CMA CGM Trade-Watch - Issue 64 - September 2016

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TRADE-WATCH

AFRICA

ISSUE 64 | SEPTEMBER 2016

Côte d’Ivoire: Antwerp In West African Port Expansion

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Ghana: Tema Port Expansion Commences October

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Tanzania Urges Delay To EU Trade Deal, Won’t Sign EAC-EPA

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TRADE-WATCH

AFRICA

ISSUE 64 | SEPTEMBER 2016

Contents 03 | African Group News CMA CGM Launches NEW Europe-West Africa Service / CMA CGM Upgrades Its EURAF 1 Service / CMA CGM South African Agency: New XXL Cargo Department Established / New Suez Canal: CMA CGM Vessels Leads 1st Anniversary Convoy

07 | Pan Africa Regional: Tokyo International Conference On African Development [TICAD VI] / Global African Investment Summit / Australia’s Trade With Africa Hits US$5.7 Billion

11 | Western Africa Regional Hubs: Algeciras To Build New Container Terminal / Algeciras Gets Enlarged Coldstore Terminal Regional: ETLS Task Force To Tackle West African Trade Issues / African Ports Evolution Conference / West Africa Trade Hub [WATH] Gets New Chief / ECOWAS & China Development Bank Promote Infrastructure Development Angola: Angola Joins World Customs Organisation / New Customs Tariff Introduced In 2017 Angola/Cabo Verde: Countries To Cooperate On Maritime & Port Security Cameroon: EPA Gaining Momentum / Kribi Sees New Managing Director / New General Manager For Douala Autonomous Port Cote d’Ivoire: Cote d’Ivoire To Ratify Interim Trade Deal With EU This Month / Antwerp In West African Port Expansion DRC: Matadi Gateway Terminal Sees First Crane Delivered Gabon: Gabon Unveils New €130 Million Port Ghana: Ghana Signs Controversial EPA With EU / China Trade Hits US$2.4 Billion By May / UK-Ghana Chamber of Commerce Launched / Exim Bank Open For Business / Tema Port Expansion Commences October / Ports Operational Performance Up / GPHA To Certify Trucks & Trailers Operating At Tema / GRA Introduces E-Zone Facility At Ports Ghana/Nigeria: MoU Revisited To Enhance Trade Nigeria: Bilateral Trade With Malaysia Hits US$766.8 Million / NPA Insists On Dollarisation Of Port Transactions / Terminals Record Drop In Cargo Throughput Sierra Leone: DEME Awarded Contract For Freetown Terminal Extension / New Scanner Installed / Port Roads To Be Upgraded / Greenville Port To Get Tugs Senegal: Senegal Ratifies Trade Facilitation Agreement / Senegal Agree To Boost Ties With Pakistan Togo: First E-Commerce Platform For Direct Chinese Product Trade

26 | Eastern Africa Kenya: Kenya To Build New Terminal Under Vision 2030 / Mombasa Gets State-Of-The-Art Scanners / New Corruption Unit At Mombasa Port Somaliland: DPW To Manage Port Of Berbera Tanzania: Tanzania Urges Delay To EU Regional Trade Deal, Won’t Sign EAC-EPA / Six Regions Picked To Initiate Special Economic Zones / Tanzania Ports Authority To Implement 163 Projects / Dar Es Salaam Port Talks / MPs Want Dar Es Salaam Deal Scrapped To Avoid Losing Clients

31 | Southern Africa South Africa: Clamps Down On Noncompliant Goods / Transnet Launches Tracking Application / TPT Commissions Terberg Haulers At Durban Port / New Tug Fleet Will Enable Ports To Handle Larger Vessels / East London Grain Elevator Rail Connectivity / New Ship-Repair Facility In Durban / R29m Dredging Simulator Unveiled In Durban

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THE TRADE & TRANSPORT REPORT

CMA CGM Marseille Head Office

4, Quai d’Arenc 13235 Marseille cedex 02 France Tel : +33 (0)4 88 91 90 00 www.cma-cgm.com

Brought to you by CMA CGM Africa Marketing

Website: www.cma-cgm.com Email: lhv.marketing@cma-cgm.com Tweet: @CMA_CGM_Group

Rachel Bennett

Dominic Rawle

Disclaimer of Liability

The CMA CGM Group 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 the CMA CGM Group 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.

Events Diary September 2016 16-18

14th Kenya Trade Show (Nairobi, Kenya)

18-20

Kenya Trade Expo 2016 (Nairobi, Kenya)

17-21

Ethiopia Building Expo 2016 (Addis Ababa, Ethiopia)

19-22

African Cashew Conference (Bissau, Guinea Bissau)

27-29

5th Upstream & Downstream Oil and Gas Exhibition & Conference (Abuja, Nigeria)

29-30

Southern Africa Coal (Johannesburg, South Africa)

http://www.growexh.com/kenyatradeshow/

http://www.africantradefairs.com/

http://www.inexpo.ae/

http://africancashewalliance.com/en/world-cashew-festival/bissau-2016/program

http://oilandgasexpos.com/

http://www.informa-resources.com

News Briefs Western Africa

Eastern & Southern Africa

ANGOLA -- President José Eduardo dos Santos fired Finance Minister Armando Manuel on Monday 2-months after the government broke off talks with the IMF over emergency funding.

MALAWI -- British AgDevCo, an agribusiness investor, announced a US$1.5m investment into a Malawian peanut processor.

CAMEROON -- Francis Nana Djomou, CEO of cosmetics leader Biopharma laboratories, to move into the distribution of petroleum products: derivatives, hydrocarbons ... New company set up: Tank’Oil Company SA. CHAD -- State-owned oil supplier CPC Corp., Taiwan [35%], has handed over half of its oil exploration project in Chad to China CEFC Energy Co [35%] in a bid to reduce possible risk. State owns remaining 30%. DRC -- State mining company Gecamines has submitted an offer to buy Freeport McMoRan Inc’s majority stake in the Tenke copper project. Freeport agreed in May to sell its 56% stake in Tenke to China Molybdenum Co Ltd for US$2.65b. SENEGAL -- Senegal has ratified the WTO’s Trade Facilitation Agreement (TFA) on 24th August, becoming the 11th least developed country (LDC) to do so.

MOZAMBIQUE -- European Investment Bank opened a credit line of €30m for companies to finance 50% of the total cost of each business project submitted by micro, small and mediumsized companies in the public and private sector. -- The Africa Finance Corporation has committed an additional US$3-million loan facility to Ncondezi Energy to fund ongoing project development costs at its 300 MW coal-fired power project in Tete. SOUTH AFRICA -- August exports of new cars were up 26.7% to 35,620 units compared with the same period last year. -- Economy avoided a second recession in 7-years as mining and factory output rebounded. GDP rose an annualized 3.3% in Q2, compared with a 1.2% contraction the previous 3-months. TANZANIA/ZANZIBAR -- Tanzanian Royalty Exploration Corp has acquired US$5m to develop its Buckreef Gold mine. -- Tanzania has committed to allow sugar imports from the SADC region at preferential tariff rates. Sugar imports from countries outside the region be imported into Tanzania at 100% duty. 2


CMA CGM

AFRICAN GROUP NEWS CMA CGM Launches NEW Europe-West Africa Service EURAF 6 Offers Links To/From West Mediterranean CMA CGM Group has launched a NEW service, EURAF 6, in cooperation with a partner under a slot swap agreement. This weekly service focuses on linking Mediterranean Europe with West African Central port range.

