s 30th anniversary and 24 years of dedicated service to South Africa.
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14 | MAY 2009
Mine closures
will affect cargo flows … but the downturn is part of a cycle BY Ed Richardson
W
hile business continues to grow, the signs are there that Namibia will not escape the global economic slow-down, says Norbert Liebich of Transworld Cargo. The company’s Walvis Bay branch has shown a 200% growth over the past year, but he believes that this rate of growth in the Namibian freight industry is not sustainable. Early signs are the temporary closure of mines and a dramatic falloff in fresh fish exports to Spain.
There has also been a swing in cargo flows. “Zambia is still positive, but whereas the traffic was mostly northbound, it is now the opposite,” he says. Imports of machinery, spares and equipment for the Zambian mines have slowed, but copper exports continue to hold up – for as long as there is demand, adds Liebich. He cautions about being too pessimistic, however, as the downturn is part of a cycle that will correct itself. “Fish exports, for example, will pick up when the Spanish run out of their
own fish stocks again,” he says. Namibia is also in the fortunate position of serving the growing Angolan market, which continues to hold up as the country rebuilds itself. Namibia’s focus on trade and logistics rather than manufacturing is also working in its favour. “Compared to my colleagues in South Africa, I am still happy,” says Liebich. South African freight volumes have been severely affected by the downturn in manufacturing due to the global melt-down. Companies like Transworld
Cargo, which have not specialised in a particular commodity, route or transport mode are also better positioned to ride out the storm. “Our strength is that we handle all aspects of logistics,” he says. Looking ahead, Liebich warns against being too negative. “We know we have to tighten our belts, and are making provision for that eventuality,” he says. In the meantime, Transworld continues to upgrade its Windhoek offices and to grow its Namibian business.
‘Training should be a priority’ Transworld Cargo is investing in the future, despite the current uncertainty, through a training programme for eight employees who are undergoing a twoyear training programme sponsored by the company. “We believe that it is only by educating our youngsters in our profession that
we will master the skills shortage in the long term,” says Norbert Liebich of Transworld Cargo. Liebich has called on global logistics companies with offices in Namibia in particular to invest more in training rather than poaching staff from the likes of Transworld.
“We are fully committed to the vocational training scheme – CATS – in Namibia, despite a possible economic downturn. “Presently eight students employed by the company are participating over a two-year period and we have as a company by far the largest number
of all students participating in this programme. By educating the youngsters in our profession, we will master the shortage of skills in the long term. It's sad to note that especially the global logistics players in Namibia hardly take advantage of this opportunity as part of their social responsibility programmes.”
IMPORTANT NOTICE
SHIPPERS TO REPUBLIC OF CONGO The FRABEMAR Srl, via COLOMBO 12/4 – 16121 – GENOVA, mandatory of OGEFREM) wishes to inform all Shippers (Importers), Owners (Shipping Lines), Shipping Agents and Forwarders that, FRABEMAR, has been appointed Mandataire of OGEFREM to issue the F.E.R.I. in all Countries outside the Democratic Republic of Congo (RDC). F.E.R.I. (Fiche Eléctronique de Renseignements à l’Importation) is the compulsory loading certificate which must be issued for each Bill of Lading, with goods destined for the RDC, which can be obtained on application from MITCHELL COTTS MARITIME, who represent the Congolese Shippers Council in South Africa, Namibia, Swaziland, Mocambique and Zimbabwe. For further information please contact Kathleen Basson at MITCHELL COTTS MARITIME: Phone: +27 31 302 7189 e-mail: kathleenb@mitchellcotts.co.za FTW4316
Feature Logistics (Special Focus on 2010)
Publication date: 10 July 2009 Booking deadline: 29 May 2009 To promote your services contact FTW4364
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CARMEL LEVINRAD on Tel:+27 11 214 7303
MAY 2009 | 15
Two new services for Walvis Bay
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alvis Bay’s increasing importance as a gateway port is seen in the introduction of two new services. Japan’s Mitsui OSK Lines (MOL), which will be represented by Ocean Liner Services in Namibia, has started the Indian Ocean Islands, South Africa, West Africa dedicated container service (ISW). The first vessel on this service is due to depart Singapore on May 8, and will be calling at the Port of Walvis Bay with a frequency of 10 days, according to Agnetha Mouton of the Walvis Bay Corridor Group. “We investigated the current and likely future trade movements and considered what would be the most beneficial for our clients,” said MOL general manager liner division TK Konishi. “With these changes we can provide many service routes between West Africa and several areas in the world.” This service provides an ideal opportunity for the shipment of minerals from the Copperbelt through the Port of Walvis Bay, along the Trans Caprivi Corridor to the international markets. This is a clear sign of growing confidence in utilising the Walvis Bay Corridors by Angola, Botswana, DRC, Gauteng, Zambia and Zimbabwe, with more than 55 000 tons moving along the Walvis Bay Corridors over the past ten years, says Mouton.
