ftw8656 fa 8 une 1 re-opening of lüderitz line confirms...
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FREIGHT & TRADING WEEKLY
For import / export decision-makers FRIDAY 28 June 2019 NO. 2350
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page 4
Eugene Goddard
A railway line that has been inactive for more than 18 years between Namibia’s southern-most Port of Lüderitz and the desert hamlet of Aus has been completely rebuilt to enable mostly bulk freight via existing infrastructure through Keetmanshoop going south into the Northern Cape.
In an exclusive interview with FTW, TransNamib CEO Johny Smith said the line comprised some 120 kilometres of brand new track and supporting infrastructure that cost about R8-10 million per kilometre.
Refurbing and reconstruction where necessary of the Trans-Oranje Corridor (TOC) has been on the cards for some
time but funding-related delays and a shifting of priorities at government level have consistently snagged upgrades to the line.
In addition, environmental resistance from the community of Lüderitz has contributed to hold-ups experienced in increasing bulk carried to the port by rail.
“But that has all been sorted out,” said Smith.
“Re-engaging our link from Lüderitz to mines in the Northern Cape was one of the growth areas we identified as part of our drive to turn Namibia into a logistics hub.
“Recently the company involved with exporting manganese via Lüderitz also received the necessary clearance certification for exporting manganese, and with the infrastructure now in place to handle rail freight
on the TOC, we’re ready to commence with operations.”
This would most likely happen within the next month, he added.
From a regional point of view, Smith is also optimistic about the speed with which bulk f low will be able to pass between Upington and Keetmanshoop and that any further holdups will be minimised.
Re-opening of Lüderitz line confirms Namibia’s push to become logistics hub
To page 8
To page 8
Gauteng’s population could balloon to 19 million people by the middle of the century with congestion on the roads becoming so acute “the average speed on our freeways will go down to 14 kilometres an hour”.
That’s according to Jack van der Merwe, CEO of the Gautrain Management Authority (GMA).
Forecast clogging of the
province’s highways and its wider impact on effective logistics in the face of escalating consumer demand is the reason why, he told FTW at last week’s Africa Rail expo in Sandton, he had helped draft an Integrated Transport Masterplan (ITM) that was currently with Parliament.
And although Van der Merwe’s speciality as head of the GMA is commuter
traffic, he stressed “it would be ludicrous for us to do planning and not factor freight into the equation.
Essentially the plan, which aims to manage Gauteng’s transport system for at least 25 years, highlighted several crucial developments that would be required to deal with future increases of cargo and commuter traffic.
“We will have to shift as
Gautrain CEO looks at decongesting Gauteng’s roads
Jack van der Merwe, Gautrain Management Authority CEO.
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2 | FRIDAY June 28 2019
DUTY CALLS
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Riaan de Lange ([email protected])FREIGHT & TRADING WEEKLY
Publisher Anton Marsh
EditorialEditor Joy OrlekDeputy Editor Eugene GoddardAssistant Editor Liesl VenterPhotographer Shannon Van Zyl
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Customs Acts Programme Update On 19 June the South African Revenue Service (Sars) executive: Customs & Excise Centre of Excellence (acting) issued a letter to external stakeholders, ‘Update on the New Customs Acts Programme (NCAP) – Declaration Processing System (DPS)’, following the 01 March letter.
“In previous engagements with trade, Sars communicated its intention to roll out new declaration types (provisional, incomplete and supplementary declarations – also known as the two-step process), as well as simplified declarations. In March 2019, a communication was issued advising trade of the postponement of the pilot. This was to allow for related processes and amendments to the enabling legislation to be completed. Currently, Sars is focusing its attention on ensuring that the new
declaration types are successfully finalised for effective use by traders. This concerted effort at ensuring the successful development of the new declaration types has had an inadvertent impact on the release of simplified declarations which was earmarked for mid-2019. Further communication on these implementations will be issued in due course.”