NEW EURAF 6 Port Rotation La Spezia - Genoa - Tarragona - Castellon - Valencia - Algeciras - Tangiers - Dakar - Abidjan - Tin Can / Lagos - Tema - Takoradi - Abidjan - La Spezia STRENGTHS -- Enhanced service coverage with a second loop direct from West Med to West African strategic markets. -- Direct service from Italy and Spain to Senegal, Cote d’Ivoire, Nigeria and Ghana with the transit time vastly improved up to 6 days. -- Coverage of Takoradi port on a 21-day frequency from worldwide origins. The EURAF 6 complements our EURAF 4 service range which connects further West Mediterranean ports [Livorno, Genoa, Marseille, Barcelona, Valencia and the hubs of Algeciras and Tangier Med] with West Africa’s South Western port range.

http://www.cma-cgm.com/productsservices/line-services/flyer/EURAF6

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CMA CGM Upgrades Its EURAF 1 Service Targets Dutch Market By Adding Vlissingen CMA CGM Group has upgraded its EURAF 1 service by adding a new call at Vlissingen [Flushing] in The Netherlands. EURAF 1, serving the Europe-West Africa trades, will see weekly calls at the port which lies in the southwestern Netherlands offering a strategic location between the Scheldt River and the North Sea. The move caters for the export of Dutch onions and potatoes to West Africa. Located on the mouth of the river downstream from Antwerp, Vlissingen acts as a gateway for agricultural products offering good connections by inland shipping, rail and road, so containers can quickly find their way to/from the Dutch hinterland.

EURAF 1 Revised Port Rotation Dunkirk - Tilbury - Antwerp - Vlissingen - Dunkirk - Le Havre - Montoir - Tangier Med - Algeciras - Dakar Abidjan - Dakar - Algeciras - Dunkirk STRENGTHS -- Enhanced service coverage with a loop directly connecting Vlissingen [Netherlands] to West Africa strategic markets. -- Unique direct service from Vlissingen to Senegal and Cote d’Ivoire tailored for Reefer container traffic targeting the Potatoes and Onions season, with competitive transit time. -- Weekly coverage of Vlissingen port from/to worldwide countries.

http://www.cma-cgm.com/productsservices/line-services/flyer/EURAF1

RESOURCES For more information on Vlissingen port please view www.zeelandseaports.com

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CMA CGM

AFRICAN GROUP NEWS CMA CGM South African Agency New XXL Cargo Department Established CMA CGM Regional Office Southern & Eastern Africa and Indian Ocean has opened a new Project Cargo Department in Durban. D’nielle Clarke has been recently appointed to ensure a specialist focus in offering customers total transport solutions for XXL, Out of Gauge Cargo [OOG], Break Bulk and Project cargo. As a renowned African specialist handler we offer both local knowledge and technical expertise along with secure handling to help you move your cargo safely and efficiently. As a renowned African specialist handler we offer both local knowledge and technical expertise along with secure handling to help you move your cargo safely and efficiently. Over-sized and special cargoes, with their unique requirements, can be especially challenging. At CMA CGM we have been providing realistic solutions to oversize logistics problems for 130 years. We can move anything from luxury yachts to bulky factory components, massive turbines to cable reels. We can move XXL/OOG cargo from and to any part of the world to and from Southern and Eastern Africa.

I strongly believe such expertise meets with today customers’ expectations. This part of the world is experiencing major infrastructure development, thanks to such expertise and team work with the CMA CGM Head Office, Asia, and the US allowing us to provide the best solutions for our customers. Our presence and follow up of the overall project transport operation is recognized and makes a real difference.

Agnes Lemonnier-Carpentier, Durban Regional Office Manager WHAT IS XXL CARGO XXL cargo refers to any cargo which cannot fit into a standard container. We use two methods to load that type of cargo:

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Out-of-Gauge

Any cargo that exceeds the dimensions of a standard container by length, width or height but that can be loaded on one single Open Top, Flat Rack container or Platform.

Break Bulk Cargo

Any oversized cargo that does not fit into one single Open Top or Flat Rack container, such as large luxury yachts, bulky factory components, voluminous machineries, train cars, locomotives, massive turbines, generators, etc. This also includes heavy lift cargos. Break Bulk cargos are loaded on a bed of Flat Racks [several assembled side by side] or Platforms, usually under deck.

ADVANTAGES Our key advantages in this area are: -- Personalized customer service at all stages -- Highly skilled professionals -- Specialist XXL teams in all agency offices -- Operational efficiency & tracking of shipments -- Technical studies to determine the safest way to ship your XXL cargo -- Expert ship planners for optimized stowing plans -- Extensive working relationship with stevedoring companies and independent surveyors


New Suez Canal CMA CGM Vessels Leads 1st Anniversary Convoy Inaugurated in August 2015, the new Suez Canal celebrated its first anniversary as a major world trade route on August 6th. The CMA CGM AMERIGO VESPUCCI traversed the canal as part of the ceremony which was attended by Egyptian President, Mr. Abdel Fattah al-Sissi, and official representatives of the Suez Canal Authority. The 13,000 TEU French flag vessel, operating on our FAL 1 service, led the convoy, just as the CMA CGM TITAN did the previous year during the inauguration ceremony. Renovation works were completed last year resulting in the enlargement of the Canal to 35km. The move doubled ship capacity and promoted the acceleration of world trade.

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PAN AFRICA

TRADE & TRANSPORT

Regional Tokyo International Conference On African Development [TICAD VI] The 6th Tokyo International Conference on African Development [TICAD VI] was held in Nairobi from 27-28th August. This was the first time TICAD was held in Africa since its inception in 1993, demonstrating the strong African ownership and deepening partnership among TICAD stakeholders. Co-organised by the Government of Japan, the United Nations Office of the Special Advisor on Africa [UN-OSAA], the United Nations Development Programme [UNDP], African Union Commission [AUC] and the World Bank, the event brought together over 10,000 participants, including representatives of African countries, international organizations and civil society. The TICAD meetings saw AfDB President Adesina hold talks with senior Japanese officials from government, the private sector, non-governmental organizations and others, during which partnerships opportunities were discussed with the aim of increasing support for Africa’s transformation. Japan is a very strong supporter of the African Development Bank [AfDB], and also contributes significantly to the African Development Fund.

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PAN AFRICA

TRADE & TRANSPORT Tokyo International Conference On African Development [TICAD VI]

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Japan Pledges US$30 Billion For Africa Over Next 3-Years Japanese Prime Minister Shinzo Abe announced Japan will commit US$30-billion in public and private support for infrastructure development, education and healthcare expansion in the continent. The package will be spread over 3-years from 2016 and include US$10-billion for infrastructure projects, to be executed through cooperation with the AfDB. A tranche of Japan’s new package will also go towards various power projects to increase production capacity by 2,200 MW across the continent.

African economies must diversify by industrialising very fast. For this to happen, we need to solve the energy crisis.

