Archives For 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

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The World Customs Organization (WCO) hosted its first Global Conference on Transit at its Headquarters in Brussels.  This event, which comes right after the annual WCO Council Sessions, sees the launch of a new tool for the facilitation of transit and establishment of efficient transit regimes, namely the Transit Guidelines. At the end of the first day of the conference, all the panelists agreed on the usefulness of the Transit Guidelines for further developing and implementing their respective transit systems.  They urged the WCO to continue to update the Guidelines as a platform for future standardisation of transit systems.

Over 200 high-level delegates from more than 80 countries, including heads of Customs administrations, international organizations, development partners, the private sector and academia attended this Conference.

LLDC in AfricaThe landlocked countries in Africa are: Botswana, Burkina Faso, Burundi, Central African Republic, Chad, Ethiopia, Lesotho, Malawi, Mali, Niger, Rwanda, Swaziland, Uganda, Zambia, and Zimbabwe.

Customs administrations are naturally playing a prominent role in the smooth movement of transit goods and, as a result, are in a position to support economic development, particularly in LLDCs.

That is why the WCO began developing the Transit Guidelines with the aim of harmonizing different transit frameworks, unlocking the potential of LLDCs, and taking practical steps towards efficient transit regimes as foreseen by international legal frameworks such as the World Trade Organization (WTO) Trade Facilitation Agreement (TFA), the Vienna Programme of Action, and the Revised Kyoto Convention.  The Transit Guidelines contain 150 guiding principles and a variety of practical experiences of implementing efficient transit regimes, as shared by WCO Members and have been issued in four languages: English, French, Spanish and Russian. Source: WCO

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)

Panama inaugurated the long-awaited Panama Canal expansion on Sunday, 26 June 2016 with the ceremonial transit of the China Shipping Panama through the new neo-panamax Agua Clara locks on the Atlantic side.

The $5.25 billion Expansion Program is the largest improvement project in the Canal’s 102-year history, and included the construction of new, larger locks on both the Pacific and the Atlantic sides and dredging of more than 150 million cubic meters of material, creating a second lane of traffic and doubling the capacity of the waterway.

Despite challenges facing the global shipping industry, the larger canal is anticipated to open up new routes, services, and market segments, such as liquefied natural gas (LNG). Source: gCaptain.com – Pictures courtesy of Panama Canal Authority

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

Namport-rail-upgradeThe Namibian Ports Authority has completed the upgrade of all railway infrastructure at the Port of Walvis Bay at a cost of N$20M (US$1.3M)

The work was included in Namports maintenance programme in 2010, but is now part of wider plans to upgrade facilities at Walvis Bay in preparation for the completion of the new container terminal.

A total of 4.5kms of track inside the port and the section of railway running from the city into the port have been replaced using material that can cope with heavier loads.

A spokesperson for Namport said: “Although the project was of relatively low value, its execution was complex as we had to ensure minimum operational interruption to the track, which is in daily use.”

The new container terminal is being constructed on 40-ha of reclaimed land and will add 700,000 TEU of annual handling capacity to the existing 350,000 TEU. Walvis Bay is already attracting bigger ships and recently handled its biggest ever container vessel the CMA CGM DANUBE, a 112,580 dwt vessel with a nominal intake of 9200 TEU.

A statement from Namports read: “The visit of CMA CGM DANUBE complements our port expansion project, which accommodates greater carrying capacity. Following the completion of the port expansion project vessels such as this will be accommodated at the new container terminal.”

The Walvis Bay Corridor Group, which was set up to promote the use of the port among neighbouring states, is keen to improve ancillary infrastructure at Walvis Bay to make the most of the new terminal.

Namport manager for corporate communication Taná Pesat said: “The benefits are our safe and secure corridors to and from landlocked SADC markets. The frequency of direct ship calls and flexibility of doing business with ease.”

