8
FREIGHT & TRADING WEEKLY FOR IMPORT / EXPORT DECISION-MAKERS FRIDAY 14 June 2019 NO. 2348 SMS costs R1.50 SUBSCRIBE SMS ‘now’ to 45633 Port stats put more positive spin on economy PAGE 6 SA the hot spot Truck burning is not a new issue in the region. The Ressano Garcia border post between Mozambique and South Africa was closed on March 28 after South African- registered trucks were stoned on the Mozambican side of the border – but trucks were moving again by the next day. In 2016, when Renamo was blamed for attacking trucks and trains in the north of the country, in contrast to South Africa, the Mozambican authorities stepped in quickly. Social media carried pictures of fuel trucks burning on the side of the road, and forwarders contacted by FTW in Zambia were recommending that their shipper clients reroute via Durban or Dar es Salaam. Old-style military convoys were reintroduced, and the situation was stabilised. There have been no reports of large- scale attacks since then. Apart from regular demonstrations and blockades by truckers at the Kasumbalesa border post between the Democratic Republic of Congo and Zambia there are at present no other hot spots in the SADC region apart from South Africa. – Ed Richardson Lyse Comins Durban trucking firms are living in fear and opting to play it safe by changing their schedules to avoid driving at night following the torching of dozens of vehicles along the N3 in recent weeks. More than 15 trucks were petrol-bombed near Mooi River, on the R103, at Dalton, Cato Ridge, Bayhead and Pietermaritzburg last weekend and a truck was also attacked on the R59 between Sasol and Vereeniging. Police minister Bheki Cele said during a high level media briefing last week that 91 people had been arrested over a three- week period but he raised concern that suspects had been charged with traffic offences and not more serious crimes related to “economic sabotage”. Transport minister Fikile Mbalula, minister of employment and labour Thulas Nxesi, and minister of home affairs Aaron Motsoaledi attended the briefing in which Cele announced that the departments were working together to solve the problem. Durban Harbour Carriers' Association chairwoman Sue Moodley said some transporters had opted to travel more during the day to protect their drivers and vehicles from arsonists. Moodley said the office of Premier Sihle Zikalala had approached the organisation to engage with the government on possible solutions to the problem. “The issue of burning trucks is ongoing – it is not just a KZN problem it’s a national problem. The economy is suffering and the government needs to step up and do their work and get the policing up,” Moodley said. She said the association was waiting to hear back from the premier’s office regarding a proposed meeting. “The government needs to sit down with the various groups and sort this out.” Sewraj Girdhurparsadh, director of Aliwal Security which provides security services to the logistics sector, said despite government’s promises to beef up security drivers were still living in fear. “They have promised lots of things but nothing has translated into action. Truckers still live in fear. We don’t see an increase of police presence on the N3. Lots of smaller operators have stopped sending trucks,” Girdhurparsadh said. “The N3 runs through many towns which are policing areas and if each Terrorised drivers switch to daytime schedules To page 8 Your FIRST port of call www.cfrfreight.co.za Ocean, Air & Road Freight Consolidator Container Freight Station 100% Neutral FTW8597 FTW7463 Making every connection personal 0861 00 MEGA (6342) www.megafreight.co.za The leopard – strong, agile, independent and African. Just like us... Sue Moodley… issue of burning trucks a national problem.

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FREIGHT & TRADING WEEKLY

For import / export decision-makers FRIDAY 14 June 2019 NO. 2348

SMS costs R1.50

SUBSCRIBESMS ‘now’ to 45633

Port stats put more positive spin on economypage 6

SA the hot spotTruck burning is not a new issue in the region.

The Ressano Garcia border post between Mozambique and South Africa was closed on March 28 after South African-registered trucks were stoned on the Mozambican side of the border – but trucks were moving again by the next day.

In 2016, when Renamo was blamed for attacking trucks and trains in the north of the country, in contrast to South Africa, the Mozambican authorities stepped in quickly.

Social media carried pictures of fuel trucks burning on the side of the road, and forwarders contacted by FTW in Zambia were recommending that their shipper clients reroute via Durban or Dar es Salaam.

Old-style military convoys were reintroduced, and the situation was stabilised. There have been no reports of large-scale attacks since then.