Akinwumi Adesin, AfDB Group President These funds are in addition to US$32-billion that Japan pledged to Africa over a 5-year period at the last TICAD meeting in 2013 of which 67% of that has already been put to use in various projects. Japan has, in fact, been steadily building up its economic presence on the continent for a while now. Since 2005, the Government of Japan has provided US$3 billion under the Enhanced Private Sector Assistance [EPSA] for Africa. EPSA is a multi-donor partnership framework between the Japanese and the AfDB for resource mobilization and development partnership to support implementation of the AfDB’s Strategy for Private Sector Development. TICAD VI follows infrastructural development on the continent, under five pillars: Industrialization, Health, Water and Sanitation, Women and Youth, and Social Security. All pillars are aligned to the Bank’s High 5 strategic priorities: Light up and Power Africa; Feed Africa; Industrialise Africa; Integrate Africa; and Improve the quality of life for the people of Africa. Japan To Aid Development Of Mombasa Port Prime Minister Shinzo Abe pledged Tokyo’s cooperation in developing the key port of Mombasa in southern Kenya. The port is a gateway to the East African market for strengthening ties with Kenya amid China’s growing economic influence. To promote the operations of Japanese businesses in Kenya, Abe also conveyed Tokyo’s intention to accelerate efforts to sign a bilateral treaty on avoidance of double taxation. Japan Promotes Dongo Kundu SEZ Kenya has also secured Sh27.3 billion from Japan to construct an industrial and commercial hub in Dongo Kundu, Mombasa. The first phase of the Special Economic Zone [SEZ], which is expected to alter the coastal town in terms of infrastructure and business, is scheduled to be ready by 2019. The industrial and commercial hub, which will sit on 1,326 ha, is part of the master plan for the development of the Mombasa Special Economic Zone that was conceived and prepared with assistance from Japan in 2015. The deal involves the development of infrastructure, including Berth 1 at the Port of Mombasa, access roads, transmission line, water supply pipeline from the mainland and a sub-station, drainage, power supply and a free trade zone in the zone. The zone, between 300-500 acres, will offer wholesale and retail trading, breaking bulk, re-packaging logistics, warehousing, handling and storage of goods. The area will be reserved for re-exports to the 400 million-people Common Market for Eastern and Southern African [COMESA], allowing trans-shipment of cargo without inspection or customs duty. The loan and grant facility are expected to automatically end within a period of 3-years. To expedite the development of the industrial and commercial hub, the 2-countries agreed to establish the Mombasa [Dongo Kundu] SEZ Development Agency that will oversee construction work. Investing In Infrastructure To Realize Agenda 2063 During the TICAD VI, a high-level panel met under the theme “Africa, towards 2063 and beyond”, which sought to discuss challenges, opportunities and strategies for development as Africa moves towards 2063, and what Asia and Africa can learn from each other. Agenda 2063 is an African Union [AU] driven action plan that calls for collaboration to achieve accelerated development across the continent. 9


Regional

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Global African Investment Summit A two day Global African Investment Summit was held in Kigali, Rwanda this month. The summit, which took place for the first time in Africa, presented an opportunity for the continent to leverage on its growing influence as an investment destination and served as a springboard to lobby for more investors. The summit came at a time when several African countries are working to create a conducive investment environment for the private sector and to promote regional economic integration. The summit also promoted intra-regional trade, which is quite low compared to other regions across the world. Currently, the levels of intra-Africa trade remain at under 15% compared to other regions such as Asia where intra-continental trade is over 40%. But this can improve if efforts to economically integrate Africa’s three major regional economic communities - the Common Market for Eastern and Southern Africa (COMESA), the Southern African Development Community (SADC), and the East African Community (EAC) are fast-tracked. Together, the 3-economic blocs would create the largest trading bloc in Africa, comprising 26 countries, with about 620 million consumers and a combined GDP of almost US$1.2 trillion.

[New Times 06/09/16]

RESOURCES For more information about the summit please view their website at http://tgaiscomesarwanda.com/

Australia’s Trade With Africa Hits US$5.7 Billion Australia notes its trade relations with Africa have improved tremendously over the years with two-way trade in goods and services reaching US$5.7 billion in 2015. The Australian High Commissioner to Nigeria, Amb. Paul Lehmann noted US$1.6 billion was in services. Australia hosted the first Australia-Africa week in Perth, in recognition of the substantive economic engagement between Australia and Africa. Australia-Africa Week is built around the nucleus of Africa Down Under conference [www.africadownunderconference.com] which brought together a range of events – including the Australia-Africa Universities Network Forum, the Africa Oil, Energy and Gas Conference, and the Australia-Africa Technology and Infrastructure Conference. Australian companies have an estimated US$30 billion and rising invested in extractives projects in Africa. There are more than 200 Australian companies with about 700 projects in 35 countries.

[Financial Watch 02/09/16]

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WESTERN AFRICA

ECOWAS, TRADE & TRANSPORT

Regional Hubs Algeciras To Build New Container Terminal The port authority of the Bay of Algeciras [APBA] has put out a tender for the construction of a third container terminal alongside those operated by APM Terminals and TTIA Algeciras, reflecting its growing popularity as an import-export hub serving southern Europe. Contenders have until 30th November to present their proposals, which must include solutions for automation of the facility.

[Eurofruit 12/08/16]

Algeciras Gets Enlarged Coldstore Terminal

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Agro Merchants Group, which acquired coldstore terminal GestiĂłn FrĂ­o Algeciras [GFA] in 2013, is finalising an expansion in GFA, which will add 13,287 pallet spaces to the facility, 2-new frozen chambers and 5-dualtemperature chambers. The larger capacity will handle the increasing amount of import and export of fresh, chilled and frozen products.

[Eurofruit 12/08/16]


Regional ETLS Task Force To Tackle West African Trade Issues A task force constituted to fully implement West Africa’s free trade zone protocols held its first meeting in Accra, Ghana, August 11-12, to discuss modalities and adopt a roadmap and action plan for its work. In the months leading up to the meeting, the Trade Hub and regional partners provided technical input to the Task Force’s work. Officially launched in May 2016, the ETLS task force is comprised of high-profile experts from regional organizations and the private sector, including Borderless Alliance, the National Association of Nigerian Traders and ECOWAS, who champion free movement of transport, goods, and persons within ECOWAS member countries. The 7-member Task Force will work to address issues, including custom duties and non-tariff barriers, impeding the free flow of trade in the sub-region The Economic Community of West African States [ECOWAS] created the task force in response to regional calls for an autonomous body to push all 15 member states to fully implement protocols of the ECOWAS Trade Liberalization Scheme, or ETLS. Approved in 1979, the ETLS will create a free trade zone for West Africa, especially for staple crops, but member states have failed to fully implement it.

[USAID 16/08/16]

African Ports Evolution Conference A two day African Ports Evolution, West Africa edition forum, was held in Accra this month calling for regulation and competitiveness to control the industry. The forum was designed to provide West African government, terminal operators, port authorities and service providers up to date information on port expansion and development plans in West Africa. The West African sub-region needs integration through connectivity of ports to promote economic development. Such improvement in port development would facilitate effective trade relations.

[GNA 07/09/16]

RESOURCES For more information please go to http://www.west.portsevolution.com/programme

West Africa Trade Hub [WATH] Gets New Chief The West Africa Trade and Investment Hub [WATH] announced that Carol Adoum will take over as its new Chief of Party in early September. This new phase of leadership for the Trade Hub will add momentum to the project’s ongoing efforts to build the capacity of high-potential regional and global value chains, attract finance and investment, and bolster the trade enabling environment. Adoum will be based at the project’s headquarters in Accra, where she will oversee Trade Hub operations out of its offices in Burkina Faso, Côte d’Ivoire, and Senegal, in addition to Ghana. [USAID 24/08/16]

ECOWAS & China Development Bank Promote Infrastructure Development The Economic Community of West African States [ECOWAS] and the China Development Bank [CDB] are to enhance their cooperation towards yielding mutual dividends in the development of transport and maritime infrastructure, energy, agriculture and health. The ECOWAS Commission is soliciting the help of the CBD for the $15 million feasibility studies being carried out a 1,028 km Lagos-Abidjan Road project, linking five of the region’s 12 coastal countries. The total cost of the project is put at IS$80 billion, with the second phase of the project tagged ‘Abidjan-Dakar’ covering 3,260 km with a feasibility studies bill of US$25 million and a total cost of US$25 billion.

[GNA 03/09/16]

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WESTERN AFRICA

ECOWAS, TRADE & TRANSPORT

Angola Angola Joins World Customs Organisation Angola has formalised by parliamentary resolution its accession to the International Convention on Simplification and Harmonisation of Customs Procedures of the International Customs Organisation, which aims to facilitate world trade. Member states are committed to ending disparities between customs procedures along with customs practices that can cause problems for international trade and commerce. Each member country is given 36 months to apply the general rules of this convention, which envisages reducing customs controls to a minimum between members, facilitating and simplifying international trade.

