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FREIGHT & TRADING WEEKLY
For import / export decision-makers FRIDAY 3 March 2017 NO. 2236
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Special feature – Mining & Minerals
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Air & Seafreight Forwarding - Customs Clearing - WarehousingLogistics Services - Air Charter Services - Express Services
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Pressure is mounting on the National Regulator for Compulsory Specifications (NRCS) to clear up the extensive backlog of letters of authority (LOA) for importers which is currently anything up to six months. This despite the organisation committing to Parliament that it would cut this to a maximum of 120 days.
According to Stefan Sakoschek, regional director for the EU Chamber of Commerce and Industry in Southern Africa, many are now calling the delays a non-tariff trade barrier.
The chamber has suggested that a pre-export verification of conformity (PVOC) programme would go a long way to addressing problems as it assessed and addressed risk prior to goods arriving in South Africa.
There’s general consensus that many of the products being held up by the NRCS have been extensively tested in their countries of origin with South Africa only performing a costly duplication that is unnecessary.
Pressure mounts over LOA backlog
Tristan Wiggill
Last week saw the official opening by ArcelorMittal South Africa (Amsa) of an interim distribution centre in Isando, Johannesburg that will increase Transnet’s market share of steel products transportation from 13% / 400 000 tonnes in 2016/17, to 34% / 1 000 000 tonnes by 2018, in line with Amsa’s growth projections.
It will facilitate a large-scale shift of freight from road to rail, seen by Transnet as crucial for the success of the country’s integrated transport strategy, which could result in 42 000 fewer truck journeys being undertaken annually between Amsa’s production plants and the Isando hub.
Transnet Freight Rail (TFR) will provide a dedicated rail service to Isando from Amsa’s Newcastle and Saldanha plants, promising reduced lead times for Amsa’s customers, domestically
and within SADC. Around 700 000 tonnes
of steel will be railed to the facility this year, creating revenue of R100 million
plus for TFR, revenue that would otherwise have been spent on road transport.
In 2016, Level 4 BEE company Amsa moved
10 million tonnes of steel on TFR’s facilities, at a cost of R3 billion. Simultaneously, it paid
Partnership ramps up TFR's steel products volumes
ArcelorMittal South Africa CEO Wim de Klerk and Minister of Trade and Industry Dr Rob Davies cut the ribbon at the opening of the Isando facility.
To page 24
2 | FRIDAY March 3 2017
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.
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Riaan de Lange ([email protected])FREIGHT & TRADING WEEKLY
Publisher Anton Marsh
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There is an exciting new world of opportunities for the freight industry, shippers and value-added logistics companies as Namibia positions itself as the SADC logistics hub of choice.
FTW specialist writer and researcher Ed Richardson will be unpacking the opportunities as the new container terminal in the port of Walvis Bay nears completion.
Once the terminal is commissioned, the port and well-established Walvis Bay logistics corridors will offer land-locked SADC countries a new gateway to the world.
The feature gives freight and logistics companies a valuable opportunity to reach FTW’s unique readership of importers, exporters and their service providers.
Contact Yolandé +27 11 214 7343 +27 82 771 8529 or [email protected]
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Budget 2017 – CustomsTwo things of importance. Firstly, customs duties collection was R6.54 billion below budget. Specific excise duties were down by R2.3 billion, while ad valorem excise duties were above budget by R109 million, and customs and excise receipts were up by R370 million.
Secondly, what you may well have missed relates to the “Disclosure of trade statistics”. “It is proposed that the current legal authorisation for the sharing of trade statistics with organs of state be reviewed for its appropriateness and possibly amended.” This is quite interesting as the “sharing of trade statistics with organs of state” is a recent introduction.
For a more detailed account, remember this week’s Customs Buzz.
WTO’s TFA RatifiedOn 22 February a major milestone for the global
trading system was reached – without the participation of South Africa – when the first multilateral deal concluded in the 21-year history of the WTO entered into force. It is most disappointing that South Africa, which was an original signatory of the General Agreement on Tariffs and Trade (GATT) – forerunner of the WTO – and a founding member of the WTO did not ratify the WTO TFA.
Vintage Motor Vehicle RebateComment on the creation of a rebate provision for “Motor cars and other motor vehicles principally designed for the transport of persons (excluding commercial vehicles or buses) including station wagons and racing cars classifiable under tariff subheading 87.03, which were manufactured 40 years prior to the date of importation or such
motor cars of any age which are determined to be an international collector’s vehicle by the International Trade Administration Commission (Itac) and subject to the issuing of an Itac import permit (and subject to import control conditions) authorising the importation of the particular vehicle, under such conditions as Itac may allow by specific rebate permit.” Comment is due by 17 March.
Steering Assemblies DutyComment on the proposed reduction in the “general” rate of customs duty on “rack and pinion steering assemblies (excluding power-assisted types and those of subheading 8708.94.10) classifiable under tariff subheading 8708.94.20” from 20% ad valorem to free of duty is due by 17 March.
Unframed Glass Mirror ReviewComment on the initiation of a sunset review of the anti-
dumping duties on unframed glass mirrors, of a thickness of 2mm or more but not exceeding 6mm, classifiable under tariff subheading 7009.91, originating in or imported from Indonesia is due by 18 March.
Duty Calls Watch ListComment on National Treasury and Sars’ Diesel Fuel Tax Refund System is due by 15 May.
FRIDAY March 3 2017 | 3
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A takeover in the logistics industry involving two major operations in their own right, Manica and AMI International, looks set to create a combined forwarding network that will dominate East and Southern Africa.
In the deal – dated from February 16 – SA’s Bidvest Group sold its shareholding in
Manica Holdings to Dubai-based AMI International.
The new entity – with both contributors’ complementary networks – spreads an intricate web of offices across the East and Southern region of the continent.
As an e-mail from Wikus Rudolph, director of Manica SA and Manica Botswana, put it to FTW: “The
acquisition of the Manica network will allow AMI International to significantly increase its footprint in East and Southern Africa, allowing AMI International to be fully operational in all the countries in the region and, at the same time, offer its customers the guarantees of an international network.”
Manica Holdings, he added, presently operated
subsidiaries, under the name of Manica, in SA, Botswana and Zimbabwe. “And, under the terms of the agreement, AMI International, through Manica Holdings, has an exclusive option to acquire the Bidvest shareholding in Manica Malawi and Zambia within the next six months.”
In its stable of workhorses in East Africa, AMI International has offices in
Kenya, Uganda, Tanzania, Rwanda, Burundi, Zambia, Malawi and Mozambique.
And, expanding on his mention of “guarantees of an international network”, Rudolph pointed out that, while AMI International had its head office in Dubai in the United Arab Emirates (UAE), it also had subsidiaries in China, India, Pakistan and the US.
Wind has played havoc in the Port of Cape Town which was wind-bound for over 300 hours in January, according to a spokesman for the Port Liaison Forum, an initiative of the Cape Chamber of Commerce and Industry.
While the official figures for February are not available, it’s likely that several hundred hours have
been lost as the Cape has been plagued by heavier than usual winds in the past few weeks.
