The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscription FRIDAY 11 September 2009 NO. 1879 FREIGHT & TRADING WEEKLY Sales Executive Johannesburg Leading Freight Forwarder and Division of a Large Group in SA and Internationally. Attractive package + Comm Structure Join an established Freight Forwarding and clearing agent that is expanding at a rapid pace in SA. Outstanding career opportunities within the Group. You need a successful track record and a solid understanding of the clearing and forwarding environment in Air and Seafreight. Good verbal and written communication skills. Display a positive and energized attitude to new business. Please apply to: [email protected]FTW4528 FTW2467 lee botti & associates SPECIALISTS IN THE RECRUITMENT OF STAFF FOR THE LOGISTICS INDUSTRY Est. 1977 www.leebotti.co.za [email protected]Kim Botti Jill Morris Sabina Botti BRANCH MANAGER BEIRA, MOZAMBIQUE EX-PAT SALARY Prominent C&F agent requires self driven & highly motivated individual to assume responsibility of operations, finances & sales. Proven C&F & logistics b/g, solid mngt exp & ability to lead & motivate are key. Portuguese highly adv. Tel: Kim (011) 452-0204 SUPPLY CHAIN MANAGER SWAZILAND R300 000 – R400 000 Rare opportunity for career focused individual to enjoy a dynamic & expanding org, whilst enjoying a change in lifestyle. Vast exp in FMCG distribution, warehousing & inventory management required. Proven leadership abilities a must for this hands-on role. Tel: Kim (011) 452-0204 SALES MANAGER CAPE TOWN R400 000 Drive a consistent and effective sales strategy on behalf of this global industry player. Strong financial backing, supportive management team & ample time to be mentored by the current incumbent. Min 5 years C/F sales exp with 2 years being in a leadership role. Budgets, proposals, sales recruitment & key relationship management – exciting times ahead! Tel: Sabina (021) 418 1084 REGIONAL REPRESENTATIVE TANZANIA USD 3000 & BENEFITS Exciting and challenging opportunity for energetic, driven & sales focused indiv to develop massive market share. Good C&F ops knowledge & bus develop skills sought. Prev Africa exp adv. Tel: Kim (011) 452-0204 BUSINESS DEVELOPMENT MANAGER GAUTENG R400 000 – R450 000 neg Fantastic position for sales focused individual who is au fait with the Sub-Saharan African market & a b/g in C&F. Brand new opportunity with reputable multinational offers much needed challenge and career growth. Tel: Kim (011) 452-0204 BRANCH MANAGER DURBAN R300 000 CTC International container leasing company seeks sales-driven candidate to run their South African operation from Durban. Will suit a self-starter with a good flair for sales, & strong knowledge of the shipping industry, specifically in terms of containerised cargo. Tertiary qual ess, independent worker whilst liaising with extensive int’l offices. Tel: Jill (031) 201-8330 BUSINESS DEVELOPMENT MANAGER DURBAN R360 000 – R480 000 CTC Rapidly expanding C/F company seeks expertise of a business process / systems development person. Core focus is on dev & creating business solutions to customer problems, & implementing & deriving financial benefit. Strong customer relationship building skills required, as is a thorough knowl of C/F processes. Pref given to BEE candidates. Tel: Jill (031) 201-8330 CUSTOMS MANAGER CAPE TOWN To R500 000 ctc Excellent opp with well established concern. Requires tertiary education, min 6-8 years customs b/ground coupled with min 3 years management exp. Utilise your proven business development skills, plus technical know-how. Dedicated & focused individual sought to ensure quality service delivery & consult to an elite client base. Tel: Sabina (021) 418 1084 Port Regulator moves into action BY Alan Peat Those in the freight industry with what they feel are justifiable complaints against the port authorities are going to have to think fast if they are to be laid before the newly-established port regulator, according to FTW’s maritime legal advisers. This follows the August 6 gazetting by the department of transport of the ‘Ports Regulator – Regulatory Principles and Directives’ – in terms of which the port regulator will operate. In these, the port regulator has the guidelines for the performance of its functions – and has effectively been able to operate from that deadline date. If any of our readers have a complaint against the port authorities – in the form of the Transnet National Ports Authority (TNPA) – they have to lodge it within three months of “the incident, conduct or omission”. In the case of any complaint that arose after November 26, 2006, but prior to the August 6, 2009 publication of these directives, it must be lodged within three months of that August date. This requires urgent action on behalf of the complainants. The three month period can be extended by the regulator on “good cause shown”, according to Tony Norton, maritime specialist with lawyers, Garlicke & Bousfield, and chairman of the National Port Users’ Forum (NPUF) – provided the complainant applies for such condonation in writing. “Complainants only have until November 5 to lodge any complaint, the act or omission in respect of which arose between November 26, 2006 and August 6, 2009,” he told FTW. “But complainants are urged to avoid having to rely on that provision as there is currently no certainty as to what will constitute good cause.” He also highlighted the basis on which a complaint can be brought. In terms of directive 2(1), he told FTW, any person whose rights or interests are adversely affected by any action of, or failure to act by, the TNPA may lodge a complaint with the port regulator on a number of grounds. These are where access to ports and port facilities are not Top DPE staffer resigns The department of public enterprises has just informed FTW that director-general, Portia Molefe, has resigned from her post after five years of service, to pursue other interests. She will serve three months’ notice and will leave the department at the end of November, the department added. Molefe has certainly not left under a cloud. Exactly the opposite, according to the minister, who said: “Her insight into national economic imperatives, both at an enterprise and national level, has driven the departments’ renewed focus on the state- owned enterprises (SOE) as vehicles for industrial development and economic growth.” No information is yet available on Molefe’s replacement as director-general. To page 24 Complaints against port authorities? File them fast.
Transcript
The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscriptionFRIDAY 11 September 2009 NO. 1879
FREIGHT & TRADING WEEKLYSales Executive JohannesburgLeading Freight Forwarder and Division
of a Large Group in SA and Internationally. Attractive package + Comm Structure
Join an established Freight Forwarding and clearing agent that is expanding at a rapid pace in SA.
Outstanding career opportunities within the Group. You need a successful track record and a solid understanding
of the clearing and forwarding environment in Air and Seafreight. Good verbal and written communication skills.
Display a positive and energized attitude to new business.
lead & motivate are key. Portuguese highly adv. Tel: Kim (011) 452-0204
SUPPLY CHAIN MANAGER SWAZILAND
R300 000 – R400 000Rare opportunity for career focused individual to enjoy a
dynamic & expanding org, whilst enjoying a change in lifestyle. Vast exp in FMCG distribution, warehousing & inventory
management required. Proven leadership abilities a must for this hands-on role.
Tel: Kim (011) 452-0204
SALES MANAGER CAPE TOWN
R400 000 Drive a consistent and effective sales strategy on behalf of this global
industry player. Strong financial backing, supportive management team & ample time to be mentored by the current incumbent. Min 5 years C/F
sales exp with 2 years being in a leadership role. Budgets, proposals, sales recruitment & key relationship management – exciting times ahead!
Tel: Sabina (021) 418 1084
REGIONAL REPRESENTATIVE TANZANIA
USD 3000 & BENEFITS Exciting and challenging opportunity for energetic, driven & sales focused indiv to develop massive market share. Good
C&F ops knowledge & bus develop skills sought. Prev Africa exp adv.
Tel: Kim (011) 452-0204
BUSINESS DEVELOPMENT MANAGER GAUTENG
R400 000 – R450 000 neg Fantastic position for sales focused individual who is au fait
with the Sub-Saharan African market & a b/g in C&F. Brand new opportunity with reputable multinational offers much needed
challenge and career growth. Tel: Kim (011) 452-0204
BRANCH MANAGERDURBAN
R300 000 CTCInternational container leasing company seeks sales-driven candidate to run their South African operation from Durban. Will suit a self-starter with a good flair for sales, & strong
knowledge of the shipping industry, specifically in terms of containerised cargo. Tertiary qual ess, independent worker
whilst liaising with extensive int’l offices.Tel: Jill (031) 201-8330
BUSINESS DEVELOPMENT MANAGER
DURBANR360 000 – R480 000 CTC
Rapidly expanding C/F company seeks expertise of a business process / systems development person. Core focus is on dev &
creating business solutions to customer problems, & implementing & deriving financial benefit. Strong customer relationship building skills required, as is a thorough knowl of C/F processes. Pref given to BEE
candidates. Tel: Jill (031) 201-8330
CUSTOMS MANAGER CAPE TOWNTo R500 000 ctc
Excellent opp with well established concern. Requires tertiary education, min 6-8 years customs b/ground coupled with min 3 years
management exp. Utilise your proven business development skills, plus technical know-how. Dedicated & focused individual sought to
ensure quality service delivery & consult to an elite client base.Tel: Sabina (021) 418 1084
Port Regulator moves into actionBy Alan Peat
Those in the freight industry with what they feel are justifiable complaints against the port authorities are going to have to think fast if they are to be laid before the newly-established port regulator, according to FTW’s maritime legal advisers.