[Macauhub/AO 10/08/16]

New Customs Tariff Introduced In 2017 The Angolan General Tax Administration [AGT] is developing a new customs tariff to come into force in 2017 in collaboration with public and private entities involved in foreign trade. The new document, that will regulate Angola’s imports and exports, is currently being prepared and will be presented to the government for approval.

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Asycuda [Automated System for Customs Data] is currently being installed to facilitate trade and reduce costs. The new system, a United Nations software tool, will initially be installed at the port of Lobito [Benguela], followed later by the port of Luanda and Luanda International Airport. The cargo manifest, customs declaration, settlement payments and goods transfer are all automated elements of the system that automates the entire chain.

[Macauhub/AO 02/09/16]


Cameroon EPA Gaining Momentum Cameroon has after very extended negotiations, recently signed the Economic Partnership Agreement [EPA] with the European Union. This will provide for the dismantling of tariff and other trade barriers and open the markets of all signatories. In going ahead, Cameroon is alone amongst the other members of Central African Economic and Monetary Community [CEMAC]. The EPA has attracted much criticism from domestic analysts who say a flood of EU imports could undermine the emerging manufacturing sector in Cameroon. A similar concern has been raised in Ghana.

[ITTO 01/09/16]

Cote d’Ivoire Cote d’Ivoire To Ratify Interim Trade Deal With EU This Month Cote d’Ivoire plans to ratify an interim economic trade pact with the European Union by the end of the month even though a regional deal, approved in 2014, has yet to be signed by all the countries of the West African economic bloc. Members of Parliament unanimously voted on 12th August to allow President Alassane Ouattara to ratify the agreement, which will reduce trade barriers. If the deal is not implemented by 1st October it will lose its preferential access to the euro region. Cote d’Ivoire exports to the EU totalled €3.7 billion in 2015, while imports amounted to €2.7 billion.

[Bloomberg 12/08/16]

Ghana Ghana Signs Controversial EPA With EU Ghana is now preparing to bring into law the Interim Economic Partnership Agreement [EPA] negotiated with the European Union [EU]. The agreement is expected to ensure that local businesses and industries can export more ‘Made in Ghana’ goods to the EU market quota and duty free. However, manufacturers and service providers in the EU will enjoy the same benefits for their exports to Ghana. This EPA was first mooted by Ghana’s former President J. A. Kufuor back in 2007. Countries which sign the EPA will benefit from a €6.5 million aid package over a five year period to help cushion the impact of open markets to EU suppliers. Other West African countries have until 1 October 2016 to sign the EPA So far 13 of the 16 ECOWAS countries have signed with the exception of Nigeria, the Gambia and Mauritania.

[ITTO 01/09/16]

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WESTERN AFRICA

ECOWAS, TRADE & TRANSPORT Ghana

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China Trade Hits US$2.4 Billion By May Trade volume between Ghana and China hit US$2.4 billion by the end of May 2016. Last year total trade volume stood at US$6.6 billion and Ghana was ranked 6th in Africa in terms of trade volume with China. Ghana has been pursuing measures within the framework of the Forum for China-Africa Cooperation [FOCAC] aimed at improving this position. The Chinese Ambassador in Ghana urged high-level exchanges and friendly cooperation and called for positive governance, domestic and foreign policies to increase mutual political trust.

[GNA 23/08/16]

UK-Ghana Chamber of Commerce Launched The UK-Ghana Chamber of Commerce [UKGCC] was launched on 1st September by the British High Commissioner, Jon Benjamin. The role of the Chamber is to promote, foster, and represent UK business interests in Ghana – directly helping UK companies identify market opportunities and providing them with a first point of call when looking to do business/trade in Ghana. The Chamber will liaise with the Ghanaian public and private sector, in line with the UK government’s export growth strategy.

RESOURCES For more information about the Chamber please visit http://ukgcc.com.gh/

Exim Bank Open For Business The Ghana Exim [Export-Import] Bank began operations last year after parliamentary approval of the Ghana Export-Import Bank bill. The new export promotion bank is the result of a merger of 3-agencies, the Export Trade, Agricultural and Industrial Development Fund the Exim-guaranty Company Ghana Limited and Export Finance Company. The main aims of the new agency are to support and develop Ghana’s international trade capacity and to strengthen the competitiveness of Ghanaian companies in international markets. In his mid-year review of the 2015 Budget the Finance Minister said the bank is working to help address the challenges faced by domestic companies, especially SMEs, in securing credit.

[ITTO 01/09/16]

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Ghana/Nigeria MoU Revisited To Enhance Trade The Ghana Export Promotion Authority [GEPA] and the Nigerian Export Promotion Council [NEPC] are to deepen their relationship to enhance trade. At a meeting in Accra, they agreed to seek ways to combine their strengths to promote exports of goods and services between the 2-countries and within the West African sub-region. As a first step they will revisit an existing Memorandum of Understanding [MoU] to review it to suit current situations.

[GBN 16/08/16]

Nigeria Bilateral Trade With Malaysia Hits US$766.8 Million Malaysian bilateral trade with Nigeria for 2015 stood at US$766.8 million up 14.6% from 2014. The trade is in Malaysia’s favour with main exports to Nigeria including petroleum products, palm oil and palm based products, machineries and also processed food. Malaysia’s main import from Nigeria was Liquefied Natural Gas, iron ore, metal scrap and agricultural goods. Although a joint commission has been inactive for more than a decade, efforts are being made to revive it to propel bilateral relations. Meanwhile the Malaysia-Nigeria Business Council serves as an umbrella under which the business communities can explore investment opportunities. The council coordinates its activities with the Malaysia-Nigeria Trade Commission. In the last year the Council has established a trade office in Lagos. [OM News 31/08/16]

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WESTERN AFRICA

ECOWAS, TRADE & TRANSPORT Senegal Senegal Ratifies Trade Facilitation Agreement Senegal has ratified the WTO’s Trade Facilitation Agreement [TFA]. Concluded at the WTO’s 2013 Bali Ministerial Conference, the TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area. Senegal deposited its instrument of ratification on 24th August, becoming the 11th least developed country [LDC] to do so. The submission of the instruments of acceptance means that nearly 85% of the ratifications needed to bring the TFA into force have now been received. Implementation of the WTO Trade Facilitation Agreement [TFA] has the potential to increase global merchandise exports by up to $1 trillion per annum, according to the WTO’s flagship World Trade Report released on 26 October 2015. The following African based WTO members have also accepted the TFA: Botswana, Niger, Togo, Côte d’Ivoire, Kenya, Zambia, Lesotho, Mali and Madagascar.

[EIN News 01/09/16]

Senegal Agree To Boost Ties With Pakistan Prime Minister Nawaz Sharif and President of Senegal Macky Sall met in Islamabad, Pakistan agreeing to boost bilateral cooperation and increase the volume of trade. Sall was leading a 34-member trade delegation on a 2-day official visit.

[Radio Pakistan 06/09/16]

Togo First E-Commerce Platform For Direct Chinese Product Trade Togo’s first e-commerce platform for direct trade of Chinese products, JMSA-MALL, has been launched in a bid to position the country as an e-commerce hub between West Africa and China. From electronic devices to farm machines, the platform offers a wide range of Chinese products, which are sold in Togo as well as other countries like Benin, Niger, Ghana and Burkina Faso in the region. Products are delivered in 7-days if in stock or 2-weeks to a month depending on air or seafreight.

[News Ghana 07/08/16]

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WESTERN AFRICA

PORTS

Angola/Cabo Verde Countries To Cooperate On Maritime & Port Security Angola and Cabo Verde are planning technical cooperation in the area of maritime and port security as per the terms of a training and security protocol signed by both countries in Luanda. Angolan personnel will receive training in maritime, port and navigation security, among others, in Cape Verde. Cape Verde will also commit to providing legal, technical and professional assistance to Angolan maritime and ports personnel, and to help the Angolan maritime administration’s efforts to place Angola on the White List of the International Maritime Organisation [IMO]. The two parties also decided to set up a bilateral technical commission to plan, coordinate and guarantee the protocol’s sustainability.

