FEBRUARY 2013 ISSUE #21

TRADE-WATCH

SPECIAL FEATURE: International Women’s Day

SERVICE HIGHLIGHT: New Brazil Call On SAMWAF Line

SERVICE HIGHLIGHT: New Weekly Service From Europe To Maldives

SPECIAL FEATURE: International Women’s Day

SERVICE HIGHLIGHT: New Brazil Call On SAMWAF Line

SERVICE HIGHLIGHT: New Weekly Service From Europe To Maldives

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02FEATURE• International Women’s Day

03EUROPE & BALTICS• Antwerp Builds A Gateway To EU: World's Biggest Lock• Container Volume Slip At Antwerp

04• EU Provides €5M For Rotterdam Box Scheme• Rotterdam Growth Produces New Throughput Record• Rotterdam Cool Port At The Starting Line

05• World’s Largest Quay Cranes To Arrive At London Gateway• Le Havre Container Traffic Increases• Barcelona Port Exports Grow 8.7% In 2012

06• Swedish Ports Handle Over 1 Million TEU• Gdynia Attacks North European Gateways• Italian Volumes Increase• More Container Train To/From The North Of The Netherlands

07PAN AFRICA• Demand For Resources Drives African Rail Boom

08• Regional Trade Can Power Africa's Growth• Sub-Saharan Africa Remains Second-Fastest Growing Emerging Region• Huge Potential For Chinese Firms Jostling For African Infrastructure Development• Turkey Aims To More Than Double Trade With Africa By 2015• Africa Private Equity Deals Grow To $1.2 Billion In 2012• International Piracy Attacks Reach 5-Year Low in 2012• Typhon Private Navy To Fight Piracy

09WESTERN & CENTRAL AFRICA• New Brazil Call On SAMWAF Line

10• CHEC Signs EPC Contract for Abidjan Port Dredging• Ivory Coast Abidjan Port Concession• GPHA Decongests Tema Port Access• DELMAS Invites Nestle On Tema Port Visit• Port Information Center In Dakar• Lobito Has Received Two Ship-To-Shore Gantry Cranes• Gecko Namibia Proposes Development Of New Deep-Water Port• Namport Acquires New Mobile Cranes• New Harbour Master At Walvis Bay Port

11• Turkey Extends US$300m Facility To Ghana For Infrastructural Development

13• Brazzaville Channel Project• Bollore Receives Pointe Noire Gantry Cranes• Lomé Container Terminal Development• New Gantry Cranes Arrived At Cotonou

14• NPA Redeploys General Managers, Port Managers• ICTSI Eyes Not Only Lekki But Cameroon & Congo• Ghana Ban On Export Of Ferrous Scrap Metals• Ghana Adopts A Free Port Terminal Policy To Exempt Vehicles• Ghana Seized Second-Hand Refrigerators

15• Lagos to Kano Rail Line Opens With SURE-P Intervention• Burkina Faso Road Developments• Sierra Leone Developments• National Road Board Meets

16• Private And Public Sectors Prepare For Second Annual Borderless Conference• Ghana Targets US$3.3 Billion Export Revenue In 2013• Britain Seeks to Double Trade With Nigeria By 2014

17EASTERN AFRICA• New Weekly Service From Europe To Maldives

18• EAC Protocols On Tax Not Ratified• Regional Body Urged To Form Border Authority• Mombasa Ports Benefits From Expansion / Fears Over Election• DELMAS Best Operator In 2012 At Mombasa Port• Mozambique Starts Work On 2035 Beira Master Plan• Maputo Port Handles 15 Million Tons Of Cargo In 2012• China Picks Contractor for Dar es Salaam Port Expansion Works• Vehicle Clearance Improves At Dar es Salaam Port• Cargo Clearing Quickens As Dar Port Gets 3-Cranes

19• Tanga - Bukasa Alternative Sea Route Project Kicks Off

21• Railway For Landlocked Countries• Nairobi to Get New Railway• Mozambique Opens Tender For Heavy Haul Railway Line and Port• Tanzania / Uganda: Rail Equipment To Facilitate Transport• Basic Network In Place For North-South Copper Corridor

22• Cargo Transportation Increases Despite Odds• Used Motor Vehicle Inspections Stall

23SOUTHERN AFRICA• East London Port Receives Crane

24• Tanzania/Zambia: Mwakyembe To Ease Tunduma Truck Flow• New Initiative to Empower Zambian Road Contractors• Zambia Road Upgrade For Ndola and Kitwe• Beitbridge Expansion In Limbo• Harare/Beitbridge Road To Be Upgraded & Tolled• President Banda Inaugurates Chikhwawa Ngabu Road

25• Major Rail Project Gathers Steam• Transnet In Talks On African Copper Transport Link

26• Trade Gap Narrows In December, Sharp Fall In Imports• New Trade Act Not Friendly – AFDB

Rachel Bennettbmm.rbennett@delmas.com

Dominic Rawlebmm.drawle@delmas.com

Contributors

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DELMAS SPECIAL FEATURE

March 8th marks ‘International Women’s Day’. As an equal opportunity employer DELMAS has helped promote gender equality and women’s empowerment within the African workplace and is proud to mark this occasion with an interview of two of our female agency managers in Africa : Syreeta Chitengi, CMA-CGM Zambia Ltd and Gulshen Afridi, CMA-CGM Zimbabwe Ltd.

International Women’s Day celebrates the economic, political and social achievements of women. In your experience as a successful woman, what is its significance in Zambia/Zimbabwe?

Gulshen : In the Zimbabwean context it recognises the contribution of women so as to help overcome cultural prejudices.

Syreeta : International Women’s Day is significant in the sense that it celebrates women, as human beings who work hard and achieve to contribute to human development as a whole without their gender/sex being the key deciding factor. It ofcourse also reminds us that despite making strides in empowering women at all levels, we still have a long way to go to rid our society of the prejudices that come with gender, whether be it by women being discriminated by men or indeed by fellow women.

What is your biggest influence and/or icon?

Gulshen : My mother who despite having no formal education is rich in wisdom.

Syreeta : Both my parents were very influential in my upbringing and I am very fortunate to have a father who went out of his way to continually tell me that I could be anything I wanted to be as long as I worked hard. He never used the typical cultural Zambian compass in raising his daughters.

What do you think is the biggest issue facing women in the African workplace today?

Gulshen : I think we need to start viewing ourselves as people, not women or men. In doing this we can really avoid falling into the trap of giving issues a gender and then concluding how difficult or how challenging the issue is for women. An issue has no gender. It may be looked at from an employee or employer perspective but at the end of the day we all need to work together in the best interests of the organisation.

Syreeta : Stereotypes of capabilities of women or incapabilities of women is one of the major issues facing women today in the work place. Secondly the social and cultural expections of balancing the family and work posses as a big challenge to women breaking the corporate glass ceiling

What barriers did you face, as a woman, to becoming successful in your field?

Gulshen : Stereotyping. In a male dominated industry the men have preconceived ideas on the capacity of their female counterparts. It is important not to behave in a way that will strengthen those misguided beliefs

Syreeta : Shipping and logistics is viewed as a very masculine field and I found that at face value some people would find it difficult to believe that I knew what I was doing.

And how did you overcome them?

Gulshen : Hard work and determination.

Syreeta : I quickly overcame this by learning my job well both theoretical and operationally, staying ontop of market trends, in short there is no other way of doing it, one must put in the time and know their job inside out.

Based on your own experience, what advice would you give to women considering pursuing a career in your field?

Gulshen : Women have life skills and natural abilities that are useful in business. Women tend to be great networkers, have inherent skills of negotiating and ability to multitask. If you give it your best and don’t waiver you will be sought after for your mind, your passion and your unique perspective.

Syreeta : My advise to women wanting to pursue a career in any field is that, should you choose to juggle career and family you need to choose the right husband/partner, as this will go a long way in ensuring you have the right support and mind frame to put the time into developing your career. For shipping and logistics in particular, it is a high energy and one must be ready to move from negotiating a sale in the board room to discussing a broken down truck enroute to a delivery point. But this is what makes our work exciting and no one day is the same. Most of all I would encourage other women considering a career in our field to be willing to learn the job inside out, be flexible and ready to work with diverse people as our customers come from all walks of life.

TRADE WATCH

FEATURE

01

DELMAS SPECIAL FEATURE

Gulshen AfridiGeneral Manager CMA CGM Zimbabwe

Syreeta Mlongoti ChitengiGeneral Manager CMA CGM Zambia LTD

TRADE WATCH

FEATURE

02

PORTS ANTWERP

Antwerp Builds A Gateway To EU: World's Biggest LockReuters 24/01/13Belgium is building the world's largest lock - as wide as a 19-lane highway - ready to welcome the latest generation of giant ships after Europe's brace of new trade deals. The investment on the banks of the River Scheldt highlights the European Union's hunt for economic growth through global trade following the collapse of the 10-year Doha round of global trade talks.

The EU hopes to start negotiations in 2013 towards free-trade accords with the United States and Japan. EU lawmakers approved free-trade accords with Colombia, Peru and 6-Central American nations in December and also wrapped up trade talks with Singapore. A deal with Canada is expected to be finalised early this year and a more limited investment pact with China is a possibility. In all, if the EU completes all its trade negotiations, the 27-nation bloc will add about 2% to its economic output, or €275 billion.

As in Panama, Antwerp wants to be able to handle a new breed of container vessels, known as post-Panamax, that can carry almost 3-times the current number of cargo containers, or some 12,600 boxes, as well as large commodities ships. With three times as much steel as the Eiffel Tower, 500m long and 68m wide, the lock will be one of the gates to the port and is costing €340 million. Begun last year, it will be completed and begin operating in 2016.