However, the plot of land at the port given to Zimbabwe in 2009 for the construction of a dedicated dry port has still not been developed. Source: World Cargo News

WCO Secretary General Kunio Mikuriya addressing delegates at the high-level opening ceremony of the ConferenceWCO Secretary General Kunio Mikuriya addressed delegates at the high-level opening ceremony of the United Nations Conference in Vienna on 3 November 2014.

The Conference aimed to seek a renewed political commitment to address the special needs of landlocked developing countries (LLDCs) and identify priorities, ways, and means to address them. This was the second Conference after the first one held in Almaty, Kazakhstan in 2003. The Conference takes place only once a decade and is an important milestone for formulating a focused, forward-looking and action-oriented development agenda for LLDCs for the next decade.

Secretary General Mikuriya made a statement together with other heads of international organizations, including Mr. Ban Ki-moon, Secretary-General of the United Nations, and Mr. Roberto Azevêdo, Director General of the World Trade Organization, and several heads of state, including President Heinz Fischer of Austria. In his remarks, he highlighted the importance for Customs administrations to establish an effective and efficient transit regime which is an essential element to promote regional economic integration and ensure economic growth of LLDCs.

He also used his speech to launch the WCO Transit Handbook that the Permanent Technical Committee finalized last week. Secretary General Mikuriya announced that the Transit Handbook would be formally published shortly after further editing and incorporating the outcomes of the Conference. He also described other WCO instruments that facilitate transit, including the Revised Kyoto Convention and the Time Release Study. He gave an assurance of enhanced delivery of technical assistance and capacity building for LLDCs through the Mercator Programme, a tailor-made assistance programme supported by a wealth of instruments and best practices, a network of accredited experts and a comprehensive donor engagement mechanism. Source: WCO

Related links

Africa_Road_Corridors_HandbookAs countries across Africa gear themselves towards growing and stimulating inter-regional trade, the transport corridors being developed across the continent are important passageways for the movement of freight.

Though the growth and development of rail across Africa is in the pipeline over 80 percent of all freight being transported is on road.

Transporting goods on trucks is an expensive business. Africa can be challenging at the best of times due to non-tariff barriers even though governments across the continent are trying to make it easier for the flow of goods from one country to another.

The logistics of transporting freight can be a harrowing and expensive exercise.Especially if a transport manager is not armed with key and pertinent information – regarding the route, border posts, costs, relevant documentation required at borders, waiting times at the border posts, location of wellness centres,road conditions and where the tolls and weighbridges are situated.

3S Media in association with FESARTA have released the Africa Corridors Handbook which gives transport and logistics managers all the key information they need before drivers embark on a journey.

Having the correct information on hand is critical for every transport operator that is moving freight across Africa and now it is available in one concise handbook. Click the following hyperlink to purchase the book.

banner4Transport Forex, created by Inter Africa Bureau de Change, a registered bureau de change with the South African Reserve Bank has created an unique online banking system for the transport industry.

With branches at all of South African border posts, the company has expanded operations into Namibia, Botswana, Zimbabwe, Mozambique, Zambia, the DRC and Tanzania with offices on all the major border posts between these countries.

Transport Forex is an online ordering system where the transport manager can deposit money in South Africa into the relevant account therefore ensuring when drivers arrive at the relevant border posts there is enough money for them to pay the relevant duties. At the same time, this ensures enough cash is in the account for drivers to purchase fuel at key petrol stations or even pay for a service on-route in one of the partner countries.

Once the monies have been deposited into the account, an order number is sent via SMS to the driver who then presents it at the relevant Transport Forex office to draw the necessary funds required.

In the same way you can book and pay for diesel for your truck on any of the major transport routes in Namibia, Botswana, Zimbabwe, Mozambique, Zambia, the DRC and Tanzania. Transport Forex has negotiated with partner fuel suppliers for better prices and passes this discount directly to the transport company.

A new Payment Service was introduced in 2013 for clients. Should additional unforeseen funds be required for an emergency while the driver is on the road then monies can be made available for drivers almost immediately. This prevents valuable time from being lost.

Transport Forex is also in negotiations with several government institutions so relevant duties and taxes for operators’trucks can also be paid through the system in advance.