[Macauhub/AO/CV 08/08/16]

18


WESTERN AFRICA

PORTS Cameroon

Kribi Sees New Managing Director Former Coordinator of the steering and monitoring committee of development of the Industrial Port Complex of Kribi [CIPK], Patrice Melom, has been appointed Managing Director of the complex effective on 23rd August. John Paul Simo was appointed Chairman of the Board. The CIPK covers 26,300 ha and has 4-integrated components. These include a logistics and industrial area, residential area, port facilities and the multimodal corridor. These latter two components will facilitate Cameroon’s integration in the sub-regional area through inter-states sea, road and railway transport streams.

[Cameroon Concord 24/08/16]

New General Manager For Douala Autonomous Port Cyrus Ngo’o has been appointed as the new General Manager of the Douala Autonomous Port. He replaces Emmanuel Etoundi Oyono. [Cameroon Concord 24/08/16]

19


Côte d’Ivoire Antwerp In West African Port Expansion The Port of Antwerp and the Port of San Pedro in Côte d’Ivoire are to collaborate over the next few years to manage further expansion of this West African port. San Pedro, the world’s leading cacao port, aims to develop at regional level aiming to become a logistics hotspot for handling commodities such as fertilisers, cashew nuts and cacao, among other things. ‘San Pedro Logistique’ Platform Work will start next year on construction of a logistics platform known as “San Pedro Logistique.” Part of the capital cost will be financed by Port of Antwerp International [PAI], the consultancy and investment subsidiary of Antwerp Port Authority. While PAI has already been active in West Africa for many years now, this will be the first time it has made a financial investment in the region. The creation of a logistics platform will be led by the Belgian group Sea-Invest, which already operates at Abidjan port. Sea-Invest recently presented its detailed plans for the new platform, construction of which is scheduled to begin in early 2017. The overall price for the project is more than US$6.1 million, 35% of which will be financed by PAI. In exchange, the latter will have two directorships in the company behind San Pedro Logistique. The platform is expected to be operational around the summer period of 2017. 5-Year Memorandum of Understanding In 2011, the ports of San Pedro and Antwerp signed an agreement for collaboration between them. Since then the freight volume handled by San Pedro has expanded to 4.9 million tonnes annually, a master plan for development of the port has been drawn up, logistics zones have been developed and mutual promotion has been carried out. A new 5-year Memorandum of Understanding [MoU] was signed on September 1, 2016 by Eddy Bruyninckx, CEO of Antwerp Port Authority, Kristof Waterschoot, Director of PAI and Hilaire Lamizana, General Manager of the San Pedro Port Authority. In addition to supplying the necessary technical expertise for the development, the agreement also specifies that APEC, the training centre for the Port of Antwerp, will hold 2-training seminars per year for San Pedro port personnel.

[Port Technology/Hellenic News 02/09/16]

Japan To Develop Abidjan Port Infrastructure Japan has offered to assist Côte d’Ivoire develop its ports infrastructure and is also seeking to quickly conclude a bilateral investment treaty between both countries. According to Japan’s Ministry of Foreign affairs Mr. Shinzo Abe, Prime Minister of Japan, who was visiting Nairobi, Kenya to attend the 6th Tokyo International Conference on African Development [TICAD VI], held a Japan-Côte d’Ivoire Summit Meeting with Mr. Alassane Dramane Ouattara, President of the Republic of Côte d’Ivoire. Prime Minister Abe announced the intent to implement grant aid for the establishment of a landing area and provide loan aid, up to Y10.869 billion, for the construction of a cereal berth at the Port of Abidjan. The leaders announced the commencement of negotiations for a bilateral investment treaty in order to encourage the further entry of Japanese businesses into Côte d’Ivoire, and concurred to cooperate towards its early conclusion.

[Footprint To Africa 03/09/16]

20


WESTERN AFRICA

PORTS DRC

Matadi Gateway Terminal Sees First Crane Delivered In August operations at the new Matadi Gateway Terminal [MGT] on the Congo River was launched as the unequipped pier started to accept geared vessels. Meanwhile the facility received the first of 2-new mobile Terex harbour cranes which will enable the port to accept gearless container and multipurpose ships. The Terex Model 5 crane was delivered fully erect on-board the 17,000 dwt multipurpose vessel BBC ODER sailing from Antwerp, Belgium. The new crane and its identical sister unit, set to arrive in September, will operate with an automatic twin-lift spreader [60t in twin lift and 50t in single lift] and will also provide a heavy lift capability, 125T at an outreach of 18m. With the arrival of the second unit, MGT will be able to provide reliable service to larger gearless vessels. The Matadi Gateway Terminal is a Joint Venture [JV] company between the Philippine port operator ICTSI, the Congolese multisector Ledya Group and SCTP, the local port operator Société Congolaise des Transports et Ports. Until recently, MGT was also known as the ICTSI DR Congo Terminal. MTG will boast a 350m pier and a container handling capacity of 175,000 TEU/p.a. In addition to phase one, ICTSI has the option to build a second terminal module of similar dimensions. ICTSI’s 9-ha terminal will have a depth alongside of 12m at all times and it is designed to serve panamax ships and small overpanamax vessels. As part of the overall development plan, ICTSI is also actively investigating the impact and opportunities for dredging the Congo River in steps from its current depth of 7.30m to 9.10m. A further dredging to a controlled depth of up to 12m could be feasible.

[Allafrica 01/09/16]

Gabon Gabon Unveils New €130 Million Port President Ali Bongo Ondimba has inaugurated a €130 million new harbour on the outskirts of Libreville port on 10th August. The new port, already in service, includes an ore terminal used for manganese, of which the country is the world’s 2nd largest producer, and a terminal for the storage and transit of aggregates [sand, gravel, wood processing products, etc]. In total the Gabon Special Economic Zone [GSEZ] has invested €450 million for the construction of the ore port and a commercial port [containers and cargo] which should be functional from 2017. [Africa News 11/08/16]

21

RESOURCES For more information about the Gabon Special Economic Zone [GSEZ] view www.gsez.com


Ghana Tema Port Expansion Commences October The proposed US$1.5 billion Tema Port Expansion Project is to commence on 1st October. Meridian Port Services [MPS] has secured the required financing to execute the project, enabling the development of an ultra-modern stateof-the-art port facility at Ghana’s primary commercial hub. The project in addition to serving Ghana, will also expand trade flows and links across West Africa. MPS has signed a US$667 million financing package with the International Finance Corporation [IFC], a member of the World Bank Group, while the MPS shareholders will provide the rest of the funding as fresh equity amounting to US$333 million. This represents IFC’s largest port investment and biggest infrastructure mobilization to date in Sub-Saharan Africa. It includes $195 million from the IFC’s own account and $472 million from three commercial banks: the Bank of China, the Industrial and Commercial Bank of China, and Standard Bank, as well as the Dutch development bank, FMO. MPS is a Joint Venture [JV] between the Ghana Ports and Harbours Authority [GPHA] and Meridian Port Holdings Limited, with Bolloré Transport & Logistics and APM Terminals as the 2-main shareholders. The project, when completed in 2019, will enable Tema to handle three times its current traffic of about 1-million TEU. The move will also see the expansion of the Tema-Accra motorway into a 6-lane road with service lanes to ease traffic flow from the port. According to the Ghana Ports and Harbours Authority [GPHA] Meridian Port Services [MPS] has secured the required financing to execute the project. MPS has awarded the marine construction contract to China Harbour Engineering Company Ltd [CHEC], and AECOM Professional Services [Ghana] Limited, to oversee the construction. [GNA & Citi 97.3 01/09/16]

PROJECT FACTBOX -- US$667 agreement between Meridian Port Services [MPS] and the International Finance Corporation [IFC]. -- 120-ha of land would be reclaimed from the sea. -- 3.85 km breakwater which would be 19 m deep / 250 m wide. -- Dredged port access channel to be constructed. -- Construction contract awarded to the China Harbour Engineering Company Limited [CHEC]. -- AECOM Professional Services [Ghana] Limited to oversee the construction.