Apart from regular demonstrations and blockades by truckers at the Kasumbalesa border post between the Democratic Republic of Congo and Zambia there are at present no other hot spots in the SADC region apart from South Africa.– Ed Richardson

Lyse Comins

Durban trucking firms are living in fear and opting to play it safe by changing their schedules to avoid driving at night following the torching of dozens of vehicles along the N3 in recent weeks.

More than 15 trucks were petrol-bombed near Mooi River, on the R103, at Dalton, Cato Ridge, Bayhead and Pietermaritzburg last

weekend and a truck was also

attacked on the R59 between Sasol and Vereeniging.

Police minister Bheki Cele

said during a high level media

briefing

last week that 91 people had been arrested over a three-week period but he raised concern that suspects had been charged with traffic offences and not more serious crimes related to “economic sabotage”.

Transport minister Fikile Mbalula, minister of employment and labour Thulas Nxesi, and minister of home affairs Aaron Motsoaledi attended the briefing in which Cele announced that the departments were working together to solve the problem.

Durban Harbour Carriers' Association chairwoman Sue Moodley said some transporters had opted to travel more during the day to protect their drivers and vehicles from arsonists.

Moodley said the office of Premier Sihle Zikalala had approached the organisation to engage with the government on possible solutions to the problem.

“The issue of burning trucks is ongoing – it is not just a KZN problem it’s

a national problem. The economy is suffering and the government needs to step up and do their work and get the policing up,” Moodley said.

She said the association was waiting to hear back from the premier’s office regarding a proposed meeting.

“The government needs to sit down with the various groups and sort this out.”

Sewraj Girdhurparsadh, director of Aliwal Security which provides security services to the logistics sector, said despite government’s promises to beef up security drivers were still living in fear.

“They have promised lots of things but nothing has translated into action. Truckers still live in fear. We don’t see an increase of police presence on the N3. Lots of smaller operators have stopped sending trucks,” Girdhurparsadh said.

“The N3 runs through many towns which are policing areas and if each

Terrorised drivers switch to daytime schedules

To page 8

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Sue Moodley… issue of burning trucks a national problem.

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2 | FRIDAY June 14 2019

DUTY CALLS

These statements have been edited because of space constraints. For the full versions go to ftwonline.co.za. Note: This is a non-comprehensive statement of the law. No liability can be accepted for errors and omissions.

Online

Riaan de Lange ([email protected])FREIGHT & TRADING WEEKLY

Publisher Anton Marsh

EditorialEditor Joy OrlekDeputy Editor Eugene GoddardAssistant Editor Liesl VenterPhotographer Shannon Van Zyl

CorrespondentsAfrica/ Port Elizabeth Ed Richardson Tel: (041) 582 3750Swaziland James Hall

[email protected]

Advertising Advertising Yolande Langenhoven Lorraine Esterhuizen Co-ordinator Tracie BarnettDesign & layout Rebecca KentPrinted by JUKA Printing (Pty) Ltd

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Rules to part shipment – IntroductionOn 31 May the South African Revenue Service (Sars) announced the amendment of Rules 8.01, 8.29 and 8.32 to the Customs & Excise Act, 1964, relating to part shipment.

Rule 8.01 inserting the definition on “part shipment” in relation to information reflected on an advance arrival or departure notice prescribed in terms of these rules for trucks entering or leaving the Republic, indicates a part of a consignment of goods that is – (a) transported through a single land border post on more than one truck by reason of the size, weight or volume of the goods in the consignment; and (b) entered on a single bill of entry;”

Tobacco Leaf Threshers Rule – Comment dueSars on 31 May announced the proposed insertion of

Rules 107A to the Act, 1964 “Requirements in respect of Tobacco Leaf Threshers”, and the substitution of form DA 185 “Application form – Registration / licensing of customs and excise clients”, and the insertion of form DA 185.4A17 “Application form – Client Type 4A17 – Registered leaf threshing factory”, on which comment is due by 28 June. {‘DA’ stands for Doeane en Aksyns.}

The insertion of draft Rule 107A to the Act, 1964 aims to ensure control of the supply chain in the tobacco industry. The Rule to the Act provides requirements in respect of tobacco leaf threshers. Tobacco leaf threshers are required to register their factories with the Sars Commissioner and keep records for purposes of inspection by the Commissioner.

