Cargo Dwell Time Study - Improving the Competitiveness of Mauritius_27Nov2008

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Cargo Dwell Time Study - Improving the Competitiveness of Mauritius

Source: Bulletin Semestriel No. 41 – Octobre 2008

Publisher: The Mauritius Chamber of Commerce and Industry

Trade facilitation has now become a key

measure of the competitiveness and viability

of business. In a highly competitive market,

the quality of logistics can have a major

bearing on a firm’s decisions about which

country to locate in, which suppliers to buy

from, and which consumer market to enter.

High logistics costs and, more particularly,

low levels of service are barriers to trade,

foreign direct investment and, also, to

economic growth. As a result, countries with

higher overall logistics costs are more likely

to miss the opportunities of globalization.

The efficiency of ports and airports is known to play a vital role by providing critical support

to its international trade and ensuring a country’s integration into the global marketplace.

Indeed, inadequate port capacity, port congestion, limited cargo handling facilities, high

down time of equipment or cumbersome procedures lead to low efficiency and have a

serious negative impact on business activities.

Our Chamber has been involved in several trade facilitation projects with one of our main

initiatives this year being the cargo dwell time study to assess the cargo clearance time in

Mauritius. The first study on dwell time for cargo was conducted in 2003 in collaboration

with the Ministry of Foreign Affairs, International Trade and Cooperation and with the

financial assistance of the COMESA Secretariat. The study benchmarked the port

productivity against international ports and identified main bottlenecks in the clearance of

goods. A number of recommendations were made in the study so as to improve the cargo

release time.

In 2008, the Chamber undertook a new Dwell Time Study with the assistance of the

Commonwealth Secretariat. The objective of the new study was primarily to assess the

impact of reforms following the earlier dwell time study and also to benchmark the critical

aspects of cargo handling against international ports. The study was carried out by InfoWave

Pte Ltd from Singapore and the findings were presented to members of the Chamber and

other stakeholders during a workshop held on 25 September 2008.

MAIN FINDINGS

• Dwell Time

The dwell time can be defined as the measure of the time elapsed from the time the cargo

arrives in the port to the time the goods leave the port premises after all permits and

clearances have been obtained. The study revealed that the mean and median for outbound



cargo had improved as compared to the figures of the previous study done in 2003 but that

the dwell time for inbound cargo was still the same as shown in the table below.

DWELL TIME

2003

2008

MEAN

(DAYS)

MEDIAN

(DAYS)

MEAN

(DAYS)

MEDIAN

(DAYS)

INBOUND - - - -

MCT 6.18 4.63 6.06 4.50

MPT 5.14 3.68 5.50 4.02

OUTBOUND - - - -

MCT 4.00 3.16 3.50 2.25

MPT 5.96 6.36 4.86 5.46

TRANSHIPMENT - - - -

MCT 7.03 5.31 7.52 5.30

MPT NA NA 12.85 10.32

MPT: Multi-Purpose Terminal MCT: Mauritius Container Terminal

According to the report, the average dwell time for captive cargo for international ports such

as Singapore and Hong Kong is about 2 to 3 days. The average at the Mauritius Container

Terminal (MCT) is about 4 to 6 days which is double that of these international ports. The

average dwell time for transshipment in Singapore is about 3 to 4 days while in Mauritius, it

is within the range of 5 to 7 days.

• Terminal Capacity

An analysis of the volume of containers handled was done based on statistics collected for

the period July 2007 to June 2008. The number of containers (TEUs) handled for that period

was roughly within a ratio of 50:50 for transshipment and captive containers respectively as

shown below:

MCT/MPT CAPTIVE % TRANSSHIPMENT % TOTAL

2000/2001 156,009 96% 6,440 4% 162,449

2001/2002 152,969 90% 17,330 10% 170,299

2002/2003 172,695 55% 140,252 45% 312,947

2003/2004 180,422 44% 231,344 56% 411,766

2004/2005 171,531 48% 186,309 52% 357,840

2005/2006 168,473 51% 162,692 49% 331,165

2006/2007 168,352 45% 202,166 55% 370,518

2007/2008 203,907 49% 212,785 51% 416,692

(Note: Transshipment containers are counted twice)

There was a overall 12% increase in the TEUs handled over the previous year with captive

cargo posting an impressive 21% growth over 2006/2007. In spite of this growth, there

seemed to be no noticeable bottlenecks in the MCT operations. However, the berth

occupancy at MCT over the 4-month period May to August 2008 was at 77% (though within



the acceptable range of 60-80%) and was reaching its practical maximum beyond which

vessels have to wait for berths or time windows for berth allocation. The consultants

pointed out that the situation should be carefully monitored as shipping lines might start

looking at alternative ports for transshipment facilities.