Motorcycle helmets tariff – Comment dueThe International Trade Administration Commission of South Africa (Itac) on 21 June announced a reduction in the customs duty on other motorcycle helmets, classifiable under tariff subheading 6506.10.90, through the creation of an additional 8-digit tariff subheading on which comment is due by 05 July.
Coated/Plated steel tariff – Comment dueOn 21 June Itac announced an increase in the customs
duty on certain items of coated or plated flat-rolled steel, classifiable under tariff subheadings 7210.20, 7210.30, 7210.50, 7210.69 7212.20, 7212.50, 7212.60, 7225.91, and 7225.92, on which comment is due by 05 July.
Flat-rolled steel Rebate – Comment due
Itac on 21 June announced the creation of rebate items on “Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad, plated, or coated, not further worked than cold-rolled (cold reduced), other, with a thickness of 0.30mm or more but not exceeding a thickness of 1.60 mm, with a carbon content of 0.5% or more, classifiable in tariff subheading 7211.29, in such quantities, at such times and subject to such conditions as Itac may allow by specific permit”; and “Flat-rolled products of iron or non-alloy steel,
of a width of less than 600 mm, painted, varnished or coated with plastics, of a thickness of 0.5 mm or more but not exceeding 1 mm, with a carbon content by mass of 0.17% or more but not exceeding 0.27%, classifiable in tariff subheading 7212.40, in such quantities, at such times and subject to such conditions as Itac may allow by specific permit” on which comment is due by 05 July.
Customs Registration Rules and Forms – Comment dueOn 20 June Sars published draft Rules 8, 59A and 60 to the Customs and Excise Act, 1964 and forms DA8 and DA185 on registration and licensing on which comment is due by 19 July.
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FRIDAY June 28 2019 | 3
Liesl Venter
The United States wants to increase trade with South Africa but for this to happen the South African government needs to come to the negotiation table.
This was the message from US trade officials to the Exporters’ Club Western Cape (ECWC) in Cape Town last week, stating that the US was not only willing but also ready to start negotiations at any time.
“South Africa has been very clear they don’t want a free trade agreement with the US,” said Juan Manuel Cammarano, trade and investment officer at the US Embassy in Pretoria. “We cannot be any more forward leaning in our wanting to work with SA. We don’t need to come to the table. We have shown our interest, readiness and willingness.”
South Africa and the US
have been at loggerheads over poultry imports for several years, a situation that was exacerbated last year when the US imposed a 10% ad valorem tariff on all aluminium imports, and 25% on steel products.
Whilst South Africa did receive some exemption from this, it now has to decide whether it will impose a tariff on US poultry imports, a move that is not expected to go down well with the US should it opt for that route.
South Africa has also been vocal in its disagreement with the US stance on the World Trade Organisation (WTO). The US wants to see a tightening of subsidies and greater transparency on tariffs – less special and differential treatment between countries.
“We are of the opinion that the WTO must pursue a fresh start to address some key problems,” said Cammarano. “The dispute settlement
mechanism also needs to be reformed.”
He said claims that the US was not an open market were incorrect as it remained open, and growing trade was a priority. He said, however, that a paradigm shift had taken place in the US with the focus now on improving
implementation of trade agreements along with better enforcement.
“US trade policy is based on the principles of free, fair and reciprocal,” said Cammarano. “The US remains committed to expanding trade and commercial ties to create jobs and build wealth for
Americans and Africans alike. We want to work with reform-orientated governments to help establish conditions that can transform them into trading partners, improve their business environments and support economic integration among African states.”
US trade officials call on SA to ‘come to the negotiation table’
Terry Gale, chairman of the Exporters’ Club Western Cape, Simplisius Dube, trade specialist at the Southern Africa Trade and Investment Hub, and Juan Manuel Cammarano, trade and investment officer at the US Embassy in Pretoria.
Picture by Liesl Venter
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4 | FRIDAY June 28 2019
AIRFREIGHT
Tristan Wiggill
A ll indications from the Air Cargo Operators’
Committee are that airfreight volumes are down and that the immediate outlook remains bleak. This is the view of Alwyn Rautenbach, executive manager of cargo at Airlink.