This has taken its toll on the liquid bulk industry – with a lot of cargo being routed via other ports that are less affected by wind, according to the spokesman. “There has also been less demand for diesel – specifically from
the likes of Eskom which has seen diesel volumes drop at the port, affecting overall liquid bulk volumes.”
But dry bulk is on the increase. “The volumes are continuing to come in. This is attributed to the growing number of agri imports through the Port of Cape Town.”
Import volumes
increased slightly ahead of the Chinese New Year while export figures
were in line with budget expectations.– Liesl Venter
Takeover creates dominant Africa logistics player
CT loses 300 hours to wind in January
4 | FRIDAY March 3 2017
Adele Mackenzie
Up to 50% of freight forwarders could see their doors closing over the next ten years if they don’t act now against business ‘disruptors’. That’s the view of Marcel Fujike, senior vice president of global air logistics at Kuehne+Nagel.
Moderating a panel discussion at last week’s Air Cargo Africa 2017 conference, he posed the question: “Is there still a role for the current freight forwarder model in the supply chain evolution, with major online companies such as Alibaba and Amazon now operating within the business-to-business space?”
Jonathan Clark, regional director: Africa at Cargolux, admitted there
was a minor threat from online start-ups but pointed out that currently those small online platforms were only playing in niche markets . “Furthermore, they don’t have the global reach that freight forwarders, or the airlines, have so if end-customers still receive added value and strong service, there is still a role for forwarders to play,” he said.
He believes smaller forwarders and major international players should be able to easily adapt. “Currently, the biggest risk is to the medium
enterprises. They need to decide how to position themselves in the rapidly changing reality,” Clark said.
David Logan, CEO of the South African Association of Freight Forwarders (Saaff), pointed out that what the freight forwarder offered was a “holistic knowledge of the entire supply chain”,
which was what shippers needed to ensure seamless and efficient movement of their goods.
“Change is inevitable but that knowledge is invaluable. To survive,
freight forwarders simply need to be aware of the changes and incorporate them into their own strategy,” he pointed out, noting that a Saaff member had recently launched his own e-commerce platform as part of a strategy to remain competitive.
Chief cargo officer for Turkish Airlines, Turhan Ozen, agreed with Logan, commenting that the game would not change for those forwarders who created value. ”Forwarders need to start acting less as intermediaries and more as partners to shippers and transporters, including airlines,” he said. And this included improved visibility and greater collaboration with other industry stakeholders.
“The online platforms
play a key role in creating better visibility across the supply chain and perhaps freight forwarders could look at collaborating with them rather than seeing them as a threat,” suggested Dirk Schusdziara, senior vice president: cargo at Frankfurt Airport (Fraport).
He said three things needed to change to ensure forwarders’ survival: improved transparency in operations, digitalisation and innovation through the use of technology.
“We at Fraport for example have established a trade community link with shippers and freight forwarders to ensure better flow of information between all parties so that when there are challenges, there is a more immediate response,” he explained.
Forwarders need to start acting less as intermediaries and more as partners.– Turhan Ozen
“
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Freight forwarders at risk in new supply chain evolution
SA Revenue Service Customs and the Zimbabwe Revenue Authority have been discussing electronic cross-border co-operation, a Sars spokesman told FTW.
At this stage, however, its key focus is on ensuring automatic data interchange with
Swaziland and Mozambique where significant progress has been made. The engagement with Swaziland is taking place within the ambit of the regional customs interconnectivity approach being pursued by members of the Southern African Customs Union (Sacu).
“That will be our main focus until all elements of automatic data exchange are properly embedded,” the spokesman said. “Only then will we move on to other regional partners, albeit that we have had initial discussions with Zimra on
future cooperation in this area.”
Exchange of information between customs authorities, including to support mutual recognition of Authorised Economic Operator (AEO) programmes and cross-border co-operation, is an important
building block for Customs administrations globally. The members of Sacu are also currently looking at a regional mutual recognition approach for the Preferred Trader Programmes being developed by the respective Customs administrations.
Sars expands cross-border co-operation
FRIDAY March 3 2017 | 5
MINING & MINERALS
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Liesl Venter
Scrap the Mining and Petroleum Resources Development Act (MPRDA)
Amendment Bill and start again.
This is the advice from Peter Leon, a partner at Herbert Smith Freehills, to the minister of mineral resources, Mosebenzi Zwane.
He said going ahead with the act as well as the publication of Mining Charter Three in its current format would be a mistake.
Industry has yet to reach consensus with government over the contents of the two documents, with many believing the new legislation and the mining charter will not attract investors to South Africa’s mining industry.
“I want to say to Minister
Zwane: Let’s have a fresh start,” said Leon. “At the moment it is all stick and no carrot for
mining in South Africa. The problem in South Africa is that the discussions are not correctly framed.”
He said government continued to make more and more demands on industry.
“Commodity prices have been declining and mining has been under pressure. Government is taking but not giving.”
Leon said the lack of regulatory certainty and predictability was at the heart of the crisis in South Africa.
“Chile is one of the best mining examples in the world. Thanks to mining it is no longer a developing country,” he said, attributing the growth in its mining sector and economy to the fact that the Chilean government had taken a clear approach.
“The mining code is straightforward and clear. It is set in stone and is extremely predictable. There is no uncertainty for companies mining in Chile. At the same time the mining jurisdiction and the awarding of mining licences is not in the hands of bureaucrats or politicians but lies in the hands of the court. With that the conditions to get a licence are clear.”
While Zwane has said that the legislation and mining charter will be finalised by June at the latest, there is scepticism.
“Last year at the Mining Indaba he said they were
in the process of finalising the MPRDA as a matter of urgency. It is a year later and it is still stuck in parliament. My view is that the bill should be withdrawn as there is no way it can be amended.”
Mining industry needs more carrot and less stick
Government is taking but not giving.– Peter Leon“
Phot
o: H
alde
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og
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6 | FRIDAY March 3 2017
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Liesl Venter
There has never been a more opportune time to reinvigorate “the promise of mining”,
in the view of Anglo American CEO Mark Cutifani.
“The stage is set: we need to do things differently, to find new, safe, responsible and cost-effective ways to mine the ore bodies to meet the needs of a rapidly
urbanising global population.”He said taking the tough
current global market into consideration mining houses in Africa needed to ask some tough, but necessary questions about the future of mining on the continent if a more resilient industry was to be created.
“It is clear to me that innovation holds the key to our future,” he said. “Second, and very much part of the need for
innovative thinking, it is only through being responsible and collaborative partners that we will be able to achieve the level of trust that society demands for us to become the most valued industrial sector, offering real and sustainable social and economic benefits for our core stakeholders.”
Cutifani said taking into account how hard mining was hit in the past few years and how unprepared industry was for
the commodity price drop it
was clear that a more resilient mining industry was needed.
“Resilient in terms of our investments and our
businesses, resilient in terms of our returns to shareholders, and resilient in terms of the contributions we make to society,” he said.
According to Cutifani this would require the mining sector
to continue reducing operating and capital costs through innovation.
He said Anglo American was committed to developing “the
modern mine” by transforming hard rock mining and introducing new innovative technologies – an essential step for mining houses if they want to remain viable in the future.