22


WESTERN AFRICA

PORTS Ghana

.

Ports Operational Performance Up The Minister of Transport, Fifi Kwetey noted the operational performance of Ghana’s ports in H1 2016 had improved compared to H2 2015. The rise was attributed to investor confidence as a result of improved efficiency of the port.

[Ghana Web 10/08/16]

H1 2016

H1 2015

Container Traffic

454,858 TEU

409,120 TEU

Cargo Traffic By Tons

9.5 million

8.3 million

Vessel Turnaround Time [Tema]

98 hrs

106.8 hrs

Vessel Turnaround Time [Takoradi]

46.13 hrs

62.7 hrs

Transit Traffic

458,578 TEU

359,543 TEU

GPHA To Certify Trucks & Trailers Operating At Tema The Ghana Ports and Harbours Authority [GPHA] is to introduce a verification and certification system of the 11,289 registered vehicles operating in the Tema Port. Trailers, transit trucks and other trucks would go through a series of checks to verify their load worthiness before certified to load from the Port. Auto Consult Ventures Limited is partnering the GPHA on the project. The GPHA noted some drivers use roadworthy trailers for checks after which they decouple from the certified trailer and attach it to faulty units to load cargo from the port. To curtail this, an embossment with security features will be placed on certified trailers with information verified by the security systems at the Port before a loading pass would be allowed. The checking and certification would be carried out twice in a year at a fee at the ECL DVLA approved yard near Tema Community 25.

[Ghana Web 12/08/16]

GRA Introduces E-Zone Facility At Ports Ghana Revenue Authority [GRA], as part of the Ghana National Single Window Project, has established electronic payment zones at some major ports in the country. This is expected to facilitate payment of port charges and other services by exporters to the Authority. Exporters in the past have had to endure several bottlenecks in transacting business with the GRA and the proposed arrangement will make it more flexible for shippers and other stakeholders. Structures to house the e-zone facility are already in place at the Kotoka International Airport, Tema Port and the GRA headquarters, and Takoradi port and other boarder entries will be rolled out soon.

[News Ghana 18/08/16]

“ 23

The creation of E-Zone at the ports is to serve as a one stop shop for all exporters. This forms part of measures under the GNSW project to synchronize operations at the port.

Ghana Revenue Authority


Nigeria NPA Insists On Dollarisation Of Port Transactions The Management of the Nigerian Ports Authority [NPA] has insisted on dollarisation of port transactions and urged terminal operators to pay up to date. The Managing Director of NPA, Ms Hadiza Usman, stated this at a Stakeholders meeting in Lagos on 2nd September when rounding off her 2-day tour of the Western ports in Lagos. She said that the dollar regime had been in operation before she assumed office in July and would still remain until a change is considered.

[Observer 03/09/16]

Terminals Record Drop In Cargo Throughput As the nation’s economic fortune continues to dwindle, Nigerian ports have recorded drops in the cargo throughput for Q1 2016, an indication that less volume of goods was imported into the country within the period. There are also, indications that Q2 may record further drop in the ports’ activities. The drop in gross tonnage was also reflected in the revenue generation drive of the Nigeria Customs Service which showed a deficit of more than N100 billion for H1 2016. Total cargo throughput in Q1 2016 was 43,347,523 MT a decrease of 12.6% from 49,604,516 MT in Q1 2015. General cargo stood at 1,893, 519 MT showing a decrease of 48.1% from 3,649,841 in 2015. Whilst bulk cargo recorded 2,176,725 MT against 2,306,938 MT in Q1 2015, a drop of 5.6%. Spiraling inflation and the declining value of the naira has eroded the value of seaport terminal operators’ earnings.

[Nigeria Today 22/08/16]

Terminal

Gross Tonnage Q1 2016

Gross Tonnage Q1 2015

A. P Moller Terminals, ENL Terminals & Greenview Terminal

8,195,979

9,262,792

Tin Can Island Port

11,853,587

12,260,427

Calabar

776,718

918,237

Rivers Ports

1,253,616

1,461,562

Onne Port Complex

9,851,240

11,371,820

Delta: Warri, Burutu & Sapele

1,756,305

1,677,915 24


WESTERN AFRICA

PORTS Sierra Leone

DEME Awarded Contract For Freetown Terminal Extension A consortium including the Belgian dredging and marine engineering group DEME, the French construction group Eiffage and its subsidiary RMT Clemessy has been awarded an €47 million contract for the extension of the Freeport Terminal in Sierra Leone. DEME will be responsible for the soil improvement, reclamation and compaction works, as well as for the deepening of the existing and future container berths. Specialised equipment will be deployed during the different construction phases of this EPC contract. The Freetown Terminal, operated by the French group Bolloré Transport & Logistics, is undergoing an expansion programme that calls for the construction of a new 270m quay to accommodate vessels with a draft of 13m. Bolloré intends to increase the total capacity of the container terminal to 750,000 TEUs. Works started recently and are expected to be completed in August 2018.

[Port News & Jeune Afrique 06/09/16]

New Scanner Installed Africa Link Inspection Company [ALIC], the company handling the scanning facility at the Queen Elizabeth II Quay at Monrovia port is currently working on the installation of a new scanner to replace the aged one that has proved non-workable at present.

[Awareness Times 15/08/16]

Port Roads To Be Upgraded The National port Authority [NPA] has embarked on the construction of internal roads which will enable the smooth movement of commuters and machines at the port of Monrovia. As part of the road project, the Port is looking to construct up to 2.4km which will help to ease transport bottlenecks and also help the fast turnaround of containers. The project will be completed by May 2017. Liberian based construction Company, ADI Contractors, Inc are the contractors.

[FPA 30/08/16]

Greenville Port To Get Tugs The Port of Greenville in Sinoe County is to receive 2-tugboats as part of a supply of marine crafts [tug boats, pilot boat and patrol boat] with SMIT Lamnalco. The Lamnalco Waxtail and Lamnalco Waxbill have sailed from Takoradi and are currently at Abidjan ready to sail on 20th September and scheduled to arrive 20th October at Greenville. Both the pilot boat and patrol boat, Smit Qasim and Oloma, will be shipped as cargo to Monrovia on 15th September. As part of the NPA plans, the Port of Greenville is expanding in terms of investment opportunity in partnership with concessionaires including Golden Veroleum, EOI partnership and local logging companies. The process is expected to lead to significant increase in vessel traffic.

[FPA 30/08/16]

25


EASTERN AFRICA

EAC, COMESA & TRADE Tanzania Tanzania Urges Delay To EU Regional Trade Deal, Won’t Sign EAC-EPA Tanzania announced it would not sign a regional trade deal with the European Union [EU] due to come into effect by October 1st and urged neighbouring countries to back a delay pending discussions on its effect on the region’s manufacturing sector. Kenya and Rwanda signed the deal earlier this month, but it needs approval from all members of the East African Community [EAC] bloc - which also includes Burundi and Uganda - to take effect. The trade deal with the European Union gives EAC member states duty- and quota-free access for their goods to the EU as long as they meet the set health and safety standards. But Tanzania’s Minister of Foreign Affairs Augustine Mahiga, describing the EU as an “industrial giant”, said fledgling industries in his country would not be able to cope with zero-rated imports of European goods. EAC member states initialled an interim Economic Partnership Agreement [EPA] deal in 2007 and another in 2014. Governments were given 2-years from the October 2014 agreement to ratify the deal in national parliaments. South Sudan, which joined the bloc this year, was not part of initial negotiations of the deal, which started in 2002. Kenya stands to lose the most without the deal signed, as other member states - including Tanzania, Burundi, Uganda - would still continue getting duty- and quota-free access under EU’s Everything But Arms initiative since they are classified as Least Developed Countries [LDC’s]. Regional Governments are also anxious to ensure that exports such as tea and fresh flowers, which are major sources of foreign exchange, are not hampered by any tariffs on trade with Britain after it leaves the European Union.