“Both domestic and international cargo for South Africa has been down for the last two months. It's a ref lection of what is happening in the broader economy. Without reasonable economic growth, I doubt the airfreight industry’s prospects can be turned around soon,” he said.
He added that airfreight was a leading indicator of economic growth, and was an industry that would improve before anyone saw real evidence of economic growth.
According to the International Air
Transport Association (Iata), African carriers saw freight demand decrease 8.5% in February 2019, compared to the same month in 2018.
The Association added that seasonally adjusted international freight volumes were lower than their peak in mid-2017. But despite this, they are still 25% higher than their most recent trough in late 2015.
“We’ve seen the global cargo market shrinking by around 5% from where it was in the middle of last year,” said Brian Pearce, chief economist at Iata during a speech at the Association’s AGM in June.
“We’ve seen a collapse in international trade following the imposition
of tariffs by the US, China and other countries since the first part of 2018. International trade is shrinking today and clearly, that is very bad for the cargo business.”
Pearce, however, remains cautiously optimistic. “Global GDP growth still looks fairly healthy. Governments have been responding to weaknesses in trade by getting money into their economies and, in the first part of
this year, global growth looked reasonably good.”
One southern African carrier told FTW that it had planned to convert an old passenger aircraft into a dedicated freighter, due to the restrictive weight and size limitations on
cargo that are dictated by its passenger aircraft.
However, the idea has since been postponed and the money spent on other operational matters. The carrier indicated that it would likely return the aircraft and acquire a new 72-seater passenger aircraft instead.
The same carrier has introduced
a regular road freight service to Johannesburg to transport “anything” that its passenger planes cannot
carry, except dangerous goods.
Sluggish economy grounds air freight volumes
Without reasonable economic growth, I doubt the airfreight industry’s prospects can be turned around soon.– Alwyn Rautenbach
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FRIDAY June 28 2019 | 5
AIRFREIGHT
Speed to market is one of the biggest challenges for exports to the United States – so much so it often results in low-value goods moving by air.
While this is beneficial for the airfreight industry where demand is constrained, it means South African products are less competitive
in the US, says Simplisius Dube, trade specialist at the Southern Africa Trade and Investment Hub.
Speaking in Cape Town recently, Dube said time to market was one of the critical issues confronting exporters in southern Africa.
“Some exporters end
up airfreighting low-value goods to the US, which is very costly and results in the exporter not being competitive,” he said. “By virtue of our geography we are far from the US market and in this world of immediate demand we have to improve our time to market.”
He said this also meant addressing other issues that affected manufacturing such as productivity levels, factory inefficiencies and labour challenges.
While freight capacity continues to grow, demand has been weak. April saw a sharp decline in air cargo growth. This has been
attributed to cost inputs that are rising, trade tensions affecting confidence, and global trade weakening.
“Taking all of this into consideration we have to improve our transit time and our cost to get to the US market,” said Dube.– Liesl Venter
Low-value goods opting for air to US
Liesl Venter
Liberalisation of the African skies would have a significant impact on the growth and development of the cargo sector, says Chris Zweigenthal, chief executive of the Airlines Association of Southern Africa (AASA).
It’s been slow and difficult to implement on a continental scale due to varying states’ positions on their readiness for implementation, says Zweigenthal.
“It is my understanding that cargo route rights have been liberalised further than passenger route rights,” says Zweigenthal. “With a reliance on passenger aircraft for belly space for cargo where there are limited all cargo aircraft, such liberalisation would open up many more opportunities for African aviation to transport cargo across Africa.”
According to Zweigenthal policy obstacles, however, still stymie efforts to get all of South Africa’s neighbouring states on the same page in respect of the implementation of the Single African Air
Transport Market (SAATM) and the removal of trade barriers and visa restrictions.
