Category / Inland Ports

by Mike Poverello

DP World Komatipoort – Handles First Import

Trade solutions multinational DP World has completed the first transit import through the DP World Maputo port, in Mozambique, to DP World Komatipoort, in South Africa.

This is a significant milestone as it demonstrates that the Maputo port can be seamlessly used as a gateway to South Africa, the company says.

International container imports landed in the Maputo port and destined for the South African hinterland can be moved under bond to Komatipoort where full customs clearance can be provided and made ready for delivery across South Africa.

“The Komatipoort facility as a bonded container depot is a game changer for the Maputo Corridor. The success of the trial brings DP World a step closer to enabling a more cost effective, seamless and efficient user experience for our local customers and enhances trade linkages for countries in the Southern African region,” DP World Maputo CEO Christian Roeder says.

Currently, in South Africa, 69% of maritime imports are transported through the Port of Durban. Local customers now have the option to consider using the Maputo port as a gateway to transport their international freight to Komatipoort where it can be cleared more easily and efficiently for customers based in and around Gauteng.

DP World Komatipoort has a full-service offering and links via the Maputo Corridor to DP World Maputo’s modern and efficient container terminal where there is no vessel and port congestion, as well as fixed berthing windows available to major shipping lines, which provides customers with transport savings and avoids delays for consignees in Mpumalanga, Limpopo and Gauteng.

Once a shipment is retrieved at the DP World Maputo port, the organisation handles the entire supply chain process from there to Komatipoort without delay and beyond to various areas in the hinterland. While the cost of this service varies per user, the service is estimated to be equivalent in costs or cheaper compared to traditional routing through Durban.

However, it is more efficient, especially for the northern areas of the country, DP World note.

Source: Engineering News, Schalk Burger, 3 May 2021

by Mike Poverello

East Africa COVID-19 Preventative Measure – Transit Cargo to move by Rail

Transit cargo destined for Uganda, Rwanda and South Sudan will be transported by Standard Gauge Railway (SGR) to Naivasha then to Tororo Kampala from June 1st, the government has said.

Transport Cabinet Secretary James Macharia said the move was arrived at during a meeting with his counterparts from the three countries as a key measure to curb cross border transmissions of COVID-19.

“All transit cargo/containers transported on SGR will be armed only at the Inland Container Depot (ICD) AT Naivasha to be tracked through the Regional Electronic Cargo Tracking System,” a part of the statement read.

Macharia further pointed out that all cargo railed to the Inland Container Depot at Naivasha will be collected by trucks to the partner states via Busia or Malaba.

He however, pointed out that fuel products will be transported by pipeline to Kisumu and thereafter through Lake Victoria to Port Bell or Jinja in Uganda.  

Cases of coronavirus among truck drivers who transport cargo across East African member states have tested positive with high numbers prompting Kenya to close its borders with Somalia and Tanzania.

Kenya has subsequently banned any truck driver who turn positive at the border from corssing into the country, with Tanzania having adopted a similar approach lately.

Health Cabinet Secretary Mutahi Kagwe said the development explained why President Uhuru Kenyatta ordered the mandatory screening of truck drivers at border posts before clearance into the country.

Kenya also closed its borders with Somalia, following increased coronavirus cases in Wajir which borders Somalia.

Since the border closure, Tanzanian government officials in Arusha and other border towns have publicly protested, accusing Kenya of discriminating their truck drivers.

Martin Shigella, the Tanga Regional Commissioner was blunt last week, declaring that no Kenyan truck driver will be allowed to cross into Tanzania, accusing them of exporting COVID-19 to the country which is largely seen as the weak link in managing coronavirus in the region, and the world. He also warned Tanzanians against buying goods in Kenya.

But on Wednesday, President John Pombe Magufuli announced on a tour to Singinda region, that “COVID-19 pandemic will not threaten our association with Kenya.”

He said he had held talks with his Kenyan counterpart Kenyatta, and agreed to have their ministers resolve the matter.

“Our economies need each other, our onions are sold in Kenya and Kenya exports milk and other items here,” he said, rooting for a diplomatic solution to the crisis.

Source: Capital News, (Kenya), 22 May 2020

by Mike Poverello

Zimbabwe expedites Rutenga Dry Port

The face of Rutenga in Mwenezi District, Zimbabwe is fast changing with the growth point undergoing rapid expansion as it reaps huge benefits from its designation as a dry port.

