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SPECIAL fEAturE
JuLY 2009frEIGHt & trADING WEEKLY
Signs of an upturn after the dipZambia
FTW1634SD
JULY 2009 | 1
Editor Joy OrlekConsulting Editor Alan PeatContributors Liesl Venter Advertising Carmel Levinrad (Manager)
Yolande Langenhoven Claire Storey Jodi Haigh
Managing Editor David Marsh
CorrespondentsDurban Terry Hutson
Tel: (031) 466 1683Cape Town Ray Smuts
Tel: (021) 434 1636 Carrie Curzon Tel: (021) 674 6935Port Elizabeth Ed Richardson
Tel: (041) 582 3750Swaziland James Hall
Advertising Co-ordinators Tracie Barnett, Paula SnellLayout & design Dirk VoorneveldCirculation [email protected] by JUKA Printing (Pty) Ltd
Annual subscriptions RSA – R425.00 (full price)
R340.00 (annual debit order) Foreign on application.
Publisher: NOW MEDIAPhone + 27 11 327 4062
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Page 2 Waiting out the storm …
Page 3 Lusaka office drums up Zambia business
Page 4 Zambian agents voice concern over new bond scheme
Page 5 ‘The ideal base for DRC business
Page 6 Environmental awareness an important part of the mix
Page 6 ‘When times are tough innovation is the name of the game’
Page 7 ‘Briefcase operators’ destabilise forwarding industry
Page 8 Consolidating facilities to offer one-stop shop
Page 9 Gloomy Valentine’s Day for flower export industry
Page 10New Ndola head office includes warehouse with rail siding
Page 11 Investing in depot upgrades
Page 12 ‘Despite the challenges, road freight is king’
Page 13 Ground handling and clearing company targets perishables
Page 14 Zambia presents a mecca of opportunity for SA business
Page 15 Customs officer turned clearing agent offers advice
Page 17 Agriculture gets new focus as commodity prices dip
Page 18 New container hub represents R6m investment
Page 19 New regional carrier targets freight
Page 20 ‘Copper price can turn quickly’
Page 21 MACS commits to growing Zambian business
Page 22 Companies have adapted quickly to the crisis
Page 23 In Zambia it’s feast or famine
Page 24 Full truckloads moving on a daily basis
Page 25 The Zambian economy in a nutshell
Page 27 Infrastructure upgrades on the cards
Page 27 ‘Fast becoming an Africa specialist’
Despite the slowdown in mining-related business as a result of the global recession, Zambia is providing opportunities beyond the traditional copper mining and export trade.
And with some indication that the copper price is firming, operators in the region are upbeat, as FTW’s Liesl Venter discovered when she visited the country last month.
Cover photo and concept: Liesl Venter and Dirk Voorneveld.
FTW1744SD
2 | JULY 2009
By Liesl Venter
As the global economic crunch hit Africa, Zambians in particular felt the pinch – thanks largely to their
dependence in recent years on the mining industry.
The falling copper price brought mining to a near standstill and all around the country the reality of a global recession set in – the good times were over.
And Zambia more than most African countries had had some fantastic years. With the demand for copper growing, and the subsequent huge price increase for the commodity, the economy was not just booming – it was exploding.
According to David Chimfwembe, Lusaka area manager for Manica Zambia, the country had seen huge investments, but suddenly things were changing quickly.
Most experts in the country agree that companies were in a position to plan somewhat as the ripple effect of the American recession took some time to reach the landlocked country with its population of 12 million.
But with so many industries having placed their eggs in the mining basket, there was not much they could do and
many were reeling as the credit crunch hit home.
Richard Hall, owner of Ka Go 2 Go, said as many mines came to a complete standstill, the effects were felt even in South Africa as imports and exports came to a halt.
“Companies had to diversify and find ways of making an income. We also found that much less stock was being kept in other industries, so the decrease in mining affected most industries.”
Zambians agree they may have been too dependent on the mines. It was lucrative and they were making money. The Zambian government, however, has responded to the crisis by pursuing a diverse economic programme.
Much emphasis is being placed on agriculture with the idea of creating more formal and informal employment opportunities. There is no denying the continued importance that copper and cobalt will have on the country, but spurring economic growth in a variety of ways has become the focus.
“The country has significantly improved in recent years,” says Jeff Smit, managing director of Cross Africa. “There have been major investments in infrastructure and they are ensuring that
it continues. The roads in particular have been improved – and the weighbridges that in the past had been a major concern are now working very well.”
But for the time being the yards remain empty. “We are all just waiting out the storm,” says Piet la Grange of Professional Consolidators. “Zambia was in a good position to anticipate the slowdown, but it has been a difficult few months.”
Zambians are however making the best of a bad situation.
On the streets of Lusaka people
continue to make a living selling their goods at stores along the road or in small markets. It is a country where one person supports an average of 20 people.
Poverty eradication remains a high priority for the government, which is committed to seeing the country again continue its upward growth of the past few years.
“It is a country of either famine or feast – that is the way we are,” says one man, selling flowers at a street market. “We are a peaceful nation with a lot going for us.”
Waiting out the storm …Copper price dive reaffirms need for diversification
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By Liesl Venter
Very few transport corridors have been expecting positive growth taking the
global economic meltdown into consideration, but that’s not true of the Walvis Bay Corridors which are gradually coming of age.
The three corridors that include the Trans Caprivi (TCC), Trans Cunene (TcuC) and the Trans Kalahari Corridors (TKC) saw a dramatic growth of 63% in May this year compared to the same time last year, according to Agnetha Mouton, WBCG business development officer.
“Along the TcuC, through the Port of Walvis Bay, cargo destined for Angola has seen an average of 136 trucks moving cargo along this corridor,” said Mouton. “And since the completion of the Sesheke Bridge, and the opening of a Lusaka office in Zambia, the TCC has experienced a gradual increase in cargo of more than 150%.”
Mouton says that the development of facilities and infrastructure along the three corridors has gone a long way in building confidence for the routes
that provide an ideal opportunity to add economic value to countries like Angola, Botswana, the Democratic Republic of the Congo, Zambia and Zimbabwe through transport.
“The Namibian government has been very committed in efforts to upgrade the road and rail connections linking the Port of Walvis Bay with its neighbours so that the corridors can handle the increase in volumes of cargo.”
She said commitments from neighbouring countries have also played a major role in the growth of the corridors with their infrastructure also being upgraded to ensure the smooth flow of cargo.
“These routes have become popular alternatives for importers and exporters especially for the increased copper exports through the Walvis Bay Port,” she said. “To enhance the utilisation of the TKC we opened an office in Johannesburg in an effort to increase our business representation. This alternative trade route offers Gauteng and Botswana importers and exporters a time saving of five to seven days.”
She said there was no doubt that
through the Walvis Bay Port and corridors commodity traders in the SADC region were able to put their
products on the international market earlier and vice versa via direct shipping links through Namibia.
Lusaka office drums up Zambia business
The Port of Walvis Bay ... enabling commodity traders in the SADC region to put their products on the international market earlier.