To join Transport Forex simply log onto www.transportforex.co.za, and click on “Create Account”. Registration is free, and there are no monthly charges.

ECDPM - SAIIAThis study is part of the ECDPM-SAIIA project on the Political Economy of Regional Integration in Southern Africa (PERISA). The PERISA project aims to inform and facilitate dialogue on the political economy drivers of regional integration in Southern Africa. It focuses particularly on the role of South Africa in this process with a view to better informing relations between the European Union and South Africa. Regional economic integration is essential for Africa’s development. While integration is taking place across the continent, it is not happening at the pace and the scope that the institutional architects in the Regional Economic Communities and their member states have agreed upon. Southern Africa is no exception. In looking for answers as to what obstructs or what drives regional integration, this study focuses on one particular type of integration process: cross-border transport corridors.

All Regional Economic Communities in Southern Africa have embraced transport corridors (also referred to as Spatial Development Initiatives) as key development tools. Adopting a corridor approach means engaging with a wide range of actors with different interests and influence along key transport routes that link neighbouring countries and ports. This includes the full range of government agencies that control borders for security, revenue collection, and regulatory purposes as well as infrastructure, transport, trade and economic ministries as well as a range of private sector actors from small-scale informal traders and producers to transporters and major international investors as well as port, rail and road operators.

The analysis focuses on the North-South Corridor and the Maputo Development Corridor. The North-South Corridor links Dar es Salaam in Tanzania to Durban in South Africa through Zambia, Zimbabwe and Botswana. The Maputo Development Corridor links Gauteng Province in South Africa to Maputo in Mozambique. The analytical focus is on South Africa and Mozambique, while from the multi-country North-South Corridor the focus in this paper is on Zambia, a potential key beneficiary of the initiative. Source: ECDPM.org

Some 400 endangered amphibians and reptiles have died from dehydration and improper shipping in South Africa, animal inspectors say.

More than 1,600 animals were discovered crammed into two crates at the OR Tambo International Airport. The survivors are being treated at a local zoo.

The animals, from Madagascar, had been without water and food for at least five days, reports say. They are believed to have been destined for the exotic pet market in the US.

The surviving animals have been taken to the Johannesburg Zoo, where they are said to be “stable”.

“A substantial number have stabilised, eating and drinking, there are about over 1,200 that have survived – others with irreparable damage,” the zoo’s veterinarian Brett Gardener told the BBC.

Mr Gardener said while some losses can be expected when shipping animals over long distances, what possibly exacerbated this particular case was the delay to the connecting flight to the US.

“The boxes arrived on Tuesday morning and were scheduled to connect on a flight that evening. The flight was delayed indefinitely due to bad weather and attempts to put them in another flight failed,” he said.

The animals were found on Wednesday after an inspector from the National Society for the Prevent of Cruelty to Animals (NSPCA) noticed “a bad smell” during a routine cargo inspection and found that some of the animals in the boxes had begun decomposing and some were barely alive.

The animals, which included at least 30 different species of frogs, chameleons, lizards and toads and geckos, had been placed in two crates about half a metre in size – one on top of the other.

The chameleons were tied in small muslin bags, while the other reptiles and amphibians were crammed into small plastic tubs.

Some of the animals were so tightly packed together that they were unable to move or turn around, local media report.

Many of the recovered animals were classified as endangered, vulnerable, or threatened, according to the Convention on the International Trade in Endangered Species (Cites).

Those on Cites appendix II protocol, meaning that they can be traded, but only with a special permit.

The Star newspaper reports that they did have the authorisation but local animal rights groups have called for an investigating into how the consignment came to arrive in South Africa.

The NSPCA and the Department of Agriculture, Forestry and Fisheries are further investigating the matter.

“The authorities suspect that there are South African agents involved [who work as middle men] and once investigations are finalised they would be charged with animal cruelty,” said Ainsley Hay, head of the NSPCA’s Wildlife Unit.

The department will be contacting authorities from Madagascar to discuss what should be done with the animals, until then they will be treated in some zoos locally.