Container Volume Slip At AntwerpJournal Of Commerce 21/01/13Antwerp’s container traffic dipped 0.3% in 2012 from 2011 and total tonnage was down 1.6% as the Belgian port managed to contain the impact of economic slowdown across Europe. Container traffic reached 8.64 million TEU and total throughput was 184.1 million MT, down from 187.2 million tons in 2011. Roll-on, roll-off traffic jumped 13% to 4.8 million tons, and the number of cars handled was 14.8% higher year-over-year at 1.24 million units. Conventional cargo slumped 14.2% to 10.9 million tons, mainly reflecting the contraction in steel shipments. Liquid bulk traffic dipped 1.1% to 45.3 million tons while dry bulk shipments were 0.1% higher at 19.1 million tons.

Antwerp Port Authority Extends Collaboration With Panama Canal Fresh Plaza 04/02/13Antwerp Port Authority and Panama Canal Authority [ACP] have reconfirmed their collaboration agreement. The purpose is to promote trade between the port of Antwerp and the West Coast of South America via the Panama Canal. In view of the positive evaluation of the first agreement, made in 2010, the new agreement will run for a period of 5-years, after which it can be further renewed.

EUROPE& BALTICS

TRADE WATCH

EUROPE & BALTICS

03

& BALTICS

PORTS NETHERLANDS

EU Provides €5M For Rotterdam Box SchemeFairplay 07/02/13The EU is providing €5M [$6.76M] toward the total cost for the first phase of the Rotterdam World Gateway terminal. The €360M facility is already under construction. The money would be provided under the EU’s strategic Trans-European Transport Network [TEN-T] infrastructure programme. The TEN-T executive agency said the money would be devoted to a €50M segment of the project covering rail and inland waterway facilities for the terminal. The new multimodal box terminal would take freight traffic off the roads, with a goal of the highest modal shift ratio of any container terminal in Europe and aims to reduce the road transport share of traffic to and from its hinterland from an initial 50% to 35% by 2016. Construction got under way in June 2012, with operations seen starting in late 2014, with fully automated handling capacity of 2.35M teu per year. Rotterdam World Gateway is a joint venture involving box shipping groups APL, Mitsui OSK Lines, Hyundai Merchant Marine and CMA CGM.

Rotterdam Growth Produces New Throughput RecordPort of Rotterdam 22/01/13Despite the ailing economy, freight throughput in the port of Rotterdam grew by 1.7% in 2012. A total of 442 million tonnes of cargo went through the port. Container throughput increased slightly in 2012, thanks especially to exports. In the dry bulk market segment, the declining steel production in Europe was responsible for reduced throughput, especially of ore. This shift was more than compensated by the growth in liquid bulk: more crude oil and oil products particularly were handled. The latter category has actually tripled in size over the past 10-years. That shows that the port of Rotterdam is increasingly becoming a hub for global trade. This helps the port to continue to grow, as global trade generally develops faster than the Dutch and the European economies. The Port of Rotterdam Authority expects growth of around 2% next year.

The market share of the port of Rotterdam in the Hamburg-Le Havre range increased over the past 5-years by an average of 0.5 percentage points per year to 37.7% in Q3 of 2012. The difference with Hamburg and Antwerp in the container segment which arose in 2009 was preserved. In view of the prospects of the development of the Dutch and European, and especially the German economies, modest growth of around 2% is expected again for 2013. This means that the throughput for next year will probably approach 450 million tonnes. The throughput is expected to increase slightly faster in the subsequent years, on the one hand, because the economic prospects for 2014 are better and on the other hand, because the current investments in tank storage, container terminals and coal-fired power plants will result in more throughput over time.

Rotterdam Cool Port At The Starting LinePort of RotterdamThe realisation of Rotterdam Cool Port [Phase 1] has reached an advanced stage. The parties in Rotterdam Cool Port, Kloosterboer, Europe Container Terminals [ECT] and the Port of Rotterdam, expect to formalise agreements before May 2013. This gets the project under way, meaning that construction can begin this year as planned.

Rotterdam Cool Port focuses on the storage and transfer of perishable cargo such as fruit, vegetables, meat and fish. At the existing ECT City Terminal 60,000 m2 of land is to be earmarked in the first phase for the construction of a refrigerated warehouse and a cross-docking facility. The site is to be designed in such a way that it, in addition to the storage and handling facilities, allows access to an inspection point, pre-trip and empty depot services and intermodal connections.

RESOURCESFor more information about the facility please visit:

Dry bulk Less cargo was handled across the board. Bad harvests in major grain and oil seed exporting countries and the ensuing high prices caused agribulk throughput to drop by 18%. Iron ore and scrap dropped 12% due to the low steel production in Europe. Several blast furnaces have closed. Throughput of cokes coal [used in blast furnaces] did not keep pace with the drop in iron ore handling, because cargo flows were bundled and now go via the port of Rotterdam. Cokes coal throughput dropped nevertheless by 4%. The causes are the reduced demand for coal for electricity generation due to the availability of plenty of sustainable energy in the summer and stocks being used up. Throughput of other dry bulk dropped by 9%, due especially to the slump in building and disappointing industrial production. A total of 79 million tonnes of dry bulk was handled.

Crude oil Increased this year by 6%, putting it back at the ‘normal’ level. On the one hand the refinery sector experienced fewer significant maintenance breaks than last year and on the other hand production capacity ceased elsewhere in Europe, a reason why production here was driven up. Similar to previous years, the throughput of mineral oil products increased, this time by 12%. The most important cause is the increased oil product trade, due chiefly to the differences in the price of fuel oil in Europe and Asia. It is worthwhile, for instance, to ship Russian fuel oil via the port of Rotterdam to the Far East. The throughput of naphtha, gas oil, diesel, kerosene and petrol also increased. LNG imports remained at a low level, because the prices in Asia are much higher, resulting in the product being transported to the Far East rather than to Europe.

Other liquid bulk

experienced growth of 4%, partly through the start-up of Neste [palm oil import] and the increased import of bio diesel. A total of 214 million tonnes of liquid bulk was handled. This cargo segment thus represents half of the cargo throughput in the port of Rotterdam.

Container The continuing economic slump means less cargo is imported and more is exported. The balance of those two is a growth of 2% in tonnage. Because export containers are heavier on average and furthermore, fewer containers were going back empty, the throughput in numbers of containers [TEU] stayed the same. The port of Rotterdam lost cargo in the feeder market, but gained short sea containers. The 11.9 million TEU in containers came to 126 million tonnes.

Roll on/roll off

Increased by 3%. Other general cargo dropped by 23%, due especially to the greatly reduced import of steel. This brings breakbulk to a total of -5% with 24 million tonnes.

http://www.portofrotterdam.com/en/Business/rotterdamcoolport/Pages/frequently-asked-questions.aspx

http://www.portofrotterdam.com/SiteCollectionDocuments/201105ID-FS19_E_P_ST.pdf

TRADE WATCH

EUROPE & BALTICS

04

PORTS UNITED KINGDOM

World’s Largest Quay Cranes To Arrive At London GatewayDredging Today 21/01/13Towering at a height of 138m, London Gateway’s colossal quay cranes are on their way to the UK’s new deep-water container port. The first three of the port’s giant quay cranes, manufactured by Shanghai’s Zhenhua Port Machinery Company [ZPMC], have started their journey from China. The boom has a reach that will allow it to pick up containers 25 rows across deck, beyond the width of the world’s largest container ship. The cranes are semi-automated, which allows quick and efficient handling of containers. The port will start operations on the first berth in Q4 of this year with 5-quay cranes, and 2-rail mounted gantry cranes provided by ZPMC, while Cargotec will provide 10 automatic stacking cranes and 18 straddle carriers for the first berth. London Gateway, the 3.5 million TEU container port will bring significant supply chain savings to importers and exporters. By being located much closer to the vast majority of the UK market, the port will cut delivery costs.

New Terminal Operating System At TeesportSHD Logistics 07/01/13PD Ports has successfully installed a new terminal operating system at Teesport. The system, which was built by Navis, has been introduced to further improve efficiency for customers, as well as the speed and agility of operations at Teesport’s container terminal. The system implemented signifies the completion of PD Ports’ £16.7m upgrade of its container terminal facilities.

Port Of Liverpool Receives £3m InvestmentCranes International 14/01/13Peel Ports has announced a £3 million [US$4.5 million] investment to upgrade its existing steel terminal at the UK Port of Liverpool’s Gladstone dock. The Liverpool Steel Terminal will have an automated warehouse and interactive customer web portal, allowing customers to have round-the-clock instant access to the ordering process. Real time stock availability, precision coil selection and a vehicle booking system will give customers best value for money by minimising paperwork, handling, and haulier turn-around time. The facility will benefit from the latest-generation CareGo warehouse optimisation and crane automation technology; it will also include an automatic weighing facility. The new terminal will also have instant customer reporting, which will mean that customers will be able to track their order in real-time from ship to door. The Liverpool Steel Terminal will be open for business in April 2013.

PORTS FRANCE

Le Havre Container Traffic IncreasesLa Marin 24/01/13The port of le Havre container traffic grew in 2012 by 5% to 22.7 million of tons [2.3 million TEUS]. According to preliminary figures 2012 global traffic declined by about 6% from 2011 with a total of 64.3 million of tonnes due to the decline in crude oil shipments. Refined products increased by 3% to 12.1 million tons. Container traffic increased by 5% to 22.7 million tons [2.3 million TEUS] of 20 % transshipments, 2% to the hinterland and 5% for river trade.

PORTS SPAIN

Barcelona Port Exports Grow 8.7% In 2012Catalan News Agency 24/01/13In 2012 Barcelona port attracted an 8.7% increase in container traffic exports. The figure follows the 2011 trend, and saw the facility unveil 2-new container terminals and an international standard-width railway which improved its logistics capacity and operational ability. However, the low demand of Spain’s internal market meant import figures decreased. The net container traffic therefore only grew by 1.8% while the total amount of transported tonnes decreased by 3.6%.

PORT FACTS• Europe's 9th largest container port.• Catalonia's largest port, vying with Tarragona. • More than doubled its surface area in recent years, increasing from 600 ha to 1,300 ha of land. • Capacity to handle up to 5 million TEU containers. • Port is urging the Government to invest and build roads and an international-width railway linking up to Barcelona Port. • The Port has invested €40 million in building provisional railway access.