“Picture an underground mine where our employees are not in harm’s way. A mine where continuous rock cutting machines safely extract the targeted ore – deep underground – without the need for explosive blasting,” he said. “At our Twickenham platinum mine we have created a system that allows us to develop low-profile tunnels in hard rock – safely, quickly and cost-efficiently.”
He said the company was also finding ways to mine more metals and minerals while wasting less rock.
It’s time for the ‘modern mine’ – Cutifani
The mining industry needs to continue reducing operating and capital costs through innovation.– Mark Cutifani
“
Phot
o: H
alde
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8 | FRIDAY March 3 2017
MINING & MINERALS
Ed Richardson
Since 2010 the Maputo Port Development Company (MPDC) has been involved in a
mining project of its own – the digging out of the approach channel from 9.4 metres to 11 metres, and most recently down to 14 metres.
In the process more than 16 million cubic metres of sediment and rock material were mined from the ocean floor during the two projects.
A parallel investment in quaysides and loading equipment means that the twin ports of Maputo and Matola can now handle capesize vessels of 80 000 tons.
Soon after the dredging was completed, the M/V Diovolezza, with a draught of 12.9 metres, was able to depart without waiting for high tide, according to Osório Lucas, MDPC chief executive officer.
MPDC is now working with the Mozambican hydrographic office INAHINA (National Institute of Hydrography and Navigation) to install navigation aids to allow vessels to use the 76-kilometre channel around the clock, he says.
MPDC, which is a joint venture between the Mozambican Railway Company (CFM), Grindrod, DP World and local company Mozambique Gestores, will continue investing in the port, according to Alan Olivier, chairman of the Maputo Port Development Company and executive director and chief executive officer of Grindrod.
MPDC plans to increase the port’s capacity to 40 million tons a year by the end of the concession in 2033. There is an option to extend the concession to 2043.
Olivier told delegates at a February function to celebrate the completion of the latest dredging project that MPDC, its shareholders and sub-concessionaires had invested
over US$700 million in the port since 2003.
“A further US$300 million will be invested in the port,” he said.
Quayside investments include the rehabilitation of berths 6, 7 and 8 in the port of Maputo and the expansion of the iron ore terminal.
MPDC engineering director João Neves is quoted in the
port’s publication “Bom Porto” as saying that it “is rehabilitation in name only. In truth, it is the construction of two berths of 260 metres each and a service depth of -16 metres CD”.
There are also plans to convert berth 5 into a bulk handling facility when there is sufficient demand.
Expansion plans for the Matola terminal, which will see its capacity of 7.5 million tons of coal and magnetite a year increased to 26 million tons (phase 4), are “currently in an advanced feasibility stage,” according to the Grindrod website.
Phase 4 will require excavation and land reclamation, the construction of two new berths, a stockyard and railway infrastructure.
The final terminal footprint will be in the region of 120 hectares (excluding any reclaimed areas).
Maputo and Matola dig deep for miners
View of the Matola bulk terminals from the port of Maputo.
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Against a background of growing uncertainty around global trade, foreign direct investment (FDI) into Africa has declined by 13% according to Dr Mukhisa Kituyi, secretary general of the United Nations Conference on Trade and Development (Unctad).
Delivering a keynote address at the annual Investing in Africa Mining Indaba recently, the former Kenyan minister of trade and industry said the decline was much more substantial in those countries that depended on the extractives sector.
“Flows to Angola more than halved while Mozambique saw a drop of 11%. Only areas that are not traditionally drivers of investment in extractives saw a slight improvement – led by Egypt which for the second year in a row was the largest recipient of FDI on the continent.”
He said similarly South
Africa had performed extremely well in attracting investment. After having the third highest drop the previous year, the country saw a 38% increase in the latest report – albeit still with a very modest value of only $2.4 billion dollars of FDI.
Kituyi said expectations of an improvement in 2017 were not high although at present an increase was
expected.Weak global
economic growth and slow gains in world trade volumes are
cited as the major reasons for the ongoing decline.
Investment in greenfield FDI projects reached a low in 2012 at only $7 billion, down from $37 billion in 2008. While it increased slightly reaching $22 billion in 2014 it declined again last year to $16 billion.
“We do not see significant improvements in 2017,” he said. “However the actual stock of mining FDI in Africa has been on the rise
– reaching $575 billion in 2014, a five-fold increase over 15 years.”
While many consider Africa as the final frontier in terms of land-based mineral resources, the level of improvement and utilisation of its potential remains a basis of concern for the long term, said Kituyi.
“Traditional investment in Africa has been a resource-seeking venture. At the height of the crisis years there was an inverse relationship between trouble and investment in countries such as the DRC, Angola and the Niger Delta. It would seem the more trouble there was, the more investment they received.”
He said this questioned the approach that good governance and stability were big drivers of investment.
Africa, said Kituyi, had two challenges to address. “Firstly how do we realise the potential of greater Africa. For example, while
the stock
of mineral investment
has been growing in
Africa, relative to other areas it
has been falling back. The second
challenge is around good
governance.”With many
African countries not even aware of how
much was being mined out of their countries, the continent was also very vulnerable to taxation, with taxes being the largest source of public revenue. Africa needed to address governance on all levels.
At the same time, said Kituyi, Africa had to improve performance as its exports were stagnant.
In 1995 the country exported $68 billion of manufactured goods but by 2014 this had only increased to around $90 billion.– Liesl Venter
FDI on the decline – but not in SA
13%Decline in FDI in Africa.
South Africa needs to rethink its black economic empowerment strategy – especially in the mining sector – as rigid, restrictive policies will impact the economy negatively.
Mxolisi Mgojo, CEO of Exxaro, told delegates at the annual Investing in Africa Mining Indaba in Cape Town recently that a different approach was called for – one that was less prescriptive.
“The conversation needs to move away from restrictive ideas about fixed black equity in white companies. After all, are we really saying that we want a country where demand is 30% or 40% black ownership regardless of the size of the company?”
He said taking into account the lessons of the past 24 years there was no denying that South Africa needed to remain ambitious in its transformation efforts but at the same time there was also a need to be realistic and focused on solutions that were achievable.– Liesl Venter
SA needs to rethink BEE strategy
10 | FRIDAY March 3 2017
MINING & MINERALS
James Hall
A big boost in the movement of more minerals by rail is expected
by Swaziland Railway when a new line, the Swazi Rail Link, becomes operational, Swaziland Railway’s chief financial officer, Vusi Makhubu, told FTW. A joint project between the company and Transnet Freight Rail (TFR), the line will provide a new rail option for shippers to and from Gauteng to Durban/Richards Bay and Maputo.
“We’ve finished the feasibility study, submitted the report to cabinet and we are awaiting approval. But as the people who implement
the project we are moving forward in the meanwhile. We meet regularly with Transnet to address the details and fill in the blanks of the feasibility study. For instance, the engineers from both sides are meeting and also crystallising the details on the ground. The next matter remaining is the financing,” Makubu said.
Once up and running, the new line is expected to have as its primary users shippers of minerals. The route runs from Ermelo in Mpumalanga to Swaziland Railway’s rail head at Sidvokodvo, following the Usuthu River’s path.