Madagascar, the fourth largest island on the planet, is deemed one of the world’s biological hotspots. Source: BBC

waterwaysforward-wordpress-com_SnapseedThe European Commission (EC) has announced new measures to get more freight onto Europe’s rivers and canals.

It underlines that barges are amongst the most climate-friendly and energy efficient forms of transport but currently they only carry about 6% of European cargo each year.

The new proposals intend to realise the “unused potential” of Europe’s 37,000 km of inland waterways, enabling freight to move more easily and lead to further greening of the sector, as well as encouraging innovation and improving job opportunities.

“We already send 500 million tonnes of freight along our rivers and canals each year. That’s the equivalent of 25 million trucks. But it’s not enough. We need to help the waterway transport industry develop over the longer term into a high quality sector. We need to remove the bottlenecks holding it back, and to invest in the skills of its workforce,” said the EC’s Vice President, Transport, Siim Kallas.

The Commission is proposing to remove significant bottlenecks in the form of inadequately dimensioned locks, bridges or fairways and missing links such as the connection between the Seine and the Scheldt river systems which are hampering the sector’s full development potential.

In August last year, Lloyd’s Loading List reported that a multi-billion euro project, the Seine-Nord Europe (SNE) Canal, to build a 106km, 54-metre wide canal to link the Seine and Scheldt rivers by the end of the decade, had suffered a serious setback, with doubts cast over private investment in the project.

The French government continues to support the SNE Canal despite the conclusions of an audit into its financial feasibility which recommended that it be postponed indefinitely.

It commissioned the over-hauling project which could be presented to the European Commission in its new form in the first quarter of 2014, the aim being to secure greater EU funding than that granted under the initial plans.

The Commission is also proposing action to encourage investment in low emission technologies and to support research and innovation. Source: Lloyds.com

Port of Lagos, Nigeria

Port of Lagos, Nigeria

The following article, allbeit long, provides a good overview of trade facilitation developments in Nigeria. I doubt that there is a single country on the African continent that cannot draw some parallel experience contained in this article.

Trade across borders is not a new phenomenon. But the World Trade Organization is now championing the concept of trade facilitation among nations, which has been defined as simplication , harmonization, standardization and modernization of trade procedures.

Trade facilitation seeks to reduce trade transaction between businesses and government. This concept is receiving unprecedented attention globally and it is at the heart of numerous initiatives within the customs world.

The United Nations Centre for Trade facilitation and Electronic business (UN/CEFACT) in its recommendation No 4 of 1974, said trade facilitation programme ought to be guided by simplication, harmonization and standardization (of trade procedures) so that transaction becomes easier, quicker and more economical than before.

According to the body, there was need to eliminate duplication in formalities, process and procedures; align all national formalities, procedures operation and documentation with international conventions, standard and practices to develop international agreed format for practices, procedures, documentation and information in international trade.

Proponent of trade facilitation believed that if transaction cost in international trade is reduced, there could be creation of wealth, especially in developing countries where red-tapism and other procedural barriers to trade tend to be pronounced.

The organization for Economic Cooperation and Development (OECD) estimated recently that even one per cent reduction in such “hidden cost” would boost the global economy by $40 billion with most of these benefits going to the developing world. Trade facilitation therefore encourages, or perhaps requires countries to adopt means such as publishing their imports and export procedures, reducing the number of forms that importers and exporters are required to complete, allowing forms to be submitted on-line, and checking corruption at border post.

Nigeria, though a signatory to Kyoto 1974 and other convention on trade facilitation, is far from embracing the ideals of the global concept.

The president of the council of Managing Directors of Customs licensed Agents, Mr. Lucky Amiwero, said that although Nigeria was yet to comply with all the provisions of trade facilitation, it has the tools to facilitate international trade, such as the scanning machines and the e-platform.

“In Nigeria, the real cost of doing business is an impediment to trade facilitation. We have no good procedure for goods on transit to Niger and Chad. That has been taken over now by our neighboring countries. One of the key component of trade facilitation is charges which must be tied to services. We have shortcoming in that area. We are still working at cross purposes when other countries are busy harmonizing their import and export procedures”, he said.