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4 | JULY 2009
By Liesl Venter
Zambian clearing and forwarding agents have appealed to the country’s Minister of Commerce,
Trade and Industry to think carefully before signing the regional customs bond guarantee scheme (RCTG).
With both Comesa and SADC working on RCTG, the aim of the scheme is to facilitate the rapid movement of goods within the regions with one bond irrespective of transit countries traversed. Experts on the matter argue that a regional customs bond guarantee would eliminate the avoidable administrative and financial costs that are associated with the current practice of nationally executed customs bond guarantees for transit traffic.
While Zambia has said it is not in a hurry to sign up to the RCTG and wants to be satisfied that issues relating to the scheme that could disadvantage Zambians have been sorted out, Zambian clearing and forwarding agents remain up in arms over the possibility of the scheme being adopted.
Understandably so, says Valerie Sesia, chairperson of the Zambian Customs
and Forwarding Agents’ Association. “Introduction of the RCTG will increase unemployment levels in Zambia and boost other countries’ economies to the detriment of our own.”
She says the main reason for the resistance to the implementation of a regional customs bond scheme – whether through Comesa or initiatives of the South African Development Community (SADC) – is that it appears that policies across participating states are weighed against Zambia. “The region as a whole must benefit, not just those that are geographically advantaged or whose manufacturing sector is far more advanced than ours.”
Sesia says that the organisation has taken up the issue with the Zambian trade ministry in an effort to ensure that all their concerns are addressed.
“During March and April this year SADC regional groupings were the largest source of Zambia’s imports, accounting for 59.5% and 56.6% respectively,” says Sesia. “Within SADC South Africa was the major source of imports for Zambia, accounting for 82.7% in March.” Consolidated trucks carry a large number of the imports. Each
one of these shipments requires a bond to cover each individual consignment on the consolidated truck. That means that one truck could have 15 bonds raised where Zambian exports are mainly full truckloads of one single commodity being mainly minerals and agricultural products. Therefore, for each import truck of approximately 15 custom bonds, we would
export one truck covered by one export bond.”
According to Sesia the Zambian Customs and Forwarding Agents Association would only consider supporting the RCBG once these and other concerns are addressed.
“It needs to be a fair playing field and at present it is anything but that.”
Zambian agentsvoice concern over new bond scheme‘Introduction of the customs bond scheme will increase unemployment levels in Zambia’
FTW0016SP
A flower vendor plies his trade ... Zambian agents are concerned that the introduction of the regional customs bond guarantee scheme will boost other countries’ economies to the detriment of their own.
JULY 2009 | 5
FTW0703SD
UK OfficeTel: +44 (0) 1206 562900 [email protected] Kerry Spencer
RSA Office Tel: +27 71 6868717 [email protected] Maddox
Zambian OfficeTel: +260 966 538883 [email protected] Ruud Walgaard
African Cargo Services specialize in the provision of “door to door” logistical services to the mining, metal trading and soft commodities sectors for both import & export cargoes, as well as providing a more traditional “port to port” freight broking service. We are a highly respected market leader, with over 17 years experience and pride ourselves on providing a prompt, secure and reliable service at a competitive price.
Website: http://www.acsl.co.za
By Liesl Venter
Zambia is ideally situated for companies wanting to get a foothold in the Democratic
Republic of the Congo (DRC).Politically stable with no language
barriers as English is spoken everywhere, the country is on the doorstep of the DRC.
According to Hiten Bhagat, general manager of Hill + Delamain in Zambia, the country is an ideal base for those wanting to get a foothold in the DRC.
“Zambia is literally on the doorstep and there are many opportunities to work from here into the DRC.”
He said while many mines had either closed down or turned to care and maintenance projects due to the economic crisis, there were still
opportunities for the country.“We need to set up manufacturing
sites in Zambia to tap into the Congo. There is a lot of potential and more incentives should be put in place to realise more manufacturing.”
He said there was no doubt that most Zambian companies had been affected by the global economic crisis. “I see what we’re going through more as a road bump. We have reduced the cost of doing business and made some changes, but I am convinced that we have a bright future,” said Bhagat.
‘Zambia the ideal base for DRC business’
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Hiten Bhagat ... ‘I see what we’re going through more as a road bump.’
Zambians embracing new orderBy Liesl Venter
Zambians are doing it for themselves and are finally moving into the light.
Across the country experts agree that as the country has finally moved out of years of extreme control, the costs of doing business have come
down with more players stepping in.David Chimfwembe, Lusaka area
manager for Manica Zambia, says with less control the doors have opened for entrepreneurs and smaller players. “There is more competition than ever before with many opportunities for entrepreneurs and
smaller market players. The country is coming into its own and we are in a good position to move into the future.”
Adrian Friend, managing director of Celtic Freight, agrees saying there is plenty of opportunity. “The country has good infrastructure compared to many of its neighbours and it is
politically stable and safe.”Zambians, best described as
friendly people, have come to understand where they are heading and what they want to achieve.
On the streets of its capital, Lusaka, people welcome foreigners bringing in investment and opportunity.
6 | JULY 2009
FTW4426
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FTW3744
By Liesl Venter
Environmental protection and pollution prevention are critically important for responsible carriers
of cross-border freight, according to Nesh Freight International, a specialist freight forwarder with dedicated routes between South Africa, Malawi, Zimbabwe and Zambia.
“We have accepted these responsibilities and have implemented numerous cutting edge best practice policies to address environmental protection,” says the company’s
director, Ranesh Reddi. “We have strong values that the company abides by. Integrity is an important part of our company culture.”
And part of that is to move consignments from collection to destination in the most cost-effective, efficient method while embracing environmental conservation and safety standards.
“Protecting the environment and controlling harmful emissions to conserve energy and natural resources and to contribute to environmental protection is very important to us.”
With an office in Zambia the company is able to handle any consignment to the country efficiently, says Reddi. “It is important to develop and promote cross-border African trade, growing not only the South African economy but also those of our neighbouring countries.”
an important part of the mixEnvironmental awareness
By Liesl Venter
Just over a year ago trucks to Zambia could not keep up – in fact, the backlog in cargo was becoming problematic.
But the global economic meltdown saw the scenario change overnight.
According to Celtic Freight managing director Adrian Friend, people could not move cargo fast enough. “Things changed dramatically. Obviously the volumes came down, but
also price become a major factor. “In many cases price became the
determining factor with many not too worried about when cargo would arrive, but rather how much it would cost.
“While it is tough going at the moment, there is opportunity in these times. Having the infrastructure in place and sitting on the ground, we at Celtic Freight realised we could try our hand at business we would otherwise
never have taken on.”Friend says there is no doubt that
now is the time for innovation in one’s business models. It is also about finding ways of standing out in a crowd.
“There is a lot of competition for business and one must always be one step ahead,” says Friend. “We increased our yard operations, updated our systems and extended our reach by being willing to do a variety of work
and not just specialising in one or two things.”
While Zambia still has some major issues to overcome such as infrastructure upgrades there is much happening to ensure this.