TRADE WATCH

CASHEW NEWS

05

PORTS SWEDEN

Swedish Ports Handle Over 1 Million TEUDynaliner 18/01/13Between January and September 2012, ports in Sweden handled 1.1 million TEU, almost the same number as during the corresponding period of 2011. While liftings at the country’s main outlets Gothenburg and Helsingborg grew only marginally, those at Halmstad [+16%], Sundsvall [+27%] and Wallhamn [+10%] soared. Some other ports posting declines of more than 30%, such as Oxelösund and Stockholm, were not that lucky.

PORTS POLAND

Gdynia Attacks North European Gateways The Polish port of Gdynia is preparing a major series of expansion projects as it plans to become a key part of the container supply chains serving central and eastern Europe, attacking the established north European hubs of Hamburg and Rotterdam.

This represents a shift in strategy for Polish container ports. Much of the focus of port development in Poland in recent years has centered on the greenfield DCT Gdansk port, owned by Australia’s Macquarie Bank, which neighbours Gdynia. Now Gdynia has announced plans to deepen its draught from the current 12.5m to 15.5m and enlarge its turning basin so that it can accept ships up to 13,000 TEU.

The second prong of its expansion focuses on intermodal links. It already has a high proportion of containers moving out of the port on block trains [42% in 2012] but its current 3-sidings are only half the length of a full train, at 330m. These will be doubled to 665m, while the terminal operator, a subsidiary of Filipino port company ICTSI, will invest in additional handling equipment. Both projects are due to be completed in the next 2-years financed by a mixof the authority’s existing cash reserve and EU funds. At present the majority of its hinterland is Poland, but this can be extended to Slovakia, Hungary and beyond alongside the Baltic-Adriatic Corridor development, an EU-led project that links the Baltic and Adriatic seas via rail.

PORTS ITALY

Italian Volumes IncreaseDynaliner 18/01/13In 2012, Eurogate/Eurokai subsidiary Contship Italia lifted 4.6 million TEU, 7.1% more than during the year earlier. The substantial growth was mainly due to the 18.1% increase at its flagships facility in Gioia Tauro, as in La Spezia, Ravenna and Salerno volumes decreased substantially.

RAIL NETHERLANDS

More Container Train To/From The North Of The Netherlands Port of Rotterdam 22/01/13IMS is increasing the frequency of its rail service for containers between Veendam and Rotterdam from 3 to 5 trips per week in both directions. The increase in frequency, starting on 2 January, was made possible through cooperation with DB Schenker Rail. IMS reserves 15-container wagons on the existing DB Schenker train between Rotterdam and Onnen [Groningen shunting-yard] every working day of the week. DB Schenker provides the transport between Onnen and the terminals of ECT on the Maasvlakte and RSC Waalhaven, as well as the transport between Onnen and Veendam. The business sector in the north of the Netherlands can now use rail for container transport from and to Rotterdam every working day.

TRADE WATCH

CASHEW NEWS

06

Creamer 31/01/13Africa needs to spend more than US$50-billion in the next decade on building 4,000 km of additional rail infrastructure to unlock the continent’s bulk mineral resource potential. According to Standard Bank infrastructure would continue to be the biggest challenge to exploiting the continent’s vast deposits of bulk commodities, particularly iron-ore, manganese and coal.

“As mining activities in key regions expand, mining output is starting to exceed existing rail capacity despite ongoing efforts to upgrade and maintain these rail links. Inadequate rail networks are limiting the economic potential of some of these commodity hot spots on the continent. There is a lot of enthusiasm about new coal, iron-ore and manganese discoveries in West Africa and Mozambique. Despite this enthusiasm, the ability to fully exploit these recourses is limited by infrastructure constraints,”David HumphreyStandard Bank Power & Infrastructure Global Sector Head

The quantity of iron-ore discovered in West Africa is enormous and could potentially attract US$25-billion of infrastructure investment in the next decade. In Mozambique, rail and port infrastructure is likely to attract investment of more than US$20-billion in the next 10-years. High-quality coal reserves of more than 35-billion tons and the area’s proximity to large markets like India and the Far East will require investment in high-volume rail links to maximise the economic potential.

The continent’s vast mineral resources were largely under-explored and under-exploited. A key factor that all commodities mining companies had to consider was the route to market and ensuring that this was economically viable. Port and market access were the first considerations to make when investing in Africa and in determining project viability and profitability. Enabling regulatory and policy frameworks need to be developed according to the various country requirements to attract the appropriate investment.

PAN AFRICA

Demand For Resources Drives African Rail Boom

TRADE WATCH

PAN AFRICA

07

Regional Trade Can Power Africa's GrowthUnited States Department of State 14/01/13Expanded regional agricultural trade has the potential to power Africa's economic growth and food security.

The U.S. Agency for International Development [USAID] through its 3-African regional trade hubs coordinates with African-led bodies such as the African Union and the Southern African Development Community to facilitate cross-border trade and to attract foreign investment.

The Southern Africa Trade Hub in Gaborone, Botswana, has made efforts to extend border post operating hours along the Trans-Kalahari trade route linking Namibia, Botswana and South Africa.

The hub helped the countries implement a performance management system that has contributed to a twelvefold increase in usage of the corridor and reduction in travel time from 72 to 48 hours.

Highlighting another example, USAID's support for customs reform in East Africa has led to a new common customs software platform that allows officials along the Mombasa-Kigali trade route to more easily communicate shipment information to each other. That reduced the time it takes to transport goods along the corridor and reduced transport costs.

Meanwhile the World Bank has called on Africa to do even more to reduce trade barriers. Policies to remove barriers to imports and adoption of uniform quality standards is needed.

Policies need to be predictable to attract needed foreign investments in port, transportation and storage facilities.

Sub-Saharan Africa Remains Second-Fastest Growing Emerging RegionEngineering News 06/02/13Sub-Saharan Africa is expected to maintain its position as the second-fastest growing emerging market region after Asia, with regional growth to remain above 5%.

Fitch Ratings attributed this to infrastructure spending, the development of mineral resources and growing consumer spending on the back of strengthened policy regimes, efforts to improve the business environment and rapid credit growth.

Africa is also expected to benefit from foreign direct investment.

Huge Potential For Chinese Firms Jostling For African Infrastructure Development Sinoship 07/02/13Chinese firms have been at the forefront of developing transport infrastructure in Africa, and China has been one of the largest destinations for raw material exports from the continent.

A conference in Cape Town this month suggests there is plenty more of opportunities for Chinese construction firms in Africa.

For instance, the continent needs to spend over US$52bn on 4,000 km of railways in order to exploit planned African iron ore projects, according to International Finance Corp.

The IFC estimates that up to US$13.6bn needs to be spent in Guinea alone to develop two railways and a port. China’s Ministry of Commerce has noted recently that Africa will surpass the European Union and the United States as China’s largest trading partner in the near future.

Turkey Aims To More Than Double Trade With Africa By 2015Reuter 08/01/13Turkey aims to more than double its trade with Africa to US$50-billion over the next 2-years and ratchet up its fast-growing diplomatic presence on the continent.

Prime Minister Tayyip Erdogan was in Gabon's capital Libreville on the first leg of a West African tour, and noted Turkish firms from transport and construction to energy and tourism were eager to do more business across the continent.

Turkish trade with Africa stood at US$17.7-billion in the first 11 months of 2012. Its exports to the continent were US$12.2-billion in that period, more than 5-times the level of a decade ago.

Turkey has rapidly increased its business and diplomatic presence in Africa, following in the footsteps of China, India and Brazil, as its companies look to diversify away from the slowdown in their traditional European export markets. Erdogan also travelled to Niger and Senegal.

Africa Private Equity Deals Grow To $1.2 Billion In 2012Reuters 06/02/13Private equity funds completed US$1.16-billion worth of deals in sub-Saharan Africa in 2012, a near 10% increase from the previous year.

Funds raised for the region also grew to $US1.4-billion last year, from US$1.3-billion the previous year, but still far below a 2008 peak, according to data from the Emerging Markets Private Equity Association [EMPEA].

Private equity investors are increasingly targeting sub-Saharan Africa, drawn by some of the fastest economic growth rates in the world and an expanding middle class. The region is projected to grow around 5% in 2013, according to the IMF.

Private equity funds completed 61 deals in sub-Saharan Africa in 2012, EMPEA said, the highest since 2008 when there were 50 deals.

Although the total capital invested in the region increased last year, it was less than half that of 2007, when private equity funds completed US$3.4 billion of deals. Fundraising in 2012 was also far short of the record USA$2.2 billion raised in 2008.

FUNDS• U.S. private equity firm Carlyle Group completed its first African deal in November, paying US$210 million for a stake in Tanzania-based agribusiness Export Trading Group along with 2-other investors.

• South Africa's Ethos Private Equity raised US$800 million for a new fund, one of the largest amounts secured by an Africa-focused fund.

• Helios Investment Partners raised US$900 million fund in 2011 after attracting more than US$1 billion in orders.

International Piracy Attacks Reach 5-Year Low in 2012Sabahi 17/01/13Piracy attacks across the world reached a 5-year low in 2012, due in part to decreasing Somali piracy, the International Maritime Bureau [IBM] said in a recent report. The IMB global piracy report said 297 ships were attacked in 2012, compared to 439 in 2011.

Waters off the coasts of East and West Africa still remain the most dangerous, however, with 150 attacks last year, more than half the world's total.

Piracy is rising in the Gulf of Guinea, with 58 incidents recorded in 2012, including 10 hijackings and 207 crew members taken hostage. Pirates in this area are particularly violent, with guns reported in at least 37 of the attacks. The European Commission recently announced a new EU initiative to combat piracy here called “Critical Maritime Routes in the Gulf of Guinea Programme” [CRIMGO].