“The line is targeting commodities, mainly coal. The line will give an alternative route to Richards
Bay and Durban to and from Gauteng. Besides coal there will be more magnetite transported. We in Swaziland are targeting our huge reserves of coal that can be moved by rail. As a railway company we are creating capacity before demand, so when the mines open the infrastructure will be there waiting for them,” Makhubu said.
Infrastructure work is necessary within Swaziland to conform the existing lines to the state of the art Swazi Rail Link. Makhubu explained: “The new line is a
standard gauge; a heavy
haul line that allows up to 100 metric tonnes per wagon. The portion of line that now exists in Swaziland allows for 22 tonnes per axle or 80 metric tonnes per wagon, so that length of line will have to be upgraded. We want to
do better than
100 metric
tonnes to anticipate
future demand. The line could go up to 120-metric-tonne
capacity.”At present, in addition to
magnetite, Swaziland Rail tranships rock phosphate from Phalaborwa, South Africa. “We move a lot of iron ore dumps from there going to Richards Bay where the ore is exported. Currently we don’t send minerals to Maputo. TFR has a line from Nelspruit to Maputo that South Africa uses. We handle to Durban,” Makhubu said.
Joint rail project will boost mineral transport business
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FRIDAY March 3 2017 | 11
MINING & MINERALS
Governments and mining companies in Africa must come together and work as one if they want to avoid the catastrophe of an unpredictable market.
According to Mark Bristow, CEO of Randgold, the inability of stakeholders to predict the cyclical nature of commodity prices remains one of the biggest challenges on a continent that is highly dependent on mining.
“Commodity prices over the past 20 years are proof that we require long-term planning, but the market demand for short-term gains makes it very difficult to do,” he said. “No one saw the super cycle of commodity prices coming and unfortunately no one saw it ending either. The finest opportunity for value creation was squandered. Not just by miners but also by our host country governments.”
He said with mining houses still trying to come to terms with damaged balance sheets, governments needed to contend with the impact of it all on their economies and supply chains.
“There is a complete inability to predict the cyclical nature of it all,” said Bristow, adding that both mining companies and governments were happy enough to reap the benefits during the good times.
“There is a need for a constructive government/industry partnership, not one where one is mimicking the myopic behaviour of the other.”
This he said was
ultimately the only way to derive lasting value from mining for countries and companies alike.
Bristow said mining held the key to Africa’s success but unlocking the continent’s wealth required a combined approach. “While Africa is still the place to go for gold
resources, investors retreat to safer
hunting grounds due to restrictive mining codes and political instability.”
He said working
together new mines could be built across the continent, demonstrating to investors that Africa was the place to be.– Liesl Venter
Government/industry partnership key to deriving lasting value
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Investment in the Independent Beira Logistics Terminals (IBLT&S) dry port facility in Beira has increased handling capacity to 15 000 tons of bulk minerals a month.
“IBLT&S has 10 000 sqm of transit warehouse area. With our combination of warehouses and a container depot we offer full f lexibility for the handling of any cargo,” says general manager Aleksandrs Kucerovs.
The facility operates around the clock, seven days a week, and is part of the J&J Africa group.
Logistics costs for the export of minerals through the port of Beira have been reduced by the pooling of J&J Africa resources, he says.
J&J has trucking arms in Zimbabwe and
Mozambique which provide a mine to terminal service, he adds.
Bulk minerals can be packed into containers in the IBLT&S facility.
The company also handles the
movement of bulk bags to and from the port, as well the loading and offloading of trucks in a secure, bonded area.
Beira dry port can handle 15 000 tons a month
Logistics costs for the export of minerals through the port of Beira have been reduced by the pooling of resources.– Aleksandrs Kucerovs
“
12 | FRIDAY March 3 2017
MINING & MINERALS
Liesl Venter
Transport and logistics company Galco has embarked on an aggressive
investment drive in southern Africa – particularly Zambia and South Africa – as part of a bigger strategy to grow its mining and minerals portfolio.
General manager of Galco Transport and Logistics, Moses Kachunda, told FTW he was optimistic about the mining sector which was showing healthy signs of recovery after several years of low commodity prices.
“Southern Africa holds a lot of potential and opportunities – especially in the mining sector. But it’s a difficult sector to service
from a logistics point of view, particularly in terms of security,” he said. “We have, however, built up a lot of experience in moving valuable cargo in Africa and understand the complexities involved.”
Headquartered in Dar es Salaam in Tanzania, the company has built a strong reputation for reliability and dependability in East Africa where they service a range of mines, according to Kachunda. “We move a lot of raw materials from the south to the north. This includes a lot of mining equipment and goods from the port to the
various mines inland as well as some mining commodity volumes,” he said. “But East Africa’s mining sector can’t be compared with that of southern Africa where we see bigger volumes moving. The
mining and agricultural sectors are the volume drivers in the region and we are positioning ourselves to service these industries.”
He said the company had
already invested in a yard and warehouse in Lusaka, Zambia, and more recently in Johannesburg. An office, yard
and warehouse will be opened in Mozambique by no later than July this year.
“Bigger is better from our point of view and so we have a very aggressive investment strategy that will roll out over the next few months as we build reliable capacity into our southern African operations,” he said.
The third party logistics provider operates throughout Tanzania, Kenya, Uganda, Southern Sudan, Rwanda, Burundi, Malawi, DRC, Mozambique, Zimbabwe, Zambia and now South Africa.
With a fleet of of some 800 trucks, Kachunda says it is about having the necessary capacity on hand. “We are investing in equipment and systems to ensure we provide our customers with complete
Aggressive investment strategy targets southern Africa
With a fleet of some 800 trucks, we have the necessary capacity on hand.– Moses Kachunda
“
Ongoing investment in infrastructure is paying off for Ethiopia which is set to become the biggest economy in East Africa in 2017.
According to Motuma Mekassa Zeru, the country’s mining minister, growing exports and improving infrastructure have been a priority for the past decade.
“Whilst our top export commodites are in the agricultural sector we understand the value that mining can bring. We have developed a new mineral policy and are in the process of creating a country mining vision that we hope will see our commodity exports increase.”
According to Zeru the policy is to create a favourable investment climate in the country. – Liesl Venter
Ethiopia gains traction
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MINING & MINERALS
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logistics solutions. Just as important is our investment in staff as they remain the heartbeat of our operations.”
He said it was important that Africa find solutions for Africa. “The tendency that one jacket fits all does not
apply in Africa and definitely not in the logistics arena. As an African business we understand the complexities and differences that exist on the continent and bring tailor-made solutions that best fit the customer.”
Phot
o: H
alde
n Kr
og
Cargo volumes in the mining and minerals sector should pick up this year, especially towards the second half of the year, according to Christian Roeder, CEO of logistics and transport company J&J Africa.
“We are continuing to invest in infrastructure such as warehousing and systems to improve our efficiencies,” he said.
Roeder told FTW that low commodity prices and uncertainty around government regulations could be a threat to that projected growth but added that the Mozambican company – which offers transport between Mozambique, Zimbabwe, Zambia, Malawi and the Democratic Republic of Congo (DRC) – addressed these challenges through
dialogue with government on current and planned regulations.