“A total of 28 of the 54 African States have signed a solemn commitment
to SAATM. Of these, six out of the 15 SADC states have signed.”
He says the challenges in southern Africa are very similar to those in the rest of the African continent. The biggest hurdle in his view is making the airline industry a sustainable, profitable business.
“Over the past five years, Africa has not managed to record an overall profit, varying between a loss of
US$ 100 million and US$ 800 million over this period. In 2019, the loss is expected to be in the region of US$ 300 million. Globally, over this period, aviation has recorded profits ranging from US$ 14 billion to US$ 38 bn with the profitability in 2019 expected to be US$ 28 bn,” he says.
In Africa small fleets and lower than optimal aircraft utilisation result in unit costs that are high and operating margins that are low, ultimately leading to unfortunately poor overall financial performance – with some obvious exceptions.
“Whilst the new initiative of the SAATM is gaining some traction to operationalise the Yamoussoukro Decision (YD), much work needs to be done on a continental basis in the implementation phase to truly liberalise the African skies. This needs to ensure reciprocal benefits are realised for all airlines operating across the African markets and enable new markets and city pairs to be opened up across the regions,” he says. “We also
need to continue to work to open up the continent through relaxation of visa restrictions (AU passport discussion) and trade barriers (African Free Trade Area). We need to put the talk into action and realise the benefits of freer movement across our continent.”
These issues, he says are critical.
“SAATM needs to be implemented across Africa, ensuring level playing fields are achieved with the fair and reciprocal
exchange of route rights in terms of accessibility and value whether they be third, fourth or fifth freedom rights. In respect of taxes and charges, in line with International Civil Aviation Organisation (Icao)policy, governments must be
requested not to add new taxes to the international
aviation environment, and to remove those that are currently in place. Governments
must also be requested not to impose taxes on
domestic aviation.”
African airlines heading for $300m loss
Globally aviation is expected to record profits of US$ 28 billion this year.– Chris Zweigenthal
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6 | FRIDAY June 28 2019
Joy Orlek
A new mobile inspection application designed to speed up the release of containers stopped by Customs has just hit the market.
Developed by freight technology development maven We Think Software Solutions for cargo inspection company Global Digital Freight Surveyors, the app provides real time feedback on the status of the stopped container with visibility at every stage of the process.
“We will never be able to prevent a container from being stopped,” says We Think Software Solutions MD Werner Pretorius. “But whereas in the past when the container was stopped the owner of the cargo was in the dark, he is now fully aware of the
progress every step of the way.”
Global DFS was launched 12 years ago at OR Tambo International Airport and has since established a national footprint which incorporates Durban, Cape Town and Port Elizabeth in addition to its Gauteng headquarters.
“We are there to ensure that no theft occurs once the container has landed, to report damages and to ensure that no damages occur during the inspection,” says CEO Albert Venter.
In the past it was a laborious process to transmit the necessary
evidence and photo back-up.
“With the new app, within a millisecond of taking a photo of the container, the picture is on our
database and can be accessed from any
office in the world,” says Venter.
“The real-time feedback is one of the biggest benefits of the app,” says national operations director Shane Botha.
“As soon as the inspection starts one of our inspectors pushes a button on the app to say the inspection has begun.
“An automated email is then sent to the agent advising him that the inspection has started – and this is all in real time and within seconds. When the inspection is completed the inspector once again presses a button and the client immediately gets that email. Within 15-20 minutes the report is
automatically generated by the system, one of our managers checks it, and within 15 minutes the agent will get the report with all the photos and info on what happened with that inspection.
“That’s key to the whole app,” says Botha, “ensuring that no time is wasted getting the info through to the clients.”
According to Pretorius, the company is building integration with service providers so that when there is a stop they have immediate access to the information in their database.
With the app already gaining traction in the market, Pretorius is working on Phase 3 which will take it even further to the pre-shipment stage. “The software will enable the importer or agent in China for example to take photos before loading, as
the box is packed, so that we already know what’s in there when it leaves,” he points out.