This follows the August 6 gazetting by the department of transport of the ‘Ports Regulator – Regulatory Principles and Directives’ – in terms of which the port regulator will operate.
In these, the port regulator has the guidelines for the
performance of its functions – and has effectively been able to operate from that deadline date.
If any of our readers have a complaint against the port authorities – in the form of the Transnet National Ports Authority (TNPA) – they have to lodge it within three months of “the incident, conduct or omission”.
In the case of any complaint that arose after November 26, 2006, but prior to the August 6, 2009 publication of these directives, it must be lodged within three months of that August date.
This requires urgent action on
behalf of the complainants.The three month period can
be extended by the regulator on “good cause shown”, according to Tony Norton, maritime specialist with lawyers, Garlicke & Bousfield, and chairman of the National Port Users’ Forum (NPUF) – provided the complainant applies for such condonation in writing.
“Complainants only have until November 5 to lodge any complaint, the act or omission in respect of which arose between November 26, 2006 and August 6, 2009,” he told FTW.
“But complainants are urged
to avoid having to rely on that provision as there is currently no certainty as to what will constitute good cause.”
He also highlighted the basis on which a complaint can be brought.
In terms of directive 2(1), he told FTW, any person whose rights or interests are adversely affected by any action of, or failure to act by, the TNPA may lodge a complaint with the port regulator on a number of grounds.
These are where access to ports and port facilities are not
Top DPE staffer resignsThe department of public enterprises has just informed FTW that director-general, Portia Molefe, has resigned from her post after five years of service, to pursue other interests.
She will serve three months’ notice and will leave the department at the end of November, the department added.
Molefe has certainly not left under a cloud. Exactly the opposite, according to the minister, who said: “Her insight into national economic imperatives, both at an enterprise and national level, has driven the departments’ renewed focus on the state-owned enterprises (SOE) as vehicles for industrial development and economic growth.”
No information is yet available on Molefe’s replacement as director-general.
To page 24
Complaints against port authorities? File them fast.
FREIGHT & TRADING WEEKLY DUTY CALLS
Editor Joy OrlekConsulting Editor Alan PeatContributors Liesl VenterAdvertising Carmel Levinrad (Manager)
Yolande Langenhoven Claire Storey Jodi Haigh
Managing Editor David Marsh
CorrespondentsDurban Terry Hutson
Tel: (031) 466 1683Cape Town Ray Smuts
Tel: (021) 434 1636 Carrie Curzon Tel: 072 674 9410Port Elizabeth Ed Richardson
Your Assistance PleaseI would appreciate your thoughts on the following question: “What is the intention of the imposition of an ordinary customs duty? Is it to collect revenue (tax) or is it to serve a protective purpose (to protect the domestic industry)? Please let me know your thoughts and your reasoning for it. Please send an email to [email protected]
Draft Cites RegulationsIn a Government Gazette dated 28 August 2009 the Department of Environmental Affairs and Tourism published the Draft Convention on International Trade in Endangered Species of Wild Fauna and Flora (Cites) Regulations for public comment. It deals with, amongst other issues, “import” and “export”.
Written response due by 28 September 2009.
Tariff Application – Plugs, Sockets & InsertsAn investigation was initiated in respect of the rebate of the customs duty on plugs (including plug inserts) and sockets for the
manufacture of insulated electric cables fitted with connectors, for a voltage not exceeding 250V.
APEX Cord Set Technologies, which stated that there were no local manufacturers of international type plug inserts and connectors, lodged the application.
Written response due by 16 October 2009.
Ports Regulator – Regulatory PrinciplesIn a 60-page Government Gazette notice dated 06 August 2009 the Department of Transport published the Ports Regulator – Regulatory Principles.
Correction Notice - Trade Remedy ApplicationFollowing the initiation of the Sunset Review of the anti-dumping duties on clear drawn and float glass originating in or imported from the People's Republic of China (China) and India, a correction notice was published.
The application was lodged by PFG Building Glass (Pty) Ltd, the sole manufacturer of the
product under investigation in the Southern African Customs Union (SACU).
Written response due by 11 October 2009.
Taxation Laws – Second Amendment BillThe South African Revenue Service (Sars) has released the Publication of the Explanatory Summary of the Taxation Laws – Second Amendment Bill, 2009.
According to the notice the Minister of Finance intends to introduce the Bill in the National Assembly in September 2009.
The amendment of the Customs and Excise Act 91 of 1964 is intended (i) to amend provisions empowering the withdrawal or amendment of a decision or notice or communication; (ii) to amend provisions regulating the removal in bond of goods; (iii) to amend provisions regulating to the exportation of goods from a customs and excise warehouse; (iv) to insert special provisions regarding the storage and clearance of stores, spares and equipment supplied to foreign-going ships and aircraft; (v) to
insert a provision specifying circumstances in which goods free of duty may be entered under a rebate of Schedule No.4; (vi) to amend provisions under which a penalty may be mitigated or remitted; (vii) to amend provisions regulating payment of outstanding amounts and interest; and (viii) to insert a provision empowering the making of rules for the purposes of modernising customs administration and to effect textual and consequential amendments.
The Diamond Export Levy (Administration) Act, 2007 is intended (i) to amend a time-period; (ii) to amend refunds; and (iii) to amend the calculation of interest and to effect textual and consequential amendments.
The Diamond Export Levy Act, 2007, is intended to clarify an existing provision.
Note: This is a non- comprehensive statement of the law. No liability can be accepted for errors and omissions.
FTW1232SD
FRIDAY September 11 2009 | 3
By Ed Richardson
June 2009 Treasury tax revenue tables show just how bad business has been this year.
VAT returns for the second quarter of this year are down 30% from the same period last year indicating a decline in sales, another sign of the recession that we are experiencing, says Mike Ronald, an investment professional at Marriott
“Not only is VAT down,
but corporate tax collections are also lower by some 15% indicating lower taxable earnings.”
The direct impact on the freight industry is reflected in StatsSA estimates of income from freight transportation for the second quarter of 2009, which dropped by 9.4% compared with the second quarter of 2008.
The payload decreased by 10.3% for the second quarter of 2009 compared with the
second quarter of 2008. Income from freight transportation for June 2009 decreased by 9.2% compared to June 2008.
However, government is continuing investment where it matters for the economy and the transport industry.
“Government spending has continued at expected levels,” says Ronald.
There is a price to pay:“This has resulted in an
actual deficit after the fiscal year’s first quarter of R60-bn
compared with a budgeted deficit of R95bn for the entire year.
“Current tax receipts show not only declining consumer
spending and corporate earnings but they also point to the need for government to borrow more in the year ahead.”
Luanda ‘chaos’ threatens perishable cargoBy James Hall
Luanda – A crisis in cold chain maintenance in Angola may have major consequences for the country’s economy and is prompting shipping lines to question whether it is worthwhile to continue to move perishables to the nation’s ports.
“It is absolute chaos up there. The shipping lines are tearing their hair out,” Dean Bouch, field manager for Africa and Israel of
Carrier Transicold, told FTW.The problem in a nutshell is
that a company that had been working with Carrier Transicold to maintain cold storage units suddenly disappeared. Carrier Transicold provides 70% of reefers used by the world’s shipping lines.
“We work with shipping lines and not in Angola directly. But we wish to provide after sales service to our customers. We’ve been working with the lines ever
since they started pushing for business in Angola after the war. We helped set up a company in Angola to do reefer maintenance, and they were successful. They had all the shipping lines as their customers,” said Bouch.
But then one day the people in charge decided to go away and not come back.
“There is such a skills shortage in Angola that they decided to close down a successful business just like that
to start another business,” Bouch said.
The result: perishable transport by sea, rail and road in Angola is in jeopardy.
“The situation at the port of Luanda is bad enough. There are long queues because of customs, unreliable power supply and the congestion at the docks. The ships are waiting at port to offload, and when something goes wrong with one of their reefers there is only
untrained staff available to fix it. And if they can find someone who knows the job there is no company to provide the parts,” Bouch said.
Bouch said his firm was still committed to customer after sales service in Angola. Carrier Transicold is constantly in contact with shipping lines and potential service providers, but the regional service support woes are far from solved, he said.