“There is poor legislative collaboration between Southern African Development Community (SADC) member countries but the challenges can be managed by ensuring we
stay on top of the changes,” said Roeder.
Aside from the “usual” issues of poor infrastructure, inefficient border posts and high logistics costs in general, one of the major challenges to growth was obtaining visas for clients and suppliers, he added.
Cargo volumes expected to grow
Christian Roeder, CEO J&J Africa.
14 | FRIDAY March 3 2017
MINING & MINERALS
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Liesl Venter
C oal remains one of the cheapest sources of energy for emerging
economies and demand for the commodity will therefore continue for the foreseeable future.
According to July Ndlovu, CEO of Coal SA, power generation is at the top of the African development agenda, with countries under pressure to deliver power to the people.
“In Africa power generation is critically important. The same can be said of most emerging economies. As Africa grows so will power generation. If one steps back from this then coal arguably remains the cheapest source of energy for most of these
Commentators predict positive outlook for coalemerging countries,” he said. It is easy to transport, safe to work with and the continent has an abundance of it. Some studies suggest coal will still play a significant role in
years to come. It is said that
by 2050 it will be the second largest source of energy.”
He said while Chinese
demand for coal had decreased
significantly as the country’s
economy reset itself, India had picked up a lot of the slack, overtaking Chinese demand in 2015.
He said he was extremely positive about the future of coal with expectations that the price would remain stable in the medium to long-term with demand picking up as more economies set about addressing power generation.
India alone imported 140 million tons of coal during the course of 2016. While this was lower than what was estimated, it is expected to increase in the next year as the country is expected to see a drop in hydro-electric generation.
At the same time it's anticipated that demand in China will pick up as it remains the engine room in the global demand for coal.
According to Ndlovu,
ongoing arguments around coal being environmentally unfriendly were also being addressed as new technologies were being developed.
Coal-fired power stations that were thermally more efficient were being introduced to address the environmental concern.
According to Nombasa Tsengwa, executive head: carbon operations at Exxaro, South African coal exporters need to be more competitive if they want to benefit from the
opportunities presented by the emerging market.
“There are also a variety of new players in this sector that are finding their way
into the market on the back of cheaper freight rates – like the Colombians for example,” she said.
She added that it was essential that South Africa upped
its investment into the coal sector, allocating the necessary capital to projects to ensure that the volume demand from the world could be met timeously.
India alone imported 140 million tons of coal during the course of 2016.– July Ndlovu
“
FRIDAY March 3 2017 | 15
MINING & MINERALS
Improving productivity and reducing cost will remain a priority for mining houses despite the rise in commodity prices, said Bold Bataar, Rio Tinto chief executive for energy and metals.
While 2016 was not as bad a year as many had predicted, Bataar said mining was still far from the boom years when China was seeing double-digit growth figures and the demand and price of commodities was high.
“Maximising value will remain the priority,” he said. “Mining more tons for the same cost or even maintaining current production at lower costs will continue to be the focus.”
He said concerns around market volatility, sustainability and risk management remained for the mining sector.
“We have prioritised our portfolio, performance, people and partners as we move into this new market environment,” said Bataar. “Portfolio is about low-cost expandable assets that sit at the bottom end
of the curve. These assets must thrive in any price environment. At the heart of our strategy for the future is performance. Operational efficiency resulting in improved productivity while we continue to drive down cost is still the goal.”
Bataar said this was crucial for success in the African landscape while mining companies would increasingly need to learn from other industries how to adopt technology and innovation to be more competitive.
“In Africa early adoption of mobile technology generated massive economic returns for companies willing to take the risk in the early years. This African experience shows there is value in challenging the norm. Mining houses that show commitment to challenging the norm from mine to market will in many ways define the mining industry in the future.”
Bataar said
innovation across the African mining landscape was set to increase in the coming years as was the adoption of
technology.– Liesl
Venter
Rio Tinto expects to see at least 40 million tons of additional iron ore supply coming on stream in 2017.
According to Elias Scafidas, who oversees Rio Tinto’s Simandou iron ore project in Guinea, strong margins are expected in the iron ore business for the coming year.
“Most iron ore producers faced significant volatility in 2016 and there is increased uncertainty in the global market – with the potential to impact not just commodities but also currencies, growth and industry fundamentals,” he said. “Stimulus from China due to ongoing infrastructure investment played a big role in 2016 and the country remains a focus for us. We expect ongoing stimulus in the China market.”– Liesl Venter
China boosts iron demand
The African experience shows there is value in challenging the norm. – Bold Bataar
“
Operational efficiency, improved productivity the goal
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MINING & MINERALS
16 | FRIDAY March 3 2017
Liesl Venter
Increasing exploration budgets remains a challenge for mining houses with budgets
still under pressure despite a more bullish approach to the sector.
According to Paul Ballantyne, a partner and portfolio manager at Genesis Investment Management, there have been no drastic increases in exploration spending.
“Companies are still very much in a down cycle mentality,” he said. “Peak discoveries were made more than a decade ago and since then there has been a decrease in spending on exploration. Companies are wary of spending too much
money to find resources that are hard and costly to get out of the ground and which no-one may want.”
Rob Hersov, founder of Invest Africa, however maintains that exploration remains the lifeblood of the mining industry.
He believes Africa can expect to see major investment in exploration in the coming years as companies continue to realise that the risk on the continent is not as high as possibly perceived.
Orlee Wertheim, head of business development at the Toronto Stock Exchange, said money was slowly starting to make its way back to exploration.
“We have close to 1300 mining companies on our
database and more than 1000 of them are in the exploration stage somewhere. We are seeing increased numbers of companies raising money for exploration.”
During a panel discussion on investment into greenfield projects at the Investing in Africa Mining Indaba in Cape Town recently, experts agreed that funding exploration remained challenging.
“I do think that money goes where the resources are,” said John Welborn, managing director of Resolute Mining.
“We are not involved in any greenfields projects in Australia as we just don’t have a competitive advantage there, but we are exploring
in Africa. The reason is that there are world class ore bodies still to be discovered on the continent and it is where the opportunities are.”
He said exploration was
increasing, particularly in those African countries where governments were realising the full potential of mining and had got it right. This included clear and
consistent mining codes and stable policies.
“Mali is possibly one of the best examples. It is a great country to be mining in. Not only have they implemented good policy and regulations but the approach is consistent,” he said. “Also they have ensured success around enforceability of the mining code with the legal system working well to give clarity when required.”
This was a major coup for a country that had major logistical and security challenges.
Mali, he said, being the third largest gold producer in Africa. would continue to draw explorers to its shores simply because of the enabling environment it had created.
Consistent policy attracts exploration in Mali
Not only have they implemented good policy and regulations but the approach is consistent.– John Welborn
“
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18 | FRIDAY March 3 2017
MINING & MINERALS
Liesl Venter
A nalysts predict real growth in commodities such as lithium,
cobalt and graphite in the years to come thanks to ongoing growth in fields such as electric vehicles and fuel cell technology.
According to Cameron Perks, a consultant at Industrial Minerals, prices for lithium as well as cobalt and graphite have been soaring, which is good news for the African continent since these resources are found in several countries.