“Roads are being repaired and communications and electricity are being addressed. Add to that the fact that it is a safe country to travel in and politically stable – there is much opportunity here.”
‘When times are tough innovation is the name of the game’
Ranesh Reddi ... numerous cutting edge best practice policies introduced.
JULY 2009 | 7
Project2 7/22/08 12:40 PM Page 1
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By Liesl Venter
As clearing and forwarding finally comes into its own in Zambia, another problem is raising its ugly
head – agents who trade far below the going rates.
Known as the Chimutengo Boys (translated as the boys with offices under the trees), they are nothing but briefcase operators who target prospective clients at the Lusaka airport and at the border posts.
David Chimfwembe, Lusaka area manager for Manica Zambia, who is writing a thesis on the Zambian clearing and forwarding industry for his MBA, says the Chimutengo Boys are a challenge for the industry as they cannot really be stopped.
“Questionable dealings are often part and parcel of what they do. They clear cargo for far below the going rate and there are people who use them because of that. It is however a very dangerous decision,” says Chimfwembe. “There has been too much of a mushrooming of agents and in a way it seems out of control. The Chimutengo Boys are one
result of this.”While they clear quickly and cheaply,
they target some organisations with inventive ways of clearing. “It would be very difficult to draft these agents into our ranks,” says Chimfwembe. “While they are offering the same service as us, they are cutting costs and companies should be careful as they have no investment and no credibility. If something goes wrong such as misapplication of customs tariff codes or queries from customs later, you will not find them – they go underground.”
Chimfwembe, who has done much research on the forwarding and clearing industry in Zambia for his thesis, says despite the challenges posed by the Chimutengo Boys the industry is developing and is in a good position for the first time in years.
“Many opportunities are being presented and the costs of doing business per se are lower. Smaller players are also finally stepping up and penetrating the market that for a long time was controlled by a few big role-players, once referred to as the big five of the industry. We are seeing entrepreneurs developing and there is more competition than ever before.”
He said Zambia had some unique challenges to overcome, but also plenty of opportunities.
“The days of control are over and it is now easy to set up a business and challenge the bigger companies.”
‘Briefcase operators’ destabilise forwarding industry
David Chimfwembe … ‘We are seeing entrepreneurs developing and there is more competition than ever before.’
FTW1746SD
By Liesl Venter
Having converted its newly acquired premises in Lusaka into a one-stop shop, Celtic Freight is set for
business growth.According to owner and managing
director Adrian Friend, the decision to have two premises in Zambia was revised and everything was brought under one roof.
“There is more control and security having only one depot while it also ensures a more efficient service.
“We started building about a year ago and still have at least another six months to go before we have finished, but this is going to be worthwhile as it will really make us more effective and competitive.”
Moving more than 4 000 tons of cargo every month into Zambia, there are very few services that Celtic Freight doesn’t offer or places in the country it doesn’t serve.
“We do a little bit of everything,” says Friend. “We have always been known
for being able to do the bits and pieces. Now more than ever is the time to be innovative. At this depot, for instance, we offer containers as storage space to companies or individuals – they can either come and pack their own container or we do it for them.”
With a weighbridge on site, cranes and specialised equipment, as well as large warehouses, the company is geared to service any industry.
“We do a lot of container work and now own just over 200 containers. It is much cheaper to use one of our containers than one belonging to a shipping line – so once the cargo arrives in Durban, we repack it into our containers before it is transported to Zambia.”
According to Yogesh Kuntawala, who heads up the Zambia operations, it is important that everyone in the company spends some time in Zambia. “They must see the routes, experience the border and be able to understand what happens at this depot. That way all our staff know the ins and outs of the business.”
Celtic consolidates facilities to offer one-stop shopMoving more than 4 000 tons a month into Zambia
Adrian Friend … offering containers as storage space to companies or individuals.
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JULY 2009 | 9
By Liesl Venter
The height of the flower season in Zambia saw the country experiencing its
worst Valentine’s Day ever with the demand for flowers at an all time low.
According to Colin Rhoda, managing director of Zega Limited, as the demand for exotic vegetables and f lowers continued to decrease after the economic crunch in September 2008, the perishable industry in Zambia found itself in a crisis situation.
“We have managed to stay afloat so far by cutting costs dramatically,” said Rhoda. This includes reducing overtime of workers and evolving the shift system dramatically.
“We used to see three truck loads of vegetables heading out of Zambia on a weekly basis, now they are struggling to load one. Abroad the demand for Zambian roses came to a stand-still while the exotic fruit market has declined to a large extent.”
Citing further problems such as the price of aviation fuel (Zambia’s costs are probably the highest in the region), the cost to move perishable goods has accelerated.
He said the continued assault on the cost of airfreight also had a major impact on exports and imports.
“It is just cheaper to move some vegetables that can handle a day standing by road to Johannesburg rather than f lying them out. We have become a lot more selective in what we do and we remain focused on keeping our costs low. Anyone who does not do that is not going to survive these
tough times.”Zega Limited started operating
in 1984 to facilitate the handling of perishable exports by air from Zambia. Originally set up by the Zambia Export Growers Association, most revenue today is made from ramp handling. “We diversified our business somewhat several years ago and it was a good thing too. If we were only reliant on the perishable industry, we would be dead today.”
Rhoda says that with volumes down between 30 and 35%, staying afloat is crucial at present. “We have not had to lay off any staff and we don’t plan to. We expect to see some rise in volumes later this year.”
Gloomy Valentine’s Day for flower export industryEconomic crunch squeezes exotic vegetable industry
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10 | JULY 2009
By Liesl Venter
ACS is more than ready for the future. One of the biggest movers of metals from Zambia,
the company has continued to make strategic decisions despite the global economic crunch.
Earlier this year the company moved its head office from Kitwe to Ndola in an effort to be as strategically based as possible.
According to Ruud Walgaard, regional manager of ACS in Zambia, having a regional footprint makes the company a strong and reliable force in freight forwarding. “We have offices in Dar es Salaam, Johannesburg, Durban as well as our Zambian offices – and that gives us good reach.”
After finding a strategically located warehouse with rail siding in Ndola, it made sense to make it their head office, said Walgaard.
“With this 2 500 m2 facility we are able to handle rail imports and exports comfortably. We can also offer transhipments from and to the DRC.”
With contracts not only in metal exports but also imports of fertilisers, polyprop granules and other consumables for Zambia, ACS, like most other companies, has felt
the impact of the global economic slowdown.
“Not so much in reduced volumes, but more in reduced trucking capacity and rate fluctuations. We’ve seen trucking rates changing twice a day,” said Walgaard. “We have to be on the ball to keep up and retain our market share. As the pie has become smaller, price has become an important instrument to keep our clients.”
The crunch, however, did not stop the company from continuing its philanthropic deeds, something for which it is known in Zambia.
“ACS sponsors ARTECO orphanage in Kabwe, where Marian Labouschagne is in charge of bringing up and caring for over 100 orphans,” said Walgaard. “Every year we organise a soccer tournament with the orphans and have a day of fun with them. We continue to help them as much as we can.”