WTO issues 2019 Annual ReportOn 04 June the World Trade Organisation (WTO)

published its Annual Report which provides a comprehensive account of the organisation’s activities in 2018 and early 2019. The report opens with a message from the WTO director-general and a brief overview of the year. This is followed by in-depth accounts of the WTO’s main areas of activity over the past 12 months.

WTO 2019 Public ForumThe WTO on 03 June announced that the deadline for submitting proposals for the 2019 Public Forum, to be held from 08 to 11 October, had been extended to 14 June.

The forum will take place at the WTO's headquarters in Geneva, Switzerland under the theme “Trading Forward: Adapting to a Changing World”. The Forum's sub-themes are “Services – the next trade frontier”, “The Next Generation – what do Millennials and Generation Z want to see from the

global trading system?” and “The Next Chapter of the WTO – strengthening the trading system”.

Duty Calls’ WatchlistComment due: The Moroccan hot-rolled steel sheet safeguard investigation by 17 June.

The Rules to the Act, 1964 relating to the reporting of conveyances and goods (RCG) for trains by 14 June.

Sars’ discussion document on the rewrite of the excise legislation by 14 June.

Form DA180 ‘Environmental Levy’ to the Act, 1964 by 14 June.

The Environmental Levy on Carbon Emissions by 14 June.

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FRIDAY June 14 2019 | 3

SA citrus industry on top of its game

Eugene Goddard

A picture of fear and desperation emerged after a transporter told FTW that he might have no other option but to lay off his foreign national drivers because of the incidents of truck burning caused by supposed xenophobic vigilantes.

The situation was so serious, said the Durban-based operator who asked that his name and that of his company be withheld, that he had approached the National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) for assistance, only to be “disappointed by their lack of real support”.

The Department of Labour, he added, had also indicated that it was his responsibility to take the necessary action to ensure that he was not targeted for employing “certain people”, whether they carried work permits or not.

He also said that the relevant authorities had confirmed that he would have to obey the letter and law of labour conditions

pertaining to his employees, meaning that he would have to pay each one of the drivers at least six months’ salary if he retrenched them.

“It would cost me around R198 000 to lay them off and I have repeatedly brought this to the bargaining council’s attention, but they keep on

saying they can’t help me.

“The thing is, I don’t really want to let these people go just because they are from other countries. They are good workers, have done nothing wrong and have families to

support,” the transporter said of the three drivers who are between the ages of 30 and 50.

“But there’s nothing I can do because arsonists are targeting our trucks and they have no fear – we have all the fear.”

Bargaining council spokesperson Fikile Mchunu has since said that “the NBCRFLI does not prescribe to employers who they can or cannot employ”.

She did though draw FTW’s attention to several clauses of the Main Collective Agreement (MCA).

“It prohibits employers within the industry from knowingly employing an illegal foreigner, a foreigner whose status does not authorise him or her to be employed by such a person, or any cross-border national whose employment in South Africa contravenes labour conditions as contemplated in the Immigration Act.”

Mchunu’s statement emphasised that “an employer shall make a good faith effort to ascertain that no illegal foreigner is employed”

and prospective employers must “ascertain the status or citizenship” of their staff.

The transporter though claims that government organisations and departments overlook the fact that road hauliers are dangerously compromised by a situation that has spun out of control, forcing them to lay off foreign nationals, even those that comply with all the necessary clauses regulating their employment in South Africa.

Mchunu stressed that the

council and the departments of Labour as well as Home Affairs were “conducting joint inspections” to ensure that all employers conformed to the MCA’s clauses.

With regard to the dire situation that hauliers face on South African roads, particularly the N3, Mchunu said “the council has been involved in various government meetings and the Inter-Ministerial Task Team to find a working solution for this challenge”.

In a somewhat bleak economic environment, the local citrus industry has provided some positive news.

According to the Citrus Growers’ Association, South Africa remains the leading southern hemisphere citrus exporter with a 1%

increase to 1.94 million tons.

Chile (increase 7% to 352 000 tons), and Argentina (decrease 9% to 334 000 tons) vie for second spot while Australia is predicting exports of 259 000 tons, 2% less than 2018. Peru is expecting an 11%

increase to 199 000 tons, and Uruguay 2% up to 100 000 tons.

While South Africa recorded a small decrease in oranges (-1%) and a big decrease in grapefruit (-8%), soft citrus (+13%) and lemons (+10%) were the stars of the show.

