FRIDAY 2 December 2011 NO. 1986 For import/export decision-makers FREIGHT & TRADING WEEKLY Warehousing & Distribution • Open-/Under Roof-/Bonded-/Cold Storage • Container Depot [email protected]Walvis Bay - Tel: +264 64 205475 • Fax: +264 64 205484 • Ben Amathila Ave. Windhoek - Tel: +264 61 371100 • Fax: +264 61 371173 • 5 von Braun Str. FTW2327SD FTW5187 Moving a train or an entire factory across the globe is the sort of thing we do every day. Our global delivery network features expert solutions and ultra-flexible ro-ro ships, adaptable to all transport ation challenges. We transport everything from power generators to jumbo paper reels. And we enable you to track and trace your cargo at all times. Whether long, tall or heavy, your cargo will be a perfect fit with WWL. For all your shipping needs to and from Southern Africa, please contact: Wallenius Wilhelmsen Logistics Southern Africa Tel: 031 584 3600 / Fax: 031 584 3630 Email: [email protected]Web: www.2wglobal.com The arrival of a 53-foot container in the Port of Durban recently was all in a day’s work for key players in the carefully orchestrated production. It was a partnership between the shipper, Unitrans Freight Forwarding and Clearing and Mediterranean Shipping Company (MSC) that facilitated the import of the jumbo containers, custom-designed in China to accommodate a specific exporter’s products for its main market in the United States. “Previously, only North America has seen vessels arriving with these giant containers leaning over the ends of the vessel,” said Unitrans MD Margrit Wolff. A South African-based company is now importing these products in shipper- owned containers, which it intends donating to various schools to use as classrooms once the cargo has been discharged, she said. Partners rise to jumbo challenge The first batch of jumbo containers arrives in SA aboard an MSC vessel. BY Liesl Venter Abnormal load hauliers are up in arms following what they call an arbitrary decision by the Western Cape Department of Transport to only allow trucks 12 tons per axle in the province. At an urgent meeting convened at the offices of the Road Freight Association in Isando last week, representatives of the abnormal loads industry said they had had enough and were taking legal advice on the matter. According to RFA spokesman Gavin Kelly, there was no forewarning from the Western Cape government that axle load regulation would be changed in the province. “We have engaged in discussion with the provincial and national transport departments to try to establish why the axle loads have been changed to a minimum of 12 tons per axle but have not had any satisfactory response.” The RFA, on behalf of the abnormal loads industry, has also requested a meeting with Western Cape Transport MEC Robin Carlisle and is hoping to meet with him this week. “We have asked them to give us reasons why they have taken this decision and also to explain on what basis it was done. There was no consultation with industry who are severely impacted by the move.” Edward Poole of Edlynway Transport & Cranes in Cape Town was the first person to be informed about the new axle load for abnormal loads. “We bought a vehicle that can carry 32 tons on its riding axles, and when we applied for the abnormal vehicle registration, we were told that the 32 tons was illegal as the new regulation in the province was 12 tons per axle.” Poole told FTW that the decision was impacting hugely on economic activity in the province as many cranes and other heavy vehicles were now not able to do the work for which they had been bought. The new ruling by the Western Cape also means a vehicle will be legal while travelling in any of the other provinces, but once it enters the Western Cape will have to reduce its load to ensure it only carries 12 tons per axle. “Some official decided to effect this change and it CT axle limit ignites ‘abnormal’ anger To page 20 ‘No consultation with industry who are severely impacted by the move.’
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FRIDAY 2 December 2011 NO. 1986 For import/export decision-makers
Moving a train or an entire factory across the globe is the sort of thing we do every day. Our global delivery network features expert solutions and ultra-flexible ro-ro ships, adaptable to all transport ation challenges. We transport everything from power generators to jumbo paper reels. And we enable you to track and trace your cargo at all times.
Whether long, tall or heavy, your cargo will be a perfect fit with WWL.