The Second Republic, led by President Mnangagwa, wants to expedite opening of a dry port at Rutenga to de-congest Beitbridge Border Post and quicken human and land cargo movement as part of efforts to meet vision 2030 targets.

Rutenga, which is the district’s capital, was identified as a suitable place for a dry port owing to its location at the centre of a road and rail network linking Zimbabwe and South Africa — its largest trading partner — together with Mozambique.

Since its designation as a dry port, the urban settlement is now home to a new Government complex while private players are rushing to open service stations and hardware shops with financial institutions expected to follow suit.

Mwenezi Rural District Council is expected to adopt a local development plan that will designate land for both residential and industrial purposes at the growth point.

Council chief executive Mr Albert Chivanga last week said the development plan was awaiting approval by a full council.

“We have worked on the local development plan and a full council meeting will soon meet to approve it after which various companies and businesses that have been allocated land will start actual construction work.”

“We are excited by the level of interest to invest in Rutenga and the future looks good because companies are stampeding to come and invest thanks to the planned opening of a dry port here.”

Among the big companies eyeing a piece of the cake at Rutenga are beef processing firms seeking to exploit Mwenezi’s vast cattle herd.

“More than two abattoirs have applied for land in the recent past while there is a Marula processing plant being earmarked for the growth point. The plan is to make Rutenga a major producer of export quality beef and processed Marula juice,” said Mr Chivanga.

He said his council had also offered Zimbabwe Revenue Authority 12 hectares of land to set up a holding bay for the envisaged dry port.

Some investors making inquiries were from Asian countries such as India, which he said was evidence of the growth point’s vast potential.

Government has already taken the lead by completing a new modern complex, housing State offices to make sure provision of key services is housed at one place for easy logistical processes. Future water problems were also being forestalled by upgrading works undertaken by Zimbabwe National Water Authority.

Rutenga draws its water from Manyuchi Dam, one of the largest water bodies in Masvingo province, which remains largely underutilised. The urban settlement’s population is billed to quadruple to over 20 000 in the next few years, buoyed by the opening of a dry port and other investment that will flow.

It is hoped that the dry port opening and subsequent growth of Rutenga will also have a domino effect on the growth of Sango Border Post, which is a gateway to Mozambique to the south east.

Government has already started upgrading the Rutenga-Sango and Rutenga-Zvishavane roads to create a faster and accessible link between the growth point and both eastern and western parts of the country.

Source: The Herald (Zimbabwe), 25 May 2020

by Mike Poverello

Insight: Transnet import/ export delays harming SA’s competitiveness

The following article provides insight into prevailing problems concerning rail transport between Durban and Johannesburg, in particular containerised and bulk rail cargo. Again, private enterprise is ahead of the game, but must wait for the availability of reliable rail services to permit uninterrupted movement of goods. The bottom line – an under-performing and unreliable railway network to South Africa’s hinterland means the country’s road networks will remain under stress; and, will themselves fall into a state of disrepair. This contributes to the country’s lack of competitiveness. The article puts into perspective the announcement of the Distribution Junxion, Port of Gauteng which will be situated south of Ekurhuleni, where it borders conveniently on the Durban-Johannesburg railway line.

Article: Hurry up/Wait: Transnet import and export delays harming SA’s competitiveness, authored by Sasha Planting, Daily Maverick, 16 February, 2020

by Mike Poverello

Port of Gauteng development

by Mike Poverello

Tambo Springs Intermodal Facility gets the Go-ahead

Tambo Springs Rendering

Tambo Springs Rendering – Transnet

The following abridged article was authored by Suren Naidoo, published in MoneyWeb on 6 June 2019.

Ports and logistics parastatal Transnet is moving ahead with plans to develop a new ‘inland port’ [terminal] in Gauteng and on Wednesday announced the winning bidder that will develop and operate the R2.5 billion Tambo Springs Intermodal Terminal in Ekurhuleni.

Transnet’s says the deal represents a major public-private partnership (PPP) that will see Southern Palace Joint Venture Consortium holding a 20-year concession for the new inland terminal, which will complement the container facilities at City Deep.

A wholly black-owned and managed diversified industrial holding company, Southern Palace is the lead concessionaire in the consortium. Its partners in the project include Italian state rail and infrastructure company Ferrovie dello Stato Italiane as technical partner and supply chain and advisory group Makoya as logistics and marketing partner.