[Reuters 08/09/16]

Six Regions Picked To Initiate Special Economic Zones Prime Minister, Kassim Majaliwa, has directed regional commissioners [RCs] in 6-regions to work closely with the Export Processing Zones Authority [EPZA] to initiate the development of Special Economic Zones [SEZ] in Coast, Morogoro, Iringa, Njombe, Mbeya and Songwe regions. These economic zones will be linked with the Tanzania Zambia Railway Authority [TAZARA]. SEZ’s should feature in regional development plans in the context of the 2nd Five Year Development Plan. The EPZA and Tanzania Investment Centre [TIC] are to lead the way with the development of Mkulazi Agro-industrial Project in Morogoro Region as the pioneer and flagship SEZ of the TAZARA corridor. The Dar es Salaam corridor [or TAZARA corridor] connects the Dar es Salaam Port with the southern and eastern highland by rail and the Dar es Salaam-Tunduma Highway. The corridor offers the shortest distance between the port of Dar es Salaam, Zambia, Malawi and parts of southern Tanzania. The Mkulazi site is situated alongside the railway line, linking Dar es Salaam with the Zambian border, approximately 100 km from Dar es Salaam with ideal agro-climatic conditions, competitive yields and cost factors.

[Daily News 11/08/16]

26


EASTERN AFRICA

PORTS Kenya

Kenya To Build New Terminal Under Vision 2030 Mombasa Second Container Terminal [CT2] - Phase 1 Commissioned In a bid to complete its plan under ‘Vision 2030’, President Uhuru Kenyatta, commissioned Pase-1 of the second container terminal [CT2] for Mombasa Port on 3rd September. With the commissioning of the Sh30 billion first phase the facility has expanded its capacity to handle 4th generation vessels of 6,000 TEU capacity. When completed, the new terminal will have the capacity to berth four ships of up to 100,000T at once compared to the current maximum of one vessel of no more than 80,000T, at a time. Mombasa port has over the years recorded significant growth in traffic volumes which has put a strain on existing port infrastructure, necessitating costly investments to improve operations and service delivery. Low labour productivity, poor cargo off take by rail and road, cargo clearance delays, lack of full automation, operational wastages and poor resource utilization, are among other problems that the port is working to eradicate. 3-Phase Project The entire project is to be completed in 3-phases and funded by the Kenyan and Japanese governments. Japan has also this month committed to disburse Sh27 billion for Phase-2. Tendering for implementation of Phase-2 is expected to start in January. The project will take between 2-3 years to complete and will add a capacity of 450,000 TEU. According to the Kenya Ports Authority Phase-1, consisting of 2-berths, was constructed at a cost of Sh30 billion [US$296 million] which includes supply of 2-ship-to-shore [STS] gantry cranes and 4-rubber tyred gantry [RTG] cranes for yard operations. The terminal has a capacity of 550,000 TEU and has been receiving vessels since April. The entire project will give the port of Mombasa an additional capacity of 2.5 million TEU. The second container terminal phase will push the container terminal capacity to 1.55 million TEU up from 1,080,000 TEUs. Dongo Kundu SEZ Hub Meanwhile Kenya has secured Sh27.3 billion [US$270 million] from Japan at the Tokyo International Convention on Africa Development [TICAD], which concluded 28th August to construct an industrial and commercial hub in Dongo Kundu, Mombasa. The loan and grant package will fund basic infrastructure for a 1,326-ha Special Economic Zone [SEZ] intended to boost Kenya’s economy and accelerate the movement of goods in East Africa. Funds break down into a long-term, low-interest loan of US$210.8 million and US$58.9 million in grants. The first phase of the SEZ is scheduled to be ready by 2019 and is part of Kenya’s plan to ramp up capacity at Mombasa, eastern Africa’s biggest port, which has seen the volume of goods flow-through increase beyond forecasts. The hub is part of the master plan for the development of the Mombasa Special Economic Zone. Japan helped Kenya produce a master plan for Mombasa port development in October last year. The deal involves the development of infrastructure, including Berth 1 at the Port of Mombasa, access roads and a free trade zone in the zone covering between 300-500 acres for wholesale and retail trading, breaking bulk, re-packaging logistics, warehousing, handling and storage of goods. This announcement follows news that South Africa will boost capacity at its ports with an investment of US$3.2 billion. Tanzania is also set to build a mega-port after the Tanzanian government was able to secure investments totalling US$10 billion. Tanzania’s plan is to transform Bagamoyo into a regional trade and logistics hub.

[Port Technology & GCR 31/08/16]

27


Kenya

.

Mombasa Gets State-Of-The-Art Scanners The Kenya Revenue Authority [KRA] has acquired a state-of-the-art movable scanner which will help step up efforts to curb contraband and revenue leaks through falsified cargo declarations. The agency has scanners at key points of entry including Kilindini port, Jomo Kenyatta International Airport, Moi International Airport, Eldoret International Airport, Inland Container Depot in Embakasi and a few Container Freight Stations.

[Star 02/09/16]

New Corruption Unit At Mombasa Port President Kenyatta announced the establishment of a special police unit to deal with corruption and illicit trafficking in cargo and drugs at the Mombasa port. The Inspector General of Police Joseph Boinnet will set up the unit to curb tax evasion, smuggling of contraband and drugs.

[Star 05/09/16]

Somaliland DPW To Manage Port Of Berbera DP World last has been formally awarded a concession to operate the port of Berbera, Republic of Somaliland. The UAE based terminal operator had already signed a preliminary agreement with the country’s administration in May. The concession, to expand the port infrastructure, covers a 30-year period with an automatic 10-year extension for the management and development of a container and multi-purpose port. DPW will operate the port under a Public Private Partnership [PPP] with the state of Somaliland. The company will set up a Joint Venture [JV] with 65% control together with the government of Somaliland to manage and invest in the Port of Berbera. For DP World, the deal gives it a new hub and outlet to the Red Sea near its existing port in Djibouti in the Horn of Africa. [UNPO & Wall Street Journal 06/09/16]

PROJECT FACTBOX -- US$442 million investment -- To include a first phase of a 400 m quay and 25 ha yard extension -- Gantry cranes and reach stackers to handle containers and general cargo -- To focus on containers with the capability to handle other types of cargo -- Construction of the quay extension expected to start 12 months after satisfaction of terms and conditions -- To take 24 months to complete. 28