For all your shipping needs to and from Southern Africa, please contact:Wallenius Wilhelmsen Logistics Southern Africa Tel: 031 584 3600 / Fax: 031 584 3630Email: [email protected] Web: www.2wglobal.com
The arrival of a 53-foot container in the Port of Durban recently was all in a day’s work for key players in the carefully orchestrated production.
It was a partnership between the shipper, Unitrans Freight Forwarding and Clearing and Mediterranean Shipping Company (MSC) that facilitated the import of the jumbo containers, custom-designed in China to accommodate a specific exporter’s products for its
main market in the United States. “Previously, only North America has seen vessels arriving with these giant containers leaning over the ends of the vessel,” said Unitrans MD Margrit Wolff.
A South African-based company is now importing these products in shipper-owned containers, which it intends donating to various schools to use as classrooms once the cargo has been discharged, she said.
Partners rise to jumbo challenge
The first batch of jumbo containers arrives in SA aboard an MSC vessel.
By Liesl Venter
Abnormal load hauliers are up in arms following what they call an arbitrary decision by the Western Cape Department of Transport to only allow trucks 12 tons per axle in the province.
At an urgent meeting convened at the offices of the Road Freight Association in Isando last week, representatives of the abnormal loads industry said they had had enough and were taking legal advice on the matter.
According to RFA spokesman Gavin Kelly, there was no forewarning from the Western Cape government that axle load regulation would be changed in the province.
“We have engaged in discussion with the provincial and national transport departments to try to establish why the axle loads have been
changed to a minimum of 12 tons per axle but have not had any satisfactory response.”
The RFA, on behalf of the abnormal loads industry, has also requested a meeting with Western Cape Transport MEC Robin Carlisle and is hoping to
meet with him this week.“We have asked them to
give us reasons why they have taken this decision and also to explain on what basis it was done. There was no consultation with industry who are severely impacted by the move.”
Edward Poole of Edlynway Transport & Cranes in Cape Town was the first person to be
informed about the new axle load for abnormal loads.
“We bought a vehicle that can carry 32 tons on its riding axles, and when we applied for the abnormal vehicle registration, we were told that the 32 tons was illegal as the new regulation in the province was 12 tons per axle.”
Poole told FTW that the decision was impacting hugely on economic activity in the province as many cranes and other heavy vehicles were now not able to do the work for which they had been bought. The new ruling by the Western Cape also means a vehicle will be legal while travelling in any of the other provinces, but once it enters the Western Cape will have to reduce its load to ensure it only carries 12 tons per axle.
“Some official decided to effect this change and it
CT axle limit ignites ‘abnormal’ anger
To page 20
‘No consultation with industry who are severely impacted by the move.’
2 | FRIDAY December 2 2011
FREIGHT & TRADING WEEKLY DUTY CALLS
Editor Joy OrlekConsulting Editor Alan PeatAssistant Editor Liesl VenterAdvertising Carmel Levinrad (Manager)
Yolande Langenhoven Gwen Spangenberg Jodi Haigh
Divisional Head Anton MarshManaging Editor David Marsh
Note: This is a non-comprehensive statement of the law. No liability can be accepted for errors and omissions.
Agricultural LeviesIn the Government Gazette of 25 November 2011 the Department of Agriculture, Forestry and Fisheries announced the following statutory amendments to the Marketing of Agricultural Products Act: (i) Levies relating to broiler chickens and packed eggs; (ii) Registration of breeders of broiler chickens and suppliers of packaging material for the packing of eggs; (iii) Records and returns by breeders of broiler chickens and suppliers of packaging material for packing eggs; (iv) Levies relating to broiler chickens and packed eggs; (v) Records and returns by breeders of broiler chickens and suppliers of packaging material for packing eggs; and (vi) Registration of breeders of broiler chickens and suppliers of packaging material for the packing of eggs.
Rwanda Accedes to the Kyoto ConventionThe World Customs Organisation (WCO) announced on 21 November
2011 that the Embassy of the Republic of Rwanda to Belgium deposited Rwanda’s instrument of accession to the International Convention on the Simplification and Harmonisation of Customs Procedures (revised Kyoto Convention) with the WCO.
