the maputo corridor logistics initiative (mcli) 2008 –brenda horne – ceo of mcli
DESCRIPTION
THE MAPUTO CORRIDOR LOGISTICS INITIATIVE (MCLI) 2008 –BRENDA HORNE – CEO of MCLI. AGRICULTURE TRADE AWARENESS CAMPAIGN Date: 17 JULY 2008. - PowerPoint PPT PresentationTRANSCRIPT
THE MAPUTO CORRIDOR LOGISTICS INITIATIVE (MCLI)
2008 –BRENDA HORNE – CEO of MCLI
AGRICULTURE TRADE AWARENESS CAMPAIGN
Date: 17 JULY 2008
1. MAPUTO CORRIDOR BRIEF OVERVIEWRe-established proven transportation route for regional trade as well as to international markets for SA, Zimbabwe, Swaziland, Botswana through Mozambique.
SOUTH AFRICA
SWAZI-LAND
MaputoJohannesburg
Nelspruit
Ermelo PiggsPeak
Komatipoort
Tzaneen
Belfast
Steelpoort
Middleburg
Palabora
Secunda
MAPUTO CORRIDOR
1 OF AFRICA’S PROMINENT ECONOMIC HUBS
To become the leading corridor stakeholders’ coordinator, contributing to the aims and objectives of the Maputo Development Corridor. This will be achieved by working towards a Logistics Corridor based on excellence – a cost-effective, continuous, reliable logistics route with positive returns for all stakeholders.
VISION
MISSIONTo support the development of the Maputo Corridor into a sustainable, highly efficient transportation route, creating an increasingly favorable climate for investment and new opportunities for communities along the length and breadth of the Corridor.
STRATEGIC OBJECTIVES OF MCLI
• To inform the market about the Corridor and to market the strategic benefits and opportunities offered by the Corridor
WHAT IS THE MCLI
GOAL “Maputo Corridor the first choice for the Corridor Region’s Stakeholders”
•To coordinate the views of investors, service providers and users of the Corridor to engage with public sector to promote development and change, making the Maputo Development Corridor the first choice for the region’s importers and exporters alike.
MPDC SHARE HOLDINGAs from Jan 2008Portus Indico -Private Sector 51%•DPW 48.5% 24.735%•Grindrod – 48.5% 24.735%•Mozambique Gestores 3% 1.53%
Public Sector 49%•CFM 33% 33.000%•Government 16% 16.000%
100.00%
THE NEW BOARD OF MPDC- MAR 2008
• Port Master Plan - ensuring that the Port is armed with a business strategy that is farsighted and robust enough to weather the inevitable peaks, while remaining flexible and nimble enough to make the most of the opportunities which presented themselves.
• In the context of regional development and growth, Port Maputo would be moving towards building the various business entities at the port into a single unified enterprise which would ensure that regional standards are set and which would service, with increasing efficiency, the growing volumes through the Port.
• Regarding new investments - investments would be made in supporting operations such as depots, warehousing, packing and unpacking facilities, amongst others.