Said ACS shareholder Kerry Spencer, who is based in Colchester, UK: “It is such a good feeling to give back to the people who really need it.”
Supporting the children of the ARTECO orphanage in Kabwe remains important to ACS.
New Ndola head officeincludes warehouse with rail siding
FTW0972SD
JULY 2009 | 11
By Liesl Venter
It is not all doom and gloom in the Zambian Copperbelt, says Chris Ayres, director of Bridge Shipping in Zambia.“With the slump in the copper price, we
have seen a marked decrease in volumes of metals being moved from the region in the first half of 2009 compared to the last two quarters of 2008,” says Ayres.
“The copper price is strengthening and we can therefore expect to see more activity from the mines, not just here in Zambia but also in the DRC. Although experts are still hesitant over trading prices, we are starting to see a lot more movement within the Copperbelt.”
Bridge, which has been involved in several exciting projects recently – like the forwarding of two transformers weighing in at 111 tons each to the new Chambishi Copper Smelter – is not letting
the slowdown in mining activity affect business.
With warehousing capacity to handle 20 000 tons of bulk and 12 000 tons of one ton bags per month, as well as road and rail weighbridges at its facility, the company operates one of the premium depots in the Copperbelt. Having recently refurbished the roads in its depot, Ayres says this was just one way of showing its commitment to the region.
“In a public-private partnership with our landlords, the Food Reserve Agency, this represented an investment of US$650 000.
“The rehabilitation has resulted in more efficient road traffic through our depot. This, we have proved, allows us to provide our clients with an efficient and complete supply chain solution through to our state-of-the-art facilities in Johannesburg and Durban.”
According to Ayres, the company continues to focus on northbound loads from South Africa to Zambia, project cargo and soft commodities coming into the country, and the tobacco industry.
Bridge is also involved in the
movement of project cargo from the Far East for the construction of the new stadium being built. The official Zambian soccer stadium will be situated just outside Ndola where work has already started on the massive construction site.
Bridge invests in depot upgrades‘Starting to see more movement in the Copperbelt’
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FTW4425
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Chris Chipimo and Chris Ayres ... ‘The copper price is strengthening and we can therefore expect to see more activity from the mines.’
Construction is set to start on the newly cleared site where the Zambian national soccer stadium will be built just outside of Ndola … Bridge has been involved in the movement of project cargo from the Far East for its construction.
12 | JULY 2009
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FTW4296
By Liesl Venter
Road freight remains the most reliable form of transport into Africa, says Steve Laurie,
operations director for Kuehne+Nagel in Lusaka, Zambia.
Not only are the various government departments and customs authorities going out of their way to improve services in an effort to move cargo more quickly, but infrastructure upgrades are also on the cards like the building of a bridge at Kazungula.
“Relying on the ferry is often problematic and the bridge will ensure that there are fewer delays and cargo will move faster.”
Laurie says there is no doubt that road freight remains the preferred mode of transport despite the issues around congestion at border posts and the often bad roads in some areas in Africa. “We have to make it work as there are not many other alternatives, especially in Zambia. There are no frequent freighter air services unless you charter one – and while rail freight is an alternative there have always been challenges.”
He said the turnaround times as well as the availability of rolling stock
was one of the major issues with using rail transport despite most companies having agreements with Transnet and other railways.
“Cargo is always urgent regardless of whether it is road, air or rail freight. Our clients cannot afford to wait weeks just to get loaded as is sometimes the case with rail.”
He said while Kuehne+Nagel concentrated mostly on the Durban and Dar es Salaam ports, the two alternative routes for Zambia – Beira in Mozambique and Walvis Bay in Namibia – were starting to be used more and more.
“Logistics providers only start to benefit when they’re able to provide cargo for inbound and outbound routes – otherwise it is not viable. While the fuel price on road freight has come down, it still impacts significantly on cost. Therefore having alternative routes for the country is beneficial to our clients.”
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FTW4452
Steve Laurie ... ‘Turnaround times a major issue with rail transport.’
JULY 2009 | 13
By Liesl Venter
The markets may have slumped and demand may still be on the decrease, but for Jonathan
Lewis, managing director of NAC2000 Corporation, there is no better time to strategise and plan for the future.
A Zambian by birth, Lewis has spent the past few years in the UK. He worked as an investment banker before returning to Lusaka some six months ago to head up NAC2000 Corporation, a privately owned company providing aircraft ground handling and cargo clearing and forwarding services.
“When I arrived there was no clear strategy. In addition the company had been in limbo as for some time there was no-one making key decisions and implementing them. Turning all this around has been my key focus and drive.”
Plagued by the economic credit crunch, Lewis however set about finding ways to get the company back on course and already the results can be seen.
“We have acquired a piece of land at the airport where a cargo facility will be built in the future. This is all in the pipeline as we move the business into the future.”
The company is also determined to break into monopolies like the perishable market and to pick up more traffic at the borders. One of only
72 companies licensed to clear, there is much potential for the company, says Lewis.
“We are also taking the time to
look at how we do business. We are concentrating on customer service and ensuring that our clients are happy and that what we do, we do well.”
Ground handling and clearing company targets perishables
Jonathan Lewis …’ We have acquired a piece of land at the airport where a cargo facility will be built in the future.’
FTW1647SD
14 | JULY 2009
By Liesl Venter
Stabilisation of the political climate combined with major growth over the past 15 years
has turned Zambia into a mecca of opportunity for South African business.
According to Richard Hall of Ka Go 2 Go, Zambia forms the backbone of their operations.
“Zambia has seen phenomenal growth in the past few years. It now has an up-and-coming and stable middle class that provides much opportunity beyond the normal copper mining and export trade.”
While ten years ago it was near impossible to travel to Zambia without being harassed by police, the picture has changed dramatically. “Dealing
with government officials on a daily basis has given us confidence in the system and there is no doubt that things are improving for the better.”
Specialising in consolidations, Ka Go 2 Go offers an express and emergency service to Zambia.
“We have a bonded warehouse facility in Chingola and have over the years built up a network of reliable contacts,” says Hall. And having a footprint in the country makes it easier to ensure clients’ needs are always met.
“There are still challenges when moving cargo to Zambia – whether it be the ferry or the border posts – but all in all the opportunities are there. The improvements in Zambia have made a major difference to business.”
And while the impact of the global
By Liesl Venter
Zambian Customs is not difficult – but being a clearing agent is not as easy as many people think.
And Perry Siatulye, managing director of Halifax Freight Services in Ndola, should know – he started the company several years ago after years as a Zambian customs officer.
“There are too many clearing agents at present and some are just not as efficient as others. Zambia's economy was doing well, booming in fact thanks to the mines, and there were a lot of imports which of course led to people thinking they would give clearing a go as an easy way to make money,” says Siatulye. “But then when they don’t come right or they are in the wrong, then suddenly Zambian Customs is difficult. That is by far not the case, but you have to know what you are doing in this business.”