The aim is to help governments across West and Central Africa to improve safety of the main shipping routes by providing training for coastguards and establishing a network to share information between countries and agencies across the region.

The project will be rolled out from January 2013 in 7 African coastal states: Benin, Cameroon, Equatorial Guinea, Gabon, Nigeria, Sâo Tomé and Principe and Togo. The EU will provide €4.5 million for the CRIMGO project under its Instrument for Stability.

Incidents Of Piracy

For a live piracy map please visit http://www.icc-ccs.org.uk/piracy-reporting-centre/live-piracy-map

Typhon Private Navy To Fight PiracyTyphon will use a 10,000 tonne “mother ship” to accompany convoys of merchant vessels.

With 60 mostly armed, mostly British ex-soldiers on board, it will deploy speedboats and unmanned drones to watch and intercept hostile boats.

Typhon plans to have 3-large ships by the year end, with at least one based in the Gulf of Guinea, and 10 by 2016.

PAN AFRICA

Country 2011 2012 Benin 20 2 Nigeria 10 27 Togo 5 15 Ivory Coast 1 5

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To meet the expanding demand on the reefer market from South America, Delmas has added a new call at Itajai, Brazil on its SAMWAF Line. Itajaí, located in the Lower Valley of Rio Itajai, is the main port of Santa Catarina, and the second largest in Brazil in terms of the movement of containers.

It serves as the main port for exports in the region. SAMWAF offers a direct service to Pointe Noire, Republic of the Congo and Luanda, Angola and also offers all main West Africa ports on transhipment.

For more information:

Port Transit Time BUENOS AIRES 0 RIO GRANDE 1 ITAJAI 3 SANTOS 4 RIO DE JANEIRO 6 POINTE NOIRE 18 LUANDA 24 BUENOS AIRES 43

Agency Details

Schedule

Port Website

DELMAS SERVICE HIGHLIGHTNew Brazil Call On SAMWAF Line

Itajai, Brazil

WESTERN & CENTRAL

AFRICA

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PORTS COTE D’IVOIRE

CHEC Signs EPC Contract for Abidjan Port DredgingDredging Today 24/01/13China Harbour Engineering Company [CHEC] has signed an US$933 million Engineering, Procurement and Construction [EPC] contract for Abidjan port extension with the Abidjan Port Authority [APA]. CHEC will be in charge of building the new terminal and the dredging of the Vridi canal and improvements.

As Abidjan’s integral economic part and a major project in the post-war economic reconstruction the project involves waterway and basin dredging, construction of a container terminal and a ro/ro terminal and construction of waterway breakwater reconstruction.

Ivory Coast Abidjan Port ConcessionIvory Coast has selected 3-consortia from its shortlist to submit a final offer for the concession to run Container Terminal 2 at Abidjan. They are CMA CGM - Necotrans - Ivorian Movis, Bolloré - Bougues - APM Terminals and MSC and PSA/Marsa. The final winner is to be announced by the end of March.

PORTS GHANA

GPHA Decongests Tema Port Access Daily Graphic 22/01/13The GPHA has noted that roads within the Tema port would be redesigned and the entrance of the port remoulded to open up for a wider outlet. Work has already started on the last 3-traffic lights in the port area to regulate traffic to and from the Tema Harbour. The three, in addition to another five which have already been mounted is estimated to cost GH¢1 million.

The traffic lights are located at the port entrance, the fishing harbour entrance, the Newtown-harbour crossroads, Ghacem junction, meridian junction, the motor way junction, the Golden Jubilee Terminal and the Tema Community Three- harbour intersection.

PORTS SENEGAL

Port Information Center In DakarWest Africa Trade Hub 01/02/12The Port of Dakar has identified an office to host a Port Information Center in Senegal modeled on the USAID Trade Hub-supported Border Information Centers now operating at the Ghana-Togo, Burkina Faso-Ghana and Benin-Nigeria borders.

The new center will provide practical information on processes and procedures to traders and serve as a platform to address problems that cause delays and increase costs. www.borderlesswa.com

PORTS ANGOLA

The Angolan port of Lobito has received 2-Ship-to- Shore gantry cranes for its new container terminal, expected to open later this year.

The new facility, built upon a steel pipe structure, has a quay of 414 m and a capacity of 200,000 TEU.

The port handled 87,000 TEU.

PORTS NAMIBIA

Gecko Namibia Proposes Development Of New Deep-Water PortCreamer 06/02/13A new deep-water port is proposed for development some 25 km north of Swakopmund, in Namibia, with the primary focus on the import and export of bulk materials. Project developer Gecko Namibia said a dedicated bulk handling facility is fast becoming essential for the country. It is expected that the region will require capacity of around 6-million tons a year in the next decade. The Port of Walvis Bay focused on containers and was developing that line of imports and exports, with a tender recently awarded for a new container terminal. Furthermore the surface area for bulk commodity exports and imports is simply not available at the Port of Walvis Bay.

The port would form part of Vision Industrial Park, a 700 ha development. Its construction was expected to be completed by the second quarter of 2016. It would be constructed in 4-phases, with phase 1 consisting of a 2.5-km-long breakwater and a specialised fuel and gas terminal with a draft of 16 m. The final phase will increase the draft to 23 m.

Vision Industrial Park itself would be constructed in two phases, with the first phase to be completed by December 2015. Central here is a sulphuric acid plant to meet the requirements of the uranium industry. This plant would be energy positive and a desalination and power plant would also be constructed. The second phase of the park would consist of a phosphoric acid and granular fertiliser plant.

Gecko Namibia had finalised the terms of reference for the scoping study and would soon move to a full environmental-impact study for the first phase of Vision Industrial

Park. The land had been secured and permission granted by the Namibian Cabinet for the project, which would go a long way towards enhancing bulk commodity trading and ease the flow of Namibia’s bulk mining products to international markets.

Namport Acquires New Mobile CranesNew Era 30/01/13The Namibia Ports Authority [Namport] has acquired 2-modern Liebherr LHM 550 mobile harbour cranes [MHCs] to fully maximize the port's operations. The N$80 million acquisition brings the total number of MHC cranes of the company to 8. The 2-cranes will not only reduce the waiting time of vessels, but also the costs borne by importers and exporters.

The cranes arrived on 28/01/13 in Walvis Bay and are currently being offloaded at the port. The assembly and commissioning of the cranes is expected to be completed towards the end of February, 2013. The acquisition of the cranes constitutes an important step in the modernisation of the Port of Walvis Bay. With a remarkable efficiency profile and technical specifications, the LHM 550 is designed for versatile and efficient cargo handling of up to post-panamax-sized vessels.

A maximum lifting capacity of 144 tonnes and a 54m max radius makes the LHM 550 the right solution for all cargo handling needs i.e. containers, general cargoes, bulk materials or break bulk. At this stage only 7 cranes by weight limitation are able to operate on berths 1-3.

However, the acquisition of the new cranes will enable the terminal to deploy a total of 6 cranes at any given time on berths 1-3 and simultaneously allow effective maintenance rotation, as one crane will either be on standby or on scheduled maintenance. Vessels calling at the Port of Walvis Bay and berthing at berths 1-3 use the existing Liebherr 500 MHC's resulting in crane productivity levels of 10 to 18 moves per crane hour.

New Harbour Master At Walvis Bay PortEconomist 18/01/13The Namibian Ports Authority [Namport] has appointed Captain Lukas Vipanda Kufuna as Port Captain at the Port of Walvis Bay replacing Captain Mussa Mandia who held the position from 2007 to 2012.

Lobito Has Received Two Ship-To-Shore Gantry Cranes

DELMAS Invites Nestle On Tema Port VisitOn January 31st, a delegation of more than 10 Ghanaian managers from Nestlé, the world’s leading food and beverage company, met our agency staff at Delmas Ghana. They also had the opportunity to visit the port of Tema, particularly the dry port and the container terminal. Then they were invited on board CMA CGM VILLE D’ORION, a vessel deployed on the AFEX line linking Asia to West Africa.

AFRICA

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Turkey Extends US$300m Facility To Ghana For Infrastructural Development

Daily Graphic 28/01/13The Turkish government has through the Turk Export and Import Bank [Exim Bank] extended a US$300 million facility to Ghana for infrastructural development. The money would be used for the expansion of the Tema Port, the construction of a new international airport and the building of bridges and roads. The Turkish-Ghanaian Business Council and the Turkey Foreign Economic Relations Board and the Government of Ghana hope this will increase development cooperation between Ghana and Turkey. Trade between Ghana and Turkey was above US$500 million and expressed the hope that it would reach the set target of $1 billion in 4-years.

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Turkey Extends US$300m Facility To Ghana For Infrastructural Development

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PORTS CONGO

Brazzaville Channel ProjectAn analysis of hydraulic activity and the silting up in the Port of Brazzaville has led to a proposal of building structures to regulate the entrance to the Mbamou channel to divert, in periods of low water, a part of the flow into the main channel and let large flows pass in periods of high water. Topographic, bathymetric and geological surveys are to be sub-contracted. The project period is 9 months from the date of contract award with a tender deadline set for 21/02/13.

Bollore Receives Pointe Noire Gantry CranesDynaliner 18/01/13As part of an upgrade and expansion project, Bolloré and partners have received 2-Ship-to-Shore gantry cranes for their Pointe-Noire Container Terminal, allowing the facility to handle containers ships of up to 7,000 TEU. The new devices will replace mobile harbour cranes which are no longer able to deliver the required productivity. Pointe Noire acts as both a hub port and a main transit facility for Congo River destinations including northern Angola, Central African Republic and DR Congo.

PORTS TOGO

Lomé Container Terminal DevelopmentThe International Finance Corporation [IFC] has arranged a US$300 million loan to invest in the development of the Lomé Container Terminal [LCT] in Togo. Global Terminal Limited [GTL], a joint venture between Hong Kong-based China Merchants [CMHI] and MSC affiliate TIL [Terminal International Limited] holds the 35-year concession to operate the 2.2 million TEU deep water facility.