FTW1769SD
Freight transport income drops 9.4%What is really happening in the economy Freight transport income Q2 09 (Q2 08) 9.4%
Port Elizabeth Tel: 041 484-2480 Fax: 041 484-2487
East London Tel: 043 742-2216 Fax: 043 742-2666
Ensuring improved service levels, business processes, and customer retention whilst
marketing aggressivelyHonesty and transparency at all times, and the current economic conditions have taught us to be more cost efficient whilst offering
value-adds and focusing on the basics – Thobeka Sibisi, branch manager, Durban
World Flight Services (WFS) has been appointed Cargo Terminal Operator for the Dube Tradeport Cargo Terminal at Durban’s new La Mercy airport.
Founded in 1983, WFS handles over 3.5-million tons
of air cargo in more than 120 of the world’s airports.
WFS will start operating the terminal from May 1, 2010, according to KwaZulu-Natal MEC for Economic Development and Tourism, Michael Mabuyakhulu.
Speaking at the announcement of the
appointment, Mabuyakhulu said it was estimated that the province generated around 25 000 tons of air cargo a year “which is currently transported by road to the OR Tambo International Airport in Gauteng.
“This number may well be significantly higher if we
are to assume that KwaZulu-Natal makes up about 30% of the current total tonnage of OR Tambo International Airport,” he said.
“Whatever the number, we have a base through which we may grow our tonnage numbers over time through making the Dube Tradeport
Cargo Terminal the terminal of choice in the southern African market”.
According to WFS, the new cargo terminal covers 15 800 m2. The company has signed a five-year exclusivity agreement with the KwaZulu-Natal government.
La Mercy uses financial incentives to entice usersThe KwaZulu-Natal government has announced a number of incentives to encourage airfreight companies to move to the new La Mercy airport.
KwaZulu-Natal MEC for Economic Development and Tourism, Michael Mabuyakhulu, said the construction of a new trade port alone would not automatically lead to economic growth and development.
Announcing the sweeteners to move, he said: “We are very conscious of the fact that the Dube Tradeport and new international airport will mean an economic change and adjustment insofar as it involves relocation from one part of the city to another – in other words the movement of aviation-related activity from south to north.
“This obviously needs to
be accommodated and priced into various businesses which may be dependent on the aviation industry.
“In this regard, we have put in place a policy framework that will peg rental rates for users in order to accommodate not only this economic adjustment, but also take into account the economic recession,” he said.
These pegged rates will apply for the first three years of operations and then be re-negotiated to accommodate market changes and adjustments going forward.
Emirates Sky Cargo is the first international operator to announce flights into the new airport. According to Mabuyakhulu, the target is to have “at least” five international destinations served out of La Mercy within the first five years of operation. Emirates is the first to announce international flights to the airport.
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A change of tune from Transnet over Gama issueBy Alan Peat
Despite denials earlier this year to FTW from a Transnet spokesman about Transnet Freight Rail (TFR) CEO Siyabonga Gama’s alleged responsibility in the recently botched procedure for the R6.5-billion tender for 212 locomotives, the parastatal has now issued a new story.
In March this year we reported that there had been quite a major dispute going on between the SA press and Transnet about the affair.
At the time, Transnet had cancelled the R6.5-bn tender, it said, because a
“whistleblower” led it to believe there was a corrupt relationship between one of its officials and one of the directors of EMS, the preferred bidder. Also, Transnet admitted that it made a mistake when rating the black economic empowerment (BEE) status of the EMS SA-US joint-venture.
The point made by a major daily newspaper was that Gama should possibly have noted the discrepancies in the bid in TFR’s review of the tender procedure, and that this failure might jeopardise his chances of becoming Maria Ramos’s successor as
CEO of the Transnet group. This was vehemently
denied by Transnet spokesman, John Dludlu, who issued a press statement refuting any talk that Gama could have been involved in the loco deal and that it was affecting his chances to become CEO.
But now there seems to have been a change of tune.
Gama, said a release from Dludlu, “has been suspended, pending the outcome of an internal disciplinary process.
“Gama has been requested to attend a disciplinary hearing relating to an alleged serious breach of governance
requirements in respect of two procurement contracts.
“Transnet is committed to ensuring that due process in relation to the disciplinary matter is followed, and the process, which enjoys the Board’s unanimous support, will be adjudicated by an independent and external arbitrator.”
Further investigation by FTW has been fruitless. “During this process,” said Dludlu, “we will not be commenting on this labour relations matter to enable due process to take its course and the reputation of all role players to be preserved.”
Monthly forum set up to grow Maputo volumesA monthly port users’ forum has been established for the Port of Maputo in Mozambique under the co-chairmanship of Jorge Ferraz and Ronnie Holtshausen – the two
caretaker CEOs of the Maputo Port Development Company (MPDC).
Addressing the forum at its opening meeting, Ferraz and Holtshausen agreed it
was important for the port community to work together to ensure the joint long-term development of the port. The aim is to grow throughput from the projected 8.7-million
tonnes for 2010 to 48-mt over the following 20 years with an estimated capital expenditure (capex) of US$750-million.
Already the channel is being dredged to 9.4 metres
with capital dredging planned for next April to take the channel to an 11-metre depth which will then be able to accommodate panamax size vessels.
Siyabonga Gama ... suspended, pending the outcome of an internal disciplinary process.
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sA and india push for closer trade tiesTrade trebles in four years
By Liesl Venter
South Africa and India are set to re-energise structures and forums that promote relationships and mutually benefit both countries.
Speaking at the Westcliff Hotel in Johannesburg recently, South African Minister of Trade and Industry Dr Rob Davies said this was the outcome of intensive talks with a visiting Indian delegation of government officials and businessmen.
“Both countries are committed to seeing our relationship strengthened. We are keen to see the CEOs forum re-energised while we also want to see more south-south trade,” said Davies. “At least 36% of world trade is already between developing countries. This trend has of course been accelerated by the global economic crisis
and we hope in future to see at least half of world trade being conducted between developing countries.”
He said with India already the tenth largest investor in South Africa, trade between the two countries had trebled between 2003 and 2007.
Indian Minister of Commerce and Industry Anand Sharma agreed, saying annual trade between South Africa and India was in the region of R7 billion per annum.
“We are committed to seeing this increase to at least R12 billion by 2010.”
Both ministers said the re-energising of the CEOs forum was important to reach the goals. This forum will now meet twice yearly – once in South Africa and once in India - with the aim being to promote more trade and investment between the two countries from CEO level while also
identifying areas where the two countries can collaborate to be competitive internationally.
Business Unity South Africa and its Indian counterparts will be identifying primary contact
points in each organisation to ensure continuity of the forum and the development of agendas and planning.
Ministers Anand Sharma and Dr Rob Davies … looking to increase trade to R12bn by 2010.
Middle east & india
8 | FRIDAY September 11 2009
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new MiaF service boosts Middle east/india coverageIn line with its strategy to link major markets to Africa, Norwegian ro ro carrier Hoëgh Autoliners has launched a Middle East, India, Africa service (MIAF) offering monthly sailings from Mumbai, Chennai and Colombo to Maputo, Durban, Luanda, Lagos and Tema. Other ports en-route will be considered on inducement.
“In 2008 we introduced our FEME (Far East Middle East) service,” sales and marketing manager Carol Graham told FTW. “This monthly service is now well established and caters for cargo from Japan, China and Singapore to the Middle East, Iran, Iraq and East Africa.”
With the MIAF service now in place, the line offers
a monthly frequency from India and the Middle East direct to Southern and Western Africa as well as monthly inbound sailings via transhipment in Jebel Ali from Japan, China and South East Asia. “This provides full Africa coverage from the East,” says Graham.
“We are well known in West Africa and Southern Africa for our inbound ro ro services from Europe and the US East Coast. These recently established regular trade routes open up new cargo possibilities for us and further enhance our position in Africa.”
Hoegh Autoliners moves all types of vehicles, including high and heavy vehicles, project cargoes and over-sized breakbulk and
specialised non rolling cargo. The company operates
approximately 50 Pure Car and Truck Carriers (PCTCs) in global trade systems. Its main customers are major manufacturers of new cars, heavy machinery and rolling stock as well as second hand vehicles.
The line carried around two million car equivalent units (CEU) last year, making 3000 port calls. Based in Oslo, it has a global network of 30 subsidiaries and representative offices in Europe, North America, Asia and Africa.
Payment a major obstacle… but big opportunities for growth
While the Middle East and India are mature markets, they have not been totally devastated by the global recession.