In Nigeria, there is no one stop shop process for goods clearance as we have over 10 agencies superintending goods clearing procedure at the nation’s gateways.

“This is very bad and constitute hindrance to trade. The regulatory process is supposed to have been harmonized with other agencies to have a one stop procedures. Procedures are not published and not in line with WTO article which has to do with publication, regulation and administration of procedures. Our trading regime are expensive, our procedures are cumbersome. When others are simplifying and synchronizing their process of import and exports, our import and export procedures are lengthy. We have not been able to harmonise process and procedures and that is where we have a problem. If you still have to go through 100 per cent examination when we have the scanners, that is an impediment to trade,” Amiwero said; adding that the time spent to conclude business in Nigerian ports and border post is much higher than anywhere in the West African sub-region.

The level of corruption at the port border post is high and making them the most expensive business environment in Africa; as un-receipted charges far outweigh the official charges in the process of good clearing. Importers are still submitting hard documents instead of making use of e-devices, and going through the cumbersome process of clearing and receiving of consignments. Continue Reading…

Proposed Durban-Free State-Gauteng Logistics and Industrial Corridor Plan (SIP2)

Proposed Durban-Free State-Gauteng Logistics and Industrial Corridor Plan (SIP2)

Notwithstanding on-going discontent amongst industry operators in regard to proposed legislative measures mandating customs clearance at first port of entry, the South African government (GCIS) reports that work has already commenced on a massive logistics corridor stretching between Durban and the central provinces of the Free State and Gauteng. Most of the projects that form part of the second Strategic Infrastructure Project (SIP 2), also known as the Durban-Free State-Johannesburg Logistics and Industrial Corridor, are still in the concept or pre-feasibility stage, but construction has already started on several projects.

These include:

  • the building of a R2,3 billion container terminal at City Deep
  • a R3,9 billion project to upgrade Pier 2 at the Port of Durban
  • R14,9 billion procurement of rolling stock for the rail line which will service the corridor.

Work has also started on the R250 million Harrismith logistics hub development to set up a fuel distribution depot, as well as on phase one of the new multi-product pipeline which will run between Johannesburg and Durban and transport petrol, diesel, jet fuel and gas.

The aim of these projects and others which form part of SIP 2, is to strengthen the logistics and transport corridor between South Africa’s main industrial hubs and to improve access to Durban’s export and import facilities. It is estimated that 135 000 jobs will be created in the construction of projects in the corridor. Once the projects are completed a further 85 000 jobs are expected to be created by those businesses that use the new facilities. Source: SA Government Information Service

Interested in more details regarding South Africa’s infrastructure development plan? Click here!

European union concept, digital illustration.The European Commission has set out plans to ease customs formalities for ship but it’s as yet unclear as to how the changes are likely to affect EU ports.

Known as the Blue Belt, the proposals aim to create an area where ships can operate freely within the EU internal market with minimum administrative burden when it comes to safety, security, the environment and taxes.

Although free movement of goods is a basic freedom under EU law the Commission says that it’s not yet a reality for the maritime sector which needs to play more of a part in getting more trucks off congested roads.

Siim Kallas,Vice-President, European Commission, said: “We are proposing innovative tools to cut red tape and help make the shipping sector a more attractive alternative for customers looking to move goods around the EU.”

The new proposals will require amending the existing Customs Code Implementing Provisions (CCIP).

Under the new proposals Regular Shipping Services procedures will be made shorter and more flexible. The consultation period for Member States will be shortened from 45 days to 15 and companies will be able to apply in advance for an authorisation from countries they intend to do business with to save time.

The Commission also proposes putting in place a system which can distinguish EU goods on board a ship (which could be fast tracked through customs) from non-EU items, which would need to go through the appropriate customs procedures.

This new “e-Manifest” system would allow the shipping company to relay all goods information in advance to customs officials.

The Commission expects to make the Blue Belt proposal a reality by 2015. Source: PortStrategy.com