Road haulier backed into a corner from terror of truck torching

A burning truck on the N3.

FTW4313SD

I don’t really want to let these people go just because they are from other countries.– Transporter

3 000 000

2 900 000

2 800 000

2 700 000

2 600 000

2 500 000

2 400 000

2 300 000

2 200 000

Southern Hemisphere Association of Fresh Fruit Exporters: Total Citrus Exports

20142013 2015 2016 2017 2018 2019

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4 | FRIDAY June 14 2019

Eugene Goddard

Barbara Mommen may have called it quits as CEO of the Maputo Corridor Logistics Initiative (MCLI) some time ago but furthering the cause of the closest port to Gauteng remains in her blood – and when it comes to promoting trade through Mozambique’s capital harbour, she pulls no punches.

Speaking at the Transport Forum at the University of Johannesburg last week, the corridor consultant made it very clear that she was pleased she was not wearing “that hat” anymore – the one that meant she had to watch what she said, no matter the intense frustration at political prevarication she often felt.

Now heading up a consultancy called Coalescence, Mommen said: “If the South African government do not take a 180-degree about-turn from what they think is important, we simply are not going to make it.”

In keeping with one of the Forum’s themes, “regional integration and implementation of the African Continental Free Trade Area (AfCTFA)”, she said South Africa could have been leagues ahead in leading the way if only it had properly seized the opportunities presented to it by a well-established cross-border corridor.

With clear reference to current deputy president David Mabuza when he was still premier of Mpumalanga, Mommen said: “If a certain deputy of a certain province wasn’t so busy getting rid of his political opponents, allegedly, and had got a handle on the logistics corridor to Maputo, we could have been far ahead with regional integration.”

Instead, she stressed, much of the corridor’s potential remained untapped.

In backing up her argument, Mommen hauled out some hard facts.

To insist on exporting citrus from Letsitele east of Tzaneen via Durban and not through Maputo, “simply doesn’t make sense”.

Just the distance, she emphasised, proved her point that it was a “no-brainer” – Letsitele to Maputo being 475 kilometres compared to the 977 kilometres all the way down the N3.

Recalling her time at the MCLI, Mommen said she had often been asked why she felt Maputo had a competitive advantage over Durban in relation to Johannesburg as the

respective distances were 546 to 568.

“Fair enough, Maputo is not that much closer but if you consider the congestion in Durban and the lack

thereof in Maputo, getting trucks in and out of that port, sometimes in under a day, significantly reduces costs.”

Moreover, the current problem with trucks getting torched on the N3, particularly close to Durban, begs the question why transporters aren’t considering “options that work”.

Add customs modernisation, which Mommen believes has made “exponential progress” on the Lebombo-Ressano Garcia border, and the Maputo corridor should be carrying a lot more road freight – about 1000 trucks a day – than it is at the moment.

On the rail side, she said

bulk freight remained skewed in favour of road but the rail it could handle appeared to be given to Durban.

“A certain rail freight service provider in South Africa specifically manages its pricing levels in such a way to favour South Africa, making it very difficult for Maputo to compete with our ports.”

In addition, said Mommen, were outdated perceptions weighing on the corridor going directly east from Gauteng.

“For some reason people still think that Maputo doesn’t work. Recently we did an entire transport cycle through Maputo, a 360-degree exercise using all the facilities on the way, and we were in and out, through the border

and back, in under a day. Tell me why then aren’t there more exporters using the corridor?”

Add the lack of political will on top of blinkered views, and Mommen is sceptical about AfCTFA.

“It’s inconceivable that the border is not yet a 24-hour operation. We really need a single-window tariff regime there, but I can tell you now, South Africa will not take notice soon enough to make it work.”

To be serious about regional integration, she said, “demands a long term view but the political will that was lost during the Zuma years and the ramifications of that are going to be felt for many years”.

It’s inconceivable that the border is not yet a 24-hour operation.– Barbara Mommen“

Consultant despairs at Maputo corridor’s untapped potential

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Barbara Mommen.

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FRIDAY June 14 2019 | 5

The ever-increasing cost of fuel is likely to drive up demand for electric vehicles in the logistics sector, according to Hiten Parmar, director at uYilo e-Mobility programme.