The new terminal in Springs will have an initial capacity to handle around 225 000 TEU [20-foot-equivalent unit] containers in its first phase and ultimately grow to handle some 550 000 TEUs. City Deep, located near the Johannesburg CBD, has a capacity of 400 000 TEUs and has already reached almost 80%.

The new Springs terminal will boost efficiencies as a fully-fledged modern intermodal facility, directly connected to the Natal Corridor (Natcor) rail link between Durban and Johannesburg.

The PPP project will improve the rail freight system in the country and boost economic growth. Transnet has experienced challenges on the general freight rail side, which has been in systemic decline over the years.

The decline of general freight rail has contributed to the growth in the number of trucks on national roads, especially the N3 between Durban and Johannesburg. There is therefore some urgency to get general freight working again on rail. With time-sensitive cargo, rail can play a critical role as part of the intermodal mix.

The Springs terminal is expected to break ground by November and is anticipated to open in 2022.

It will be located on a 67-hectare (ha) site within the broader Tambo Springs Logistics Gateway development, which is being master-planned by the Tambo Springs Development Company on 607ha of land near the N3. Transnet has already purchased 35ha of land within the new development node, with another 32ha being negotiated.

The City of Ekurhuleni will provide major bulk services for the development. The terminal will be developed as part of a next-generation logistics gateway combining direct terminal handling facilities as well as back-of-terminal property development and related value-add logistics services and activities.

The existing Natcor dual directional freight rail line runs directly to the site of the [new terminal]. Transnet will therefore not incur significant additional costs for new rail infrastructure to connect to the new terminal, but rather, leverage off the existing infrastructure.

Once the terminal is developed, it is expected to spur surrounding industrial and commercial property development to the tune of around R20 billion from the private sector.

Southern Palace, told Moneyweb that Southern Palace has brought in international rail and container terminal specialist Italferr, which is part of the Ferrovie dello Stato Italiane group. The joint-venture consortium is also supported by Concor and engineering firm AECOM.

Southern Palace has raised around R7 billion to date through its various businesses, so the terminal will be largely “self-funded”.

See the unabridged article here!

by Mike Poverello

Nigeria – President cautions Customs and Port authorities over Dry Port facility

Kaduma Dry Port

On Thursday, 4 January 2018, Nigeria’s President, Muhammadu Buhari, inaugurated the Kaduna Inland Dry Port and warned the Nigeria Customs Service and port officials against frustrating the effective use of the facilities. Inaugurating the facilities in Kaduna, Buhari said the customs and the port officials must make the facilities work and not to frustrate business, commercial and industrial enterprises with unnecessary bureaucracy.

It remains for Customs and Ports officials to make these facilities work and not to frustrate business, commercial and industrial enterprises with unnecessary bureaucracy and inflicting on them delays and hardships, thereby defeating the object of the whole exercise as has happened in the past.

According to him, the hinterland business community has waited for too long for such facility that has tremendous potentials to ease the way of doing international business for the interior based importers and exporters. He said that the development of Inland Dry Ports was an important factor in the nation’s economic development efforts.

As Ports of origin for exports and ports of destination for imports, the Inland Dry Ports will accelerate the implementation of our economic diversification policy. “The concept of Inland Dry Port has gained widespread importance with the changes in international transportation as a result of the container revolution and the introduction of door-to-door delivery of cargo.

It provides importers and exporters located within the nation’s hinterland, especially industrial and commercial outfits, access to shipping and port services without necessarily visiting the seaports. “It also enables them to process clearance of their import cargo and take delivery of their raw materials and machinery close to their places of business.

President Buhari also said that the Dry Ports would provide exporters the much-needed facilities to process, package, consolidate and forward their exports to their customers all over the world without having to physically be at the seaports. According to him, this replicates the port economy in the various centres where the Dry Ports are located inland thereby generating employment and contributing to the ease of doing business.

He said in addition to the Kaduna Inland Dry Port, six other Inland Dry Ports in Ibadan, Aba, Kano, Jos, Funtua and Maiduguri, which had also been gazetted, were at various stages of completion. He congratulated the Kaduna State Government, the Federal Ministry of Transportation, Nigerian Shippers’ Council as well as the hinterland importers and exporters on the inauguration of the facilities.