“They are still pretty buoyant,” says Margrit Wolff, managing director of Buffalo Freight System who believes it’s a strong growth area. “It should ultimately rival China if they can get the spend to upgrade their infrastructure,”
Wolff told FTW. “There is strong existing
trade, the prices are right and the quality is getting there,” says Wolff. “And they’re also innovative.”
A range of products is currently moving on the route – from furniture, foodstuffs, textiles and handicrafts to pharmaceuticals, fruit and fresh meat.
And with the exception of
certain southern Indian ports where cargo is transhipped, transport links are more than adequate.
But a major obstacle for local shippers is payment.
“I have had exporters battle to get letters of credit paid out despite their banks having verified them.
“With India they have a plethora of inland customs hubs which can be
confusing, on top of which the infrastructure is bad and transport to port is lengthy, complicated and fraught with problems.”
Adding further delays, Customs in India physically inspects at least 5% of all export cargo, says Wolff. “This is done after the LCL or airfreight shipment leaves the supplier and causes delays and bad repacking of cargo,
which is already generally in second hand cartons.”
And this is why the shipper’s choice of forwarder is so crucial, in Wolff’s view.
“You need a forwarder with an outstanding network of agents, expertise in the countries of origin, the benefit of regular groupage services – and most of all the know-how to overcome obstacles.”
Middle east & india
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FTW1771SD
Middle east & india
10 | FRIDAY September 11 2009
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Global inspections grows its share of Middle east and india marketsDubai office pays off
By Liesl Venter
Global Inspections Group (GIG) has added muscle in the Middle East and Indian markets where the expansion of its network has been the focus for the past few years.
According to Stefan Sakoschek, GIG chief executive, the expansion will also see the company venturing further into the Far East, with an office due to open in Shanghai by the end of September.
“We have slowly but surely been growing our market share, especially in the Middle East and Indian markets. Dubai has in recent years been repositioning itself as a logistics hub and is very well set up with its first world
infrastructure. With goods moving through the Dubai Port from the Middle East to Africa it was necessary for us to open an office in the city.”
Sakoschek says despite the difficulties in opening the office due to the complex legal systems, it has been an excellent move on the part of the company.
“With the host of services we offer – ranging from testing and analysis and the supervision of loading and offloading to pre-shipment inspections – we are ideally suited to be the service provider of choice for the big trading companies in the Middle Eastern region. We are already inspecting goods ranging from rice to fertiliser.”
While the movement of
bulk commodities via the Middle East to Africa has been severely affected by piracy off the coast of Sudan, Sakoschek says there is still much opportunity for business, especially in the big bulk movement of commodities such as clothes, electronic products and food to Eastern Africa.
GIG, a South African-based inspection company that provides superintendence services, is determined to continue its expansion not only to the Middle East but globally as it moves towards its goal of being a truly internationally recognised company.
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Stefan Sakoschek ... an office due to open in Shanghai by the end of September.
Middle east & india
FRIDAY September 11 2009 | 11
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Middle east & india
india – the outlookGrowth in India slowed in 2008 amid less-buoyant domestic demand with households affected by rising inflation and companies by the credit crunch.
On the supply side, performance sagged somewhat in industry, notably the automotive sector and services, according to a risk assessment by credit insurer Coface.
The fall of property prices by as much as 30% in some cities has weakened the construction sector. In this context, the government has adopted more expansionary monetary policy. With a large fiscal deficit in 2008, however, the
government was unable to implement an adequate fiscal stimulus.
Consumption will suffer from a worsening job picture and the negative wealth effect associated with the fall of stock-market and property prices. Tightening credit conditions will moreover affect investment.
Foreign demand from industrialised countries and emerging Asia is expected to slump.
Corporate payment behaviour, which had improved in recent years according to Coface records, could consequently deteriorate.
Cape Crating records first quarter growthLevel One BBBEE rating achieved
Packaging specialist Cape Crating has achieved Level One BBBEE rating following its latest assessment.
“Despite the harsh economic environment for exporters we have grown our sales by 16% year on year in the first quarter of this year,” director Owen Bottomley told FTW.
“It’s been achieved by gaining market share, opening a branch at the airport, adding a full hazardous packing division, adding a crane truck, and increasing our warehouse space at the harbour branch.”
Further developments are in the pipeline, he added.
Middle east & india
12 | FRIDAY September 11 2009
Middle east & india
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Nachi Mendelow Marketing representative
Waldo Coetsee Product manager
operational systems
Jonathan Davis Product managerfinancial systems
Arnold GarberExecutive Chairman
Compu-Clearing Outsourcing
Tel: 011 882 7300 www.compu-clearing.co.za
new india routes to be launchedFreight a strong expansion focus
As it grows its global reach, the services provided for Qatar Airways Cargo customers continue to increase, according to the airline’s cargo vice-president, Vikram Singh.
“Our cargo network provides global reach for customers in Africa, Europe, UK, USA, Middle East, Asia and soon Australia,” he told FTW, “with services to many destinations in each of these countries.”
Products being moved on its routes are varied, with perishables strong out of Africa and the Indian sub-continent; a lot of electronics and garments carried out of Asia; and Europe and the US moving industrial and automotive-type equipment.
Discussing markets that have shown particular
growth, or where the airline believes there is significant untapped potential, Singh stresses that Qatar Airways Cargo has a diverse network with numerous trade lanes that are performing exceptionally well.
“We are continuing to see growth in Asia, particularly South Asia, as well as US and Europe, where frequencies and destinations have been increased,” he said.
“There is special potential to grow our business activity in Africa, and the new services to Australia starting in December will also bring a new dimension to our business.”
Singh also felt that expansion was a major part of the cargo section’s future plans.
It presently delivers to
87 destinations worldwide using its own Airbus A300-600 freighters and 69 Qatar Airways’ passenger aircraft. “This,” said Singh, “will increase to 120 destinations and 110 aircraft in the next five years – with Qatar Airways one of the fastest growing airlines in the world, and expansion averaging almost 40% a year for the past 12 years.”
Immediate expansion plans will see new route launches to Amritsar (October 11) – in the northern Indian state of
Punjab; Goa (October 25) – the popular Indian holiday destination; Melbourne (December 6); Sydney (date yet to be announced), and two new European destinations in the coming months.
“In addition,” said Singh, “a number of frequency increases have been announced increasing capacity across the network.
Qatar Airways is currently receiving new planes into the fleet at an average rate of one per month and has massive aircraft orders worth over
US$40 billion – including 80 Airbus A350s; 24 of the Airbus A320 family of aircraft; 60 Boeing 787s; and 32 Boeing 777s. The airline is one of the launch customers of the twin-deck Airbus A380 ‘super jumbos’ with five on order and scheduled for delivery from 2011.
Three brand new Boeing B777 freighters will join the Qatar Airways Cargo fleet from mid 2010.
“So,” said Singh, “it is a very positive, exciting future.”
Planning to expand from 87 destinations currently to 120 in the next five years.
Middle east & india
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Middle east & india
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shippers warned against over-invoicing trendBy Joy Orlek
Under-quoting and over-invoicing is a growing trend in the industry as agents desperate for business use any ploy to get a foot in the door.
“It’s become clear that some agents are willing to lose an account in 2-3 months time to see themselves through a difficult patch,” says Freightit managing director Neil Harris.
“Apart from the financial harm to the client, it also harms the industry – which is why I encourage importers and exporters to get a few quotes from reputable agents and compare before committing themselves.”
Depending on the professionalism of the customer, it may take up to three months and R400 000 worth of freight before they pick up the anomaly, says Harris.
While the fledgling company has a worldwide
footprint, its strongest thrust is the Far East, Middle East and India, regions where the company has set up strong agency networks which Harris believes are crucial to the success of any operation.
“India is bustling and Dubai is the commercial mecca,” says Harris.
Dubai is dominated by
electronic goods and building materials.
“A lot of franchised goods like Nokias are brought into South Africa from Korea and Japan, repackaged here by our partner companies, and sent to Dubai which is the electronic hub.
“Electronic goods also make up the bulk of imports into South Africa – and with its free trade zone status, the country is trying to position itself as the high-tech commercial centre.”
India, says Harris, is the little China.
“South Africa is a very attractive market for India, not least because of the huge Indian community here. We believe India offers a lot of potential in terms of low cost and value-for-money products.”
While Harris acknowledges that there has been a major slowdown in terms of volumes and trade generally, Freightit has been fortunate to sign up a
number of new accounts.“That has possibly given
us an unrealistic stabilisation of the downturn in our own business.
“We also spotted the downturn early enough to re-engineer the focus on our sales teams and bring on new business.”