Having entered into force on 03 February 2006, the revised Kyoto Convention now has 78 contracting parties.
Uruguay 141st HS Contracting PartyThe WCO announced that on 17 October 2011 the Ambassador of Uruguay to Belgium deposited Uruguay’s instrument of accession to the International Convention on the Harmonised Commodity Description and Coding System (Harmonised System) at the Secretariat of the World Customs Organisation.
The Harmonised System Convention will enter into force in Uruguay on 01 January 2012.
Clarification of Rebate Item 470.00
Following the article in last week’s column on the changes to Rebate Item 470.00 ie, “Goods temporarily admitted for processing, repair, cleaning, reconditioning or for the manufacture of goods exclusively for export”, it is necessary to provide the following clarification. The insertion of Note 5, as well as Rebate Item 470.03/00.00/02.00 was inserted ie, “Goods free of duty for use in the manufacture, processing, finishing, equipping or packing of goods exclusively for export”, would be effective from the date on which Section 149 in the Taxation Laws Amendment Bill, 2011, is promulgated in the Government Gazette. The promulgation of the Section is being awaited.
If you are presently making use of any of the Rebate provisions under Rebate Item 470.00, or intend to do so in the future, it is imperative that you account for the proposed amendments that will impact you, specifically
if you are using the present Rebate Item 470.01 to import goods which are customs duty free.
Duty Calls’ Watch ListComment on the proposed increase in the rate of customs duty (duty) on stainless steel sinks from 20% ad valorem to 30% ad valorem is due by 16 December 2011.
Comment on the alleged dumping of fully threaded screws with hexagon heads, excluding those of stainless steel originating in or imported from the People’s Republic of China (China), is due by 27 December 2011.
The Harmonised Commodity Description and Coding System ie, HS2012 enters into force on 01 January 2012.
FRIDAY December 2 2011 | 3
FTW2282SD
By Liesl Venter
The abnormal loads industry is fed up with a draft government document regulating the industry that can be interpreted differently depending on whom one speaks to.
The TRH 11 that acts as a guideline to the abnormal industry has been in circulation for more than ten years but remains a draft due to various provincial disputes over some of the content.
According to the industry the document, while in essence is sound and reasonable, is being interpreted differently resulting in not just major misunderstandings but also heavy fines.
One crane owner who preferred to remain anonymous told FTW that in one instance he was fined after the crane had been weighed 12 times by officials at the weighbridge. This, he said, was due to the
officers not being able to reach consensus on what the weight and the subsequent fine was to be.
In another case a company was charged R4 500 for a permit, while the same permit a week later came in at a whopping R45 000.
“There is no consistency in the interpretation of the document,” said Gavin Kelly, spokesman for the Road Freight Association. “So what is legal in one province is no longer legal in another and that is dependent on the interpretation of the TRH11 by the individual stopping the truck.
He said this happened because the document remained a draft.
One of the issues in the TRH 11, which is resulting in huge fines being imposed, is the clause stating that no faxed or copied permits are allowed in trucks and that only
the original documentation is acceptable.
“We have engaged with officials and there is huge resistance against changing this regulation. We have also now taken it up with the Deputy Minister of Transport as it is impossible to always have the original permit in the truck.”
At a meeting in Johannesburg last week, the abnormal loads industry said the document was starting to have serious impact on business as regulations were changed according to interpretations of the document. “We build and buy equipment around their regulations according to this document, only to be fined astronomical amounts because someone at a weighbridge understands it differently. And to make matters worse there is no recourse. We just have to pay up. Enough really is enough.”
Abnormal hauliers demand clarity on draft regulationsDiffering interpretations result in differing costs and fines
Marking a significant milestone for the Walvis Bay Corridor Group, packaging major Nampak has just moved its first-ever shipment through the Port of Walvis Bay – in the process cutting more than 14 days from its supply chain compared to its previous port of entry on the east coast of southern Africa.