The importance of administration cannot be stressed enough, according to Siatulye. “Correct documents make all the difference. They must reflect the right amounts on the waybills, the invoices as well as on the descriptions while having documents available timeously ensures a smooth process.”
With offices at every border crossing in Zambia, Siatulye and his team are familiar with the processes and says clients should fax or email documents ahead of time.
“It just speeds up the process and ensures no delays when the
originals arrive.”His advice to people moving
cargo to Zambia is to familiarise themselves with the requirements of the country.”
Zambiapresents mecca of opportunity for SA businessCopper price stabilises signalling good times ahead
Customs officer turned clearing agent offers advice ‘Correct documents make all the difference’
Perry Siatulye (back row right) with the Halifax team.
Zambia being a landlocked country we have the network to service all requirements by both air and sea. Other services include customs clearing, warehousing, distribution, project management.
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Leading Logistics company in Zambia
JULY 2009 | 15
presents mecca of opportunity for SA businessCopper price stabilises signalling good times ahead
Customs officer turned clearing agent offers advice ‘Correct documents make all the difference’
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FTW4281
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Freightowarders’economic downturn has been severe, on the positive side it has limited any short-term expansion, enabling companies to focus on customer service.
“It is all about service at the moment as the rates are low and the one that can provide the best service will get the contract. We do a lot of work with the mines and times have been extremely tough, but we are finding that it is picking up slowly.”
And with the copper price on the rise, it is only a matter of time before the demand starts to rise again.
Like everyone else involved in the freight industry, Halifax has also felt the pinch. But, says Siatulye, everyone in the team has been putting in extra hours to make up
for the effects.“We cut costs like everyone else,
reduced charges and rates, and also diversified. All of this has gone a long way to keep us afloat.”
Richard Hall ... ‘With the copper price on the rise, it is only a matter of time before the demand starts to rise again.’
Perry Siatulye (back row right) with the Halifax team.
16 | JULY 2009
FTW4433
Miguel VieiraProduct managerfinancial systems
Nachi Mendelow Marketing representative
Waldo Coetsee Product manager
operational systems
Arnold GarberExecutive Chairman
Compu-Clearing Outsourcing
Tel: 011 882 7300 www.compu-clearing.co.za
South Africantrade – SADC
Source: SA Department of Trade and Industry
Country EXPORT (R 000) R a n k Annual Growth
name 2008 2007 2008 2007 2008 - 2007 Zambia 2 863 097 10 084 381 1 1 13.6%Zimbabwe 2 178 213 8 501 124 2 3 2.5%Mozambique 1 917 336 9 015 890 3 2 -14.9%Angola 1 424 862 5 501 653 4 4 3.6%Dem Rep of Congo 1 376 608 4 438 167 5 5 24.1%Tanzania 852 936 2 742 005 6 6 24.4%Mauritius 583 607 1 921 827 7 8 21.5%Malawi 538 905 2 169 542 8 7 -0.6%Seychelles 54 040 407 662 9 9 -47.0%Total: Country 11 789 604 44 782 251 5.3%
JULY 2009 | 17
By Liesl Venter
Agriculture has become an important part of the Zambian economy, offering much
opportunity to South African companies.According to John McGill, director of
Interlogix, the landlocked country has always offered opportunity in terms of mining and general cargo needs, but in recent times agriculture has become a number one priority. “Mining still ranks as the most important priority, but due to commodity price fluctuations there has been a move to look at opportunities in
the agricultural sector.”Interlogix, a logistics and project
management company that specialises in overborder cargo, has been operating for ten years, focusing mainly on oversize cargo such as mining machinery.
“With the onset of improved governmental agricultural policies there is a growing demand for agricultural raw materials into Zambia, with foodstuffs to be exported,” says McGill. “It is the Zambian government’s intention to increase farming outputs by 900% by 2015, providing us with the opportunity not only to handle their exports but also
the imports needed for this growth.”According to McGill, international
agricultural concerns are already buying or renting vast tracts of virgin farming land in Zambia to grow foodstuffs for their own domestic consumption.
“We base our forecasts on our Zambian work that makes up about 60% of our volumes. Zambia has become easier to deal with in recent years thanks to the efforts of the government departments that assist us greatly.”
This, he says, is despite the excessive costs and the road regulations that continue to be a challenge.
Agriculture gets new focus as commodity prices dip
GR
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2526
FTW1213SD
The benefits of international trade agreements will be of little use to Zambia unless measures are put in place to support its supply-side constraints and build negotiating capacities.
Which is why Zambia and Finland have launched a programme to improve its negotiating capacity in international trade agreements in
order to allow it to benefit more from international trade, according to news service Xinhua.
The aid for trade programme aims to support Zambia’s trade policy and regulations, trade negotiations and development of an enabling environment, economic infrastructure and productive capacities.
Director of Foreign Trade in Zambia’s Ministry of Trade, Commerce and Industry, Peggy Mlewa, said Zambia had been facing challenges when engaging in international trade negotiations.
She said deepening the knowledge of Zambia's negotiators was essential to ensure that they negotiated and protected the country's interests
within the multilateral trading system.
According to Mlewa, Economic Partnership Agreements (EPAs) under the EU have moved beyond trade in goods into new areas such as intellectual property rights and trade and environment, hence the need to build the capacity of local negotiators.
Finland and Zambia sign trade agreement
18 | JULY 2009
By Liesl Venter
Ndola in the Zambian Copperbelt will soon have a brand new container hub following
renovations and upgrades at VS Cargo.Chief executive officer Alessandro
Valenza believes her new container hub – which represents an investment of some R6 million – not only adds value to Ndola, but also enhances the town’s strategic position in the Copperbelt.
“The decision to build a container depot is based on my philosophy of doing what we know best and sub-contracting the rest to experts. We have one of the biggest and best facilities in the Copperbelt and this container hub is going
to add value to that,” says Valenza.With containers already arriving, the
company has invested heavily in container handlers and other necessary equipment.
“Having the ability to load containers here at our depot before moving them to Durban will not just help with the congestion, but also restore the faith in Africa that they can do it as well as the rest of the world.”
Also in the process of installing an 80-ton weighbridge on her premises, Valenza says much of the improvements are about not being reliant on others.
“We started on this project last year and have done some major refurbishments. We built a lifting facility and have improved our depot. With three
warehouses all serviced by rail, two of which are bonded, we are one of the only warehouses with a rail line inside a warehouse in Ndola. It is all about adding extra value and being able to do business without too much reliance on other people.”
Able to handle up to 300 containers,
Valenza says enquiries for the new container depot are pouring in.
“We have been extremely busy and have not really seen a major difference to last year. We specialise in the DRC and Ndola. Our strategic location and facilities mean that we can now serve the mines even better.”
New container hubrepresents R6m investment
FTW1660SD
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Above: VS cargo’s new container hub. Below: One of the three warehouses.
