TRADE-WATCH
AFRICA
ISSUE 38 | JULY 2014
Contents
03 /
African Group News
07 /
Pan Africa
09 /
Western Africa
15 /
Eastern Africa
21 /
Southern Africa
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CMA CGM / DELMAS
AFRICAN GROUP NEWS Rhino Express Feeder Service Upgraded A new call at the port of Moroni in the Union of the Comoros has been added the Rhino Express feeder service between South Africa and Mozambique. This new call expands our coverage of the Indian Ocean, connecting Eastern and Southern Africa via our Longoni hub. The new rotation will be: Durban - Maputo - Beira - Nacala - Pemba - Longoni - Moroni - Quelimane - Beira - Durban
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ASEA Service Changes Rotation To Improve Reliability Due to congestion problems in Zanzibar, Tanzania, the ASEA line will change rotation to improve service reliability. Zanzibar will be served in transshipment via Mombasa hub on a dedicated feeder with a fortnightly frequency, significantly improving transit times and reliability to the strategic port of Dar Es Salaam. The new rotation will be: Port Kelang - Singapore - Colombo - Port Victoria - Mombasa - Tanga - Dar Es Salaam - Port Kelang
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CMA CGM / DELMAS
AFRICAN GROUP NEWS New Branch Office In Namibe, Angola As part of its development plan in Africa, CMA CGM Group / DELMAS have opened a new office in Namibe, Angola. Group’s strong presence in Angola includes 115 staff members in four offices at Luanda, Lobito, Cabinda, with an extension in Soyo, and Namibe. The Group services Angola with four services: ASAF, Midas, Angola Shuttle and SAMWAF. Namibe is served by the Angola Shuttle with a 10 days frequency. DELMAS ANGOLA, Namibe Branch Office Centro Comercial e negocios Esperança – Loja L, Avenida Joaquim Morais, Namibe, ANGOLA Email: msz.general@african-agency.com
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Unusual Passengers Sailing From Le Havre To Abidjan Proving that CMA CGM Group / DELMAS can accommodate unusual “cargo�, four horses were recently transported between Le Havre and Abidjan aboard the HS CHOPIN. Sailing on the PC Weekly line in the best comfort and safety conditions, the animals were transported in a livestock vehicle placed on deck in the shade and away from sea spray. An attendant was present at all times, ensuring the good health of the horses during the voyage. The horses will shortly be joining an equestrian center in Abidjan.
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PAN AFRICA
TRADE
African Union Summit Hears Call To Review Relationship With West At a recent summit of African heads of state, the President Teodoro Obiang Nguema of Equatorial Guinea strongly rebuked western countries for “interfering” in Africa, and urged leaders to end economic dependence on the West. Obiang, hosting a two-day summit of the 54-nation African Union, said a post-colonial relationship of unequals was holding back the continent from sustainable development. With a population of less than 800,000 people, the former Spanish colony is Africa’s number three energy producer behind Nigeria and Angola. While Equatorial Guinea boasts a GDP per capita on par with Saudi Arabia and higher than Portugal, international aid agencies and rights groups point to a wide wealth gap between the ruling elite and the country’s poor majority. Obiang criticized the pricing of natural resources, the “barriers to international trade” and the exchange rate of the CFA franc used by 14 countries in West and Central Africa, including Equatorial Guinea, as being fixed too low against the euro. He also criticized the International Monetary Fund and the World Bank for facilitating “the monopolies of the world economy”. The summit was intended to focus on agriculture investment and reducing the incidence of hunger across Africa. Pledges to spend 10 percent of national budgets on agriculture have not been met since the commitment was made in 2003. As a whole, the continent barely surpassed four percent each year with the exception of Malawi, Mali, Niger and Senegal. [Global Information Network 02/07/14]