That’s according to Walvis Bay Corridor Group spokesman Agnetha Mouton who told FTW that the shipment, which was moved from Sweden to Lusaka in Zambia, comprised a total of 600 tons of paper reel. The first part of the shipment arrived in Zambia within three days, moving by road along the Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC).
With stock depletion threatening to halt production, it was a
question of ‘all hands on deck’ to avert any crisis.
“Thanks to cooperation between all parties concerned, we achieved what we set out to do,” said Michelle Kirov, the marketing director of Trade Ocean Shipping Namibia, which facilitated the shipment.
Walvis Bay cuts 14 days for shipper
Part of the shipment comprising 600 tons of paper reel moved from Sweden to Zambia using the Port of Walvis Bay.
4 | FRIDAY December 2 2011
By Liesl Venter
South Africa should wake up to the realisation that it will miss out on major opportunities in the breakbulk and project cargo sectors unless it addresses some serious challenges that impede trade in the region.
This was one of the key messages at the recent Breakbulk Africa Transport Congress in Bremen, Germany where industry leaders gathered to discuss how ports operate in Africa, what infrastructure developments are in progress, where the breakbulk transportation bottlenecks exist as well as China’s investment in Africa and the challenges of doing business on the continent.
Fanie Pretorius, chairman of the South African Shippers’ Council, attended the event and along with fellow South Africans was part of a panel discussion
on infrastructure in South Africa.
“The message was loud and clear,” said Pretorius. While South Africa may be the best option for the next five or ten years for moving cargo into Africa, it may well be overtaken and superseded after that.
“We would do well to heed this advice and to address the challenges that we face.”
He said three of the major concerns regarding South Africa discussed at the conference included the unreasonably high harbour costs, congestion at the port of Durban, and chaos at the various border posts which more often than not resulted in cargo delays.
“There was consensus that the South African ports were very good, but that other ports in the region were making great progress – and once China builds the planned railroad linking the East and West of Africa from
Walvis Bay to Maputo, there will be no need to rely on South Africa so heavily.”
According to Pretorius, while South Africa continues to strategise about what it wants to do with its ports, other countries in Africa are actively implementing their plans.
“Transnet’s strategy shows something being planned at each port but there is no consensus over what is priority and when it’s going to happen,” he told FTW.
He said the Shippers’ Council remained more than willing to engage in discussions with Transnet on what needed to be prioritised and how to ensure that port development happened alongside hinterland connections.
“One must not forget that China is definitely not asleep. They are extremely active across Africa and are developing ways of getting the minerals that they need
out of this continent. They are not waiting for South Africa to make up its mind about what it wants to do.”
He said experts at the Bremen conference agreed that China’s continuous investment in infrastructure in Africa would without doubt lead to South Africa being taken out of the picture from a cost and efficiency
perspective – unless the country started taking urgent action.
The way to maintain our status as the gateway to Africa is to think long term and define our role across borders to ensure that the link between South African ports and the rest of southern Africa remains superior, said Pretorius.
SA warned to shape up or lose out‘Other ports in the region are making good progress’
The Port of Durban ... maybe the best option now, but it could soon be superseded.
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Mark Goodger of GMLS explained: “Our organisation is passionately dedicated to creating a sustainable facility specialising in the provision of internationally benchmarked training programmes in the field of Global Logistics and Supply Chain Management. We noted with concern however that, although South Africa was one of the first countries in the world to have its courseware validated for the FIATA Diploma in 1996, only 65 FIATA Diplomas have been awarded to South African learners out of a total of 7,131 diplomas awarded worldwide to date ~ an alarming statistic. More disturbing is that no FIATA Diplomas have been awarded to South African learners since 1999. This leaves a startling gap in recognised achievement of the international FIATA standard. It is also disappointing that, although the FIATA Higher Diploma in Supply Chain Management was introduced in 2008, it is still not available to South African learners. GMLS has now come up with a solution.