“One of the biggest challenges companies have to manage is the cost of their operations – particularly in the logistics industry where high fuel cost is driving high operational costs,” he said. “The freight transport industry is already looking at electric solutions with most of the big players in this sector introducing several energy-efficient solutions.”

According to Parmar, big electric trucks on South African roads are, however, still some way off.

“I do think that we are going to see last mile delivery change and that is where we will see more electric delivery vehicles play a role as they are cheaper

to operate and more cost effective.”

Parmar said he believed it would become more commonplace to deliver to final destination in smaller electric vehicles from one

central point.“In that

space there are products and services available but when and where they will be implemented in South Africa is still a waiting game.”

Consultant Carel Snyman said the biggest challenge with introducing electric vehicles into the South African market was cost. “Even though these vehicles are more efficient to run they are expensive. In South Africa the cost of these vehicles is 43% more than the price internationally because our import taxes are extremely high.”

According to Snyman while charging infrastructure was

increasing – a project is under way to electrify the highway from Pretoria to Cape Town via Port Elizabeth – the cost of the actual vehicle remained excessively high. “It is not difficult to operate these vehicles in South Africa. There is also a charging station in Harrismith on the Durban-Johannesburg route. It is difficult to buy the vehicles because they are expensive.”

He said attempts to have the import costs reduced had failed. “There is also very little indication from the

government as to why they are not pushing for more electric vehicles or why they are not making it easier to import these vehicles into the country.”

In fact, some local auto-manufacturers were building electric vehicles but the units were all exported, he added.

Anthony Dane, a director at Change Pathways, said policy and commitment by countries setting high emission targets were pushing the move towards electric vehicles. “There is a clear understanding of the cost benefit and the improved

environmental impact of these vehicles,” he said. “Locally, there will have to be a mindset change as the international market is driving this change regardless.”

As fuel continued to increase along with the many other costs impacting the road freight sector, the move towards cost-effective vehicles was apparent around the world.

“The market is driving this regardless of the local position on electric vehicles,” he said.– Liesl Venter

Cost holds back local electric vehicle buy-in

It’s in last mile delivery that we’ll see more electric delivery vehicles play a role.– Hiten Parmar

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Mr. Abhishek Singh, Lead Consultant, Shipping and LogisticsWNS Global Services SA

09h55Smart Ticketing and Monitoring in Smart Cities

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10h20Realities of Transport Technology in the Local Authority Sphere

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Panel 2 FutureX

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12h20Using Business Intelligence in Public Transport to make informed decisions

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13h45Human Trafficking and the Transportation Industry

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14h10Combatting Crime in collaboration with SAPS in the Transport and Retail Sectors

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14h35How can Best Practice aid Compliance to the Regulatory Framework?

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6 | FRIDAY June 14 2019

Ed Richardson

Analysis of the volumes passing through the main South African ports undertaken by Lance Pullan of Linernet point to brighter prospects after what Stats SA described as an economic “stumble” in the first quarter of 2019.

Pullan’s graphs of volumes for car carrier and ro-ro vessels, and the number of vessel calls, both show a sharp increase in March this year.

The number of vessels calling on all Transnet-operated ports rose by 49.18% between March and April this year – and 48.56% year-on-year (April 2018 vs 2019).

Cape Town showed the biggest increase between March and April, at 153.15%, and Richards Bay the lowest at 6.25%.

Cape Town is also 191.94% up year-on-year.

Vehicle exports through all three car terminals – Durban, East London and

Port Elizabeth – started climbing strongly in March.

The next set of statistics from Linernet will show a drop in May – which is expected to be temporary.

The National Association of Automobile Manufacturers of South Africa (Naamsa) says in a statement that the May 2019 export sales number represented an “unexpected decline” with export sales at 29 850 vehicles reflecting a decrease of 8.8% compared to the 32 716 vehicles exported in the same month last year.

Volumes are, however, expected to pick up.

Pointing out that export volumes for the first five months of the year are 20.1% up on the same period last year, Naamsa says “the momentum of vehicle exports over the course of 2019 should increase further”.

The prospects of more demand for logistics and freight services from other manufacturing sectors are not as bright.

Stats SA says “South

Africa’s trade industry is now in recession, this being its second consecutive quarter of negative growth”.

Agriculture production slumped by 13.2% after registering a 7.9% rise in activity in the fourth quarter of 2018.