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US Reviews Duty-Free Aid Commitment To Africa US President Barack Obama has reinstated Madagascar’s eligibility for African Growth and Opportunity Act (AGOA) tariff benefits, effective immediately, but has withdrawn Swaziland’s eligibility, with effect from January 1, 2015. At the center of AGOA are its substantial trade preferences that, along with those under the US Generalized System of Preferences tariff treatment and its third country-fabric provision, allow duty-free treatment for almost all goods produced in subSaharan AGOA-eligible countries – approximately 6,800 products – to enter the US market duty free. AGOA has effect until September 30, 2015. Since 2000, it has contributed to a more than doubling of US trade with eligible African countries, who are now asking for a longer term extension. President Obama has recently initiated a review of how AGOA could be improved to boost trade with and within Africa. The current program offers tangible incentives to African countries “for undertaking difficult political and economic reforms that promote long-term growth and development.” Swaziland began benefitting from the program in 2001, when its Government accepted the AGOA eligibility criteria, “which include respect for the rule of law, poverty reduction, combating corruption, respect for worker rights and human rights, child labor protections, and market openness.” As part of its review of countries at the end of last year, the US Government took special note of continuing concerns regarding workers’ rights issues in Swaziland, and confirmed that it would conduct an AGOA eligibility review of Swaziland in May this year. The Office of the US Trade Representative has now emphasized that, after the review, the decision to withdraw Swaziland’s AGOA eligibility, which will particularly affect its textile industry, has come after years of engaging with its Government on those concerns. At the same time, it was confirmed that the decision to reinstate Madagascar’s AGOA eligibility, after it had been removed on January 1, 2010, following a 2009 coup d’état, recognized “that nation’s return to democratic rule, as well as its commitment to promote transparency, combat corruption, and begin rebuilding Madagascar’s economy.” [Tax News 03/07/14]
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WESTERN AFRICA
PORTS Cote D’Ivoire
$273m To Start Second Abidjan Port Terminal Construction The building of a second container terminal at Abidjan, awarded to a group led by France’s Bollore in 2013, is set to begin as three banks have raised US$272.42 million to start the project. The new terminal is expected to boost capacity at the Abidjan port which is already one of Africa’s busiest, a gateway for landlocked nations to the north and a transit point for beans from the world’s top cocoa grower. Abidjan’s port is currently enjoying a traffic boom with total tonnage surpassing 21 million tonnes in 2013. [Ventures 11/07/14]
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Cameroon The First Ship Docks At The Kribi Deep Water Port Tugboat Val Paraiso has docked at the still under construction Kribi Deep Water Port as part of a symbolic ceremony to mark the construction of the dike, access canal, docking key and two container terminals. Construction of the port, which will be one of the largest on the west coast, is said to be 65% complete, with calls now being made to recruit concessionaries for the terminals. Built by China Harbour Engineering Company using financing granted by Eximbank of China to Cameroon, the Kribi deep water port will be equipped with an ore carrier, a hydrocarbon terminal and an iron-ore gang plank in addition to its container terminals. These facilities will be built during the second phase of the project, following the Build-OperateTransfer model. Private partners have already been identified for this purpose. [Business in Cameroon 10/07/14]
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WESTERN AFRICA
PORTS Ghana
21.5m Tonnes Maritime Trade Recorded In 2013 The ports of Tema and Takoradi recorded 21.5 million tonnes of maritime trade from January to December 2013. Tema handled more than 77% of the total trade, which amounted to about 16.7 million tonnes while Takoradi dealt with the remaining 23% amounting to 4.4 million tonnes. An increase of 10.7% over the 19,489,731 tonnes handled by the two ports in 2012. Total imports for 2013 was 16,568,206, a 10.4% increment over the 15,007,713 obtained in 2012. There was an increase of 11.7% of total export from 4,482,018 tonnes in 2012 to 5,008,600 tonnes in 2013. The total import trade recorded in 2013 comprised 6.6 million tonnes of liner items, 3.3 million tonnes of break bulk, 3.6 million tonnes of dry bulk items and 2.9 million tonnes of liquid bulk items. The liner import trade was made up of items such as processed foods, chemicals, tiles, frozen meat and food, machinery and equipment, polythene raw materials and bagged rice Under the dry bulk import category, clinker recorded the highest of about 1.77 million tonnes followed by 775,514 cement import, and 600,449 of bulk wheat. Most items under the liquid bulk import trade saw decreases in the quantities imported during the period under review compared to that of 2012. The review indicated that petroleum products decreased by 15% and bitumen by 95%. However, liquefied petroleum gas saw an increase of 25%. [Ghanaweb 26/06/14]