The study also pointed out that the implementation of electronic Delivery Orders and

Shipping Notes as well as pre-notifications of vessel arrivals would ease the clearing process.

It was also recommended to introduce a ‘24-hour’ acceptance and delivery of containers to

maximize the use of port equipments.

• Airport Cargo Services

As a comparison of the high level of air cargo turnaround, 80% of the inbound air cargo is

cleared within 24 hours at major international air cargo hubs like Singapore and Hong Kong.

The statistics in the study revealed that the dwell time in Mauritius had improved

considerably at the airport cargo terminal during the five-year period under review. The data

collected in 2008 indicated that for inbound cargo, the mean and median dwell time was 3

days and 1 day as compared to 5.3 and 4.4 days in 2003. Similarly, for outbound cargo, the

mean and median were less than 2 days in 2008 as compared to 4 and 3.16 days respectively

in 2003.

• Mauritius Revenue Authority – Customs

The study commended the efforts of Mauritian Customs for providing a one-stop centre

where Customs and other agencies are housed together as recommended in the 2004

report. The implementation of longer clearance hours at the port has also been commended

by the consultants.

The report measured the average and median take for clearing the customs declarations as

shown in the table below:



Although the study showed that the average clearance time for customs declaration for the

period July 2007 to June 2008 was between 40 and 90 hours, a more detailed breakdown

indicated the following:

• 50% of the customs declarations were cleared within an hour

• 60% were cleared within two hours

• 67% or two third were cleared within seven hours

The consultants highlighted the very high proportion of duties collected either by cash or

cheque in Mauritius and stated that cash payment contributed on average to two days to

the dwell time. It was suggested to increase the use of electronic payments. As a

comparison, in Singapore and Hong Kong, almost all payments for transactions were

effected via electronic means.

The study also pointed that Mauritian Customs currently require hundred percent document

verification while customs in advanced countries checked the documents based on risk

management, risk profiling and based on specific cargo types.



• Ministries and Other Agencies

The study noted that the present Single Window

System was not being used optimally since only

Customs and the Commerce Division of the Ministry

of Business, Enterprise and Cooperatives were

currently connected to the system. In Singapore,

thirty-five government agencies were connected to

the Single Window System. The consultants

recommended that other Government agencies in

Mauritius responsible for the delivery of import

permits such as the Ministry of Agro Industry, Food

Production and Security, Ministry of Health &

Quality of Life and the Mauritius Standards Bureau

amongst others be also connected to the system.

According to the consultants, when agencies were

not connected to the Single Window System,

importers were physically required to submit their

documents to these agencies for approval thus

considerably increasing the dwell time for cargo.

The report, however, commended the initiative of

the Ministry of Business, Enterprise and

Cooperatives for the current review of all import

and export-related permits.

• Capacity Building Session

As part of recommendations, a high level capacity

building working session was held by the

consultants with high officials of various

institutions, Ministries including Customs

Department, Mauritius Port Authority and Cargo

Handling Corporation Ltd. on how to ensure

continuous dwell time monitoring using statistics

and statistical analysis. The capacity building session

also provided an opportunity for sharing the

experience of Singapore in field of port automation

and other supply chain implementations.

Rooma Narrainen Vivagen Amoomoogum

Manager Analyst

Trade Division Trade Division

SUMMARY OF MAIN

RECOMMENDATIONS

Short Term

• Set up a high level monitoring

committee to spearhead all

national IT initiatives in the

port, customs and trade-

related activities

• Establish a continuous dwell

time monitoring system so as

to identify the main segments

causing delay in the supply

chain.

• Ease the requirements to

qualify for the Blue Channel for

fast track clearing of cargo

• Encourage the use of

electronics payment of custom

duties and other taxes

Medium Term

• Implement a Single-Window

System

• Implement the cargo

community system

Long Term

• Continually review investments

including major infrastructure

changes and port expansion

based on market demand

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Cargo Dwell Time Study - Improving the Competitiveness of Mauritius_27Nov2008

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