“This will reduce the number of stops – and if Customs opens the box and there is evidence of damage we have already built a case study from the source which will help to reduce the number of stops.”
Global DFS identified the need for an automated system to speed up the inspection process and saw Pretorius as the ideal partner.
“Although we are very strong in warehousing and transport we have the capability of building different software in the logistics sector,” says
Pretorius, “and that’s the
strategy of the company
for the future.”
New app helps speed up release of Customs-stopped containers
While immediate growth prospects for the continent are pegged at 1-2%, the picture is much more nuanced than that in the view of Africa House trade consultancy director, Duncan Bonnett.
“If you look at the actual numbers you’ll see that in East and West Africa, excluding Nigeria, growth is much higher.”
Add to Nigeria the economies of South Africa and Angola, or “the laggards of sub-Saharan Africa” as Bonnett calls them, as well
as some of the North African countries that haven’t recovered from the Arab Spring, and the growth rate of the rest of the continent is more like 5-8%”.
This trade momentum, Bonnett told exporters and logistics operators at a recent Transport Forum gathering, had significant infrastructural impetus behind it and deserved closer scrutiny.
Along with research conducted by PWC, Africa House has found that “infrastructural spend in
sub-Saharan Africa is still going to grow by at least 10% a year and will exceed $180 billion by 2025”.
It was one of the reasons, Bonnett added, why there was so much happening around corridor development, particularly around the eastern seaboard south of the horn of Africa, and why ports like Nacala, Beira, Maputo, Walvis Bay, Luanda and even Lobito were all upgrading their infrastructure.
Referring to the African Continental Free Trade Area
that has been ratified by 24 countries and that is officially under way, “albeit just in theory”, he said exporters eager to unlock opportunity across the SADC region and the Eastern African Community should let data guide their immediate future plans.
Latest leading economic projections, Bonnett said, showed that by 2023 there would be five economies with a GDP over $100 billion. A further five economies will have GDPs above $50 billion in the next five years.
To give this assessment context, Bonnett said “it is important to consider that five years ago in sub-Saharan Africa the only economies worth watching were Nigeria, South Africa and Angola which, depending on what the oil price was doing, was jumping in and out of that picture”.
All of that has changed, particularly in Eastern Africa “where we are seeing large investment in energy and related infrastructure”, he said.– Eugene Goddard
Infrastructure spend in SSA set to grow by 10% a year
We Think Software Solutions’ Werner Pretorius and Global Digital Freight Surveyors’ Albert Venter and Shane Botha.
FRIDAY June 28 2019 | 7
Swiss-based international forwarder and logistics house Seagull has identified Africa as its next frontier and three years since its launch the local company is delivering on its mandate.
Chief executive officer of Seagull Africa, Mikhail Kramer, believes a niche focus is the way to go in a highly commoditised logistics market, and the company has already gained traction in the mining and minerals sector.
“Our initial focus was ocean freight out of Africa, and has evolved into breakbulk transport into and out of Africa – the likes of reagents into the DRC and Zambia, and mineral products out, which gives transporters backloads.”
Being agile and more nimble provides the edge, says Kramer. “There’s very little bureaucracy internally so we can make a decision and react very quickly.
“The next step for us is East Africa. We are already operating in Kenya and Ethiopia and a next step could be Tanzania to complement our existing interests – where we would look at acquiring a business. You need to have eyes and ears on the
ground.”It’s all
about finding the solution that most suits the client’s needs in terms of cost and transit time.
The company ships out of a range of ports – Walvis Bay, Beira, Maputo, Durban and Dar es Salaam to name a few.
“Dar es Salaam is a main port for minerals originating from Central Africa, because the transport rates are generally lower than South Africa, and because ocean freight rates are a lot lower into Asia in most cases. From Dar to China is a cheaper and faster solution.
“We’ll sometimes use
Durban as a hedging mechanism where you don’t want to keep all your eggs in one basket. At times, for example, for cargo going to South America Durban is a cheaper option than Dar. On the other hand, if cargo needs to be moved to various ports all over the world you have to look at all options and variables.”