Customs To Start 24-Hour Operations At Ports Ghana Revenue Authority has disclosed that they are in the process of engaging various stakeholders in the country’s maritime sector regarding its intention to start 24-hour operations at the ports. This follows a directive issued by the Government’s Trade and Industry Minister to address high costs and delays associated with clearing of goods at Ghana’s ports. [Maritime & Transport Digest 08/07/14]
Nigeria Customs And Shippers’ Council Partner On Single Window As part of efforts to further ensure trade facilitation and faster clearance of goods from the ports, the management of the Nigeria Customs Service, NCS, and the Nigerian Shippers’ Council, NSC, are to partner for the establishment of a Single Window, an all-inclusive electronic trade platform for stakeholders. Meanwhile, Customs already has the Nigerian Trade Hub. The move will eliminate a lot of bureaucracy, multiplicity of documents, multiplicity of desk and the procedures will be simplified. The result hoped for is more goods coming into the country as many importers currently clear their goods from Benin Republic as there is less documentation and red tape there. [Vanguard 12/06/14]
Government Approves Bonny Channel Dredging The Federal Government has approved dredging operations of the Bonny Channel along with four other channels. Deepening of the Channel would allow bigger vessels to access the Onne Port. [Dredging Today Staff 02/07/14]
New Regulator Puts Searchlight On Ports Operators Nigerian Shippers Council (NSC), in its new function as Ports Commercial Regulator, has begun to reduce some charges at national ports. The NSC will also be investigating the reasons behind delays in goods delivery at ports, hoping to drive down costs and increase efficiency to better compete with the neighbouring ports of Cotonou and Tema. The Federal Government appointed the new Ports Commercial Regulator to ensure efficiency in the system, reduce costs and eliminate illegal tariffs. [This Day 06/07/14]
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Lekki Deep Seaport To Be Completed In 2017 The 2.5 million TEUs capacity deep sea port in Lekki will start operations in 2017. ICTSI Africa, a the Philippines-based company, invested $225 million in 2012 for the 21-year sub-concession to develop and operate the port, which, once completed, will be located in a manufacturing and logistics free zone in Lagos. The facility will operate 14 post-Panamax cranes with a 670 metres diameter turning circle. The terminal at Lekki, situated on the coast around 60km west of metropolitan Lagos, will have a quay of 1,200m, a draught of 16.5m and a maximum vessel size of 10,000 TEU. ICTSI has interests in 28 port terminals around the world. In Africa, in addition to Lekki, ICTSI is developing Matadi, Democratic Republic of the Congo, and Madagascar International Container Terminal Services Ltd. (MICTSL), Toamasina, Madagascar. [Tribune 10/07/14]
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WESTERN AFRICA
PORTS
High Demurrage Blamed On Dysfunctional Clearing System A dysfunctional clearing system has been blamed for delays in goods delivery and the resulting demurrage charges on cargo at the nation’s ports. Shipping companies told the Nigerian Shippers Council (NSC) that the demurrage charges would disappear once the clearing processes and procedures were standardised and harmonised. Importers, who have a grace period of only five days to clear their goods on arrival at the ports, have had to pay heavily on demurrage charges imposed by both terminal operators and shipping companies. The shipping companies have indicated that the Nigeria Customs Service (NCS) and other government agencies are responsible for the delay in goods clearing which end up accumulating heavy demurrage for importers. The shippers said that on average, electronic manifests are submitted to the Customs three to four days before the arrival of vessels, giving them ample opportunity to make necessary arrangement for vessel reception and break bulk. The shipping companies also noted that the Nigerian Maritime Administration and Safety Agency (NIMASA) takes four to five days to process ship sailing certificate, and two days to confirm payments. [This Day 30/06/14]
NCMDLCA Wants Lagos to Use Landing Fees to Repair Access Roads The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) has urged the Lagos State Government to use the wharf landing levies to repair some collapsed roads leading to the Lagos ports. NCMDLCA noted that the deplorable state of the roads leading to the nation’s seaports in Lagos was negatively impacting on the economy. Potholes on the roads to Tin Can Island Port, Lagos Port Complex, Apapa, Port Terminal Multi-Service Limited, Brawal and Lilypond are a major hindrance to trucks carrying containers. [This Day 04/07/14]