Billions earmarked for African infrastructure By Ed Richardson Billions of dollars have been earmarked for infrastructure development primarily in Africa by the World Bank’s Infrastructure Recovery and Assets (Infra) platform and the Infrastructure Crisis Facility (ICF).
Agnetha Mouton … Walvis Bay becoming increasingly important as a gateway port. Maersk Line and sister line Safmarine started a weekly direct import service, the Samba service east bound from the Middle East to Walvis Bay during the first week of April. According to Mouton, this will speed up the rotation from nine to eight weeks. The majority of the consignments that benefit from the service are destined for Angola. There has been a significant increase in the transportation of vehicles, furniture and machinery destined for Angola along the Trans Cunene Corridor through the Port of Walvis Bay, she says.
GENERATORS
& Reefer container power units
‘It is vitally important that economic stimulus packages in the developed world are accompanied by support to those that cannot afford multi-billion bail-outs.’ “As developing countries are facing the trials of the global economic crisis, it is vitally important that economic stimulus packages in the developed world are accompanied by support to those that cannot afford multi-billion bailouts,” said World Bank president Robert Zoellick when launching the new initiatives. “A decline in infrastructure leaves weaker foundations for long-term economic growth that
hits the poorest the hardest. We have a chance to avoid the errors of the past and scale up financing and help countries identify critical investments.” The two funds will together “mobilise” more than US$55-billion over the next three years to infrastructure projects in developing countries, according to the World Bank. Assistance will be global, but the bank says Africa is expected to see a large proportion of investments, given large identified needs on the continent. Out of the total, US$45 billion is available in lending from the World Bank and US$10 billion is available via IFC. The two initiatives will help to create jobs and lay the foundations for future economic growth and poverty reduction. Infrastructure projects are widely recognised as key to job creation and laying the ground work for future productivity and growth. Because of its labour intensity, infrastructure is an important element in most government stimulus packages around the globe, says the bank.
Africa specialist
with a handle on AngolA
Underslung & clip on Sound attenuated stationery units 25kVA to 630kVA ● Fully established network of emergency plug-in power points located across South Africa ● Full service back-up
CLEARING • FORWARDING • SHIPPING WAREHOUSING • PACKAGING JOHANNESBURG
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TEL: (011) 312-0446/0189 (021) 555-3238
(031) 461-4211/4066
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(031) 461-5327
(021) 555-3750
E-mail: gph@mja.co.za NATiONAL DiALiNG 0861/GENHiR FTW1035SD
Contact Hannes Rust
Tel +27 11 262 3809 +27 11 561 3172 email hannes@chavda.com www.chavda.com
FTW4278
24 | APRIL 2009
Uranium powers Namibian economy
Advertisers' Index Alpha Shipping 4 AON South Africa 8 Bonds Unlimited Namibia 1 Canada States Africa Line (Mitchell Cotts Maritime) 3 Cargo Info Africa 10 Chavda Freight 15 Coface South Africa 11 Compu-Clearing 9 Concordia 13 Frits Kroon Transport 14 G4S Aviation Security Services 8 GAL 2 Generator & Plant Hire 15 Global Inspections South Africa 6 Grindrod Ships Agencies 7 MACS Maritime Carrier Shipping 12 Maersk South Africa IBC Manica Group Namibia 5 Mitchell Cotts Maritime 14 Namibian Ports Authority OBC Parcel Perfect 4 Quality Airfreight Services & Road Specialists 8 SDV Namibia 11 SGS South Africa 2 Trade Ocean Shipping Namibia 6 Transworld Cargo 16 Transworld Roadfreight 6 Walvis Bay Corridor Group IFC
Extracting ore at the giant Rossing uranium mine. By Ed Richardson
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power-hungry world will help fuel Namibia’s economy – and along with it the freight industry – believes the Bank of Namibia. Head of research at the central bank, John Steytler, identified the trend in the second quarter of 2008 when he said there had been noticeable growth in uranium production, which was expected to underpin economic growth.
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Uranium is in demand as nuclear power stations come out of the cold due to the greenhouse emissions created by coal-fired power stations. Four new uranium mining licences have been granted in Namibia, which wanted to become the fourth-largest supplier of uranium by 2012, Namibia Chamber of Mines adviser Dr Wotan Swiegers said recently. Namibia’s second uranium mine opened in 2006, and 40 companies have been
granted licences to prospect for the nuclear feedstock. They include Russian, Chinese, Indian, Korean and Japanese firms. The spin-off for the freight industry is the importation of millions of rand worth of equipment for the construction and operation of the mines, and then the export of uranium concentration in what is known as yellowcake. Namibia will also be investing in new desalination and power plants for the new mines.
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