The president also commended the initiative of Nigerian Shippers’ Council towards promoting the provision of these modern transport infrastructural facilities. He, however, urged the Concessionaires of the other six Dry Ports to emulate the Concessionaires of the Kaduna Dry Port by accelerating work on theirs so as to ensure speedy completion of the projects.

He said that with the full complement of the seven Dry Ports, congestion at the seaport and traffic gridlock in the port complex would be eliminated.

“Consequently, the cost of transportation and cost of doing business will be reduced,’’ he said. He lauded the efforts of the Kaduna state government for facilitating the establishment of Kaduna Inland Dry Port.

According to him, the provision of access roads and other utilities to the Dry Port by Kaduna State Government is worthy of emulation by the other Dry Ports host State Governments.

He urged relevant stakeholders across the public and private sectors, particularly Nigeria Customs Service, Nigerian Ports Authority, Nigerian Railway Corporation, Shipping Companies and Agencies, Seaport Terminal Operators, Clearing and Forwarding Agents, Road Haulers and importers and exporters to utilize the facility optimally. Source: article originally published by Vanguard (Nigeria), 4 January 2018

by Mike Poverello

Kenya – First Standard Gauge Rail Cargo Train Arrives in Nairobi

Kenya Standard Gauge Cargo TrainThe first standard gauge railway cargo train arrived in Nairobi on Monday at the ultra-modern inland container depot which was launched by President Uhuru Kenyatta a fortnight ago.

The arrival of the cargo train is in line with President Kenyatta’s promise to reduce the cost of doing business in the country. In his New Year message, President Kenyatta said the new commercial cargo train would cut costs and delays in trade for Kenyans and its neighbours.

The President said the delivery of a world-class railway on time and within budget, would attract world-class manufacturing and value-addition investments, which are critical to creating jobs and business opportunities.

The cargo train carried 104 containers, which is almost equivalent to the trucks operating daily on the Mombasa-Nairobi highway.

According to the Kenya’s Ports Authority head of Inland Container Deports Symon Wahome, the new commercial cargo train will revolutionize the transportation of cargo in Kenya.

While the meter train used to carry twenty to thirty containers, the standard gauge train will carry 216 containers. Four trains will operate daily and later increased to eight cargo trains. Source: The Daily Nation (Kenya), 1 January 2018.

 

by Mike Poverello

Highlights – WCO Global Conference on Transit

WCO Transit GuidelinesYes, the info junkie I am – this is what I was really after! The WCO chose to delay the real stuff. The WCO has published its Transit Guidelines, and a substantial compendium its is. Click here to access/download the file (5,4MB)! The WCO Secretary General, Kunio Mikuriya, has noted the possibility of developing a separate publication on transit encompassing national or regional best practices.

At the recent conference on transit, particular attention was given to the difficulties faced by landlocked developing countries.  During a special session on the issue, the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), several concrete suggestions were made on how to turn land-lockedness into land-linkedness.  The Director General of Paraguay Customs indicated that trade transactions in his country incur 30% additional costs due to Paraguay’s geographical limitations.  The Representative from UN-OHRLLS confirmed that on average, LLDCs bear up to 40 % additional costs on trade transactions.  The investment being made in hard infrastructure, such as roads, rail infrastructure, intermodal logistical hubs and dry inland ports, remains one of the main priorities in order to improve the situation.  Participants confirmed the need for harmonization and simplification of border control procedures, as well as the promotion of ICT for the management of transit systems.  This is of significant importance to LLDCs in Africa of which there are eight!.

Representatives from  several of Africa’s Regional Economic Communities present at the Conference, such as the Common Market for Eastern and Southern Africa (COMESA) and the Economic Community of West African States (ECOWAS), also highlighted the need to ensure that establishment functioning legal frameworks are in place to address the main challenges of regional transit regimes.

The use of existing information and communication technology (ICT) solutions was also raised at the Conference.  Today, numerous technologies are available to secure the movement of goods, such as electronic Customs seals which are actively used on containers transported from China to Europe and have proved to be reliable and efficient.  The regional electronic tracking system used for goods transiting between Uganda, Kenya and Rwanda was also mentioned as a successful project resulting from cooperation between neighbouring Customs administrations.  The Representative from ECOWAS informed participants that work has started to connect the IT systems of ECOWAS Members.  Regarding the challenges related to interconnectivity, the benefits of global implementation of the WCO Data Model were pointed out.