A slowdown in the production of field crops (wheat, sunflower seeds, and tobacco) and horticultural products (vegetables, citrus

and deciduous fruits) meant that there was less fresh produce to move internally and to export markets.

The one growing area is citrus, with exports of a record 137 million boxes being forecast for 2019.

With predictions that local economic demand is likely to remain subdued for some time, manufacturers will be looking at export markets – in which they will

face stiff competition.The World Bank predicts

that global economic growth will ease to a weaker-than-expected 2.6% in 2019 before inching up to 2.7% in 2020.

Given the distance of South Africa to the major markets, there will be continued pressure on all suppliers in the logistics chain to cut costs in order to make the country’s exports more competitive.

South Africa’s sustainability will come at a high cost to its trucking industry – and ultimately consumers.

This was the consensus of several industry experts in the wake of the implementation on June 1 of the new Carbon Tax Act.

Central to the legislation is the introduction of a carbon pricing mechanism which takes the form of a tax at the rate of R120 per tonne of carbon dioxide equivalent of greenhouse gas emissions, which will be increased by the amount of the consumer price inflation plus 2% per year until December 31, 2022.

“It is simply just another cost being added to the trucking industry,” said economist Mike Schussler.

According to a spokesman for the Automobile Association, combined with the expected fuel price increase diesel prices could go up in total

by 24c/l in June.

“Petrol prices will drop by about 10c/l while the basic diesel price increase is expected to be about 14c/l,” he said. “But the carbon tax adds

9c/l to petrol, and 10c/l to the diesel price. In effect, this means that petrol will decrease by only 1c/l, while diesel will increase more

significantly by around 24c/l.”

According to Schüssler the new tax is making it more expensive to do business in South Africa.

The Treasury, however, said the tax would play a role in achieving the objectives set out in the National Climate Change Response Policy of 2011 and contribute to meeting South Africa’s commitments to reduce greenhouse gases as agreed under the 2015 Paris Climate Agreement.

According to Gavin Kelly, acting CEO of the Road Freight Association, whilst the tax was less than what was initially expected, it would impact on the cost of road freight logistics.

Kelly said one of the major concerns with the tax was that there was no real incentive to transport operators to drive cleaner

vehicles. “It does not matter if a transporter is purchasing Euro 5 vehicles and doing all they can to reduce emissions as the tax is paid regardless of how efficient the f leet is. A second concern is where is the tax money going? Is it just going into the deep dark pit called revenue or into projects and technologies to reduce the country’s emissions?”

Treasury maintains that firms are incentivised to adopt cleaner

technologies over the next decade and beyond through its energy-efficiency savings tax incentive that allows businesses to claim deductions for energy efficiency savings at a rate of 95c/kWh. Whilst this expires at the end of this

year plans are believed to be in place to

extend it.– Liesl Venter

It is simply just another cost being added to the trucking industry.– Mike Schussler“

Port stats put more positive spin on economy

Carbon tax will hammer hauliers – and ultimately consumers

Sou

rce:

Lin

erne

t

1 3001 200 1 1001 000

900800 700600500

Total Vessel Calls at All SAF Ports

TNPA Volume Date: 2014 - 2019 All Vessel Call Volumes at All South African ports

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC2014 2015 2016 2017 2018 2019

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FRIDAY June 14 2019 | 7

FTW8675

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10 000 m² • 8000 pallet racked positionsFully managed • Offices available

EXPANDED WAREHOUSE IN GERMISTON

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LAST WEEK’S TOP STORIES ON

While the escalating trade war between China and the United States is sure to have a negative impact – particularly for emerging markets – some African exporters are exploring whether they can fill some of the commodity gaps left by the fall-out.

“The imposition of tariffs on certain goods could provide a competitive advantage for some exporters, allowing them to command a greater market share in segments such as agricultural products that were previously imported from the US to China and are now targeted by tariffs, for example,” said Wandile Sihlobo, chief economist for the Agricultural Business Chamber of South Africa (Agbiz).

He said this could in turn translate into increased Chinese investment in these African exporters’ agricultural sectors.

However, while South Africa has made some progress

in upping its production of soybean, cotton, sorghum, swine offal, tobacco and pistachio nuts, it remains a “relatively small” player within the Chinese agricultural market.