“In 2008 SAAFF obtained FIATA revalidation for the FIATA Diploma in Vancouver. This was granted on the basis of material pertaining to two South African National Qualifications in Freight Forwarding and Customs Compliance. In addition, learners were required to acquire the competencies described in four additional FIATA modules contained in the FIATA Diploma minimum criteria. This means that learners who completed the two national qualifications still need to complete an additional four modules in order to qualify for the FIATA Diploma”, added Goodger.
“Until now, unfortunately, none of the four additional NON-TETA modules have been available to South African learners. GMLS now provides these modules.
“The courseware related to the FIATA Diploma is subject to revalidation by FIATA at the FIATA World Congress to be held in Los Angeles from 8 to 12 October 2012 at the latest. The reason why the FIATA Diploma is globally recognised as an international standard is due to the fact the
course material has to be submitted every four years for re-validation by industry Training Experts at the FIATA World Congress. A revalidation is part of FIATA’s strict process of quality control.
“GMLS will submit its course material for revalidation to FIATA through SAAFF in 2012 to ensure that our learners continue to receive the most updated course material.
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“GMLS aims to be the first South African Training Provider that will be accredited to train for this prestigious FIATA qualification.
“GMlS has contracted with accredited, international training consultants to provide our team of facilitators, assessors and moderators with the required “train-the-trainer” training and competency requirements to deliver both the FiAtA Higher diploma in Supply Chain Management and the additional four FiAtA diploma Modules. this training was held at our Gauteng offices from 4 to 11 November 2011.”
Explaining the further steps required to bring these qualifications to South African learners, Mark Goodger continued: “The national custodian of these qualifications in South Africa is SAAFF and we are cooperating with SAAFF in their initiative by providing them with our courseware and subject matter expertise required for revalidation of the FIATA Diploma, including the additional four modules as well as first time validation of the FIATA Higher Diploma in Supply Chain Management courseware. It is our intention to place SAAFF in a position to present our required courseware to FIATA for validation for both qualifications as early as March next year.
“These developments will place us in a unique position to provide those learners who have acquired the Advanced NQF 3 and 4 Certificates in Freight Forwarding and Customs Compliance with training on the additional modules necessary for them to acquire the FIATA Diploma ~ a true door-to-door educational capacity building solution.
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W49
10
FORWARDING
By Ed Richardson
Plans to use Mozambique’s northernmost port of Nacala as a major coal export hub are expected to open opportunities for other industries in the region.
This follows approval by the board of Brazil’s Vale mining company to double production of its Moatize coal mine to 22 million tons a year at a cost of US$6bn (R50bn).
Vale, which started exporting coal from Moatize in June this year, is currently using the port of Beira through a purpose-built coal terminal.
At the time sales and marketing manager Marcelo Mattos said Beira’s capacity was limited, and that the Nacala corridor would be used to handle 18 million metric tons a year.
At present, the Nacala corridor consists of the 615 km rail link via Entre Lagos to Malawi and the port
of Nacala. Moatize, which is in
Mozambique’s Tete province, will be linked to the port through a new rail line traversing Malawi.
This will give the northern region of Mozambique, Malawi, Zambia, Zimbabwe and the Democratic Republic of Congo rail access to a natural deep-water port.
Road links are also being upgraded, with the Africa Development Bank (AfDB) providing over US$70 million for the Nacala corridor road development project.
In March this year, Agostinho Langa, executive
director of Corredor De Desenvolvimento do Norte, the group that runs Nacala, announced that capacity at the port would be increased from 75 000 containers a year to 250 000.
Mozambique is fast-tracking foreign investment in its mining industry, and a draft of a revised mining law is expected to be presented to parliament for approval by the end of this year in a bid to streamline procedures and attract more investment, according to mining minister Esperanca Bias. She was speaking at a coal mining conference in Maputo.
Coal fires up Nacala port and rail links
By Ed Richardson
Freight volumes to and from East Asia are coming under pressure as economic growth in the region starts slowing.
According to the latest World Bank East Asia and Pacific Economic Update released on November 22, weakening external demand is impacting on growth in developing East Asian countries.