Railway transport is playing an increasingly important role in moving goods between countries in Eurasia, as explained by the Representatives from China and Russia Customs as well as the Representative from the Intergovernmental Organisation for International Carriage by Rail (OTIF).  It was pointed out that block trains now bring goods from China to Europe through Russia and Central Asian countries within a fortnight; four times faster than via maritime routes.  It is worth nothing that in the absence of a global instrument regulating the movement of trains across borders, which would obviously be of benefit to transit operations, bilateral agreements are the norm.

Transit systems, such as the European Union’s New Computerised Transit System (NCTS), the Convention on International Transport of Goods Under Cover of TIR Carnets (TIR Convention) and relatively new transit facilitation initiatives in the Eurasian Economic Union (EEU) and the Central Asia Regional Economic Cooperation (CAREC), were also discussed in detail.  Turkey, a user of two transit systems – NCTS and TIR – highlighted the importance of digitalization of the transit processes and explained its involvement in the e-TIR project aimed at providing an exchange platform for all actors (Customs authorities, holders and guarantee chains) involved in the TIR system.  In this regard, Turkey has participated in two pilot projects with two neighbouring countries, namely Georgia and Iran. Source: the WCO

by Mike Poverello

WCO Workshop on Inland Depots in Lao PDR

inland-port-7The World Customs Organization (WCO) organized a National Workshop on Inland Depots under the sponsorship of the Customs Cooperation Fund (CCF)/Japan and the Japan International Cooperation Agency (JICA). It was held from 20 to 22 September 2016 in Savannakhet Province, Lao People’s Democratic Republic.

Twenty six Customs officers from the Lao Customs Administration participated in the workshop, along with guest Customs experts from The Former Yugoslav Republic of Macedonia, Japan and JICA. Mr. Somphit Sengmanivong, Deputy Director General of the Lao Customs Administration, opened the workshop. He highlighted the importance of Inland Depots as a national strategy to secure his country’s economic growth and sought participants’ active participation in the discussions on this topic.

Presently, there is no clear definition of “Inland Depot” and many similar terms, such as Dry Port, Inland Terminal, Free Trade Zone and Special Economic Zones, are used in the international logistics. During the three-day workshop, participants discussed the functions and a possible definition of Inland Depot from a Customs perspective.

AmatiComment – Inland container terminals serve as important hubs or nodes for the distribution and consolidation of imported and export destined cargoes. There are 16 Landlocked countries in Africa, which signifies the importance of hinterland logistics development and its consequential impact on regional trade groupings. Consequentially, it behooves governments to understand and support the logistics supply chain industry in maximizing inland transportation (multi-modal) infrastructures to achieve a common and mutually beneficial economic environment. Furthermore, the more facilitative these arrangements, the better opportunity there is for success and longer-term economic sustainability.

The WCO Secretariat made presentations on international standards for relevant procedures, including Customs warehouses, free zones, Customs transit, inward processing, clearance for home use and temporary admission. Experts from The Former Yugoslav Republic of Macedonia and Japan described their national and regional experience of Customs warehousing, and Customs transit procedures. The JICA expert presented the bonded procedures applied by neighbouring countries to Lao People’s Democratic Republic. Lao Customs administration explained their national system for Inland Depots and a logistics company of Lao PDR shared its expectations on inland depots.

On the last day, participants discussed the challenges and possible solutions to enhance the functional and efficiency of Lao’s Inland Depots. Possible solutions, such as the use of modern information technology, further cooperation with the private sector, clear regulations on relevant procedures, coordinated border management and international cooperation were considered. Source: WCO

Recommended reading

by Mike Poverello

High Aspirations for planned Tambo Springs Intermodal Hub

containersThe following was penned by a long-time customs acquaintance Aires Nunes da Costa, who has kindly permitted me to post his article titled “Why unpack containers in Durban if you can have containers at your door step in Gauteng within 24 hours?” which first appeared on LinkedIN.

The Tambo Springs initiative involves creating a significantly improved intermodal capability for the movement of freight to and from Gauteng. This is to be achieved by the operational twinning of the inland port with other seaport, inland and cross border locations. The connectivity i.r.o. these twinned locations is achieved via sea, rail, road and air linkages, ideally involving seamless movement of freight between modes.