“Subsequently, I don’t I think South Africa is in a position to exploit the agricultural opportunities

presented by the US-China trade friction. The countries that would be in a position to do so, and are already, are mainly South Americans, “ he said.

Donald MacKay, director of XA International Trade Advisers, takes a similar

viewpoint, highlighting on the XA website that while there could be long-term benefits to local agricultural producers, the opportunity for most African countries to quickly fill in the voids left by the US or China in their respective economies are “thin”.

“Productivity on the continent is extremely low, the ease of doing business is poor and integration, both at local and international level, is shallow. Rapidly improving their business environment would therefore be necessary for these countries to be able to substitute production from either the US or China,” he pointed out.

Chief economist at the Industrial Development Corporation (IDC), Lumkile Mondi, suggests that local exporters should rather focus on increased trade within the African continent and not overreach in a playing field where they may not yet be competitive enough.

Can SA fill trade war-induced export gaps?

I don’t think South Africa is in a position to exploit the agricultural opportunities presented by the US-China trade friction.– Wandile Sihlobo

Government is increasingly recognising and supporting the role small, medium and micro enterprises (SMMEs) play in building a sustainable economy.

CEO of Business Leadership South Africa, Bonang Mohale, said the National Development Plan highlighted the importance of these businesses for job creation, innovation and competitiveness, with the goal that 90% of new jobs will be created by SMMEs in South Africa by 2030.

Mohale suggests that SMMEs should focus on “products and services that are export-orientated for which they can name their price”.

CEO of the Johannesburg

Chamber of Commerce and Industry, Joan Warburton-McBride, agreed that SMMEs had “massive potential” to drive economic growth and job creation but that many SMMEs lacked the “know-how”, access to finance and human capital – amongst other obstacles – to take their products to the export market.

“It’s why we have such a strong focus on our export incubation programme,” she said, adding that technology could play a “big role” in helping SMMEs trade their products regionally and internationally.

And government is throwing its weight behind small business incubation

programmes with the Enterprise Development Agency, recently receiving a R480-million funding windfall to launch a small business innovation fund.

The fund will receive R3.2 billion over the next three years to finance small business intermediaries such as fund managers and incubators.

The Presidency has also just launched the Business Leadership South Africa Connect online trading platform to create market opportunities for SMMEs through linkages and networking between large firms and small business.– Adele Mackenzie

Government throws its weight behind SMMEs

Construction of Tambo Springs Intermodal Terminal announcedTransnet has announced the construction of a new inland terminal at an estimated cost of R2.5 billion and expected to be fully operational in three to four years’ time.

Durban port takes delivery of new dredging vesselTransnet National Ports Authority (TNPA) has bulked up its dredging services fleet with the arrival of a new survey craft, the SS Sonar, at a cost of R1.5 million.

China finds ways around US tariffsChina stands accused of trying to circumvent US tariffs on electrical equipment,

machinery and other products shipped to America by re-routing its supply chain to the States through Vietnam, Taiwan and Mexico.

Transport union asks for changes to basic employment conditionsThe new minister for employment and labour, Thulas Nxesi, has been urged by the United National Transport Union (Untu) to review the threshold of the Basic Conditions of Employment Act (BCEA).

Crunch time for SAA – OutaFollowing the resignation of its CEO, South Africa Airways (SAA) seemed almost irrecoverable, said the Organisation Undoing Tax Abuse (Outa).

– Adele Mackenzie

Vessel Voy Dbn PE/Cga C.T. Las Palmas Lon G/way R’Dam Ham Ant Le Havre

MSC ROMANE 9527 14/06 17/06 22/06 01//07 06/07 07/07 09/07 11/07 13/07

MSC CANDICE 9528 21/06 24/06 29/06 08/07 13/07 14/07 16/07 18/07 20/07

EUROPE 9529 28/06 01/07 06/07 15/07 20/07 21/07 23/07 25/07 27/07

MSC MARS 9530 05/07 07/07 12/07 22/07 27/07 28/07 30/07 01/08 03/08

E.R. TOKYO 9531 12/07 15/07 20/07 29/07 03/08 04/08 06/08 08/08 10/08

GENERAL AGENTS DURBAN(031) 570-7800

CAPE TOWN(021) 419-2734

PORT ELIZABETH(041) 363-6010

JOHANNESBURG(011) 263-8500

RICHARDS BAY(035) 789-2438 www.diamondship.co.za

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MSC CANDICE 9624 - - - - - 12/06 14/06 17/06