Effectively it involves looking at the whole value chain – transport, warehousing, landside
charges/port charges, ocean freight rates, transit times – and weighing up the best option for your client, which is where Seagull’s expertise comes into play, says Kramer.
And while transport will continue to be the company’s focus, it is
eyeing imminent growth within
its sea freight department,
namely bulk shipping.– Joy Orlek
It’s anyone’s guess what will happen in 2025 when the African Growth and Opportunity Act (Agoa) expires, but it remains a golden opportunity for South African exporters to establish a foothold in the United States (US).
According to Juan Manuel Cammarano, trade and investment officer at the US Embassy in Pretoria, Agoa remains a priority for trade officials and they are actively encouraging South African exporters to increase trade with the US.
“We don’t know what is going to happen between now and 2025,” he said when quizzed on whether Agoa would be extended beyond 2025.
This unilaterally granted trade concession from the US to qualifying African nations to export their goods to America, duty-free was
re-authorised in 2015 for ten years.
But, said Cammarano, whether it would be renewed or not it continued to offer a golden opportunity to establish relationships with US importers for the long term.
“The agreement has support on both sides of Congress’s aisles,” he said, indicating that there were Democrats and Republicans in favour and against the agreement. “It remains a priority for trade officials and we want to see trade with South Africa grow.”
Cammarano said South Africa was the top export market on the continent for US goods – a spot it had held for the past decade.
“US exports to South Africa exceeded $5.52 billion in 2018, a 10% increase over 2017,” he said.
South Africa was also the
top supplier of goods from sub-Saharan Africa to the US.
“This includes the oil-exporting Agoa countries,” said Cammarano. “South Africa accounts for roughly one third of sub-Saharan goods exports to the US, about $8.47 billion of $24.33 billion. South Africa’s exports to the US through Agoa in 2018 also grew to $959 billion, over 10% of its total exports to the US.”
Encouraging South African exporters to make use of Agoa, Cammarano
said it allowed for South African products to enter the US at very competitive prices, but more importantly for exporters to build the necessary long-term relationships with importers.
“Exporters from Agoa-eligible countries have a competitive advantage,” he said. “It is by no means a silver bullet and one still has to work hard to establish the relationships and gain the confidence of one’s trading partners, but it does sweeten the sales pitch.”– Liesl Venter
Breakbulk transport specialist gains traction in Africa
Future of Agoa unclear … but exporters urged to establish a foothold
“The next step for us is East Africa.– Mikhail Kramer
LAST WEEK’S TOP STORIES
$ 959bnThe value of SA's exports to
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Africa gears up to become a major player in EU cannabis marketUS cannabis oil and concentrates manufacturer Halo Labs said this week it had entered into a non-binding letter of intent to acquire Bophelo Bioscience & Wellness, a move that would strengthen its position in Lesotho which is fast becoming Africa's export gateway to the global cannabis market.
Automotive manufacturers under pressure – NaamsaThe National Association of Automobile Manufacturers of South Africa (Naamsa) has announced that it’s looking at expanding its market in Africa to lift localised sales figures, currently driven down by South Africa’s poor-performing GDP.
Transnet signs R8-billion manganese contractYesterday saw the official signing by Transnet of an R8-billion contract with United Manganese of Kalahari (UMK), the fourth largest manganese producer in South Africa.
$1bn cocaine bust on container vesselUnited States law enforcement has seized 16.5 tons of cocaine with a street value of more than $1 billion on board a Mediterranean Shipping Company (MSC) container vessel in the Port of Philadelphia.
Bunker facilities may not be ready for sulphur capFears are beginning to mount that the bunker market will not have the capacity to meet demand when the International Maritime Organisation’s 0.5% sulphur cap restriction comes into play on the 1st of January next year.