PORTS BENIN

New Gantry Cranes Arrived At CotonouThe port of Cotonou recently received some new gantry cranes. It will take around 10-11 weeks for the cranes to be positioned followed by 3-weeks training for the crane drivers in Le Havre. The units should be operational by the end of April. The 11ha terminal will then be operated by Benin terminal, a new operator. SMTC will handle the transfer of the containers for unstuffing and reefers. Dredging to 13m and additional works will allow larger vessels to turn to facilitate berthing and departure.

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PORTS NIGERIA

NPA Redeploys General Managers, Port ManagersDaily Trust 16/01/13A major shakeup has been effected in the management of the Nigerian Ports Authority [NPA], as it redeployed some key officials including general managers and port managers.

ICTSI Eyes Not Only Lekki But Cameroon & CongoDynaliner 18/01/13In addition to Lekki Port [Lagos, Nigeria], ICTSI is reportedly looking to increase its African presence, eyeing opportunities in countries as Ivory Coast, Cameroon and Congo Rep. in West Africa, as well as Kenya [East Africa].

The Philippine stevedore intends to expand its current portfolio of 6-national and 16-international terminals by 1-facility every year over the next 10-years.

REGULATRY GHANA

Ghana Ban On Export Of Ferrous Scrap MetalsLocal Agent 05/02/13The Ministry of Trade and Industry [MOTI] has reitterated there exists an administrative ban on the export of ferrous scrap metals [since 1980s]. Soon, a Legislative Instrument [LI] to ban the export of ferrous scrap metals will be laid before Parliament [process is now at an advanced stage: reviewed & approved by cabinet] in order that the ban on the export of the metals and the sanctions for non-compliance are made clearer.

The Ministry issued a notice on the temporary ban on export of ferrous scrap metal to exporters as far back as 20th May, 2002, to protect the local steel industry and the Commissioner of Customs, Excise and Preventive Service [CEPS] was duly informed.

In 2008, some flexibility was introduced to allow some quantities of ferrous and non-ferrous scrap metals to be exported, and every potential exporter is required to submit an application and some specific documents on the operations of the exporting company for consideration before any permission is granted.

The Ministry decided to further streamline the process by developing a legislative instrument to govern the export of non-ferrous scrap metals and though the Legislative Instrument, L.I. 1969, which banned the export of ferrous scrap metals was passed in 2010, a process has been defined to regulate the export of non-ferrous scrap metals, while the ban on the exportation of ferrous scrap metals remains in force. The L.I 1969, specifically warned exporters not to add iron or carbon steel scraps to the non-ferrous scrap metals for export, failure of which constituted a punishable offence [fines / confiscation].

Ghana Adopts A Free Port Terminal Policy To Exempt Vehicles Daily Graphic 22/01/13The Ghana Ports and Harbours Authority [GPHA] has initiated a free port terminal policy to exempt imported vehicles aged up to 5-years from confiscation when they are not cleared after 60 days upon arrival.

Currently, port regulations allow for vehicles of any age to be cleared within a 60-day period or be confiscated. Under a new arrangement, vehicles within the ages of up to 5-years will be allocated a terminal outside the port to enable owners clear them at their own pace and pay rent for the period the car is kept at the port.

The GPHA explained a tract of land had been acquired near Kpone for the purpose and when ready importers of new vehicles would have all the time to keep their vehicles at the free port terminal for a fee representing rents charges over the period that vehicle would spend at the terminal.

The free port terminal is only for new vehicles within 5-years while other aged vehicles would still remain in the port for a fee and attract confiscation within the 60-day period.

The GPHA is of the view that the new policy would make it unattractive to import over aged vehicles. GPHA and its stakeholders were in consultation to finalise the process for the take-off of the new arrangement.

Ghana Seized Second-Hand RefrigeratorsAll Ghana News 11/01/13The Ghana authorities will now seize second-hand refrigerators, deep-freezers and air-conditioners following the enforcement of the legislative Instrument LI 1932 of 2008 at the beginning of this year [following a 4-year grace period].

Goods that arrived before 01/01/13 were allowed to clear their goods however any banned electrical gadgets arriving after this deadline will be confiscated in accordance with the law.

NPA Managing Director Mallam Habib Abdullahi GM Western Ports Adenike Shonaike Administration Department

Michael Ajayi Port Manager, Lagos Port Complex [LPC] Nasir Anas Mohammed

GM Public Affairs Capt. Iheanacho Ebubuegbu Head of Tin-Can Island Port Complex [TCIPC], Apapa

Babatunde Longe

GM Marine & Operations Mallam Mohammed Bulangu Assistant GM Commercial of Western Ports Barrister Effioita Ephraim

Acting GM Procurement Joshua Asanga Port Manager of Rivers Port Complex, Port-Harcourt

Caroline Ufere

GM Finance Okonji Abdullahi Port Manager, Warri Port Obuneme Onuenyenwa,

GM Special Duties Barrister Sotonye Inyenengi-Etomi

Onne Port Manager

Munir Umar

GM Eastern Ports Sunny Nwobi Calabar Port Manager Engr. Wada Musa

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RAIL NIGERIA

Lagos to Kano Rail Line Opens With SURE-P InterventionThis Day 18/01/13Managing Director of the Nigerian Railway Corporation [NRC], Adeseye Sijuade, joined the NRC in 2009 to manage a railway system which had suffered 2-decades of deterioration.

At its peak in 1964 the railway moved 3 million tons of freight however since the 1980’s due to inadequate funding and poor maintenance the system went into decline.

Over the last 5-years the Government has put in significant funding to revitalise the sector focusing on the rehabilitation of the 3,500 km of existing rail lines predominantly from Lagos to Kano and from Port Harcourt to Maiduguri.

In addition, the NRC commenced implementation of the construction of the new standard gauge line from Abuja to Kaduna and just awarded Lagos to Ibadan. On 21/12/12 the Lagos to Kano line was commissioned.

The rehabilitation of Lagos to Jebba line cost N12.2 billion which was managed by the China Civil Engineering Construction Corporation [CCECC] while the Jebba to Kano was done by Costain Plc at a cost of N12.1 billion.

Without the Subsidy Reinvestment and Empowerment Programme [SURE-P] intervention, the Lagos to Kano line would not have been completed in 2012.

What actually happened was that over and above the conventional appropriation the government identified key sectors to achieving the President's transformation agenda.

The railway sector is one of those sectors and as such, funds were provided for the rehabilitation project. With the SURE-P financing the rehabilitation of the Eastern line is moving at a heightened pace with trains expected to run between Port Harcourt and Maiduguri by the end of 2013.

Similarly, the Abuja to Kaduna standard gauge project is now 40% complete and the Abuja to Kaduna line would be fully operational by the end of 2014.

The NRC has also commenced cargo operations with the haulage of goods from Ogun State to Niger State after 10 years. The cargo train which contained 675 tonnes of cement from Lafarage Cement Company arrived at Minna where it was off loaded.

The NRC now needs to focus on sustaining the service through adequate maintenance of the system, making sure the tracks are well ballasted, top up the ballast in deficient areas and maintain bridges and culverts. There are also issues of minimizing delays and maintaining rolling stocks and coaches wagons.

The NRC procured 25 brand new locomotives from GE in 2010 at US$3 million each and also rehabilitated over 200 coaches and wagons to the tune of N2 billion. The NRC has 20 tank wagons with a capacity of 450,000 litres to be delivered by the middle of 2013.

ROAD BURKINA FASO

Burkina Faso Road DevelopmentsBurkina Faso has received funding from the African Development Bank for the rehabilitation of roads along the Lomé-Ouagadougou corridor and to carry out feasibility studies of asphalting the Orodara-Banfora- Gaoua-Batié-Kpuéré road [361km] on the border of Côte d'Ivoire.

ROAD SIERRA LEONE

Sierra Leone DevelopmentsSierra Leone has received financing from the African Development Bank for upgrades to the Lungi-Port Loko road. Works under the project encompass the upgrading of the Lungi-Port Loko road [62km] and also includes initiatives that encompass 30km of feeder roads and improvements to other social infrastructure in the project area.

ROAD CAMEROON

National Road Board MeetsCameroon Tribune 18/01/13The 13th session of the National Road Board met in Yaounde on 17/01/13.

The session noted the rehabilitation works of the Nsam-Obobogo-Nkolguie junction road stretch; the renewal of equipment of 17 road weighing stations; the signing with EXIM BANK China of a funding agreement for the construction of the first section of the Yaounde-Douala motorway; the production of the progress report on the construction project of the Yaounde-Nsimalen motorway and an update of projects to construct by-pass roads especially the East and West thruways of Yaounde and Douala.

The board has mobilized additional financing for the development of the national road network with the signing of 18 funding agreements totaling CFAF 673.493 billion.

Future measures are to be taken for the construction of access roads to key mining and energy sites and to take necessary measures to rehabilitate the Benoue bridge in Garoua and/or build a second bridge. And before end-January 2013 the construction tender for the Yaounde-Nsimalen motorway should be expedited.

Managing Director, Nigeria Railway Corporation [NRC], Mr Adeseyi Sijuwade

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TRADE GENERAL

Private And Public Sectors Prepare For Second Annual Borderless ConferenceWest Africa Trade Hub 01/02/13Private and public sector stakeholders across West Africa are gearing up for the second annual Borderless Alliance conference, "Borderless 2013: Connecting Markets," in Accra, Ghana on February 21-22.

Connecting Markets is the largest meeting place for stakeholders in trade across the region, and is organized by the Borderless Alliance with support from the USAID West Africa Trade Hub.

Speakers include the Manufacturers Association of Nigeria Export Group [MANEG], global food giant Nestlé and the Union of African Shippers’ Councils [UASC].

The Ghanaian, Ivoirian and Sierra Leonean Ministers of Trade will be in attendance, along with representatives of international institutions such as UEMOA and the United Nations Conference on Trade and Development [UNCTAD].