“Lithium in particular is a battleground at the moment. It can be seen in terms of the prices that
are still at an all time high and it looks strong going forward,” he said.
There’s also likely to be growing demand for graphite, used in battery anodes and in the metallurgical industry.
Participating in a panel discussion at the annual Investing in Africa Mining Indaba in Cape Town recently, Perks and other panellists, including Hanre Rossouw, head of resources – frontier and emerging markets at Investec Asset Management, and Edward Lauer‚ head of portfolio optimisation at Eurasian Resources Group, agreed that these were the exciting commodities that would hold their prices in the next few years – especially
as demand for batteries increased.
Lithium, priced at around $7 per kilogram in June last year, had already hit the $20 per kilogram mark in February this year.
Prices for cobalt, also in high demand for batteries, have also risen in recent months and are up over 50% when compared to the same time last year.
According to Lauer, the strength of these commodities does not lie in their commercial
and residential use – even though demand is strong – but in the extended use in industries such as electric vehicles.
Currently these vehicles make up less than 1% of the total vehicle market but this will not be the case in
years to come as they become more accessible and more affordable.
Perks said there were around 350 lithium projects active at present and he predicted that demand for the commodity would continue to around 500 000 metric tons by 2020.
Commodities to watch as electric vehicle market gains traction
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Without regulatory certainty South Africa’s mining sector will remain under pressure, attracting little or no investment.
According to Mike Teke, president of the Chamber of Mines, the first step in achieving any certainty will require the finalisation of the Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill.
This much-debated piece of legislation was referred back to Parliament by President Jacob Zuma in 2015 where it spent nearly two years before being
passed in November last year. It is currently with the National Council of Provinces (NCOP) for their
go-ahead. Assuming the NCOP approves the Bill it will be returned to the president’s desk for assent and then gazetted as a final step.
“Industry requires certainty and clarity over this legislation,” said Teke.
“We are competing with jurisdictions around the world. The only way we stand a chance is to provide a clear policy and regulatory environment.”
Teke welcomed an announcement by the minister of mineral
resources, Mosebenzi Zwane, that the bill would be finalised by no later than June and that the Mining Charter would be
gazetted by March, saying that industry had a right to know the content and status of the process.– Liesl Venter
South Africa must be globally competitive if it wants to see growth in its mining sector, according to Mike Fraser, chief operating officer, South 32.
Yet the competitiveness of the industry remains a challenge.
“For some time input costs have been rising above inf lation while resources are declining in quality and are less accessible,” said Fraser. “Improving productivity is one of the critical factors in creating shared value and growth. This is one of the reasons why South Africa’s ranking as a mineral destination does not equate to the country’s mineral wealth.”
Fraser said the solution could only be found in better collaboration and enhanced trust between stakeholders.
Recipe for growth
Regulatory certainty critical
The first step will require the finalisation of the Mineral and Petroleum Resources Development Act Amendment Bill.– Mike Teke
“
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Liesl Venter
In a world of political and economic uncertainty, gold seems to be the one
commodity holding its own.This is good news for
Africa and South Africa, still heavily reliant on gold mining.
With most analysts predicting that the buying of gold is set to increase in 2017, expectations are that demand for the commodity will rise in the next few months.
According to Mark Bristow, CEO of Randgold, there is major opportunity for gold mining in Africa, but he says it has to be a long-term approach rather than a reaction to short-term market demands.
“Global sub-Saharan Africa – excluding South Africa – boasts as many reserves as Australia, more than Canada and the US and other more infrastructurally endowed regions.”
Harmony Gold COO Philip Tobias said that Brexit and the election of Donald Trump were to the
advantage of South African gold players. “We have done a very lucrative short term hedging programme, hedging the currency and the gold price and we are benefiting from that.”
He said the gold market in South Africa did, however, need to improve efficiencies if it wanted to remain
competitive in the world arena.
Economist Dambisa
Moyo believes buying gold is possibly the best investment in the current turbulent economic times.
There’s also an expectation that demand for gold in China will increase in the next year.
“China saw demand in 2016 that equates to around 80% of South Africa’s total gold production,” said John Mulligan, a member of the World Gold Council. “We have not seen anywhere near the real demand coming out of China when it comes to gold. There are still up to 300 million people in China who don’t have access to gold today. We will see a continued and very major increase in demand from China. It will be the biggest market in the long term.”
Gold a safe bet in current economic uncertaintyInfrastructure development
is happening but the pace of delivery remains slow.
President of the Chamber of Mines, Mike Teke, told FTW he was enthused about the number of projects – and planned projects – around infrastructure across Africa, but they needed to be taken to the next level.
Citing the Grand Inga hydropower project, he said there was no doubt that Africa had great visions but was slow in delivering results.
“We can accelerate it but we are going to have to work together as regions to do that – sharing best practice and resources.”
He said the involvement of the private sector was just as important. “We will only deliver the necessary infrastructure if we work together with governments.”– Liesl Venter
Regions must work together
FRIDAY March 3 2017 | 21
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Landside and port logistics operator, FPT Group, has diversified its service offering to provide both inland and port quayside logistics solutions for specific mineral commodities, catering for up to 100 000 tonnes per month of bulk storage and shipping capability.
The new solution includes warehousing, containerising and shipping of minerals. “Since the diversification, FPT has already shipped approximately 200 000 tonnes of bulk minerals and we plan to ramp this up to one million tonnes per annum over the next five years,” said Francois Marais, executive manager: business development.
He told FTW that the diversification had been achieved by forging strategic partnerships with existing market players
along with conversions of some of its quayside infrastructure. “Due to the cyclical nature of the commodity market, FPT will remain diversified in
terms of its service offering – with mineral commodity logistics making up part of its growth expectations for the future,” said Marais.
He pointed out that the sustainability of the sector
was threatened by policy and regulatory uncertainty on the African continent as well as the possibility of decreased demand from the developing world. “This, coupled with inadequate
logistics infrastructure and the increased cost of labour and electricity, poses the biggest challenge,” Marais commented.
He suggested that this could be addressed if governments focused on creating policy and regulatory certainty and on fostering stronger private/public partnerships. “This would lead to local and foreign investment in the industry and create a more sustainable sector,” said Marais.
He added that efficiencies could be improved and excessive costs reduced if mining companies partnered with the right service providers to assist with their inbound and outbound logistics. “Switching more commodity transport from road to rail and reducing the amount of handling points could give them a competitive edge,” Marais said.– Adele Mackenzie
Ambitious plans to ramp up bulk mineral volumes
FPT has already shipped approximately 200 000 tonnes of bulk minerals and plans to ramp this up to one million tonnes per annum over the next five years
22 | FRIDAY March 3 2017
Alan Peat
A new inspection team under the flag of the Department of Agriculture, Forestry and Fisheries (Daff) has been tasked with conducting investigations of local and imported animal and processed products.
It’s effectively quality control, Billy Makhafola, the department’s acting director for food safety and quality assurance, told FTW. “Do they comply with the standards?” he said.
This new operation, he added, had been created to enforce the regulations of the Agricultural Product Standards Act (APSA), 1990.
To accomplish this, the department’s government gazette notice designated three assignees in January to inspect various locally produced/manufactured as well as imported animal and processed plant products.