8 | FRIDAY June 21 2019
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This week
Liesl Venter
Cyclones, bomb attacks, wars and coups in various parts of Africa have increased the continent’s business risk in 2019.This is according to executive director and founder of EXX Africa, Dr Robert Besseling, who said there were however still pockets of optimism.
“Economies like Ethiopia, for example, are growing again
– achieving a record 8% GDP this year. Various other African countries in the east and west like Ghana, Ivory Coast and Senegal, or Kenya, Tanzania and Uganda are all growing at record rates, often over 6% of real GDP growth. That’s what makes Africa exciting.”
He said there were several key developments across the continent – among them the start of what could become the world’s largest free trade union.
Besseling said while not
everyone on the continent had bought into the agreement, it was good news for economic recovery overall.
But, he said, there was no denying the risk factors on the continent. While countries in the past had been shielded from global events, they were now increasingly being exposed to global trends such as oil price volatility or interest rate hikes in large developed economies.
Over and above local political, economic and security
risks they could also be affected negatively by Brexit or the US-China trade war.
He said Nigeria, South Africa and the Democratic Republic of the Congo were closely monitored internationally due to the important trade role these economies played globally.
Nigeria, for example, had been cited as very risky prior to its elections earlier this year said Besseling, but had since stabilised.
Re-opening of Lüderitz lineFrom page 1
Decongesting roads
He explained that Transnet Freight Rail (TFR) would be responsible for the heavy-haul leg up to South Africa’s Nakop-Ariamsvlei border with Namibia.
“From there our locos will bring the load to port and we don’t expect any turn-around delays. Ariamsvlei has always been a smooth transit point with no efficiency issues.”
Smith puts it down to a simple approach of working efficiently with what Namibia has.
“We still have the same rolling stock but we’re moving more cargo.”
Thanks to a committed drive to increase freight as part of a five-year growth strategy for its broader logistical development
plan, Namibia experienced an 8% spike in the first year of the plan – “the best in 10 years”, he said.
“This year we’re aiming to push that figure to 18%.”
Considering the proximity of Hotazel’s mines to Lüderitz, as well as existing border efficiencies at Nakop-
Ariamsvlei and growing demand for manganese as the electrical car market grows, Namibia appears to have perfectly timed revitalising the TOC.
Of course it begs the question why South Africa would send its manganese out via a Namibia port when it has heavy-haul infrastructure in place, such as the Sishen to Saldanha line.
But that line, apart from the proximity of Sishen’s iron ore mines to Hotazel, is over-
capacitated and considering what TFR said at a recent one-on-one session with select members of the media, it’s going to take some time before the backlog is cleared.
Once it is, surplus capacity will most likely be reserved for iron ore.
Smith also emphasised that in the delicate balance between intra-regional competition and profit-sharing collaboration, the scales seems to be increasingly tipping in favour of cross-border linkages.
Also, from a geo-strategic point of view it makes perfect sense to ship the Northern Cape’s manganese destined for European markets via the closest port – Lüderitz.
Moreover, Smith said, “We have always pushed the regional perspective in terms of becoming a logistics hub for SADC. We’re on track with country-to-country collaboration at political level and have also pushed it into trade level.”
Several African economies achieving record growth
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much motorised transport to non-motorised transport and we will have to shift as many people as possible from private car use to public transport. Most importantly, we have to shift as many people as possible from road to rail.”
Van der Merwe added that holistic planning and sustainability was a major consideration of the plan that took a broad look at what it would take to enhance mobility across Gauteng, ensuring that goods were delivered to market on time.
“We looked at long-distance freight on our roads and found that the N3 carries more trucks than cars every day. It’s simply unsustainable.”
Speaking about an expanded railway system and how the transfer of cargo from road to rail could help alleviate congestion, Van der Merwe pointed out that “Transnet Freight Rail is only a fraction of the system.
“Ultimately we have to keep in mind that manufacturers want door-to-door service so we also have to be realistic when we talk about moving freight from road to rail.”– Eugene Goddard
We simply have to move more cargo from road to rail.– Johny Smith“
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