The biannual report projects that amid uncertainties in Europe and a global growth slowdown, real GDP in developing East Asia will increase by 8.2% in 2011 (4.7% if China is excluded), and by 7.8% in 2012.
“Lower growth in Europe in the course of fiscal austerity and the banks’ needs to increase capital coverage would affect East Asia,” said Bert Hofman, World Bank chief
economist for the East Asia and Pacific Region.
According to the report, the region’s growth slow-down was more pronounced in industrial production.
Exports from major regional industrial supply chains, especially electronics, have started to decline. Demand for commodities and raw materials remained strong, helping resource-rich economies maintain high levels of export and GDP growth.
China is also starting to become a customer for finished goods.
A shift to more consumer goods imports in China is benefiting the region’s manufacturing exporters.
Looking ahead, East Asia’s growth prospects are constrained by global uncertainties and by the impact of natural disasters, according to the report.
East Asian economies weakening
Nacala planned as major coal export hub.
FTW2372SD
FRIDAY December 2 2011 | 7
FTW2043SD
By Katerina Kerr
Costs, both direct and indirect, coupled with the poor service associated with using South African ports and terminals are having a negative and possibly irreparable effect on trade with the country.
Mark Jensen, managing director of SAFPRO (SA Fruit Promoters) said: “Direct costs such as terminal handling charges and cargo dues are high relative to our global competitors and have a significant impact on our ability to compete in the marketplace. The situation is aggravated yearly with TPT increases consistently above inflation.
“Globally the markets are in recession, and on top of this we need to try and deal with these above-inflationary
increases on already uncompetitive pricing.”
He noted however that the “level of service” in SA’s ports was by far the biggest challenge facing the industry.
“Whether it is the Transnet strike of last year, or the disastrous implementation of Navis this year, the commercial effect of this is having an irreparable impact on the South African industry,” he said.
“Industrial action and poorly managed system implementations are aggravated by the fact that the crane operators operate at a ‘crane hour’ rate of well below most of the rest of the world.”
Jensen said there were significant consequences to this with increased freight rates as shipping lines factor in the recovery of
costs incurred in standing idle outside ports and then burning additional fuel steaming at full speed to make up lost time.
Other consequences include the unreliable delivery to customers, missed contractual obligations (resulting in price adjustments/penalties), and quality deterioration of perishable products due to delays resulting in lower returns and higher repacking costs.
According to various sources, the strike in 2010 was reported to have cost the agricultural sector anything between R600 million and R1 billion.
Jensen told FTW that at a recent industry meeting it had been agreed that the consequences of the delays the industry had experienced in 2011 were greater and more
costly than the strike of 2010. And the concerns are
even greater going forward: “Durban is operating over
capacity, and has been for the past few years. This aside, in 2012 they will begin re-dredging the three piers (which is necessary) but which will remove approximately 400 000 TEUs of capacity per annum – meaning the problems will be even greater.”
Jensen said there was not enough being done to avoid an even more disastrous 2012. “Certainly efforts are being made in some areas but I fear it is like trying to douse a building on fire with buckets.”
Ngqura has the required capacity to help ease pressures on other ports and its new berths come into operation from early 2012.
“This is the perfect time for Ngqura to step up as a transhipment port to take on this capacity from Durban,” said Jensen.
However, this could be restricted, as there doesn’t seem to be a drive to equalise the Transnet rail service from PE-JHB to the same as DBN-JHB.
“I am extremely concerned about the year ahead,” said Jensen.
Port delays cost fruit exporters more than last year’s strikeGood time for Ngqura to step into the breach
‘Certainly efforts are being made in some
areas but I fear it is like trying to douse a building
on fire with buckets.’
8 | FRIDAY December 2 2011
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FTW2364SD
By Alan Peat
There is a limited number of direct export incentives available in South Africa, but carefully used they can provide an exporter with valuable assistance in developing his markets.