Ports Record Increased Cargo Throughput in Q1 The nation’s seaports have recorded an increase in cargo throughput in the first quarter of this year. The increase is 14% higher than the figures of the corresponding period of last year. The cargo throughput for the period under review was 19,659,946 million tonnes compared to the 17,245,923 tonnes for 2013. There were increases in general cargo, including containerized cargo, dry bulk cargo and liquefied natural gas (LNG) shipment within the period. The Nigerian Ports Authority (NPA) have said this is partially a result of the implementation of e-payment system from January this year, which has succeeded in reducing the turn-around time of vessels from 5.3 days to 4.6 days. [This Day 04/07/14]
Operating Cost, Bad Roads, Threaten U.S.$6 Billion Onne Port Over 28,000 jobs and investments worth over $6 billion are under serious threat, as over 170 investors at the Onne Port, near Port Harcourt, suffer under the weight of huge operating costs and lack of access road.Orlean Invest, the port’s the concessionaire, said Onne Port - once the fastest growing oil and gas hub in Africa - is now straining under the huge weight of decaying social amenities and neglect. Onne Port is one of the three ports concessioned to Orlean Invest by the Federal Government. Others are Calabar Port, Warri and Lagos. Amongst its problems, Onne Port is not powered by the national grid; its 20 megawatt power requirement is provided by generators at cost to the operating companies. The access roads from Port Harcourt are said to be virtually unusable in some area. A journey of less than 50 kilometers can take more than two hours, compromising safety, wasting invaluable manhours and limiting the interest of investors and customers alike. Onne Port was conceived as a terminal for light vessels to take some of the traffic pressure off the Lagos port. With the stimulus of the concessioning agreement between the Federal Government and some investors, including Orlean Invest, the parent company of Intels, the Onne Port blossomed into a huge economic powerhouse, providing service for oil and gas companies in the Gulf of Guinea. [Daily Independent 03/07/14]
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Sao Tome and Principe Brazil donates inspection ship to Sao Tome and Principe Cost Guard Brazil has gifted a launch and two dinghies to the Sao Tome and Principe Coast Guard to boost its inspection capacity within its waters. Donating the vessels is part of Brazil’s defence policy to support Sao Tome and Principe, as it considers the West African archipelago as a strategic country in the Gulf of Guinea. Nine Brazilian military officials are currently on a year-long mission to support the Sao Tome Coast Guard, train the archipelago’s naval forces and improve response capabilities. [Macauhub 03/07/14]
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EASTERN AFRICA
EAC / COMESA 6th Northern Corridor Integration Projects Summit African leaders from Rwanda, Uganda, Kenya, Burundi and South Sudan have attended the 6th Northern Corridor Integration Projects (NCIP) Summit in Kigali, Rwanda, to review progress of implementation of projects under the NCIP which are aimed at facilitating trade and development within the East African region. Under the initiative, the participating states from the East African Community (EAC) are fast-tracking regional development through joint infrastructure, trade, political and economic integration. The five partner states of EAC are Kenya, Uganda, Tanzania, Rwanda and Burundi, with South Sudan is in the final stages of joining the economic bloc. With a population of more than 150 million people, the region is a huge economic power house and the objective of the integration process is to enable member states and citizens to reap benefits from unhindered trade. Under the project, the Single Customs Territory launched in January has led to the reduction of transit days for goods from Mombasa to Kampala from 18 to 5 days and to Kigali from 21 to 8 days. The reduced transit time has already enabled Uganda and Rwanda to save Sh40 billion. Another milestone was the launch of the Kenya National Electronic Single Window System (Kenya Tradenet) which centralises tracking of goods, custom clearance and electronic payment. Other key projects under the NCIP initiative include the construction of the Standard Gauge Railway line that will connect the Mombasa port to Nairobi, and eventually Kampala and Kigali. [Kenya Presidency 03/07/14]