They were designated in terms of section 2(3) of the APSA and “will be responsible for the implementation of section 3 and its associated supporting sections”.
But this relatively bland-sounding body has teeth. Any one of the three assignees can stick its investigative snout into any of its designated products at any point along the supply chain – including factories, processing facilities, distribution centres, retail outlets, and ports of entry.
It can demand
inspection rights at any of these points, and the cost will be for the owner/seller/importer of the products.
“The cost of inspection will be based on gazetted tariffs,” said the government notice. “Cost recovery. That’s what we’re looking for,” said Makhafola.
Queried on the motivation for an inspection and penalties for non-compliance, Makhafola was unclear on the department’s stance. But, he told FTW, they were being guided by the practices of the Perishable Products Export Control Board (PPECB).
Also, he noted that the designated assignees “are busy setting up and talking to the stakeholders.”
And FTW was led to believe that these consultations may revolve around such things as motivation and penalties.
Queried about the timeline for start-off, Makhafola said that it would only be after these talks had been concluded. “The first assignee (Agency for Food Safety) will start mid-March and the other two (Nejahmogul Technologies and Agric Services, and Impumelelo Agribusiness Solutions) in April/May.”
The department’s promotional release offers quality control heaven. “The importance of implementing these regulations will result in the promotion of fair trade practices, consistent quality products and consumer protection,” it said. “The enforcement of the regulations will further result in the prevention of poor quality products being imported into SA.”
But it says nothing about the lack of manpower and skill sets that seem to bedevil most of these recent government control
bodies. Nor
about the usual result of this – delays, delays, delays and costs. Nor finally corruption potential, where “speed me up” bucks could cross hands.
New quality control body to oversee agricultural products
Three assignees will be responsible for the application of the local/import regulations relating to the products for which they have been appointed.* Nejahmogul Technologies
and Agric Services: Dairy and imitation dairy products, edible ices;
* Agency for Food Safety: Poultry meat, eggs and “Any other meat and meat products for which regulations may be promulgated”;
* Impumelelo Agribusiness Solutions: Processed products (fruit juices and drinks, frozen fruit and vegetables, jam, jelly & marmalade, rooibos, honey, table olives, fat spreads, mayonnaise & salad dressings and vinegar).
Canned processed products (canned pasta, canned mushrooms, canned fruit and canned vegetables)
Regulating companies
The European Union chamber of commerce and industry in southern Africa is set to meet with Minister of Transport Dipuo Peters in an effort to establish an equity equivalent programme for major automakers operating in South Africa.
Much is at stake for the companies which are required to give 51% of their equity to a local company or individual to
qualify for the maximum 25 points under ownership in the transport sector’s
B-BBEE scorecard.
“These are major automobile manufacturers that operate in the local transport sector,” said Stefan Sakoschek, regional director of the chamber.
“They are simply not in a position to hand over 51% equity. Therefore they are not able to access those points and it affects their B-BBEE rating significantly.”
He said in light of this the chamber was attempting to negotiate an equity equivalent programme with the transport minister.
“This will see these businesses contributing large sums to a fund that can be used to train and create employment in the sector. In return it recognises some of the equity requirements and allows the companies at least some of the points allocated in this category.”
He said a meeting had been scheduled for the end of February where the chamber would present its proposal to the minister.– Liesl Venter
Automakers seek B-BBEE ‘compromise’
Major automakers are simply not in a position to hand over 51% equity.– Stefan Sakoschek
“SA Revenue Service Customs has put in place a formula that provides a standardised measure of what constitutes a repetitive stop.
“A letter was sent to trade in October last year explaining the escalation process in the case of repetitive stops,” a Sars spokesman told FTW. “If cases are found to be repetitive, a desk audit is conducted by Sars officials where document verification is done and further confirmed by a technical reviewer.”
Sars gave its undertaking in September last year that a uniform formula would
apply in every processing centre – in Durban, Cape Town, Alberton and Doringkloof.
And according to the spokesman, the formula has met with positive feedback from industry.
Sars explains that risk rules within the system consider a number of behaviours and other variables, which is why shippers of a particular commodity often find their goods repeatedly stopped until the risk has been eliminated – but it’s the goods that are being targeted rather than the shipper.
Sars applies ‘formula’ for repetitive stops
FRIDAY March 3 2017 | 23
The Organisation Undoing Tax Abuse (Outa) will prove in court that Sanral’s summonses for billions of rands in unpaid e-toll bills are unlawful and that motorists don’t have to pay up, when a test case comes before the Gauteng High Court later this year.
Outa chairman Wayne Duvenage told FTW that the organisation was confident that it had a strong case to win the fight. Its lawyers are currently preparing and engaging with Sanral’s lawyers to finalise the technical parameters of the case. Duvenage said the case was “multi-faceted” and in part focused on the “workability” of the e-tolling system and whether Sanral had photographs proving motorists had passed through gantries – as well as the long-held allegation that the agency had not conducted meaningful consultation with the public before implementing the system.
It’s a case that fleet owners in particular will be watching with intense interest. According to Outa, bills across the road user spectrum range from R200 to R1 million. “We have identified a couple of cases for the test case,” said Duvenage.
Sanral spokesman Vusi Mona has denied the allegation regarding a lack of public consultation, citing a 2012 North Gauteng High Court judgment that sufficient public consultation had taken place and that public consent was not required for financing of the project.
Outa appealed to the Supreme Court of Appeal which refused to decide on the
merits of the case but rather ruled largely on the technical basis that there had been too long a delay in challenging e-tolling.
Duvenage said this kept the door open for a collateral challenge where citizens could decide not to pay e-tolls and defend prosecution for failure to pay on the basis that the toll declarations and approval by
the Minister of Transport were allegedly unlawful. “We believe there is no way a judge can find anyone guilty of ignoring a law that was put in place unlawfully. In our defensive challenge we
will prove that this has been introduced unlawfully,” he said.
“Outa will show, as was shown in the Cape High Court ruling on their e-toll matter, that a project of this nature does indeed need to have meaningful consultation with the people. Their efforts regarding public engagement and consultation were grossly inadequate,” Duvenage said.
“How was it conceivably
possible that operations managers and owners of the largest fleet companies, road freight companies and couriers knew nothing about the scheme until the gantries went up?”
Duvenage said Sanral had indicated its intentions to run “a case or two” outside Outa’s member base to press criminal charges for e-toll non-compliance. “We would like to alert the public to be aware that if they receive a summons from Sanral, they should act and not ignore this. Outa’s website contains details of how to react when a summons is received,” Duvenage said
Mona said the agency had prepared 6286 summonses against motorists for outstanding toll fees totalling R575 million since April 2016.
“The summonses are a first step to recovering R6.2 billion owed in toll fees. Sanral is also in the process of preparing bulk
summonses for outstanding debt.”
Mona added that motorists owed Sanral R11.4 billion as at 30 September 2016 – and the agency had not yet reached an agreement with Outa regarding the test case..
“We are involved in a process with Outa which
may result in agreement to the arguments that will form part of a test case. The agreement with Outa is that until such time that such agreement is reached, both parties will not discuss the matter in public forums. If a test case is
agreed, the parties will make the announcement,” he said.