JULY 2009 | 19
By Liesl Venter
With plans to list Zambezi Airlines within the next 36 months, the Zambian
regional carrier is going places.Having extended its regional reach
with daily flights to Johannesburg from Lusaka, and three flights a week between Johannesburg and Ndola, it will soon start three weekly flights from Lusaka to Dar es Salaam. The airline has leased two new generation Boeing 737 500 aircraft from GECAS.
According to chief executive officer Cornwell Muleya, the airline is also keen to grow its airfreight product, which makes logical sense with the arrival of a second aircraft increasing frequencies and providing double daily flights between Lusaka and Johannesburg .
Following the demise of Zambian Airlines in January this year, the country has been dependent on South African Airways for all air cargo, and there was no doubt that the airline could not keep up with demand, say the experts.
“The launch of our regional flights
was a milestone for the country,” Muleya told FTW. The inaugural flight to Johannesburg took off in June this year. “Our vision has been to create a regional carrier that operates according to world class standards, flying passengers and cargo reliably, efficiently and timeously.”
He said capacity was expected to pick up significantly in coming months with more flights being introduced as they move forward. “There are a lot of economic benefits to having a strong home-based airline that allows us to set up inter-connecting flights with the rest of Africa. Not only for tourism, but also to bring in cargo to support the economy,” said Muleya. “We already have plans under way to extend what we do in the next six months.”
Zambian businesses have welcomed the airline, saying an alternative carrier to SAA is good for business. “It ensures diversity in the market and gives one the option of different rates,” said Wilco Wilkens, financial manager of Parmalat in Lusaka. “Also having more than one airline means there is more capacity.”
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Commodities boom drives growthAfrica Outlook
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Cornwell Muleya ... ‘Our vision has been to create a regional carrier that operates according to world class standards.’
20 | JULY 2009
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By Liesl Venter
Zambia remains one of the most promising growth points in terms of road freight, says Billy
Hoomoedt of Afnet.“That is, of course, on condition that
the service is reliable and efficient. We have retained healthy relationships in the country as we believe it has much potential.
Hoomoedt said the impact of the recent global economic downturn on the freight industry made it obvious how important the copper industry in Zambia had become, barring the DRC exports. “The copper price has affected our industry tremendously,” he said. “A lot of these effects have been felt by the local consumers and their imports have declined, whether they’re involved directly with the copper industry or as a support unit to this industry.”
Hoomoedt says while many people are despondent about the current business environment, with margins remaining very tight for all businesses, the copper price has seen some improvement recently. “This can turn as quickly as it all started and we remain confident that this is not too far in the future. For this reason we have not scaled down on any of our services
so remain poised and ready to get back in when it happens. We have also maintained healthy relations with our
support infrastructure in Zambia for this purpose.”
Having recently purchased a 30-ton forklift to add another dimension to its services, Afnet believes that it is all about continuous improvement.
With a history in the freight industry going back to 1996, this freight broking company is still going forward despite the recession.
“For us it is all about going back to basics and focusing on reliability and service,” says Hoomoedt. “Zambia is familiar territory to us. We have a good client base and support infrastructure. We are well versed in their documentation requirements, rules and regulations and have veteran hauliers on this run who enable us to maintain our mandate.”
In times of crisis, says Hoomoedt, it is all about improving what you do as the market slows down. “We have used this available time as the perfect window to analyse our systems and procedures and improve them so that they are in place when the industry stabilises.”
‘Copper price can turn quickly’Afnet poised for growth when it happens
Billy Hoomoedt ... ‘Copper price has seen some improvement recently.’
The declining copper price has affected all importers, whether they’re involved directly with the copper industry or as a support unit to this industry.
JULY 2009 | 21
Tel: +27 31 337 4270 Fax: +27 31 337 8527 E-mail: [email protected]
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By Liesl Venter
With a foot already in the door, MACS Maritime Carrier Shipping is set to
increase its presence in Zambia in the coming years.
According to Markus Popken, MACS container manager, being a developing and landlocked country offers much opportunity.
“From a shipping company’s point of view it is obviously not a large part of our business, but it is definitely a place in which we want to increase our foothold. The expansion of current operations is not in relation to volume gained, but rather our way of getting additional business.”
MACS connects the USA and Europe with Southern Africa, operating a fleet of ships designed specifically for the requirements of the Europe-Southern Africa trade.
“The lack of infrastructure, communication and volumes remain problematic, but we believe there are promising developments in the mining and agricultural sector that will affect imports and exports.”
According to David Chimfwembe of Manica Zambia, who acts as agent for MACS in Zambia, the commitment from the shipping line to the country has been welcomed.
“We have seen some shipments come in already and although it is not huge business mostly due to the economic downturn, it is good to have alternative business that rivals the normal routes. Competition is good,” says Chimfwembe.
Popken says much emphasis is being placed on Walvis Bay as an alternative route into Zambia as the port has been upgraded allowing for speedier logistics.
“It is a developing corridor that is very good to use if going to Zambia. We call there a lot and it works well.”
For Popken there is no denying the importance of Zambia, where the closing down of mines has affected business negatively during the global economic downturn.
“But copper has continued moving, even if it has been very limited, and that is a positive sign for the country where we will maintain our presence.”
MACS commits to growing Zambian business
By Liesl Venter
Hill + Delamain Zambia has extended its fleet, adding ten new trucks to serve the routes from Tanzania, Namibia and Mozambique.
According to general manager Hiten Bhagat, one of the trucks has already been delivered while the other nine are expected in the next few months. This will ensure the three routes – Dar es Salaam, Beira and Walvis Bay - are fully operational by the end of the year.
“We already have shipments coming through our network partners via these ports but we are increasing our operations and want to be fully operational by the end of the year.
“We are still getting cargo in via
Durban which will always remain competitive and an important port, but we believe it is good to diversify and develop other revenue streams.”
According to Bhagat the development of the three new markets was not taking anything away from the Durban port.
“The Durban market, which has a lot of capacity, will always remain the primary corridor. These corridors are not really competing with each other.”
He said there was much development happening at the other ports and it made good business sense to service more routes. “And having our own trucks servicing these routes means we don’t have to outsource and we are controlling it ourselves.”
Ten new trucks to serve three new routes
Durban will always remain competitive and an important port.
22 | JULY 2009
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‘Companies have adapted quickly to the crisis’
By Liesl Venter
Zambia should take control of its own destiny and deal with issues instead of keeping its
head in the sand.So says Kitwe businessman Simon
Boroma Mwale, chief operations officer of BBC Consolidations.
“More and more Zambian mines are owned by foreign investors and local control has become minimal. These investors have no need to focus on the local market and economy as they are taking their profit out. As a country we must get our act together and address these and other issues,” he says. “Africa as a continent must come to the party and understand the impact of always being in crisis management mode. We need to plan more and make our countries work.”
He says while there is a definite decrease in the movement of goods, companies have also adapted very
quickly to the crisis.“People are using their money
well and putting it where it matters most. We work very closely with the mines and have found that all the recreational and entertainment goods we used to move for them have come to an end – no more bikes, but valves and pump spares. All the essentials are still big business.”