EUROPE 9625 - - - - - 19/06 21/06 24/06

MSC MARS 9626 06/06 - 08/06 10/06 OMIT 26/06 28/06 01/07

E.R. TOKYO 9627 OMIT 13/06 OMIT 15/06 16/06 03/07 05/07 08/07

MSC NITY 9628 OMIT 20/06 OMIT 22/06 24/06 10/07 12/07 15/07

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MSC CANDICE 9608

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KATHERINE 8639

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We offer HUGO STINNES SCHIFFAHRT Through Bills of Lading for international transit cargo, e.g. to and from Scandinavia and Ireland.

Page 8: FTW8597 FRIDAY 14 June 2019 NO. 2348 F Terrorised drivers ...storage.news.nowmedia.co.za/medialibrary/Feature/7044/FTW-14-Ju… · Tobacco leaf threshers are required to register

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BUNKER WATCH (FUEL PRICES)

Figures supplied by Tel: +27 (0) 21 551 1888 | Email: [email protected]

July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June

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$446

$453 Last week

'Supply chain efficiency an engine for growth'

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Salary survey – opportunity to participate

police station in the town could park a vehicle at the bridges at Hilton, Estcourt and Pietermaritzburg and make sure no one is throwing stones on trucks it would help.”

Sanral operations and maintenance manager, eastern region, Dudley Mbambo, said the agency had handed over CCTV surveillance camera evidence to the police.

“Sanral cameras did pick up some of the incidents involving truckers on the N2and N3 and all information/camera footage has been sent to the relevant enforcement agencies,” Mbambo said.

“There are no particular hot spots at this time, however any unusual activity is immediately reported to the relevant authorities.”

Road Freight Association CEO Gavin Kelly said the organisation was busy researching the incidents and working with the SAPS to

analyse the trends around the attacks in order to explore the reasons for the arson, which some have alleged is due to the anger of locals about the hiring of foreign truck drivers.

“One of the difficulties is that there has been looting all over the place and one is not sure whether that is the same activity. There are hijackings and lootings and it is difficult

to discern whether something that started as one thing has turned into something else. Over the months there were a lot of service delivery protests and trucks burned so it has been

difficult to distil whether an incident was a service delivery protest and someone decided to put their hand up and make it about foreign drivers,” Kelly said.

SAPS spokesman Jay Naicker referred a request for comment to the premier’s office. Zikalala’s office had not responded

From page 1

Sanral has handed over CCTV surveillance camera evidence to the police.– Dudley Mbambo

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Liesl Venter

Supply chain efficiency and competency will be the catalyst for South Africa’s transformation and growth.

This is according to newly elected Sapics president Keabetswe Mpane who said there was no under-estimating the importance of supply chain efficiency and competency in the country where accountability of officials had been poor – resulting in some real challenges going forward.

Opening the 41st Sapics conference in Cape Town earlier this week, she said in moving from a hindsight approach to a foresight way of managing the supply chain,

skills development would be key as the supply chain was at the heart of bringing change in South Africa.

“Supply chain management is not static but constantly evolving. In an ever-changing

world we are facing obstinate challenges. It is an age

where we compete on a global scale, where technology enablement, augmented reality and artificial intelligence are the order of the day.”

She said supply chain management was not just at the heart of every organisation but also that of the country.

“For a profession not professionalised or

regulated, supply chain management holds

an incredibly high level of responsibility for our business and competitiveness, and ultimately, economic success.”

The ground work has begun for the clearing and forwarding industry’s bi-annual salary survey and a call has gone out to industry for their input.

The survey, which will be published on August 31, incorporates salary tables and current and projected

salary trends, along with relevant commentaries on this specialised industry.

Compiled by P E Corporate Services in association with Lee Botti & Associates, it covers approximately 50 positions across Gauteng, KZN, Western and Eastern Cape.

“It can be purchased in an interactive online version where year-on-year comparisons and other functionalities are available,” says Kim Botti of Lee Botti & Associates.

To participate contact [email protected]) or [email protected]).

For a profession not professionalised or regulated, supply chain management holds an incredibly high level of responsibility for our business.– Keabetswe Mpane