Non-payment of a toll was “both a criminal and civil offence” in terms of Section 27 (5) of the Sanral Act, he added. The first e-toll offender was successfully prosecuted in September last year. – Lyse Comins
Sanral has prepared 6286 summonses against motorists for outstanding toll fees totalling R575 million since April 2016.– Vusi Mona
“Outa’s website contains details of how to react when a summons is received.– Wayne Duvenage
“
E-toll showdown set down for later this year
LAST WEEK’S TOP STORIES
BUDGET REACTION: ‘Government is on the brink of fiscal catastrophe’The national budget – presented by the Minister of Finance, Pravin Gordhan, yesterday (Wednesday) – suggested “a government at the brink of fiscal catastrophe and without a plan for either growth or austerity”, according to the chief operating officer of the Institute of Race Relations (IRR), Gwen Ngwenya.
MSC merging with Ignazio Messina?There are reports doing the rounds about talks between Geneva-based Mediterranean Shipping Company (MSC) and Genoa-based Ignazio Messina.
Budget – R36bn to get freight movingGovernment has made some R36.2 billion available to maintain and upgrade the country’s logistics infrastructure and to stimulate economic growth which would get freight moving.
Large-scale producers largely unaffected by tomato pest import banIn the wake of an outbreak late last year of tomato leaf miner (TLM) in South Africa, the Seychelles has placed a temporary import ban on the fruit.
Vessel Voy Dbn PE/Cga C.T. Las Palmas Lon G/way R’Dam Ham Ant Le Havre
MSC ALGECIRAS N1712 26/02 04/03 09/03 19/03 23/03 25/03 26/03 29/03 31/03
MSC BILBAO N1713 06/03 11/03 14/03 25/03 30/03 31/03 02/04 04/04 07/04
MSC SEATTLE N1714 17/03 22/03 25/03 05/04 10/04 11/04 13/04 15/04 18/04
MSC PARIS N1715 20/03 24/03 29/03 09/04 14/04 15/04 17/04 19/04 21/04
MSC ANTIGUA N1716 27/03 01/04 06/04 17/04 22/04 23/04 25/04 27/04 29/04
GENERAL AGENTS DURBAN(031) 570-7800
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PORT ELIZABETH(041) 373-1399
JOHANNESBURG(011) 263-8500
RICHARDS BAY(035) 789-2438 www.diamondship.co.za
FTW
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S O U T H B O U N D
Vessel Voy Lon G/way R’Dam Ham Ant Le Havre CT PE/Cga Dbn
MSC PARIS S1712 - - - 25/06 26/02 15/03 17/03 20/03
MSC ANTIGUA S1713 26/02 27/02 01/03 03/03 05/03 22/03 24/03 27/03
MSC ALTAMIRA S1714 05/03 06/03 08/03 10/03 12/03 29/03 31/03 03/04
MSC ADELAIDE S1715 12/03 13/03 15/03 17/03 19/03 05/04 07/04 10/04
MSC SINDY S1716 19/03 20/03 22/03 24/03 26/03 12/04 14/04 17/04
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R700 million to truck owners, with 2.5 million tonnes of steel moved by road.
Amsa CEO Wim de Klerk said TFR’s shortcomings meant that around 1.3 million tonnes of total Amsa product was taken by trucks, of which iron ore constituted 900 000 tonnes, for which Amsa paid an additional R535 million.
Over two years in the making, the Grindrod-operated facility will support the strategic direction of Amsa’s steel distribution programme and is the result of a determined, collaborative effort between Transnet, Barloworld Logistics, Amsa, Grindrod and Newlyn Investments.
Barloworld Logistics put together the rail terminal – within four months – and will continue to optimise and interface with various components of the steelmaker’s supply chain.
Department of Trade and Industry Minister, Dr Rob Davies, explained that government had
provided support to Amsa with tariff adjustments, and through redefinition of the designation for its Infrastructure Build Programme (IBP).
South African-made steel products now qualify for the IBP’s localisation determinations.
The steel industry contributes 1% to the country’s GDP and provides direct employment to between 100 000 and 200 000 people, not including sub-contractors and downstream beneficiaries.
On December 2, 2016 Amsa transported steel from Newcastle to the Randfontein intermodal terminal, the first time that facility had received rail cargo in almost 15 years, following a six-month revitalisation project.
That marked the beginning of a process that will see the construction of a R140-million dedicated distribution centre for Amsa at Grindrod’s intermodal terminal in Denver, Johannesburg, over the next three years.
Partnership ramps upFrom page 1
Liesl Venter
European business confidence in South Africa has declined in the past two years despite companies seeing an increase in turnover.
This was the outcome of a survey conducted by the European Union (EU) Chamber of Commerce and Industry Southern Africa late last year.
According to Stefan Sakoschek, regional director of the chamber, this is the third survey of its kind aimed at measuring the general business and investment climate in the country.
More than 200 European companies – of which nearly 40% derived a turnover of more than R250 million – took part in the survey at the end of last year.
“The survey highlights some grave concerns,” said Sakoschek at the launch of the findings in Cape Town last week. “Firstly, it indicates that the overall EU investor's satisfaction in South Africa has deteriorated since the 2014 Business Climate Survey and even more so since 2012 when the White Book on Trade and Investment in
South Africa was drawn up. The main concerns are around the currency volatility, government corruption and responsiveness, as well as compliance with B-BBEE legislation.”
He said another major finding was that there was at present a high degree of uncertainty among the EU companies about the future business climate in the country. At least 30% of respondents expected the business climate to deteriorate over the next twelve months while another 48% predicted it would remain as unstable as it currently is.
“Rising prices, including the cost of water and electricity, were cited as another key challenge putting strain on operations,” said Sakoschek. “The continued volatility of the rand is also concerning as it exposes EU companies to
fluctuations in revenue and the cost of raw materials as well as higher import costs. The cost of compliance with B-BBEE is also very high.”
Issues around inconsistent government policies, the lack of transparency and overall
corruption were also concerns, he said
According to Sakoschek, the findings of the survey guide the chamber, which represents EU companies in South Africa, in its discussions with government
and other stakeholders.“It has to be said that
despite the worsening investment outlook, many of the EU investors in South Africa have increased their turnover and have created jobs in the past three years. South Africa continues to maintain an advantage in comparison to other African countries,” he said.
EU confidence in SA slides
The main concerns are around the currency volatility, government corruption and responsiveness.– Stefan Sakoschek
“
In line with its mandate of moving away from a traditional gatekeeper regulatory role to becoming an economic facilitator of legitimate trade, SA Revenue Service Customs is translating talk into action.
“With regard to non-
intrusive Inspection (NII) technologies, we plan to expand our current cargo and baggage scanning capability to cover air cargo this financial year,” a Sars spokesman told FTW. The first scanner is likely to be introduced at OR Tambo International Airport.
Cargo scanners have been introduced in the ports of Durban and Cape Town as well as at Beitbridge border – all part of Sars’ objective to achieve the right stops, to intervene as little as possible, and to be as non-intrusive as possible.
Cargo scanning to be extended to airfreight