EASTERN AFRICA

PORTS Tanzania

Tanzania Ports Authority To Implement 163 Projects The Tanzania Ports Authority [TPA] is implementing 163 projects aimed at raising performance in all national ports. Projects to improve Dar es Salaam port performance alone will cost US$690 million. The International Bank for Reconstruction and Development [IBRD] will offer a US$600-million soft loan; the UK’s Department for International Development [DFID] and Trade Mark East Africa will jointly offer US$30 million grant and the Government will contribute US$60 million. Funds will be spent on 10-schemes including increasing the depth of berths number 1-11 to 14m; increasing scanners from three to five; building a new berth at Gerezani Creek and two more at number 13 and 14 locations, deepening the port’s gateway to 14m, installation of a conveyor system and silos, modernisation of the railway network within the port, expansion of BandariMivinjeni Road and completion of a onestop centre building along Sokoine Drive. Tanga will get an oil jetty and storage tanks with designs and feasibility study for the proposed Mwambani Port to be launched in the near future. Mtwara Port will be modernised by building a multipurpose terminal while Dangote Cement Company has been permitted to build its own berth at Kisiwa-Mgao, which should handle cement only. Modernisation of Lindi Port by Comfix and Engineering Limited has been completed by 25%. Work is expected to be complete in Q1 2017. Under the modernisation programme attention will be paid to ports in the Great Lakes Region, building Karema, Lagosa, Kagunga, Kirando, Kibirizi and Kalya berths. Building of Sibwesa berth on Lake Tanganyika is projected to be completed in December. Works on Ntama and Lushamba berths continue. A new 200-passenger vessel to ply Lake Nyasa and 2-self-propelled cargo barges are being built at Kyela at a cost of 10.350bn/-.The project is due for completion in February 2017. A critical analysis to establish the reasons for a drop in cargo at Dar es Salaam port is underway. In the 2014/15 fiscal year, the ports collectively handled 15,979,693 tonnes of cargo compared with 15,427,830 tonnes in 2013/14. In 2014/15, the port handled 4,732 tonnes of cargo destined to neighbouring countries.

[Exchange 23/08/16]

29


Tanzania

.

Dar Es Salaam Port Talks The Tanzanian Parliamentary Committee for Industry, Trade and Environment plans to invite Prime Minister Majaliwa, key stakeholders and ministries responsible for ports’ management to a meeting in a bid to find a solution to the decline of cargo volume at Dar es Salaam. The country’s major sea gateway has been experiencing massive decline in transit cargo traffic in recent months. Dar es Salaam serves 8-land locked nations making it one of the country’s main source of income. Reportedly transit goods have declined by 42%. The port is losing out to regional competitors due to ‘unfriendly policies and taxes’. The reason for the decline includes the introduction of Value Added Tax [VAT] on transit goods, strict tax collection, poor infrastructures and unsatisfactory railway services. The Tanzania Truck Owners Association [TATOA] has decried what they termed as ‘overnight’ charges increased by the Tanzania Revenue Authority [TRA]. They cited the increase on the transit licence from US$10 to US$200 which forced some of its members to abandon the business.

[Daily News 04/09/16]

MPs Want Dar Es Salaam Deal Scrapped To Avoid Losing Clients The Tanzania Parliamentary Standing Committee on infrastructure development has advised the government to revisit the introduction of Single Customs Territory [SCT] on goods transported to DR Congo [DRC]. According to the committee, the SCT which started last year has reduced cargo through the Dar es Salaam port. Under the arrangement the 2-countries adopted a destination model of clearance of goods where assessment and revenue collection is done at the first point of entry. The system has caused importers to abandon the Dar es Salaam port and opt for ports of neighbouring countries such as Kenya. Tazara targeted to transport 200,000T of cargo in 2015/16 but has managed 128,105T so far. In April, the Tanzania business community reported the rising use of the Port of Mombasa, citing bureaucracies at Dar-es-Salaam port. The Kenya International Freight and Warehousing Association confirmed increased clearing of cargo destined for Tanzania. Mombasa is also riding on low transport costs along the Northern Corridor. The East Africa Logistics Survey 2015 shows that it is the most efficient route in the East and Central Africa.

[Star Kenya 06/09/16]

30


SOUTHERN AFRICA

SADC, BRICS, TRADE & TRANSPORT

South Africa Clamps Down On Noncompliant Goods

31

In the 2014-15 financial year, more than R548-million worth of poor quality, unsafe goods were removed from the South African market according to the National Regulator for Compulsory Specifications [NRCS]. The products were stopped at the ports of entry in Durban, Port Elizabeth, East London and Cape Town. Non-compliant products include unsafe paraffin stoves, compact fluorescent lights [CFLs], TVs and chemical products, such as detergents and cement.

[Engineering News 16/08/16]


SOUTHERN AFRICA

PORTS South Africa

Transnet Launches Tracking Application Transnet has launched a real-time mobile application that will allow customers to keep track of their shipments. The new ‘Transnet SpotLight’ application available on Android and Apple devices, offers ‘Track and Trace’ feature for trucks and vessels. Track and Trace extends across all Transnet Terminals and TFR Navis Facilities. In addition, the ‘Register Me’ feature enables Transnet to issue customers personalised information regarding their specific consignments.

[Transnet 01/09/16]

TPT Commissions Terberg Haulers At Durban Port Fourteen Terberg haulers valued at R23.4-million have entered operations at Pier 1 at Transnet Port Terminals’ [TPT’s] Durban Container Terminal [DCT]. The Terberg haulers, which replaced 14 old Mafi haulers, were acquired as part of TPT’s hauler replacement project. The project, which is scheduled for completion in 2019, will see the acquisition of a further 30 haulers in the 2017/18 and 2018/19 financial years. TPT has committed R385-million to upgrading and improving equipment and facilities at DCT’s Pier 1, which is in line with the company’s strategy to create capacity ahead of demand, and improve productivity and operational efficiencies, with an additional R260-million earmarked for further upgrades in the 2016 and 2017. DCT is also embarking on the phased refurbishment of 18 rubber tyred gantry cranes at Pier 1, which will begin in January 2017.

[Engineering News 15/08/16]

32


SOUTHERN AFRICA

PORTS South Africa

New Tug Fleet Will Enable Ports To Handle Larger Vessels As part of parastatal Transnet’s Market Demand Strategy [MDS], Transnet National Port Authority [TNPA] will spend about R56billion by 2019 to improve efficiencies of South Africa’s ports, including a R1.4-billion tugboat replacement project. The contract, which was awarded to local shipbuilding company Southern African Shipyards, will result in 9-new 31-m-long tugboats being manufactured and delivered to the ports of Durban, Port Elizabeth, Richards Bay and Saldanha. TNPA currently has 29 tugs in service. To date 2-tugs have been handed over the Mvezo and Qunu tugboats – launched in November 2015 and May 2016 respectively – to TNPA. A third tugboat, the Cormorant, launched in May alongside Qunu, is scheduled for delivery to the Port of Saldanha this month. A fourth tug boat will be launched next month. The new tugs contain Voith Schneider propulsion systems, manufactured by global engineering company Voith, which improves manoeuvrability, as the tugs will be able to change direction and thrust almost instantly while guiding large vessels into port. The propulsion has improved the bollard pull of TNPA fleet from between 32.5 t and 40T to 70T.

[Engineering News 26/08/16]

East London Grain Elevator Rail Connectivity Transnet Port Terminals [TPT] has refurbished its grain elevator rail connectivity at East London port to meet import demands. The drought in South Africa has seen production of wheat and yellow maize down by 28% from 9 million tons to 7.1 million tons. The move allows the train to load 60 wagons a day. East London boosts the largest grain silo on the South African coastline with design capacity of 4 MT/p.a.

[Business News 01/09/16]

New Ship-Repair Facility In Durban The naming ceremony has taken place of a new multimillion-rand composite floating dock, held at the Dormac ship-repair facility at the Port of Durban. South Africa is ideally positioned to serve the East–West cargo traffic and the booming African offshore oil and gas industry, through marine manufacturing, which includes ship and rig repair, refurbishment and boatbuilding. Some 12,000 ships call at South Africa’s ports and over 30,000 vessels sail along the South African coastline every year.

[Engineering News 02/09/16]

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South Africa

R29m Dredging Simulator Unveiled In Durban Transnet National Ports Authority [TNPA] in conjunction with the Netherlands company Royal IHC has unveiled a R29 million dredging simulator in Durban. The facility will become part of TNPA’s Dredging School, one of only four such schools worldwide, that it plans to launch in 2017.

[IOL 02/09/16]

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