Transport costs in West Africa remain among the highest in the world, raising consumer prices and discouraging investment.

The Borderless Alliance is a broad partnership of private and public sector stakeholders which aims to increase trade by lowering the cost of transport. Last year’s inaugural conference set the tone for ongoing multilateral discussions about trade barriers. TRADE GHANA

Ghana Targets US$3.3 Billion Export Revenue In 2013 Africa Report 17/01/13The Ghana Export Promotion Authority [GEPA] has rolled out a geographical mapping of companies to create a data base for a national product traceability system, as the country hopes to rake in about US$3.3 billion from its exports this year.

The Geographic Information System [GIS] will create a data base for exporters in food and agro processing products, which will enable Ghana to avoid the risk of having its exports to the European Union [EU] markets reduced.

The EU Commission's decree on the General Food Law, which became effective in 2005, requires that all exports be documented so that their history and location could be readily verified to remove dangerous products from the market. In Q1 2012 the GEPA was able to hit US$1.387 billion out of its targeted US$2.446 billion for 2012.

Ghana's major export destination is the EU. In 2011 it realised US$499 million from exports to the EU, representing 38% of total export earnings. With the support the GEPA said Ghana could attain its target of US$3.308 billion revenue for the 2013 financial year.

The Economic Community of West African States [ECOWAS] is Ghana's second major market in terms of export revenue, but GEPA believes increased penetration of the EU market was still critical to Ghana's economy.

ECOWAS markets in 2011 fetched Ghana US$261.9 million, representing 29% of total export revenue. Ghana's main exports are gold, cocoa beans and timber products.

Others include tuna, aluminum, manganese ore, diamonds and horticulture.

The GIS project involves the unique identification of products and raw materials from sources in originating countries and maintenance of accurate records on geographic location of firms, farms, factories, movements and utilisation of products at all stages of the value chain

TRADE NIGERIA

Britain Seeks to Double Trade With Nigeria By 2014This Day 21/01/13Britain is committed to doubling its trade volume with Nigeria by 2014 from the US$9 billion recorded in 2011. The British High Commissioner to Nigeria noted that this would require Nigeria to improve on its business environment for investors through more transparency, accountability and better infrastructure. Taxation and other elements are relatively stable.

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DELMAS SERVICE HIGHLIGHT: New Weekly Service From Europe To Maldives Delmas is improving its frequency to Male, Maldives, with an additional weekly feeder from the port of Colombo, Sri Lanka. In addition of our main ASEA service [calling Male every 14 days from Port Kelang / Colombo] we now have the opportunity to load on a third party feeder, the Orient Express Lines [OEL], via Colombo. Transit time from Colombo is only 2 days! Please contact our local agent SILCO: Sheyam - sheyam@silco.com.mv / Younus - younus@silco.com.mv

For more information:

Agency Details

Schedule

Service Brochure

DELMAS SERVICE HIGHLIGHTNew Weekly Service From Europe To Maldives

EASTERN AFRICA

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EAC/COMESA

EAC Protocols On Tax Not RatifiedEast African Business Week 13/01/13The East African Community [EAC] has predicted continued regional economic growth but noted this will not be achieved unless regional traders start to fully benefit from the Customs Union and the Common Market protocols that up till now, are still on the shelve.

The 5-partner states must review, amend and harmonize all laws relating to the implementation of the 2-protocols since it is through improved regional trade that the predicted regional economic growth can be achieved.

All partner states are currently behind schedule on these protocols. Among the most important protocol that has not been ratified by Kenya, Uganda, Tanzania, Burundi is the agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. It is only Rwanda that has brought legislation into force.

Regional Body Urged To Form Border AuthorityEast Africa Business Week 22/01/13Members of the East African Legislative Assembly [EALA] have recommended that the region should set up a single authority to oversee the management of border posts.

This should be facilitated by the necessary enabling legislations clearly defining scope and giving it the necessary power to execute its mandate. A report was compiled after an on-spot assessment on the challenges of implementation of the EAC Common Market Protocol along the northern and central corridors. EALA members also recommended that EAC should institute load control limits and fast-track the EAC vehicle load control bill that seeks to harmonize load limits and axle load weights across the region.

Member's want to review the lengthy border procedures which are exacerbated by uncoordinated border management systems leading to wastage of time. It was noted that it takes at least 2-days to clear a truck across the border between Kenya and the neighboring partner states. And that numerous police checkpoints and weighbridge inspection points inhibit free movement of trucks along corridor.

PORTS KENYA

Mombasa Ports Benefits From Expansion / Fears Over ElectionGhetto Radio 30/01/13Container traffic through the port of Mombasa grew by 9.9% in 2012, boosted by an expansion programme. Despite the growth there are fears of disruption during Kenya’s presidential elections in March may hurt traffic over coming months as east African businesses seek alternative routes for their goods.

The ports Managing Director Gichuri Ndua said some clients were rerouting goods through Tanzania’s Dar es Salaam port, hoping to avoid what happen in 2008 when tons of cargo disappeared in transit during the post-election violence period.

Much of it was lost to looting. In the aftermath of Kenya’s 2007 poll, ethnic violence across the country paralyzed cargo transport and some landlocked east African

states found themselves short on oil and other key provisions.

Kenya is currently building a US$300 million second container terminal at Mombasa to handle increased trade within the region, driven by a sharp growth in construction, vast infrastructure development and an emerging middle class.

PORTS MOZAMBIQUE

Mozambique Starts Work On 2035 Beira Master Plan Deltares 30/12/12Deltares will be joining forces with the engineering firm Witteveen en Bos to develop the ‘2035 Master Plan’ for the harbour of Beira in Mozambique located in the estuary of the Pungue River. Work on the Master Plan will start in Mozambique on 01/02/13 and is expected to be completed in October 2013.

Deltares and the engineering firm Witteveen en Bos are involved in this project. Preparations are in progress for expanding transshipment and export capacity to approximately 20 million tons a year.

Maputo Port Handles 15 Million Tons Of Cargo In 2012Macauhub 30/01/13The port of Maputo handled 15 million tons of cargo in 2012, 3 million tons more than in 2011 according to the Maputo Port Development Company [MPDC].

In 2013 MPDC plans to launch 10 tenders, mostly related to repairs and maintenance of port facilities, specifically roads, railways and docks. In the last 9-years the port has

increased the amount of cargo it handles almost 4-fold, rising from 4 million tons in 2003 to 15 million in 2012. In the next 5-6 years the port is expected to start handling 40 million tons of cargo per year.

Meanwhile, in order to implement its strategic plan, the MPDC has ordered 12 cranes to increase the port’s cargo handling capacity. The first of the cranes was delivered in December and the remainder are due to be delivered by the end of February.

The port of Maputo includes the Container Terminals, managed by DP World, the Vehicle and Coal terminals managed by Grindrod, the Sugar terminal managed by Maputo Sugar Terminal [STAM], the Citrus Fruit terminal operated by FTP – Fresh Produce Terminals [Moçambique] and the Grain, Aluminium and Fuel terminals, all in Matola, managed by state company Portos e Caminhos de Ferro de Moçambique.

PORTS TANZANIA

China Picks Contractor for Dar es Salaam Port Expansion WorksTanzania Daily News 04/02/13The Chinese Government has recommended that the Chinese Harbour Engineering Construction Company [CHEC] undertake the expansion of Dar es Salaam Port. The move has put to rest a legal battle between Tanzania and another Chinese company.

Previously, China Communications Construction Company [CCCC] Limited was awarded the tender to undertake the project, before the tender was revoked by the government of Tanzania, prompting CCCC to take the matter to court. Local reports state CCCC Limited have now decided not to take part in the project and to withdraw its case before the High Court.

Vehicle Clearance Improves At Dar es Salaam PortTanzania Daily News 17/01/13Following acquisition of new equipment, the Tanzania Ports Authority [TPA] vehicle section is now able to clear 1,000 cars in an 8-hour shift compared to the previous 400. The process of offloading vehicles is now faster and more efficient.

When offloading, all vehicles that haven't been tampered with are allowed to leave the port after being labeled with a green sticker and vehicles with faults bear red stickers. Previously all vehicles irrespective to whether they were okay or had faults had to fill in a vehicle discharge inspection and transfer tally form, this no longer happens.

For cars bearing red stickers, another inspection is required to be conducted under the supervision of a port clerk and a clearing and forwarding agent. TPA has also banned all vehicles that generally fall short of the roadworthy conditions. Vehicles will not be allowed to enter the port effective 18/02/13 along with a speed limit of 20km/h.

Cargo Clearing Quickens As Dar Port Gets 3-CranesTanzania Daily News 20/01/13In its bid to strengthen its services, the Tanzania Ports Authority [TPA] has purchased 4-cranes to be used for use at Dar es Salaam [3] and Tanga ports [1]. The cranes, worth a total of €10.4 million, has helped increase the capacity of the port. A total of 315 TEU/hr were serviced in December 2012 compared to 216 TEU/hr that were serviced before their arrival in October 2012.

DELMAS Best Operator In 2012 At Mombasa PortThe Kenya Ports Authority [KPA] which manages Mombasa port has just named the Group the best operator of the year for its performance in 2012.

Ludovic Rozan, Vice President Central Africa, Indian Ocean & Oceania and Sreeni Ram Prabhu, Managing Director of CMA CGM Kenya Ltd attended the ceremony and received the prize from Hassan Ali Joho, Assistant to the Kenyan Transport Minister.

Thanks to its strategic location midway between South Africa and the Gulf of Aden, Mombasa port has seen a significant increase in traffic for several years now.

As the port of entry to Central and East Africa, Mombasa offers direct connections to more than 80 ports worldwide and a network inland serving Uganda, Rwanda, Burundi, DRC, Tanzania and South Sudan.