EAC States Holding Back Trade Slow harmonisation of national laws and regulations has hampered and held back the full benefits expected under the Common Market Protocol deal four years after its implementation, according to a World Bank report. A status report published by the bank indicates that progress to eliminate restrictions has been slow while some partner states have introduced new measures despite their obligations under the EAC common market protocol. The implementation of the Common Market Protocol was supposed to introduce for new freedoms across the EAC regions; namely free movement of goods, services, people and capital. Disparities in economic development among partners states, sluggish harmonisation of tax and production standards and low public acceptance of the deal in some member states which has affected implementation. [The Star 03/07/14] President Yoweri Museveni (Uganda), President Uhuru Kenyatta (Kenya), President Paul Kagame (Rwanda) and President Salva Kiir (South Sudan) at the 6th NCIP
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EASTERN AFRICA
PORTS Kenya
President Uhuru Kenyatta Unveils Mombasa Port Community Charter President Uhuru Kenyatta has launched a new charter for Mombasa port aimed at unlocking regional trade potential. The Mombasa Port Community Charter spells out a number of broad goals, which include transforming Mombasa port to a highly performing landlord port by 2016 and the integration of all port community members’ systems into the Kenya National Electronic single window system by December. The charter also aims to bring together the port community to complement individual institutional service charters in addressing challenges that act as efficiency barriers. Kenyatta said the implementation of the charter will closely be monitored to ensure every agency plays its role in boosting the port’s performance. The charter – prepared by port stakeholders with the support of Trademark East Africa – commits parties from public and private sectors to measures that will increase the efficiency of the port and the Northern Corridor. Amongst the charter’s directives are the abolition of transshipment bonds, the removal of roadblocks along the Northern corridor, the rationalization of weighbridges, the abolition of scanning of transit cargo within the port and 24/7 hour port operation. All customs decisions were also ordered to be made and finalized at the Port of Mombasa without further reference to Nairobi. Kenyatta also announced that the construction of the first three berths in Lamu will begin this year. [Xinhua 07/07/14]
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Port’s Efficiency To Boost Trade, Slash Prices Of Imports The ongoing privatisation of berths and cargo handling at the port of Mombasa will pass through lower transactional costs to consumer goods imported once complete. The resulting efficiency will also boost margins of goods exported via the port, according to TradeMark East Africa, a non-profit organisation helping in the ongoing East African Community integration process. The over twenty-five private and public agencies from across the EAC bloc involved in the Northern Corridor Integration Projects have set 2016 as the deadline for privatisation of services – berths and stevedoring – at the port, resulting in a landlord port with the Kenya Ports Authority retaining the regulatory and oversight roles. Delayed cargo clearance, red-tape when moving goods to the hinterland and poor infrastructure are cited as spiking costs of goods by over 40 per cent – way above the global standard of up to five per cent. [The Star 05/07/14]
Lamu Residents To Earn Sh1.5m Per Acre As Kenya Ports Authority Unveils Sh2b Compensation People who own land at the site planned for the new Lamu Port could each earn about Sh1.5 million as compensation. The Kenya Ports Authority has made available Sh2 billion for land compensation. Port construction is expected to commence this month. The Government has released Sh3.75 billion for the construction of three initial berths. The proposed port site at Manda Bay was selected due to its deep and sheltered bay and a wide navigable entrance channel. Hydraulic and geo-technical surveys have also confirmed that the area is suitable for port construction. The 10km shore length has the capacity to accommodate up to 23 berths. The first three berths are to be built in a mangrove-covered island of Shaka La Paye, while the administrative building, police station and staff housing are under construction at the adjacent mainland area locally known as Kililana. [Standard Media 10/07/14]
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EASTERN AFRICA
PORTS