The Tambo Springs development incorporates a next generation inland port with a state of the art rail terminal facility designed to be developed in phases, with an ultimate capacity of 1 m TEU’S p.a., as well as, a sprinter freight land bridge.

The key elements are as follows:-

Direct Traditional Rail Link to Durban Harbour

The Tambo Springs Terminal will be linked to the Durban Container Terminal which currently handles the bulk of all container freight moving in and out of Gauteng, via an efficient rail service. The fixed rail infrastructure for this link already exists to the Tambo Springs site. This state of the art Terminal facility is designed to significantly increase the rail capacity for container freight to/from Gauteng, while simultaneously reducing real costs and significantly improving levels of service via:

  • a new technology “greenfields” terminal being more efficient;
  • a reduction of congestion issues in and out of the new inland port due to its location;
    improved efficiency of port operations;
  • having the facility serviced by improved rolling stock commissioned by Transnet;
    Sprinter Freight Rail Link to Ngqura Harbour In the Coega IDZ (Port Elizabeth)

In addition to the direct rail link with Durban harbour, the initial phase of this programme involves the twinning of the Coega IDZ and its adjoining Deep Water Container Terminal at the Port of Ngqura with Tambo Springs. This is to be undertaken by means of a Public Private Partnership type structure which utilizes the Transnet capability between the two locations as well as the participation of SARS.

The service level to be achieved for the movement of the freight via this land bridge has a goal of “24 hours” as opposed to the current 3 to 5 days service level achieved at City Deep. This is to be achieved by capitalizing on the creation of high efficiency intermodal activities integrated with the port functions and feeder network.

Truck Freight Movement

The Tambo Springs Inland Port will function as a multimodal logistics gateway serving the Gauteng Catchment area. It therefore provides ease of movement between individual transportation modes in addition to facilitating manufacturing, warehousing and distribution activities.

The operational plan is therefore designed to accommodate long distance (FTL) truck traffic in addition to regional (LTL) freight movement.

The principle truck markets the inland port will attract include:

  • FTL long distance movement of time sensitive freight from other ports or metropolitan areas. This includes both cross docking and stuffing/de-stuffing facilities within the inland port;
  • Rail/truck (intermodal) movement where product utilizing the rail links is transferred to truck in order to each its final destination;
  • LTL truck and Van short distance movement of freight, including a regional metropolitan distribution function.

The next generation inland port therefore capitalizes both on rail and road transportation modes with a focus on increased movement of long distance freight by sprinter rail.

Intermodal Movement

In order to achieve seamless intermodal movement of freight between sea, rail, road and air transport, it is essential to link Tambo Springs with other inland port and hub locations. The creation of such a twinned Inland Port Network provides a means to effectively participate in the Global Supply Chain in a manner which optimizes both existing and new facilities to enhance capacity. Hence, for example, Tambo Springs would be linked to City Deep via rail and road linkages and to other hub locations in Gauteng and elsewhere.

A principle element of this approach is to create an efficient transportation service between all the individual entry/exit ports providing an improved level of service over and above that provided by a traditional network. The key to this is to rethink existing processes with a focus on efficiency savings in terms of the inbound and outbound process flow at Tambo Springs. This has been incorporated into the operational concept and addresses both operational and customs and regulatory efficiency issues as part of the supply chain. Source: Aires Nunes da Costa (Customs & Excise Specialist)

by Mike Poverello

Transnet Seeks Private Sector Participation for new Inland Terminal

Tambo SpringsSouth Africa’s freight and logistics company Transnet this week launched its massive drive to bring private sector operators into the country’s freight system.

The company has issued a request for proposals inviting suitably qualified global logistics service providers to design, build, operate, maintain and eventually hand over its proposed inland container terminal in Tambo Springs, East of Johannesburg – a 630ha site located on land originally known as Tamboekiesfontein farm.

The concession will be over a 20-year period and will be Transnet’s biggest private sector participation project to date.

The proposed terminal is in line with Transnet’s drive to migrate rail friendly cargo off the country’s road network.

The terminal is expected to be in operation by 2019 and will have an initial capacity of 144 000 TEUs per annum, with an option to ramp it up to 560 000 TEUs, depending on demand.

The project entails the following:

  • Arrival and departure yard for handling cargo trains
  • Terminal infrastructure;
  • Terminal equipment;
  • Stacking area;
  • Warehousing space
  • Distribution centre
  • Inland Reefer facilities

Transnet Freight Rail will be responsible for the operation of the arrival and departure yard required to service the terminal.