Image: Sreeni Ram Prabhu, Managing Director CMA CGM Kenya Ltd, receiving best operator of the year Award from Mombassa Port

New Weekly Service From Europe To Maldives

EASTERN AFRICA

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Alternative Sea Route Project Kicks Off TANGA - BUKASA

New Vision 17/01/13The proposed US$500 million Bukasa port development has begun, a giant step in the long road to establishing internal transport infrastructure projects that would ease doing business. On 10/01 the Ministry of Works announced a bid for an environmental and social impact assessment for the proposed port in Bweyogerere on the shores of Lake Victoria.

The inland port has been touted as the panacea to import-export problems as it would provide a cheaper and quicker alternative route from the East African coast by using the underutilised Tanzanian port of Tanga, then by rail to Musoma and by wagon ferries to Bukasa, onward to Kampala, South Sudan, Rwanda and DRC.

The development will come as good news to the trading community of Uganda, who have had to bear with the unreliability of Mombasa port, the most used coastal facility in East Africa. It also presents a giant leap in the quest to develop an alternative route away from Mombasa and create and connect reliable and cheaper inland alternatives that connect to Dar es Salaam in Tanzania. According to a timeline provided by the works ministry, the signing of the contracts should be before March 2013, thus work should commence in Q1 of 2013. The East African Community faces daunting infrastructure challenges. While there are initiatives ongoing, analysts say the pace of infrastructure development is not matching the rate of growth of trade. Key access routes like the ports of Dar es Salaam and Mombasa that are critical to maritime business are often overwhelmed by crowding and growing demand.

A Uganda National Roads Authority [UNRA] 2011 report indicates that out of 1,873km of the northern corridor routes, a survey indicates that only 51.6% are in good condition, 23.8% are in fair condition, while 8.9% is in bad state. The Kampala-Malaba road has however improved. The Northern Corridor Transit Transport Coordination Authority [TTCA-NC] that oversees the route linking the land-locked states of Uganda, Rwanda, Burundi, DRC and South Sudan with Mombasa still battles with the major obstacles that slow movement of trade and services. Transport costs, according to a report from the TTCA-NC, have reduced considerably in all the destinations with Juba, Southern Sudan, recording the highest decrease.

The biggest victims of an inefficient transport network are the hinterland states. Kenya accounts for 68.5% of imports through Mombasa, followed by Uganda at 22.5% and DRC at 2.18%, Rwanda at 1.34% and Burundi at 0.01%.

As part of the wider scheme, Uganda is eyeing part of the US$20 billion cash tranche announced by the Chinese government last year to revamp its critical infrastructure, including kick starting works on new ports and a standard gauge railway line. Uganda has been in discussion with China Harbour Construction Company [CHCC], and looking to sign a MoU with the Chinese firm for the railway works from Malaba-Kampala and Tororo-Packwach line. CHCC has another MoU with Uganda People’s Defence Force [UPDF], in which they are training the forces on rail building. China pledged US$20 billion at the 5th Ministerial Conference of the Forum on China-Africa Cooperation in Beijing in July 2012. Part of this money is what the Ugandan Government is targeting to revamp critical infrastructure that are behind schedule because of funding pressures. Malaba-Kampala would require US$2b, Packwach-Nimule-US$3b, while Bukasa would require US$500m.

Road transport, the most widely used mode of transport in EAC accounts for about 95% of the volume of cargo transported in the region. But it is also the most expensive mode of transport. Rail transport on the other hand costs about sh134 [US$0.05] per tonne-km, compared with sh241 [US$0.09] per tonne-km for road transport- almost twice the cost. Despite the cost advantage of rail, study estimates are that just about 5% of Northern Corridor traffic moves by rail due to the poor rail network, delays, breakdowns, and service disruptions that make rail transport more unpredictable than roadways.

Thus developing and improving inland port facilities and Mombasa as well as accessing cheaper alternative route through Dar es salaam would reduce average freight costs by sh107,080 [US$40.25] per tonne in the Northern Corridor and by sh66,732 [US$24.90] per tonne in the Central Corridor. As a result, it is estimated that EAC trade would increase on average by 15% overall, with a gain of 25% in the Central Corridor through Dar es Salaam.

The Port of Mombasa is the origin of the Northern Corridor, and demand for its services runs well above capacity. Until recently, ships waited an average 2.3 days before coming into the port, and containerised vessels spent 3.1 days on average at berth. The alternative route for cargo is the Mutukula-Dar es Salaam route, called the central corridor which is another additional 600km from Dar es Salaam.

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Alternative Sea Route Project Kicks Off TANGA - BUKASA

BUKASA

TANGA

MUSOMA

RoadRail

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RAIL TANZANIA

Railway For Landlocked CountriesTanzania Daily News 12/01/13The construction of a railway line to link 3-countries will start in March 2013, following a feasibility study financed by the African Development Bank [AfDB] and the United State Trade and Development Agency [USTDA].

The railway from Dar es Salaam, Kigali to Musongoti will facilitate the transportation of goods in the Central Corridor covering 5-countries including Tanzania, Rwanda, Burundi, DRC and Uganda.

All landlocked countries will benefit significantly from the proposed railway project by producing optimal connection to the sea which will promote regional economic integration, and facilitate commercial, mining and industrial development.

RAIL KENYA

Nairobi to Get New RailwayThe Star 09/01/13The Kenya Railways Corporation [KRC] plans to expand its rail system in Nairobi and neighbouring towns with new railway stations operational in 3-years. KRC has already completed a feasibility study for improvement and expansion of the railway system.

The proposed system will cover about 100 km radiating from Nairobi Railway Central Station as the transport hub. The work covers improvement and doubling of the existing track in selected areas.

Areas to be covered include Athi River on the Nairobi-Mombasa Road to Embakasi, Jomo Kenyatta International Airport, Dagoretti and Ruiru. The study also proposed development of an extended system up to Limuru, Thika and Lukenya.

RAIL MOZAMBIQUE

Mozambique Opens Tender For Heavy Haul Railway Line and PortUKDTI 08/02/13Mozambique intends to promote the construction of a 516 km new railway from Moatize, Tete Province, to Macuzi, Zambezia Province, and the construction of a port terminal in Macuzi, designed to carry coal and other minerals, miscellaneous cargo and passengers, in the centre of the country, through a public-private partnership [PPP].

Interested parties have been invited to submit expression of interest to acquire the Rights of Concession to Develop, Design, Finance, Build, Manage, Operate and Transfer to the Mozambican State the Railway Moatize – Macuzi and Port Terminal in Macuzi. The tender closes on 08/03/13.

RAIL UGANDA

Tanzania / Uganda: Rail Equipment To Facilitate Transport Daily News 26/01/13Uganda has agreed to provide 2-locomotives and 200 wagons to facilitate cargo transportation from Dar es Salaam port to Mutukula border point between Tanzania and Uganda.

Uganda is also contemplating a request by Tanzania to establish a dry port at Mutukula to facilitate cargo transportation from Dar es Salaam port.

In a bid to address delays, Uganda is to station a liaison officer to facilitate customs clearance at the port. Statistics show that only 1% of Uganda's cargo was transported from Dar es Salaam Port in 2011 whilst 99% was transported from Mombasa port in Kenya.

RAIL TANZANIA

Basic Network In Place For North-South Copper Corridor Creamer 28/01/13State-owned utility Transnet Freight Rail [TFR] notes railway infrastructure is already in place to facilitate the export of copper arising from DRC and Zambia through the Durban harbour, in South Africa.

The ‘North-South Corridor’ could use the existing network linking the DRC and Zambia to Zimbabwe through Victoria Falls and joining up with the South African system at Beitbridge. The proposal is in line with a Southern African Development Community [SADC] ambition to bolster regional integration and reduce the cost of doing business in the territory through policy coordination, integrated planning and the development of crossborder infrastructure.

South Africa is also keen to consolidate Durban into a “mega-gateway port”, which could service domestic and regional freight corridors.

Transnet is hoping to bolster the freight handling capacity of Durban by facilitating the creation of a new R75-billion dig-out port on

the site of the old Durban International Airport, which it purchased last year for R1.85-billion from the Airports Company South Africa.

Consensus on the desirability for a “unified railway” plan has been reached between TFR, the National Railways of Zimbabwe, Zambian Railways, Société Nationale des Chemins de Fer du Congo, or SNCC, and privately owned Beitbridge Bulawayo Railway.

The next milestone will be the signing of a formal agreement, scheduled for February, to be followed by the creation of a joint operations centre, probably in Bulawayo, Zimbabwe.

The agreement will precede moves to establish 6-committees, including one to investigate the investment and maintenance requirements associated with the proposed corridor. The committees will also seek alignment on joint operations, new business development, safety, skills development and security.

There was no intention to establish a separate operational entity, or to pursue the development as a public–private partnership [PPP].

Instead, the aim is to ensure that the 5-existing railway organisations begin working together. The initial focus will be on identifying constraints to the flow of cargo, as well as on operational inefficiencies, integrated planning, cargo monitoring and coordinating of future investment projects.

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ROAD TANZANIA

Cargo Transportation Increases Despite OddsTanzania Daily News 21/01/13Cargo transportation has grown tremendously over the past 5-years with a recent report indicating a growth of 400%.The Tanzania Truck Owners' Association [TATOA] transported 43 million tons last year but noted collaborative efforts were needed to address shortcomings including road barriers, queues at the border points and road accidents The government will review issues of congestion at Tunduma border point and road barriers would be addressed.

TRADE/ECONOMY TANZANIA

Used Motor Vehicle Inspections StallTanzania Daily News 09/01/13The absence of a Board of Directors is said to have affected tendering initiatives at the Tanzania Bureau of Standards [TBS], including the tender for pre-shipment inspection of imported used vehicles. The Board, which is mandated to authorize floatation of such tenders, was disbanded by the Minister for Industry and Trade 4-months ago for inefficiency and lack of accountability.

Local reports say some company contracts authorized to carry inspections expired in December 2012. The companies initially signed a 1-year contract with TBS to conduct the pre-shipment inspection of motor vehicles and cannot resume services until the Board gives its consent. The Complaints and Review Committee [CRC] has now ordered TBS to restart tendering for pre-shipment verification of conformity to standards [PVoC] for used motor vehicles.