Door-to-door is the key component of the company’s strength, says Harris.
“We collect shipments from the supplier’s door and deliver to the consignee’s door. Through our group of associated but totally independently managed logistics companies, Courierit and Warehouseit, we are able to draw on the strengths that each offers so that customers reap the downstream benefits.
“We will be unveiling several other value-added products in the coming months that will enable us to manage the full pipeline even more effectively,” he said.
‘Signs of improvement are visible in India'Both India and China seem to have succeeded in limiting the impact of the credit crisis, according to credit insurer Coface.
Economic growth in China will remain high in 2009 at around 7%. However major structural changes are being implemented and in order to address the crisis, China is focusing on high-level industries.
The Indian growth, says Coface, is more balanced and signs of improvement are visible. “In 2009 Q1 growth was 5.8% against 5.1% in the last quarter of 2008 and the level of overdue payments should remain relatively stable,” says chief economist Yves Zlotowski.
three direct groupage services from indiaCFR keeps the focus on Dubai
By Joy Orlek
India along with China is fast gaining a foothold on the African continent, with a lot of cargo transhipping in South Africa for the likes of Zimbabwe and Zambia.
“The Europeans have to a large extent lost out and we see huge growth potential on this trade lane,” says Martin Keck, managing director of independent groupage operator CFR Freight.
“We are essentially a mirror of the economy and are therefore importing far more than we are exporting on this route, which means that we offer a larger number of direct import services than we do direct export options,” Keck told FTW.
On the Indian route CFR offers direct services from
Delhi, Mumbai and Chennai, as well as a direct option from Mumbai to Cape Town. All exports are moved via Singapore because export volumes to India don’t justify a direct routing.
The Middle East, on the other hand, is one of the rare exceptions where the opposite applies – direct export services but no direct import services.
“We offer direct consolidations every two weeks to Dubai and from Dubai we serve the whole region – Oman, Kuwait, Iran and Iraq,” said Keck.
The company also offers a direct option to Israel, but all imports from the Middle East would move via Singapore or sometimes Europe.
CFR is however keen to promote a more regular import service from the Middle East,
hubbing in Dubai. “We were very close to introducing it when global economics played a trick on us,” said Keck.
Dubai as a hub for SA-bound cargo is still very much on our planning boards,” he told FTW.
While transport links on the routes are more than adequate at present – competitively served both by air and sea – customs red tape in these regions is an issue that challenges shippers and service providers.
LCL operators are clearly in a better position than freight forwarders in these reccesive times – with shippers choosing to ship smaller quantities more often to save on inventory – but profitability remains an issue of contention, says Keck.
And it will take a long time before rates are restored to
profitable levels.“Volumes may increase, but
you can’t just hike rates – that will take much longer.
“And we’re not only talking of freight rates. A number of operators have dropped their pens on local freight rates – documentation fees, customs clearing fees and the like – and
that won’t change in a hurry.”Despite the challenges,
both regions hold enormous promise, says Keck, but India is a market to watch – with growth in the region of 10% recorded year on year and more of the same expected as the ‘green shoots’ start taking root.
Glittering prospects ... India is a market to watch, with growth in the region of 10% recorded year on year.
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Middle east not spared by the crisisThe Near & Middle East (except Turkey) and North Africa have not been spared by the global recession and could lose 3.5 GDP points in 2009 compared to 2008, according to credit insurer Coface, which experts, the recovery in 2010 to be relatively soft.
saudi arabia, abu dhabi, Kuwait, algeria and libiaOil producing countries seem to have been hit hardest by the collapse of oil prices, the decline in foreign demand, and the credit crunch, which will undermine the financial performance of companies and banks. But some countries – Saudi Arabia, Abu Dhabi, Kuwait, Algeria and Libya – enjoy an excellent capacity to cope with crisis effects thanks to currency
reserves and financial assets accumulated these past years, enabling them to support growth in non-oil economic sectors.
The upswing of oil prices since the year began, especially the rebound in May, has brightened the outlook.
Uae and saudi arabiaThe United Arab Emirates will slip into recession (down 1.6%). Of all regional countries the three emirates have suffered most, with the crisis affecting not only Abu Dhabi's oil industry but especially Dubai's property and banking sectors.
Saudi Arabia will also slip into a mild (1%) recession.
The banking sectors in the Gulf monarchies have in general received government support to keep the market liquid. But the quality of their assets could suffer a marked
deterioration as a result of the worsening economic conditions, their exposure to the property sector, and a general lack of corporate transparency.
iranIran seems vulnerable meanwhile, weakened by four years of the populist policies pursued by President Ahmadinejad. Foreign exchange reserves have been relatively low, representing only ten months of imports, and inflation – although currently low virtually everywhere else – exceeds 25%.
israel, lebanon, Jordan and egyptExcept for Israel, directly affected via the trade channel
and expected to slide into a 1.4% recession this year, the crisis has had relatively little effect on the other regional countries. But compared to oil countries they nonetheless remain more vulnerable in view of their severe fiscal imbalances, high debt (particularly Lebanon), and great dependence on foreign capital (particularly Jordan).
Their governments thus enjoy little room for manoeuvre to support their economies, which will nonetheless benefit from easing inflation, down from the particularly high levels reached in 2008. Goods and services exports have declined amid the fall of demand from client countries and the slowdown of tourism and Suez Canal traffic (Egypt).
PakistanWith Pakistan already mired in a severe economic crisis, the troubles in the north-west province have weakened its position even more. But the IMF released funds to enable it to avert a liquidity crisis and, considering the extent of the difficulties faced, softened the conditions on the loan granted.
In addition to the $5.3-billion in aid promised in April by Pakistan's friends, international aid has been mobilised to assist persons displaced from the strife-ridden province. The political instability and the president's weak backing in parliament severely undermine the outlook.
the Middle east – a vibrant business hubBy Alan Peat
The Middle East trading bloc of nations, although composed of geographically small states, is a vibrant place of business for SA shippers, according to Arnold Garber, chairman of freight systems specialists, Compu-Clearing.
“It’s a healthy combination of utterly import-dependent states, and a giant, high-quality trading ‘flea-market’.”
That, he added, is especially true for goods freighted to and from SA.
“There are now lots of flights to Arab countries,” he told FTW, with Johannesburg-Dubai alone accounting for three flights a day, every day.
“That’s from Jo’burg alone. You can add one flight a day from Cape Town.”
Supplementing this from October 1, the Dubai-based carrier Emirates will be adding
its much-heralded flight-a-day from Durban – and, from that date, it will be offering 35 weekly flights out of SA, non-stop to Dubai.
Add to that three flights-a-week by other airlines to Abu Dhabi; four times a week to Doha, Qatar; twice a week to Jeddah; and, if you really want to extend the Middle East just a shade further east, three times a week to Istanbul in Turkey.
“And in between all this
lot,” said Garber, “you’ve got Tel Aviv in Israel three times a week.
“And there’s a lot of traffic between SA (mostly out of OR Tambo International Airport) and that part of the world. More than most people imagine.”
Garber agreed that this volume had somewhat decreased along with everything else in this global economic crisis. “But,” he said, “comparatively, not as much.”
Seen on its own, Garber rates Dubai as the primary international trade hub in and out of the Middle East region.
“And 90% of the cargo arriving there flies onwards,” he told FTW, “a surprising amount of it bound for/from Europe and the UK.”
And a reason for the popularity of the Middle East airlines?
“Good service, and good rates,” said Garber.
express cargo to dubai is big business for linexBy Alan Peat
Both the Middle East and the Indian markets feature high on the agenda for Linex, the general sales agents (GSA) for Cathay Pacific Airways’ wholesale courier cargo.
“We have invested a large amount in these markets,” said Linex director, Martine Forbes, “with, for example, an owned office in Dubai feeding our
express airfreight material to and from Dubai through CP and other airlines.”
The company has developed Dubai as a mini-hub for cargo services for the Middle East region – for both imports and exports.
“A main point to note,” said Forbes, “is that we’ve seen a big increase in requests from SA for goods moved between Johannesburg and Dubai.
“It’s a very busy place, especially for express materials out of Johannesburg, and we’re able to offer a very good turnaround in and out of that market.”
Linex, meantime, has been represented in India for over 20 years – with offices in Mumbai, Delhi, Hadjebad (the ‘Silicon Valley’ of India), Bangalore and Chennai.
“Business lines between
India and SA have always been strong, with a lot of both express and general airfreight between the two,” Forbes added. “Basically, it’s the same as the Middle East, where we feed via the CP network and offer a full gamut of services.