• “Our goal is to build a unified “Port Maputo” where every user and operator will have a voice and be an integral part of its growth and future success as the best service provider in the region.” said Ferraz the new Chairman of MPDC -
PORT OF MAPUTO TRANSIT CARGO
0
2, 000, 000
4, 000, 000
6, 000, 000
8, 000, 000
Y E A R S
T HR OU GHP UT
T ONN E S
TOTAL TRANSI T TOTAL TRAFFI C Linear (TOTAL TRAFFI C)
T OT A L T R A NS I T 2 , 0 16 , 4 0 0 2 , 0 5 2 , 0 0 0 2 , 0 5 4 , 10 0 1, 6 6 3 , 2 0 0 1, 9 2 3 , 6 0 0 1, 8 0 4 , 4 0 0 2 , 0 6 2 , 8 0 0 2 , 3 0 9 , 9 3 5 2 , 8 3 3 , 2 6 5 2 , 7 10 , 5 2 2 2 , 8 3 2 , 7 6 1
T OT A L T R A FFI C 3 , 10 9 , 0 0 0 3 , 0 16 , 4 0 0 3 , 10 1, 6 0 0 3 , 0 3 5 , 9 0 0 4 , 0 0 1, 6 0 0 4 , 4 2 3 , 6 0 0 5 , 0 3 6 , 0 0 0 5 , 5 5 4 , 0 3 6 6 , 3 8 1, 7 2 2 6 , 6 0 8 , 6 5 5 6 , 7 0 3 , 0 0 0
19 9 7 19 9 8 19 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7
PORT POTENTIAL 26 MILLION TONS2007 – Total 6,70mt transit 2.833mt2007 – Road traffic in/out of Port = 2.25M Tonne2007 – Rail traffic in/out of Port = 1.7M Tonne2007 – SA Exports = 59% of all Port Exports2007 – SA Transit = 77% of all Port Transit Cargo
MPDC – PORT OF MAPUTO
0100002000030000400005000060000700008000090000
TotalLocalTransit
Total '8865 '13508 '20439 '25875 '31729 '32425 '35010 '39486 '44349 '54088 '62516 '80347Local 8865 13508 20439 25875 31729 27460 30199 33485 38121 45140 52506 64683Transit 4965 4811 5641 6228 8948 9914 15485
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
MIPS Container TerminalThroughputs in TEUS – 1996 - 2007
29% Increase over 2006 – 56% Increase in Transit Exports103% Increase Since MCLI Inception – 2003806% Increase since MIPS Concession - 1996
FPT Maputo RedevelopmentNeeds Volume Commitment
Is a Fruit Export Terminal required in Maputo by the
Southern African Fruit Industry?
Location
Historical Issues
Maputo is much closer to the source areas and will obviously result in lower transport cost. Why was Durban chosen as historical site for investment in logistic facilities?
Political Issues (War, etc.)
Bad condition of road to Maputo
Border issues
Shipping opportunities
Access and draft limitations in Maputo Port
Lack of cold stores in Maputo
No sterilization facilities in Maputo
Long rail journey due to delays on Mozambique side
No market for rejected fruit
Historical Issues Current SituationPolitical Issues (War, etc.) Political stability
Bad condition of road to Maputo New N4 toll road
Long rail journey due to delays on Mozambique side
CFM invested in new rolling stockFPT achieved 16 hour transit time Letsitele to Maputo in 2007
Border issues Waiting time at border reducedWorking hours extended 06h00 – 22h00
Shipping opportunities Introduction of direct container shipments in 2008MOL – Far East serviceMAERSK – Middle East service
Access and draft limitations in Maputo Port MPDC invested in new tugs and widened the access channel to accommodate larger vessels
No market for rejected fruit FPT repacking service
TerminalLand Transp
SeaTransp
Production area Distribution
Logistics Cost
Controlable
Influence (distance, etc)
Uncontrolable
CompetitivenessCompetitiveness
Production area
CurrentMarket
FutureMarkets
Highly Competitive
Benefits of Using Maputo Port
• Shorter landside transit time• Landside and freight cost benefits• No congestion (unlike Durban) and subsequent
transport delays• One stop cold storage and terminal handling service
– FPT (do not have to deal with multiple service providers)
• Handling services for container and specialized reefer cargo
• Full stock visibility• Simplified planning processes for exporter• Quality benefits of cold chain integrity
Terminal Volume Throughput
TOTAL
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2002 2003 2004 2005 2006 2007