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The East London multi-purpose quays, operated by South Africa’s Transnet Port Terminals, have received a their first mobile harbour crane. Until now, the small facility relied upon the ship’s own gear. Approximately 300 km to the west, at Port Elizabeth, Transnet installed 2-second-hand Ship-to-Shore gantry cranes relocated from Durban. It should help to raise its current 500,000 TEU capacity.

East London Port Receives Crane

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ROAD TANZANIA

Tanzania/Zambia: Mwakyembe To Ease Tunduma Truck FlowThe Guardian 21/01/13The Tanzanian Transport Minister has assured members of the Tanzania Truck Owners Association [TATOA] that he will take action against the slow pace of truck movement at Tunduma border post.

The border is designed to serve 40-50 trucks per day but currently more than 400-500 trucks are crossing the border daily.

Furthermore trucks bound for Zambia and DRC take more than 6-days to cross the border due to the heavy traffic and documentation procedures.

TATOA have proposed opening 10-gates at Tunduma border point instead of the current single gate. [2: passengers / 3: dangerous goods / 5: containerized cargo.] Weighbridges and roadblocks which are among the Non-Tariff Barriers [NTBs] should be reduced to increase efficiency and save time in transportation of goods. Meanwhile, TATOA elected 8-new members to serve as the executive committee and re-elected the former chairman, Seif Ali Seif to the post, and Angelina Ngalula as the vice chairperson.

ROAD ZAMBIA

New Initiative to Empower Zambian Road ContractorsTimes of Zambia 18/01/13The Road Development Agency [RDA] and National Road Fund Agency [NRFA] have formed a Construction Finance Initiative [CFI] aimed at empowering Zambian road construction companies.

This is in line with the 20% sub-contracting guidelines issued last year to meet the need to increase the participation of local contractors.

The Government plans massive investment in the road sector under the 'Link Zambia 8000' programme. Under CFI, the RDA and NRFA would spearhead the formulation of a tripartite arrangement among road sector players.

Zambia Road Upgrade For Ndola and KitweAfrican Business Review 10/01/13A KR187 million project to improve roads in two of Zambia’s busiest cities has been given the seal of approval by the Government.

A total of 40.9 km of roads in Ndola and Kitwe on the copper belt are to be reconstructed and upgraded as part of the Link Zambia-8,000 road project launched by President Michael Sata last year.

Work is expected to start next month. Ng’gandu Consulting Limited will be responsible for designing and constructing 12 selected urban road in Kitwe and has engaged the services of China Geo-Engineering Corporation as the main contractor.

Bicon Zambia Limited will similarly be involved in designing and constructing another 12 selected urban roads in Ndola. It has signed up 2-main contractors to carry out the works, Jizan Construction and Copperfield Mining Service.

ROAD ZIMBABWE

Beitbridge Expansion In LimboNews Day 29/01/13The Zimbabwe government is consulting on infrastructural challenges at Beitbridge border post after cancelling the deal it had with Israel BBR South African Infrastructure Investment Company to upgrade the port.

The Ministry of Regional Integration and International Co-operation said a decision was yet to be made on the contract. At least US$100 million was required for infrastructure development at the port of entry where there is now a need for separation of human and vehicular traffic at the border.

Harare/Beitbridge Road To Be Upgraded & TolledEngineering News 05/02/13The Department of Roads in Zimbabwe has commissioned Royal HaskoningDHV to conduct a feasibility study to determine the viability of construction and tolling to improve the 580-km road between Harare and the Beitbridge border post.

The study, which would be carried out in association with 5-Zimbabwean partner firms, involves traffic studies, development of a toll strategy, engineering analysis and concept design, environmental-impact scoping, an economic feasibility study and financial modeling.

The cost is estimated at US$600-million, some of which would be funded as a loan against revenue from the tolls by the Development Bank of Southern Africa and the African Development Bank. Funding should be committed by March 2013.

The Harare to Beitbridge road is part of the trunk road network of Zimbabwe, as well as the North to South Corridor – one of the major arterial links in the regional road network. It is the most direct link between the capital cities of Harare, in Zimbabwe, and Pretoria, in South Africa, and provides

landlocked Zambia access to the Indian Ocean ports of Durban and Richards Bay.

The road carries between 1,000-5,000 vehicles a day. Of significance is the fact that a high proportion of this traffic are trucks carrying goods, equipment and machinery that support the Zimbabwean economic recovery.

ROAD MALAWI

President Banda Inaugurates Chikhwawa Ngabu RoadNyasa Times 06/02/13Pesident Dr. Joyce Banda officially opened the 46km Chikhwawa–Ngabu section of the 81.74km Chikhwawa-Nchalo-Bangula road at Misewu Folo in Chikhwawa.

The road forms an important link between the Shire Valley and the rest of the country. It is part of the M1 road that starts from Nsanje through Chikhwawa to Blantyre through Lilongwe to Mzuzu up to Karonga and linking the country and Tanzania to the north and Mozambique to the south.

The European Union [EU] financed the €17 million project which wasundertaken by Grontmij/CarlBro and Mota-Engil.

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RAIL SOUTH AFRICA

Major Rail Project Gathers SteamOxford Business Group 05/02/13Japan has joined France, Germany, China and South Korea as a prospective investor in South Africa’s multi-billion dollar large-scale proposed high-speed rail system, which, once built, will link Johannesburg and Durban on the east coast. Yet questions remain about whether the project will prove profitable for private sector partners unless it is subsidized by the South African government.

The link marks the first phase of an US$18bn rail project. A prefeasibility study released in January concluded that a 600-km very-high-speed [VHS] rail link connecting the 2-cities expects to carry around 17,000 passengers daily when it comes into operation in 2025, rising to between 33,000 and 38,000 per day by 2050. The link will also be able to shift up to 4.2m tonnes of freight annually. Meanwhile South Africa will be aware that China, which is currently working to develop its own VHS network, could offer favourable cost considerations, given Beijing’s well-documented interest in breaking into African markets. France’s Alstom, which has long expressed an interest in the initiative and holds some 60% of the global VHS rail market, is certainly another strong contender.

However, Alstom Transport South Africa, queried whether the Johannesburg-Durban route would be profitable without government backing. His doubts are echoed by others who have pointed out that the Gautrain, South Africa’s only current high-speed rail line, which links Johannesburg and Pretoria, is subsidised by the state, partly due to lower than expected passenger figures. The train needs to carry 110,000 passengers per day to break even, but carries some 38,000-40,000. The government is subsidising the rail at a cost of R300m [US$33.5m] per year.

Despite question marks around funding issues, there is widespread agreement that the proposed rail link could play a major role in easing congestion and reducing wear on South Africa’s roads, pushing up levels of passenger travel and freight transported by train, which currently stands at just 7%.

Transnet In Talks On African Copper Transport LinkBusiness Day 14/01/13Transnet Freight Rail [TFR] hopes to finalise an agreement next month on rail co-operation between South Africa, Zambia, Zimbabwe and DRC, allowing the copper-rich countries to increase exports through Durban. The deal will boost trade in southern Africa, allowing a more efficient and cost-effective movement of goods across borders. Transnet, National Railways of Zimbabwe [NRZ], Zambian Railways, Societe Nationale des Chemins de Fer du Congo [SNCC] and Beitbridge Bulawayo Railway have been negotiating the terms of the agreement since last year.

Durban port competes with Dar es Salaam port for copper exports because of the limited rail links between Congo and South Africa. After the deal is signed, a joint operating centre will begin work immediately and develop coordinated traffic plans for the 5-operators. A similar programme, started last August to improve trade on the Maputo corridor between South Africa, Swaziland and Mozambique, has yielded gains. Coal trains to Matola Terminal have increased by 75% to 35 trains a week.

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TRADE SOUTH AFRICA

Trade Gap Narrows In December, Sharp Fall In ImportsReuters 31/01/13South Africa's trade deficit narrowed to R2.7-billion in December from R7.94-billion in November as imports fell sharply on a month-on-month basis. December exports decreased by 9.8% over the previous month while imports slid by 15.8% according to the South African Revenue Service [SARS]. Imports of machinery, electrical appliances, equipment components and products from the chemicals and related industries were down on the month, while exports of base metals, vessels and aircraft also fell. The cumulative deficit for 2012 amounted to R117.7-billion compared with a R16.9-billion shortfall the previous year.

New Trade Act Not Friendly – AFDBThe Herald 22/01/13The African Development Bank [AfDB] noted the recent enactment of the Preferential Procurement Policy Framework Act by South Africa is against the promotion of free trade under the SADC Trade Protocol. The protocol provides that member states shall, in relation to intra-SADC trade, adopt policies and implement measures to eliminate all existing forms of non-tariff barriers and refrain from imposing any new barriers.

South Africa in December last year enacted the PPPFA, which stipulates that 75% of procurement should be local in an effort to protect South African manufacturers. The measure by South Africa, which is Zimbabwe's largest trading partner, has severely impacted on local firms which were beginning to recover following a decade long economic meltdown.

In response, Zimbabwe introduced duty on certain products originating from South Africa, but this has done little to curb the influx of goods from across the Limpopo. AfDB said the move was impacting negatively on Zimbabwe's export revenue as South Africa was its biggest trading partner. To date, South Africa is only absorbing 12% of the country's exports, a decline from a share of 30%. However, South Africa remains Zimbabwe's strategic trading partner, and suspension of the bilateral agreement has impacted negatively on Zimbabwe's export revenue.

Analysts contend that the new regulations introduced by South Africa will hamper rejuvenation of Zimbabwean industries and the economy in general while the negative trade balance is expected to continue widening. In 2011 local companies exported R1,4 billion worth of goods while imports onto the local market rose to R15,1 billion. Zimbabwe exports to South Africa mainly consist of unfinished products including platinum, tobacco and finished products including cereals.

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