“To meet this demand, we’re also busy investing in offices, facilities and manpower to continue developing this busy market.”
Martine Forbes ... owned office in Dubai.
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Competitive rates out of india
By Alan Peat
Despite a drop in volumes due to the global economic recession, the Indian market remains a busy focus for cargo consolidators, International Liner Agencies (ILA), according to sales director,
Raymond Cutts.“We are a big player
for cargoes out of India,” he said, “with regular services from the sub-continent.”
This, he added, is enhanced in a partnership with International Liner Ships Agency (ILSA) – a major Indian business, with offices in Delhi and Mumbai, which offer a comprehensive cover for the marketplace.
ILSA also has the added benefit of sailing cargoes directly into SA, without the more usual routing via the container hub port of Singapore – and this, said Cutts, means that ILA doesn’t suffer from the congestion at this port.
“We are running weekly sailings on the trade,” he added, “which are very competitive from a price point of view.”
These are mostly consolidations, with a whole range of product types in the mix.
“It’s about 99% imports to SA,” Cutts told FTW, “with only a minimal amount of traffic on the outbound leg.
“We are also relatively limited in our choice of carriers, because we try to employ the most direct sailings possible – looking to offer a value-added service to our forwarding customers.”
ILA, he added, is now extremely experienced in this highly individual marketplace.
“We know the complex culture of doing business on the sub-continent is all important to achieve the best deal possible for SA forwarders,” Cutts said, “and consequently their clients, the importers.”
Raymond Cutts ... SA a big player for cargoes out of India.
British Airways World Cargo has upgraded its Constant Climate product for pharmaceuticals, introducing a new dedicated product care team and an SMS customer update service.
The scope of the service has also been expanded to include passive temperature-controlled packages and shipments.
The new elements of the
product launch globally across all 56 Constant Climate stations in early September 2009 and are being implemented following consultation with specialist pharmaceutical forwarders.
The advanced SMS offering updates customers by text message or email at key milestones through the airfreight journey around the clock.
Software support service provider Easyclear has signed a merger agreement with marketing and sales agent for the company, Prime-X Business & Account Management Services.
“The deal effectively sees Prime-X partnering with Easyclear and becoming an integral part of the company in a marketing, sales and account management role, effective this month,” says Easyclear national sales and marketing manager Michael Henning.
“Easyclear has consolidated
its formerly outsourced sales and marketing functions back into the company and is now focused firmly on growth in the clearing, forwarding and logistics market,” he said.
The company will be focusing on upgrading its software and growing market share, said George Theodossion, national key account manager for Easyclear.
In Durban Easyclear has opened its own office and employed a support technician for the region, replacing the former KZN agent.
sMs updates for Climate Change product
easyclear signs merger agreement
18 | FRIDAY September 11 2009
Namibia’s new economic hub officially launched
‘Sungate will serve as investment magnet’
Sungate project takes another leap forward
By Liesl Venter
The Hotel Safari in Windhoek was the place to be when investors were wined and dined at the official launch of the Sungate project in Namibia recently.
With key players in the market invited to attend, the three mandated agents present had their hands full as the much-anticipated project was officially introduced.
The brainchild of South African-based Accolade Properties, the 408-hectare mixed-use property development – Sungate – is strategically located at Namibia’s Hosea Kutako Airport along the Trans-Kalahari highway.
“We have seen much interest in the project already and even before the launch the key property industry players had been in touch,” said Peter Collins, director marketing of Accolade Properties Namibia. “Already we have signed agreements with a multinational mail and logistics distributor, a filling station with trucking facilities, local logistics players and warehouse operators. We are also finalising a contract with a major hotel operator which was shortlisted from the initial six. We are very impressed with the interest shown in the project.”
With a 150% increase in traffic on the Trans-Kalahari Highway year on year for the past four years and the development of the Walvis
Bay harbour, the need for an economic hub around the airport was much needed, said Collins. “And this can be seen in the amount of interest generated in just this first phase. The petro port has already been sold to an international investor with a local partner. In December 2008 we put our construction boards up and from just that we received a pleasant response.”
With Accolade Properties providing the bulk infrastructure in the form of roads, sewage and power, buyers will find themselves having to adhere to strict controls and guidelines when building.
“We are aiming at creating a regional trade and logistics hub for sub-Saharan Africa. The project should reach completion in January 2011.”
By Liesl Venter
The Sungate project has not just focused the world’s attention on Namibia, but has also brought opportunity for economic diversification and real entrepreneurship to the country and its people, Namibian deputy minister of finance, Tjekero Tweya, said at the official launch earlier this year.
Tweya said the mixed-use property development by Accolade Properties presented immeasurable opportunities for SMME enterprises, which are central to sustainable development and skills enhancement.
“We in Namibia are constantly looking for conduits for foreign direct investment and believe Sungate will serve as a magnet. It is estimated to
attract $100 million in foreign investment over the 12-year term of the development.”
Tweya said with projections of creating over 5000 permanent employment opportunities in its operational phase over the next decade, and set to increase the GDP by 0.5%, the project constituted a substantial contribution to change in Namibia’s landscape.
“Long-term skills development through partnerships is central to the government’s vision for a better life for all. It is these partnerships that create sustainable development in our country. The Sungate project not only promotes regional integration, a policy critical to our social-political stability, but also builds capacity for economic transformation,” said Tweya.
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Jason Nandago, MD of Metropolitan Namibia, in deep discussion with Tjekero Tweya, Namibian Minister of Finance, at the Sungate launch.
Gerd Wieneke, managing director of Accolade Properties Namibia, delivering his presentation at the Namibian Investor launch.
SA wine targets Dutch market growthBy Ray Smuts
Wines of South Africa (Wosa), intent on developing premium product sales in The Netherlands – one of its most important export markets – is embedding itself even further in the Land of the Tulip.
With a strong accent on consumer and trade education and wine tourism, the new Wosa strategy will address more vigorously the potential for packaged wines in the €3 to €5 price
segment and higher. “We want to shift
from building volumes to building value in this critically important market,” says WOSA CEO, Su Birch.
“Currently, South Africa is over-represented in the market below €2 and while it is trading well in Holland’s €5 to €8 segment, it has not fully realised its potential in the mid-priced band, where there are still many opportunities for local producers to capitalise.”
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NEWS FROM AMERICA
Gloomy picture emerges from US shipping industry
FTW’s San Francisco-based correspondent Martin Rushmere provides his insights on the outlook for shipping.
Optimists who are celebrating the end of the US recession could find that they are cheering in an empty stadium, as air and sea cargo traffic figures fail to match the heady expectations.
With container volumes at least 15% below those of a year ago, and air cargo down by as much as 25%, no one in international trade in the US is willing to match the bold pronouncements, particularly from the finance sector, that the worst is over.
Kuehne and Nagel forecasts the drop in the international volume for air freight this year to be 15-20%, with seafreight declining by 10-12%.
UK-based transport consultant Transport International notes that international air freight forwarding has contracted by 28% and sea freight forwarding
by 32%, while in the first half of 2009, US forwarders suffered a 36% drop. The consultancy does not see a return to 2008 business levels before 2010.
Sea routes on the trans-Pacific lanes – the busiest in the world – are being merged or suspended. Even the Big Three of Maersk, MSC and CMA CGM are not immune, giving more cause for uneasiness. They are being forced to merge two strings, themselves the result of a slimming down, in their Central and Northern China services to the US West Coast from September 16.
Smaller players are simply being knocked out of the market. Safmarine, with 1% of the market (1 000 TEUs), is abandoning the Pacific route in June 2010, citing poor business conditions.
At the twin ports of Los
Angeles and Long Beach, the biggest container ports in the US, total TEUs in July were down 20% year on year, an unprecedented drop.
The US government's freight transport index – tracking changes in cargo movements in ton-miles for trucking, rail, inland waterways, pipelines and air freight – has been the same for two months and is at its lowest level in 12 years. The 14% decline in June 2008 to June 2009 was the largest such decline in the 20 years for which the index is calculated.
According to latest figures from the Air Transport Association of the US, cargo traffic in revenue ton miles was down 20% year over year in May 2009, marking the tenth consecutive month of declining cargo traffic.
FRIDAY September 11 2009 | 21
By Alan Peat
A question posed to FTW recently has been: “In times of recession, do you cut, maintain or increase your advertising?”
To find an answer, we approached Rob Hill, Cape Town-based strategist and John Gale, KZN MD of advertising agents Ogilvy.
“Advertising is no perfect science,” the two men agreed.
“But there are certain trends that exist, and these are the basis of much of the advertising theory.”