The operator will be responsible for loading and offloading of containers and marketing of the facility. The winning bidder is expected to introduce new entrants – particularly black players – must have demonstrated technical expertise, a minimum of level 4 BBBEE status with a commitment to reach level 2 by the third year of operation.

Transnet currently operates 5 inland terminals in Gauteng, including the City Deep Container Terminal in Johannesburg, Africa’s largest inland port.

The proposed terminal is an integral part of the Presidential Infrastructure Co-ordinating Committee’s SIP 2, aimed at unlocking the country’s industrial development while boosting export capability. It is designed to complement Transnet’s container-handling capacity in the province.

This is the culmination of years of hard work and a demonstration of cooperative governance between Transnet, representing the national competence, and both the Gauteng Provincial Government and the Ekurhuleni Municipality.

The Tambo Springs terminal is one of three mega terminals that Transnet is planning to build in Gauteng over the next 20 years. It will be located in Ekurhuleni along the N3, just off the Natal Corridor.

The project is expected to create 50 000 jobs, and has stringent requirements for supplier development and skills transfer. Source: Transnet

by Mike Poverello

Important Implications of the WTO TFA on Landlocked Countries

WTO TFA implications for LLDCBackground

The Almaty Programme of Action (APoA): Addressing the Special Needs of Landlocked Developing Countries within a New Global Framework for Transit Transport Cooperation for Landlocked and Transit Developing Countries was adopted in 2003 as a response to the growing recognition by the international community of the special needs and challenges faced by the LLDCs. The Programme of Action emphasised five priority policy areas that landlocked and transit countries need to address to resolve the access problems of LLDCs: Transit policy and regulatory frameworks; Infrastructure development; International trade and trade facilitation; International support measures, and Implementation and review.

As one of the priority areas of the APoA, international trade and trade facilitation (streamlining customs and other border procedures) has taken on renewed focus, especially in light of the WTO Bali Ministerial Conference in December 2013, at which WTO members reached consensus on a Trade Facilitation Agreement, as part of the wider ‘Bali package’. As the end of the first ten years of the APoA is drawing to a close, the General Assembly of the United Nations decided to hold a comprehensive Ten-Year Review Conference of the APoA in 2014.

WCO TFA and Landlocked Countries

The WTO Trade Facilitation Agreement sets out commitments that promote clear rules and procedures, many of which are of particular interest to LLDCs. The three most important provisions for LLDCs are Articles 11, 10,and 8. The first one deals specifically with freedom of transit, the second sets out obligations in relation to trade procedures including transit, and the third requires WTO members to cooperate with other members with which they share a common border.

Other TFA provisions of interest to the LLDCs include Articles 1-5 which addresses Publication and Transparency, including the availability of information; Article 2 which provides specific guidance on Consultations before Entry into Force; Article 6, which sets out Disciplines on Fees and Charges imposed on or in Connection with Import and Export and Article 7 which provides rules on Release and Clearance of Goods, including Trade Facilitation Measures for Authorised Operators. In the new Agreement, the obligations take three forms: Binding, Best Endeavour, or a Combination of both.

The TFA presents an opportunity for LLDCs to upgrade their systems, infrastructure and procedures as the Agreement encourages national trade facilitation improvements. Policymakers should therefore ensure that trade facilitation is included in national development plans given the cross cutting nature of trade facilitation. Using this approach, LLDCs will increase their ability to access resources tied to different funding windows, for example, assistance for general trade policy and regulations.

There are 16 Landlocked countries in Africa, which signifies the importance of the WTO TFA and its consequential impact on regional trade groupings.

The WTO TFA is an innovative agreement as it will provide capacity building to developing countries to allow them to undertake the implementation of the agreement where necessary. The Agreement addresses concerns about the implementation costs and capacity building constraints in developing and least developed countries that would be required to implement these rules. The Agreement allows each LLDC to design its TFA implementation plan and choose a timetable of compliance in accordance with its needs, capabilities and confirmed funding and technical assistance from development partners. Further, guidance is provided to WTO members on the domestic institutional arrangements that should be established to maximise the resources to be made available by donors, as well as the structures and systems that should be adhered to at the WTO Secretariat itself to ensure that the process of accessing TFA implementation support is transparent and inclusive.