Having recently signed a contract to move between half a ton and three tons of essential spares for a mine, Mwale says there is also a lot of potential for Zambia in working across the border in the Democratic Republic of the Congo.
“Breaking into the market is tricky but if we can harmonise the relationships there is so much opportunity.”
With an office in Johannesburg, Mwale is also considering setting up border post offices as this will ensure cargo moves more quickly and more efficiently. “Our focus in the coming months is all about shedding the extra costs, paying more attention to our fleet, maintaining costs and providing a better service.”
Simon Mwale … ‘essentials are still big business.’
SA to finalise new trade policySouth Africa’s Department of Trade and Industry (dti) is set to finalise a new trade policy for the country to guide bilateral and multilateral negotiations and provide a model for integration in the Southern African Development Community (SADC) region, according to tralac.
There has been criticism that South Africa lacked a coherent trade policy, but the department opted to first finalise its industrial policy framework before work began on the trade policy, believing that the former should inform the latter.
The dti is nearing the completion of the trade policy formulation process, chief director in the department Mzukisi Qobo, who has been tasked with the development of the trade policy, said last week.
As part of formulation of the comprehensive new trade policy, the International Trade Administration Commission (Itac) is doing a separate overhaul of the tariff book.
JULY 2009 | 23
FTW0224SD
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Last year’s boom has all but dissipated
By Liesl Venter
Empty yards are a common sight in Zambia these days – unlike a year ago when they
were bursting at the seams. With an economy dependent on
the price of copper there was no way of escaping the impact of the global economic meltdown, which severely affected the African mining sector.
Piet la Grange of Pro-Con says while many remain optimistic that the price of copper will soon
stabilise and that production on the mines will resume, most transporters have had to take the blows.
“Many companies have parked some of their f leets and are just moving the essentials. The slowdown has put downward pressure on rates and transporters are forced to accept rates on offer.
“At border posts where once hundreds of trucks were queuing to move goods into the country, now there are a handful.
“The big boom of a year ago has
all but disappeared,” says La Grange. “From unlimited cargo southbound to selected loading now. We are seeing very few abnormals and project cargo figures have reduced.
“We are managing as we have a good reputation and can still provide a reliable service. Zambia is either feast or famine – a year ago everyone was scurrying around trying to find a truck, now there is an oversupply. We remain optimistic though that it will soon be back to business as usual.”
‘In Zambia it’s feast or famine’
Piet la Grange ... downward pressure on rates.
Empty yards like this one are a common sight.
24 | JULY 2009
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Full truckloadsmoving on a daily basisDurban warehouse to be extended
By Liesl Venter
There will always be a niche in the market place for knowledgeable service providers working in African
countries such as Zambia, says Tristan Tooms, operations team leader of FATS.
A major player in road freight into Africa, the FATS team doesn’t limit its scope to particular products or cargo types headed for the landlocked country.
“Mining has slowed down considerably as has project work in recent months, but Zambia still has a healthy economy and consumer goods and general supplies are still in demand.”
According to Tooms the company is
dispatching full truckloads on a daily basis while a consolidation service is on offer three times a week.
“We have moved paper, steel, bitumen and precious metals to and from the Zambian region,” says Tooms. “The global meltdown resulted in the copper price dropping dramatically. Copper and cobalt, two of the major Zambian export products, were badly affected resulting in many of the mines cutting back on production, which in turn resulted in a lesser demand for consumables and mining equipment.”
But, says Tooms, on the plus side, transport costs were reduced in line with the cutbacks and with lower fuel prices, customers and consumers have been
reaping the benefit.“We remain committed to the Zambian
market and have designed a new addition to our existing warehouses in Durban that will, on completion, double our available storage space for unpacks, repacks and the consolidation of cargo. This is an ideal hub for cargo destined for Zambia,” says Tooms. “As a landlocked country it relies heavily on the Port of Durban as a gateway for the export and import
of cargo.”Tooms says the company’s clear
understanding of the needs of Zambia as well as its experience in working in Africa ensure that customer needs are met.
“One needs an understanding of the mechanics of Africa to do business on the continent. Fats is fortunate that we have this as well as a network of agents and partners acquired through the years who are all able to assist us.”
Dinesh Tilak, Chad Botha, Caitlyn Book and Tristan Tooms of Fats … ‘understanding the mechanics of Africa.’
Copper and cobalt exports badly affected by global meltdown.
JULY 2009 | 25
LEADING LCL SERVICE PROVIDER INTO AFRICAWe offer services to the following African Ports
Sea Freight Abidjan, Bujumbura, Dar Es Salam, Kampala, Kigali, Kinshasa, Lagos, Lome, Luanda, Mali, Maputo, Mombasa, Nairobi, Ouagadougou, Tema
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The Zambian economy in a nutshell
Assets
Zambia is the world's leading cobalt producer and Africa's leading copper producer.
Diversification of farm production and development of tourism have limited the economy's vulnerability to external shocks.
The country enjoys the backing of the international financial community, which has translated into substantial foreign debt relief.
Zambia's stable multiparty system and good relations with neighbouring countries enhance its attractiveness to foreign investors.
WeaknessesThe Zambian economy continues to live off mining export revenues, vulnerable to copper price volatility.
The mining economy has struggled to spread the benefits throughout the productive fabric with the resulting inadequate redistribution of wealth generating growing social tensions.
Zambia's landlocked condition handicaps trade with inadequate transport infrastructure tending to exacerbate costs.
The business environment suffers from major shortcomings.
Country rating A high-risk political and economic situation and an often very difficult business environment can have a very significant impact on corporate payment behaviour. Corporate default probability is very high.
Credit insurer Coface provides some salient information on the state of the Zambian economy.
1 779
1 727
2 278
2 211
3 929
2 636
4 594
3 611
5 084
4 055
4 996
3 882
2004 2005 2006 2007 2008(e) 2009(f)
6 000
5 000
4 000
3 000
2 000
1 000
0
■ Import■ Export
USD millions – Zambia’s trade pattern
MARKET SIZEMain Economic Indicators ZAMBIA Regional DC average averageGNP per capita (PPP dollars) 1 000 2 029 5 983GNP per capita (USD) 630 842 2 313Human development index 0.394 0.450 0.672Wealthiest 10% share of national income (%) 39 34 31Urban population percentage 35 37 44Percentage under 15 years old 46 43 30Number of computers per 1 000 inhabitants 10 18 50
Risk assessment – fall of copper priceThe economy remained strong in 2008, driven by the copper refining sector, energy infrastructure investment (hydroelectricity) and tourism.
GDP growth suffered nonetheless
from a drop in farm production and the collapse of copper prices in the second half of 2008, a trend likely to continue in 2009 and affect both export earnings and inflows of foreign
direct investment in copper and cobalt mines.
Inflation peaked in 2008, stoked by soaring prices for petrol and foodstuffs. The Zambian kwacha
depreciation – affected by the fall of both portfolio and foreign-direct investment – will likely limit any easing of the consumer price index in 2009.