Palle
ts
Volume by Market
0
10,000
20,000
30,000
40,000
50,000
60,000
2005 2006 2007
Palle
ts
EU/UKMEDMERU
Production Areas
2005
62%
36%
0%
2%
Mpumalanga
Limpopo
Maputo
Other
Hinterland Production Volumes
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Tshipise/MusinaSwazilandSenwesOnderbergNelspruitLetsiteleHoedspruit
Crop (All)
Sum of Volume
Year
Region
Car
tons
- m
illio
ns
5,5% per annum2005 - 2010
Source - CGA
New Plantings
Total 2001 - 2006 13.4 mLimpopo Province 5.4m 40%Mpumalanga 1.6 m 12%
North Prov: 600Km Mpum: 200Km
North Prov:1000Km Mpum: 600Km
Swazi: 150Km
Swazi: 350Km
Distancesto Durban
Distancesto Maputo
Maputo is definitely a more competitive option as far as road/rail transport
Logistical Cost Competitiveness
Cost Chain Element
DurbanR’ Pallet
MaputoR’ Pallet
DifferentialR’ Pallet
R 53-R188Transport - Road 400 – 580 220 - 480 45 - 180
Transport - Rail 207 – 440 378 – 485 45 - 171
Cargo dues 84 0 84
Container scanning
0 6 (6)
Freight surcharge
0 70 (70)
Centre of Gravity Analysis
Fresh Products Terminals: Centre-of-Gravity Analysis
-400
-200
0
200
400
0 200 400 600 800 1000 1200
Coordinates in km
Production > 10mProduction >5mProduction <5mMaputoDurbanProduction CoGExport CoGCombined CoGOptimal CoG
Volumes assumptions 2008
Volume Pallets
Projection 2007 68 000
Additional volumes for 2008
UK/NW Continent 7 000
Far East 5 000
Mpumalanga volumes to Russia 10 000
Mpumalanga volumes to Middle East 9 000
Total 99 000
Lease agreement
• FPT operates fruit terminal facilities on premises belonging to the Port Authority – Maputo Port Development Company (MPDC).
• FPT is required to construct facilities and increase volumes handled through Maputo inline with the expectations of MPDC.
• New lease agreement to be long term due to investment requirements.
• FPT will be allowed to handle all perishable cargo.
• FPT to provide a minimum throughput guarantee.
Current Intake Area
Building G4
Project scope
Convert G5 building to cold store capable to handle sterilization cargo.
Upgrade cold room configuration in building G3 and G4.
Add container loading bays to building G3.
Upgrade plant: Replace compressors, add seawater condensers, coolers, NH3-tanks
Upgrade electrical works, switchgear, etc.
Build new forklift battery charging and technical workshop
Proposed layout Phase 1
R00400 A10005
MGC INDUSTRIAL PROJECTS (PTY) Ltd
DEK
N/A
DEK
FPT - MAPUTO
GENERAL SITE LAYOUT - PHASE 1
NEW COLD STORE FACILITY
JPDT
08/12/06
1:500
IP06 -
MGC INDUSTRIAL PROJECTS
R00400 A10005
MGC INDUSTRIAL PROJECTS (PTY) Ltd
DEK
N/A
DEK
FPT - MAPUTO
GENERAL SITE LAYOUT - PHASE 1
NEW COLD STORE FACILITY
JPDT
08/12/06
1:500
IP06 -
MGC INDUSTRIAL PROJECTS
Future phases
R00402 A10005
MGC INDUSTRIAL PROJECTS (PTY) Ltd
DEK
N/A
DEK
FPT - MAPUTO
GENERAL SITE LAYOUT - TOTAL
NEW COLD STORE FACILITY
JPDT
08/12/06
1:500
IP06 -
MGC INDUSTRIAL PROJECTS
TerminalLand Transp
SeaTransp
Production area Distribution
Logistics Cost
Controlable
Influence (distance, etc)
Uncontrolable
CompetitivenessCompetitiveness
Stakeholder Commitment
For this investment to be feasible volumes through the terminal need to increase substantially over present volumes, this can only be possible if you the exporter and shipping line give your commitment to exporting fruit through Maputo.
We are fully aware of the many unknowns but we trust that today’s workshop addressed all those.
FPT requires an intent from you as to the volumes per market you will commit on a continuous basis to Maputo in future.
FPT will ensure that the following are in place at all times:
•Terminal remains competitive•Service levels maintained and improved•Enough space allocated to handle your fruit•Ability to handle all shipping modes (Container / Specialized Reefer)