It is essential to note that the Agreement specifies a strict national approach to implementation and makes no provision to resolve the issues which are closest to LLDCs interests, such as regional economic corridors, which fall outside the purview of the WTO’s multilateral disciplines. Despite this shortcoming, LLDCs will benefit from deepening their links and their involvement in fora supported by the development banks and bilateral agencies which fund these regional programmes. This will ensure that their interests are adequately reflected in the design of development plans for regional infrastructure improvements, regulatory reforms, technical assistance and capacity building.

Although the language of the TFA is legally binding in relation to some key aspects of freedom of transit, it has one important proviso. If an LLDC developing country neighbour denotes freedom of transit as a Category C obligation, it will only become justiciable and fully legally binding after the expiration of the transition date determined by that country and the delivery of suitable technical assistance by donors. Against this background, an optimal outcome for LLDCs would be that as many transit countries as possible register freedom of transit as a Category A obligation, as this would come into force immediately.

Read the full preparatory report on the Implications of the WTO ATF on Landlocked Developing Countries, available on the United Nations Conference on Landlocked Developing Countries website.

Related articles

by Mike Poverello

Botswana Dry Port to Become Operational This Week

Workers putting the final touches to the entrance to the Botswana dry port. [Photo - Floris Stenkamp]

Workers putting the final touches to the entrance to the Botswana dry port. [Photo – Floris Stenkamp]

The Botswana dry port in Walvis Bay is expected to be operational this week, Botswana Railways’ Commercial Manager Mthulusi Lotshe said last week. The dry port will cost N$60 million.

The Botswana dry port is constructed on land owned by NamPort. The facility would be used exclusively by Botswana Railways for handling both containerised and non-containerised cargoes for import and export to, or originating from this eastern neighbouring country.

Lotshe made the announcement during the Trans Kalahari Corridor (TKC) information session hosted by the Trans-Kalahari Corridor secretariat in Windhoek.

He said the objective of the dry port is to consolidate maritime goods into inter modal and long distance transport flows.

“The other objectives of the dry port include improving cargo processing through coordinated operations; facilitating collection and distribution of local, regional and international transport; and integrating Botswana and the Southern African Development Community region with the Walvis Bay port,” Lotshe said.

He said the port aims to strengthen multi-modal solutions and create opportunities for new services, as well as reduce total transport and logistics costs and journey time. Source: The Namibian

by Mike Poverello

Outlook and reliability of African ports in question

Port of Mombasa

Port of Mombasa

The reliability of African ports for import and export traffic is likely to deteriorate before getting better, according to Portoverview.com which advises importers, exporters and traders in planning their supply chain to and from the continent.

Speaking earlier this week at the Cool Logistics Conference in Cape Town, Africa. Portoverview.com’s Victor Shieh said almost 2,000 incidents were recorded on its portal over the last 16 months, with an average of one weather-related incident per day for South Africa alone.

Current congestion issues will remain a problem whilst port infrastructure is renewed over the next years. However, we see African hinterland connections beyond the terminal gates as the biggest challenge facing shippers,” Shieh emphasised.

In a study presented at the conference, road and rail construction as well as investment in port infrastructure were identified as the main positive developments recorded on the portal.

Greenfield sites along the African coast are cited as having the greatest potential to improve cargo efficiency. Projects such as the 2.5 million teu site at Lekki in Nigeria and the 5 million teu expansion at Tangier-Med, in Morocco, will require similar investments on the intermodal leg to succeed.

Recent research by SeaIntel Maritime Analysis, which is co-owner of the portal, revealed that African exporters have no more than an average 60% chance that their containers will arrive on time in Asia with the percentage falling to 55% for Europe.

“For shippers – especially ones who produce and distribute perishable products – that’s a real challenge” commented Morten Berg Thomsen, a shipping analyst at SeaIntel.

Helen Palmer, director, Sutcliffe’s Maritime, a UK-based shipping agent told Lloyd’s Loading List.com that as far as ro-ro traffic was concerned she was not aware of any serious congestion and delays into African ports

“I can’t speak for box traffic but in the case of ro-ro into ports such as Mombasa, in East Africa, transit is extremely smooth with trucks waiting on the quayside as soon as the ship’s ramp comes down. Dar es Salaam, is perhaps a little less straightforward but certainly nothing major,” she said. Source: Lloydsloaddinglist.com