26 | JULY 2009
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Cape TownRobert ChildMarine Manager Phone: +27 21 417 4404E-mail [email protected]
JohannesburgCheryl BeurelDivisional Director Phone: +27 11 944 7214E-mail [email protected]
Authorised financial services provider # 20555
No shared strategyas tough business climate bites
By Liesl Venter
Tough times call for secrecy it would seem. As the global economic downturn continues to impact
on freight forwarding, more and more companies are keeping their cards close to their chests.
“The pie has become so much smaller so people are just not sharing information
about what they are doing or what their plans are,” says Ruud Walgaard, regional manager of ACS in Zambia. “Cargo is still moving, but there has been a downward spiral since October – and while we are slowly starting to move out of it, everyone is keeping their cards close to their chests.”
Rainer Frick of Cargo Management + Logistics agrees, pointing out that caution is definitely the order of the day. “At the moment rates do all the talking and cash is king. Whatever the lowest rate is – that is being taken and it is the determining factor.”
He said companies were, however, not sharing their strategy or information as
there was just not as much opportunity going around as the same time last year.
Chris Chipimo of Bridge Shipping says while traders have returned to Ndola in the Copperbelt there is still not as much talk as usual.
And it’s understandable as some 47 mines closed down in the nearby DRC between October last year and March this year and project work dropped to an all time low.
“People are hungry for business,” says David Chimfwembe, Lusaka area manager for Manica in Zambia. “Competition is rife. Right now everyone wants to make the money and get the job.”
How easy is it to do business in Zambia?
The table on the right provides a comparative indication of how easy it is to do business in Zambia compared to the rest of the continent.
Compiled by the World Bank Group, it ranks economies on their ease of doing business from 1 – 181, with first place being the best.
A high ranking on the ease of doing business index means the regulatory environment is conducive to the operation of business.
The rankings are from the Doing Business 2009 report, covering the period April 2007 to June 2008.
Economy Ease of Doing Business Rank
Starting a Business
Dealing with Construction Permits
Employing Workers
Registering Property
Getting Credit
Mauritius 1 1 3 8 20 7South Africa 2 2 5 17 10 1Botswana 3 8 23 12 1 4Namibia 4 16 4 3 21 3Kenya 5 14 1 10 16 2Ghana 6 23 29 30 2 14Zambia 7 7 32 26 11 6Seychelles 8 6 6 22 4 39Swaziland 9 30 2 4 33 4Uganda 10 21 14 1 41 14
Cargo management + Logistics’ Rainer Frick ... ‘Rates do the talking.’
JULY 2009 | 27
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Infrastructure upgrades on the cards
By Liesl Venter
Transworld Cargo’s persistence on the Walvis Bay Corridor is bearing fruit.
A member of the Walvis Bay Corridor Group, Transworld Cargo has actively been involved in developments on the corridor.
According to managing director Heino Herrlich, it has been just as important to keep their Zambian clients up to date with these developments ensuring they are always aware of what is happening.
“We faced several challenges but the chicken and egg situation of attracting shipping lines has slowly been overcome and today Walvis Bay can offer direct sailings to and from the Far and Middle East, Europe,
South and North America.”According to Herrlich Transworld
Cargo is committed to improving its infrastructure in Walvis Bay and has added bonded facilities, a container depot and a yard. “All the open and undercover facilities measure around 14 000 m2,” says Herrlich. “Our facilities have also been certified by a leading loss adjustor and surveyor as being safe for storage and handling of high value cargo such as copper and semi-precious cargo.”
This certification, he says, is also not just for the depot in Walvis Bay, but along the entire Trans Caprivi Corridor.
“With the Port of Walvis Bay intending to spend more than R1.3 billion in the coming years to improve their facilities, we are planning to keep up with the infrastructure spend and will invest in more facilities not only at Walvis Bay, but also in Zambia and in the DRC,” says Herrlich. “These are all areas of utmost importance to us and we are hoping to transit more volumes through Namibia.”
‘Fast becoming an Africa specialist’With a set structure and processes in place, moving cargo to Zambia poses very few challenges for companies like SAEL.
According to SAEL’s Anna Gey Van Pittius the company, which was recently acquired by Bollore Africa Logistics, is part of one of the most extensive networks in Africa.
“We are fast becoming an Africa specialist,” says Gey Van Pittius. “In Africa road, air and sea freight is our focus. We have regular services using our corridor approach to all the landlocked countries.”
She says that the company has valuable experience in moving cargo to Zambia as they have been sending cargo to the country for many years. “Our set structures and processes offer our clients a reliable and regular service.”
She said that even in the tough economic times they had seen a regular f low of traffic into Zambia and they foresee huge growth potential on the trade lane.
anna Gey Van Pittius … ‘reliable and regular service.’
‘Chicken and egg situation in Walvis bay has slowly been overcome.’
Zambia investments planned
28 | JULY 2009
Access 7Afnet 23African Cargo Services Limited 5Airlink Cargo 26AON South Africa 26Aquarius Shipping International 8BBC Consolidators 8BP Freight 19Bridge Group 11Celtic Freight 5, 20, 27Chavda Freight 20Coface South Africa 7
Compu-Clearing 16Crontrans 22Cross Africa 3DyNAMIX Freight Africa 2FATS - Forwarding African Transport Services 25 Flyways Inter-Forwarders 27 Frits Kroon Transport 13Grove Logistics 25Halifax Freight Services 9HB Services 27Interlogix 22JVC Freight Carriers 21KA GO 2 GO 2
Kuehne + Nagel Zambia 6Leo Shipping Services 24MACS Maritime Carrier Shipping 10MBS Carriers 15Matvin 18Micor 19MSC Logistics 17MSC Shipping 4NAC 2000 Corporation 21Namibian Ports Authority IFCNesh Freight 12Nomad Freight 25Nyati Transport 18
Prestmarine International 24Professional Consolidators 6Reddy Cargo Services 12SAEL 25SDV Zambia Ltd 14SGS South Africa 28Sibronov Freight Management 24The Cargo Connection 23Transit Freight Co-ordinators 9Transmax Logistics 18Transworld Cargo 28Walvis Bay Corridor Group IBCVS Cargo Ltd 1Zega Limited 3
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The Walvis Bay - Zambia Corridor Traffic Specialists
Zambia2009
Zambia2009
Zambia prices in kwacha 2008
South Africa2009
Goods Kwacha Kwacha converted to Rand Rand
White bread, sliced 3 680 5.65 3 680 7.99
Coke 2 litre 12 980 19.99 11 360 12.59
Flora Margarine 500g 17 480 26.93 10 580 19.99
Fresh milk 2 litre 11 780 18.16 10 280 19.99
Baking flour 2,5kg 16 980 26.18 13 780 18.49
Klipdrift 750ml 61 780 95.36 54 180 74.95
Castle regular Can 4 980 7.69 6 380 5.70
Total 199.96 159.70
All of the prices are from Shoprite Checkers except the alcohol which was from independent dealers.
Consumer goods prIce compArIson
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