And there is theory about advertising in a recession, mainly based on the relation between advertising spend, and an advertiser’s likely market share.
In time of crisis, our sources suggested, one of the first budgets to be "sacked" is marketing communication.
“However,” they added,
“smart companies know that it's then that it becomes crucial to communicate wisely to stay alive.
“And, in recession, you need a bigger bang from every advertising buck.”
The basic advertising truth is that, when times are tough, maintaining your ad spend – not necessarily increasing it – will also increase your share of the overall voice in the marketplace. And, if others are cutting their spend by big numbers, the advertiser’s voice share will automatically increase by commensurate amounts.
“There is no question, and there are lots of assessment studies to prove it, that with an increase in voice your marketing performance is also likely to be maintained through the tight times, or even lifted.”
Our commentators also agreed that the economy
had been extremely tough for marketing, forcing many companies to lower their overall spend, or at the very least to get smarter and more careful about where they spend.
“But,” they added, “we depend on clients to see the value (as we do) of continuing to invest in marketing during a downturn.”
For more answers to the problem of marketing and advertising in a recession, the Ogilvy agency is carrying a separate feature on the subject – on the web address: ogilvyonrecession.com
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Addressing trade imbalance high on agenda for Brazil mission
The border post at Beitbridge between SA and Zimbabwe – this country’s main overborder route – is getting closer to its one-stop promise, according to Brian Kalshoven, MD of Beitbridge Border Clearing Agency.
It has just seen an investigative visit by Barney Curtis, executive officer of the Federation of Southern African Road Transport Associations (Fesarta), Kalshoven told FTW. He was commissioned to do an assessment of the post prior to its intended change to a one-stop facility.
Other work at the post is also nearing completion.
Said Kalshoven: “A number of the old buildings at Beitbridge have been demolished, and an extended parking area – which will help accommodate vehicles on the import route to SA – is soon due to open.”
The transport control facility – situated about one and a half kilometres on the
SA side of the post – is also close to opening.
“Although they are still testing out the electronics there,” said Kalshoven, “it’s going to be a marvellous, state-of-the-art facility when they complete it.
“Once it is finished, it will be checking all the commercial vehicles’ road service permits issued by the Road Transport Authority (RTA), and conducting vehicle roadworthiness tests for the national traffic department.
“You can add to that the weighing of vehicles and checking their heights.”
Kalshoven also sees it removing much of the need for the numbers of police road-blocks that currently hinder smooth traffic flow along the approach road to the post.
“I reckon when the control post is finished that a truck with the correct documentation and pre-cleared will be able to get through the post in about four hours.”
‘Countries have much to learn from each other’
By Liesl Venter
With Brazilian imports totalling some $1.7 billion and SA exports to Brazil $1 billion, there is no doubt that the time to increase trade between the two countries has arrived.
So said Allesandro Teixeira, President of Apex-Brasil, the Brazilian Trade and Investment Promotion Agency that hosted the Brasil Trade Mission to Africa 2009 at the Sandton Convention Centre last week.
Designed to facilitate trade between local importers and Brazilian exporters by providing importers with the opportunity to establish and explore business opportunities with their Brazilian counterparts, hundreds of face-to-face meetings took place over the three-day mission.
According to Teixeira, South Africa and Africa are important trading partners for Brazil, which has since 2003 strategically started to diversify its trade partners.
“Our countries still have much
to learn from each other, but there is also a lot of opportunity. Currently we export around $1.7 billion per annum to South Africa and SA imports about $1 billion to Brazil. We want to address this imbalance and buy more from South Africa.”
But, said Teixeira, trade between the two countries could be increased dramatically in coming years.
“Brazil has developed excellent technology in many sectors, in social and economic climates not unlike those in Africa. We are in a position to share these insights with South Africa and the rest of the continent. Similarly, South African and African businesses have much to offer us. In order to capitalise on these opportunities, especially during these trying economic times, we need to first share information as to the prospects available and then look at how best to take advantage of them. Apex-Brasil is committed to strengthening trade relations between Brazil, South Africa and
Africa,” says Teixeira.And with Brazil’s economic
growth a definitive success story among developing countries – it is now the fourth largest destination for Foreign Direct Investment among emerging markets, boasting a GDP of US$1.8-trillion in 2007. South Africa can only benefit from increased trade.
Allesandro Teixeira … ‘Apex-Brasil is committed to strengthening trade relations between Brazil, South Africa and Africa.’
FRIDAY September 11 2009 | 23
hazardous cargohazardous cargoFull & part loads • Consolidations • Breakbulk to Botswana, Namibia, Zimbabwe, Zambia, Malawi and DRC
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EUKOR - FAR EAST / WEST AFRICA / FAR EAST SERVICE
EUKOR – SOUTH AMERICA / AFRICA / FAR EAST SERVICE
VESSEL VOY SHA SIN MOM DES MAP DBN LUA LAG TEA SIN ULSASIAN EMPEROR 075 - 15/09 - - - 27/09 04/10 - - - -
VESSEL VOY TOY NGY SIN VTO SAN MVD DBN SIN CHB MOJ PYUGRAND RACE 082 - - - - - - in port 08/09 16/09 - 19/09MORNING CORNET 019 - - - 05/09 11/09 13/09 26/09 09/10 17/10 - 20/10
EUKOR – FAR EAST / AFRICA / FAR EAST SERVICEVESSEL VOY NGY YOK SIN DAM BAH JEB SHA MOM DES DBN SIN MODERN EXPRESS 093 08/09 09/09 17/09 - - - - 30/09 02/10 08/10 23/10
VESSEL VOY KWA CHB MOJ SIN DBN VIT SAN MDV DBN SIN ULSASIAN EMPEROR 075 - - - 15/09 27/09 17/10 19/10 21/10 - 13/11 -MORNING CORNET 018 - 17/10 - 14/08 - 05/09 11/09 13/09 26/09 09/10 -
DAM - Dammam • ULS - Ulsan • MOM - Mombasa • SIN - Singapore •DBN - Durban DES - Dar es Salaam • NGY - Nagoya • LUA - Luanda • SAN - Santos • MDV - Montevideo CHB - Chiba Xng - Xingang, China • LYG - Lianyungang • SHA - Shanghai China • NAG - Nagoya • TAM - Tamatave • Fremantle - Australia • TEA - Tema • ABI - Abidjan • LAG - Lagos BAH - Bahrain • YOK - Yokohama • LOB - Lobito, Angola • JEB - Jebel Ali • SHA - Sharjah LAG - Lagos • CHA - Channai • VTO - Vitoria • ZA - Zarate Argentina • GUN - Gunsan, Korea • MAP - Maputo • LIB - Libreville • MOJ - Moji, Japan • KWA - Kwanngyang, Korea PDG - Reunion • YOK - Yokohama • LOM - Lome, Togo • PYU - Pyaungtaek • BAH - Bahrain • KOB - Kpbe, Japan • TOY - Toyohashi
FTW1775SD
LAst week’s top stories on www.cargoinfo.co.za
Increase in imports puts trade balance into third surplus in a rowThe trade account registered a third consecutive surplus in July, albeit narrowing to R0.446-billion from R3.22-bn in June.
A chapter closes on 45 years in the industryA well-known personality in
shipbroking circles, Bruce Mcdonald, has decided to close the chapter on a shipbroking career that has spanned 45 years.
Air Zimbabwe denies ‘malicious lies’Air Zimbabwe has denied media reports that it is in a financial mess. Chairman Jonathan Kadzura said the
reports in the news were all malicious lies.
eskom’s financial loss bodes ill for power supply securitySouth African business has expressed grave concern following reports last week of Eskom’s loss of nearly R10 billion. Business Unity South Africa (Busa) said it
was not just the magnitude of the loss sustained but also the fact that the release of the information had been delayed.
Fill up before wednesdayMotorists, who are already struggling with the high cost of fuel, will have to fork out an additional 36 cents a litre for fuel.
New container seal may impact on human traffickingBy Alan Peat
A container seal originally designed to seal empty containers as part of the fight against human trafficking met with little success in the marketplace, with most container users unaware of the enormity of this trade in human flesh.
But, said Harry Jolliffe, CEO of Jolseal, this seal has proved itself in another way – an event which may indirectly impact on human trafficking.
His patented block number design guarantees that every hand-written copy of the bolt seal number is transferred in a format that is exactly the same shape and size every time, he told FTW.
“This will allow the Camco Autogate (the port authority’s new access control system) to read and transfer information electronically,” he added. “We have conducted trials where we instructed children between the ages of 6 and 10 to copy the numbers from the bolt seal onto the Jolseal. And, in each and every case their transcript was 100% accurate.”