A first area of incentive is participation in the five selected industrial development zones (IDZs) in this country. However, they are primarily to encourage geographical relocation of export industries to help develop some of the less prosperous regions – such as the Coega IDZ at the new deep-water port of Ngqura in the highly under-employed and economically disadvantaged Eastern Cape.
And, as these development regions are removed from the main industrial hubs of the country, they are of limited benefit to the export industry in general.
The most beneficial
export incentive scheme, according to Nada Reyneke, head of international trade at the Johannesburg Chamber of Commerce and Industry (JCCI), is the Export Marketing and Investment Assistance (Emia) scheme – which is designed to develop export markets for SA products and services and to attract new foreign direct investment (FDI) into the country.
And the JCCI, she told FTW, particularly encourages the use of the sections of Emia that are aimed at providing marketing assistance to develop new export markets and grow existing ones. In the chamber’s case these are benefits for individual exhibition participation; group outward-selling missions; and individual inward-buying missions.
Under the ‘exhibition participation’ heading, the first area of assistance comes in the form of department of trade and
industry (dti) assisting SA exporters by organising national pavilions to showcase local products at international trade exhibitions. The EMIA scheme bears costs for space rental, the construction and maintenance of stands, electricity and water charges, as well as freight charges, up to a maximum of three cubic metres or two tonnes per exhibitor.
Then there is international trade exhibition assistance, where the dti provides financial assistance to export councils, industry associations, provincial trade and investment promotion agencies (PIPAs), joint-action groups (JAGs), export clubs and chambers of commerce, for international trade exhibitions where there is no national pavilion scheduled or approved.
Also on offer are group outward-selling missions, where the dti provides assistance to SA exporters
who seek to conclude export orders with foreign buyers. These missions are organised by export councils, chambers of commerce, PIPAs, export clubs or directly by the dti.
For individual inward missions, assistance is provided to SA entities organising an inward buying investor, to make contact with them to conclude an exporter’s order or to
attract FDI. Outside these sections
of Emia are two other incentives.
The first is assistance for companies to increase their competitiveness by supporting patent registrations, quality marks and product marks.
The second is assistance for primary market research and foreign direct investment.
Range of export incentives is worth exploring
National pavilions showcase local products at international trade exhibitions.
IMPORTS/EXPORTS
FRIDAY December 2 2011 | 9
FTW2335SD
By Ed Richardson
Efficient and cost-effective logistics systems are seen by the East London Industrial Development Zone as key to attracting and retaining investors.
“While logistics are wholly peripheral to our investors’ core business models, this is an area of critical importance in ensuring sustainability and growth. Transport, for example, forms the backbone of any organisation’s commercialisation strategies, with getting product to market the most obvious and most important priority,” says the annual report.
And the IDZ is not afraid to take tough decisions.
We have had to critically
engage with the logistics facility in our Automotive Supply Park (ASP) which, after careful scrutiny, was found to have significant scope for service delivery enhancements due to unanticipated critical mass impacts.
“We therefore had to re-imagine this facility for present-day conditions, which has resulted in asubstantial redesign of how it operates, and how it maximises its potential as a true value-add for our ASP tenants,” says the report.
Home to just one logistics company in 2006, the ELIDZ now has six.
“Some of the fastest growing sectors in the East London IDZ are logistics and ICT, which was boosted by three new investors last year: Bigfoot,
MSC and DHL, with the latter due to become operational soon,” says the report.
A truck staging area has also been established in the zone in order to minimise transport costs.
The ELIDZ says its “post-settlement commitment to investors is to assist in whatever way possible to drive down their costs of doing business, improve productivity and efficiency and, in doing so, protect our investors’ basic bottom lines”.
Further efficiencies will be introduced with the creation of a customs zone within the ELIDZ. There is an “emerging partnership with Sars’ customs and excise unit in designing customs control areas,” says chief executive
Simphiwe Kondlo.In order to stay “one
step ahead of the vibrant innovations demanded of our growth sectors and incubator industries, the IDZ is realigning itself as
one of the key drivers of an emerging Eastern Cape knowledge economy.