Mozambique Port Of Maputo Management Company Buys Majority Stake In Shipping Company Navique Portus Indico, the company that manages the Port of Maputo Development Company (MPDC) has bought 70% of Mozambican shipping company Navique – Empresa Moçambicana de Navegação, previously owned by Portugal’s Empresa de Tráfego e Estiva (E.T.E). Through Portus Indico, MPDC will now manage the Maputo coastal shipping terminal company Terminal de Cabotagem de Maputo (TCM), a company in which Navique has a 51% stake and state port and rail company Portos e Caminhos de Ferro de Moçambique (CFM) owns 49 percent. Before the deal Navique was owned by a subsidiary of E.T.E (70%), by Mozambican state stake-holding company IGPE (20%) and by Focus 21 (10%), a holding company of the family of Mozambican president, Armando Guebuza. The group, which is owned by South Africa’s Grindrod (48.5%), DP World (48.5%) of the United Arab Emirates and Mozambique Gestores (3%), also said that TCM would start offering services such as vehicle storage and passenger ship handling. Portus Indico has a private concession on MPDC until 2025, in which CFM has a stake of 49%. [Macauhub 07/07/14]
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SOUTHERN AFRICA
SADC
SADC To Benefit From African Infrastructure Programme At least seven infrastructure projects in southern Africa were presented at the recent Financing Summit for implementation under the Programme for Infrastructure Development in Africa (PIDA). PIDA the blueprint for African infrastructure transformation between 2012 and 2040. The programme was adopted by African leaders in January 2012 and provides a strategic framework for priority infrastructure projects expected to transform the continent into an interconnected and integrated region. To mobilise financial investment to accelerate PIDA implementation, the New Partnership for Africa’s Development (NEPAD) organized the Financing Summit in June where a total of 16 strategic and regionally balanced projects were presented to potential donors. Of these, seven are in the Southern African Development Community (SADC). These projects included the Dar es Salaam Port Expansion Project in Tanzania, the SerengeNakonde Road, the Brazzaville-Kinshasa Road Rail Bridge Project and the Kinshasa Illebo Railways in the DRC. Infrastructure development is pivotal to the socio-economic growth of the continent as thriving economies depend on a reliable infrastructure base, both at the national and regional level. The refurbishment of the Dar es Salaam Port will include deepening and strengthening the berth for deep sea vessels, and increasing the capacity to handle bigger vessels.Once completed, the port would allow Tanzania and regional countries to earn as much as US$2.6 billion per year from traffic at the port. The Dar es Salaam port is the second most important gateway for regional trade in east Africa after Mombasa, catering to 90% of Tanzania’s international trade and a significant part of transshipment trade for Zambia, Malawi, DRC and Uganda. Rehabilitation of the Serenge-Nakonde Road will involve widening of the road, and its improvement will contribute to cost reduction for road transportation along the North-South and Dar es Salaam Corridors, as well as reduce accident losses for the transport of passengers and goods. Ultimately, it is expected to improve the competitiveness of business in the eight countries that share the North-South Corridor - Botswana, DRC, Malawi, Mozambique, South Africa, Tanzania, Zambia and Zimbabwe. Project completion is expected by 2017. The Brazzaville Kinshasa Road Rail Bridge Project and the Kinshasa Illebo Railways in DRC will include a combined road, rail and rail-bridge as well as a one-stop border post. The railway line will be connected with the Lumbumbashi-Ilebo line. This will create a railway link between central and southern Africa across the DRC. [Southern African News 03/07/14]
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SOUTHERN AFRICA
PORTS South Africa
Transnet Launches Port Terminals App Transnet Port Terminals (TPT), the port operations division of state-owned logistics company Transnet, launched an application (app) on 17/06 giving users access to information across its 16 terminal network. One of the few port operators globally to launch its own app. The Transnet TPT app, which took 5-months to develop, is available in the Google Play store for Android devices and the App Store for iOS devices. It includes live berth plans and terminal updates with real-time information. [Business Day 18/06/14]
Transnet National Ports Authority Names New Dredger State-owned Transnet National Ports Authority (TNPA) officially named its new 750 m3 grab-hopper dredger ‘Italeni’ at a ceremony held in Bulgaria this month. The vessel will replace the current grab-hopper dredger, CRANE, which was recently equipped with a new grab crane. The equipment would be transferred to the Italeni after her arrival in South Africa. The Italeni will be used mainly for maintenance work in various ports throughout the country. [Engineering News 19/06/14]
MTG Dolphin shipyard project manager Nikolay Ivanov with TNPA supply chain GM Ncumisa Nkanunu at christening of the Italeni
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