This will be added to the Autogate reading the trucks’ number plates as well as information from the trailer
“This seal is written in a language that allows the system to capture the seal number off the exterior right hand side container door and transfer electronically via OCR to the terminal operating system,” Jolliffe said.
Jolseal is currently in the process of conducting hands-on, live tests.
“MSC has come on board to assist us,” he said, “using outbound containers as well as inbound. We are confident that the information obtained from these live tests will add value to the overall product.”
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‘Regulator’s job is to curb TNPA’s monopolistic system’Lots of complaints about tariffs likely to surface
Malcolm Hartwell, director of Deneys Reitz, and one of the legal drafting team that assembled the directives for the port regulator, points out that the directives are effectively the operating programme for the regulator – “the rules by which it will operate.”
The main function, he added, is to monitor the Transnet National Ports Authority (TNPA) and attempt to manage what is effectively a sole port controller.
“The regulator is mainly there to curb TNPA’s monopolistic system,” Hartwell told FTW, “and also to deal with its tariffs and complaints against the authority.”
The regulator, therefore, is empowered to approve tariffs, hear complaints against TNPA and hear appeals.
“They have broad discretionary powers,” said Hartwell, “and for the lines and other port users which
operate in this country, it is a significant step.”
Hartwell reflected market thinking, suggesting that there were lots of complaints about some of the tariffs.
Indeed, according to bodies like the SA Shippers’ Council (SASC), the basic concept of tariffs being paid to the TNPA is questionable. And it’s no new complaint, but one that has been on the SASC records from before 2003, when the current ‘cargo dues’ being paid replaced the original contentious ‘ad valorem’ wharfage charges.
But bodies like SASC and the then Container Liner Operators’ Forum (Clof) – representing the shipping lines – were adamant that
neither the old nor the new fee was being committed to its originally intended purpose, the repair, maintenance and development of the ports.
Similarly, the port users had the basic complaints that they objected each year to paying more for no greater service at the ports – and that the TNPA was making massive profits each year, and the tariffs were not reduced as the authority promised at the initiation of port tariff reform in 2002.
But, with the port regulator now an established and working entity, the port users will have an official channel of complaint, according to Hartwell.
“The lines, for example, will be able to use the regulator to help them in their relationships with the port,” he said, “and will be able to register complaints they have about the working of some of the terminals as well as the new tariffs the TNPA levies each year.”
Brazil-SA deals amount to $2m By Liesl Venter
With some 200 million consumers in Brazil of which at least 50% fall into the ‘middle class’ category, the country offers much opportunity to South African exporters and importers.
Speaking at the Brasil Trade Mission to Africa 2009 in Johannesburg, Apex-Brasil President Allesandro Teixeira said deals to the value of more than $2 million were closed during the three day mission which saw Brazilian exporters meet with hundreds of South African importers and exporters.
“We have not only hosted many South Africans but have seen participation from ten other African countries,” said Teixeira. “And while the partnership between Brazil and South Africa is growing, the partnership between Brazil and other key African countries is also growing.”
He said the trade mission was however about more than just signing deals. “It
is also about renewing our commitment to Africa. We have brought our trading companies to South Africa, not just to sell, but also to learn from each other.”
Some 50 Brazilian companies participated in the trade mission where they met with trade groups from Africa and South Africa over two days. “This was all about increasing trade and knowledge exchange between the countries for both our mutual economic benefit.”
He said while the process of increasing trade between the countries had started some years back there was still homework to be done. “We have seen an increase in flights between the two countries, and companies are starting to opt for having offices in both Brazil and South Africa.”
He said while there was still a lot to be learnt from each other, it was mutually beneficial to grow trade and expectations were that this would be a reality soon.
‘The regulator is empowered to approve tariffs, hear complaints against TNPA and hear appeals.’
provided in a non-discriminatory, fair and transparent manner; and where small- and medium-sized enterprises owned by historically-disadvantaged groups do not have an equitable opportunity to participate in the operation of facilities in the ports environment.
They also include where Transnet is treated more favourably, and it derives an unfair advantage over other transport companies; and the
TNPA has failed to carry out, has unfairly carried out, or has misapplied itself to, any of its functions as set out in section 11 of the Act.
He also pointed to Directive 8, in terms of which a port user or licensed operator whose rights are adversely affected by a decision of the TNPA can appeal to the port regulator against that decision within 15 days of receiving that decision – and within 10 days of requesting written confirmation
of the decision within 15 days of becoming aware of it.
“Also,” Norton added, “in terms of Directive 21 any provider of port services must by February 5, 2010 – or within six months of the commencement of the service, whichever is the later – submit to the port regulator a detailed and comprehensive list of the prices charged by it for the provision of port services at any port, together with the terms and conditions attaching to such prices.”
Port RegulatorFrom page 1
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07Updated until 11am September 2009
Updated daily on Cargo Info Africa – www.cargoinfo.co.za
INBOUND BY DATE - Dates for sailing: 14/09/2009 - 28/09/2009
Freight and Trading Weekly, Friday 11 September 2009
Easyfinder Guide to Agents
Abbreviations of Lines and AgentsASI Asiatic (Hull Blyth)ASL Angola South Line (Meihuizen International/Seascape cc)BEL Beluga Shipping (Mainport Africa Shipping)CHL Consortium Hispania Lines (Seaclad Maritime)CMA CMA-CGM (Shipping Agencies)CMZ Compagnie Maritime Zairose (Safmarine)CSA Canada States Africa Line (Mitt Cotts)CSC China Shipping Container Lines (Seaclad Maritime)CSV CSAV (CSAV Group Agencies SA)COS Cosren (Cosren)DAL Deutsche Afrika Linien(DAL Agency)DEL Delmas Line (John T Rennie)DML Debala Mozambique Line (Mainport Africa Shipping)DSA Delmas ASAF (Century)ESA Evergreen Agency (SA) (Pty) LtdESL Ethiopian Shipping Lines (Diamond Shipping)FAY Faymon Shipping (Sea-act Shipping cc)GAL Gulf Africa Lines (King and Sons)GCL Global Container Lines (Freightmarine)GRB GearbulkGSL Gold Star Line (Polaris Shipping)HLC Hapag – LloydHMM Eukor (Diamond Shipping)HSD Hamburg Sud South AfricaHSL H Stinnes Linien (Diamond Shipping)
HOEGH Hoegh Autoliners (ISS Voigt)INM Intermarine (Mainport Africa Shipping)IRISL Islamic Repubic of Iran Shipping Lines (King & Sons)IVS Island View ShippingKEE Keeley Granite (Tern Shipping)KLI K.Line (Freightmarine)LAU NYK Cool Southern AfricaLMC Ignazio Messina (Ignazio Messina)LNL Laurel Navigation Line (Polaris Shipping)MAC Macs (King & Sons)MAL Mainport Africa Container Line (Mainport Africa Shipping)MAR Marimed (Marimed Ship.)MAS Mascot Line (Marimed)MBA Maruba (Alpha Shipping)MAS Mascot Line (Marimed Shipping)MAU Mauritius Shipping Corporation (Alpha Shipping)MISC MISC Line (Bridge Marine)MSC Mediterranean Shipping Co. (MSC)MSK Maersk LineMOL Mitsui Osk Lines (Mitsui Osk Lines)MOZ Mozline (King & Sons)MUR MUR ShippingNDS Nile Dutch Africa Line B.V. (Nile Dutch South Africa)NVQ Navique (Tall Ships)NYK (Mitchell Cotts – NYK Agency)
PHO (Phoenix Shipping)PIL Pacific International Line - (Foreshore Shipping)Pro ProLine (Bridge Marine)PRU Prudential Line (Alpha Shipping)Saf Safmarine (Safmarine)Sch Southern CharteringSCI Shipping Corp of India (Combine Ocean)SCO Sea Consortium (Bridge Shipping)SHL St Helena Line (RNC Shipping)SMU Samudera Shipping Line (African Marine Ships Agency)SSI Seacape Shipping Inc (Century Ships Agency)TOR Torm Line (Diamond Shipping)TSA Transatlantic (Mitchell Cotts)UAFL United Africa Feeder Line (Seaclad Maritime)UAL Universal Africa Lines (Seaclad Maritime)UASC United Arab Shipping Company (Seaclad Maritime)UCL Ocean Africa Container Lines (Unicorn)UNG Unigear (Gearbulk)WWL Wallenius Wilhelmsen (Barwil)Zim Zimstar (Zim Southern Africa)
* Notice any errors? Contact Peter Hemer on Cell: 084 654 5510/Fax (011) 704-3015