“The importance of this tactical realignment cannot be over-emphasised,” he said.
ELIDZ prioritises logisticsContinuing to support automotive industry
An aerial view of the East London IDZ automotive park, with integrated logistics systems.
IMPORTS/EXPORTS
10 | FRIDAY December 2 2011
FTW2301SD FTW2371SD
By Katerina Kerr
Companies exporting or importing goods through South Africa need to be vigilant about pricing in order to be competitive in today’s markets, according to Warren Jayes, the managing director of freight forwarding firm Leo Shipping.
“We operate through one of the most expensive ports in the world and landlocked countries in Africa are making more and more use of northern ports such as Walvis Bay and Beira,” Jayes told FTW.
“There is also a current increase in container stops by border police at Durban and City Deep, which is making costs for foreign importers making use of our ports for transit cargo extremely expensive.”
He warned that if the issue was not addressed, local
freight forwarders, ports and transporters would see a loss in business as these landlocked countries moved their trade to northern ports.
“The upgrade of the Zimra customs systems at Beitbridge was intended to improve the flow of traffic through the border, but they were unprepared in initiating the system with the result that it backfired causing an unprecedented bottleneck of traffic at the border. Hopefully this system will be fixed to embrace the intention it was set up to achieve,” said Jayes.
However, despite the problems faced at South Africa’s ports, Leo Shipping is confident that it will achieve volumes in excess of 50 000 million tonnes of cargo northbound and 38 000 southbound.
“We are confident that next year will bring similar
volumes to this year. Along with everybody else, we are hoping for increased volumes of cargo,” said Jayes.
Leo Shipping is a freight forwarding and transport/warehousing company and together with its Zimbabwe-based partners Alro Shipping, it has offices in Johannesburg,
Beitbridge, Harare and Mutare.
“We handle large volumes of cotton from Zimbabwe through South Africa for seafreight and roadfreight export as well as tobacco from Zimbabwe for export through South Africa,” said Jayes. “We also handle RIT cargo
entering Durban by sea for oncarriage to Zimbabwe and Zambia, either in containers or on an unpack and breakbulk basis.”
The company runs a consolidation service to Zimbabwe almost daily. It also moves general cargo full loads – around 100-180 per month.
Northern ports threaten SA’s dominanceZimbabwe specialist upbeat about volumes next year
The Port of Beira ... ‘Landlocked countries in Africa are making more and more use of northern ports such as Walvis Bay and Beira.’
Safmarine is predicting that South Africa’s overall containerised export market will grow in 2012, albeit at a somewhat muted 3-4%.
The carrier is however confident of strong performances from the commodity and reefer export sectors and in the trades to the Far and Middle East and North and West Africa. Janine Nainkin, Safmarine South Africa’s national dry exports and capacity manager, says strong demand for South African minerals in the East is likely to result in high export volumes for the minerals and mining sectors. She also expects higher-
than-average containerised export growth to the West and North African markets based on the current demand for South African manufactured goods in the food and beverage sectors. “Exports to West and North Africa are also likely to grow further as more and more South African companies enter and expand their business interests in these regions,” she says. “As Safmarine our focus is on supporting our exporters by making sure our customers have access to shipping services that not only connect South Africa with these markets, but offer
reduced transit times and increased reliability.” Nainkin believes several South African exporters are likely to enter the West and North African markets in the new year for the first time. “We’ve seen a lot of interest in our weekly 225 service – a direct containerised service between South Africa, West Africa and the Med – from customers who haven’t shipped to that region before. Interest in this service has been particularly strong from the reefer sector.” While Safmarine’s total reefer exports for 2011 (ytd ending October) grew by
2%, indications are that the market dropped by 7%. Volumes are expected to improve in 2012, according to Safmarine’s reefer executive, John Mac Donald. “The 2012 reefer export season, which has just begun, is looking very positive and we expect perishable exports to grow next year thanks to better-expected
weather patterns, improved crop yields and a weaker rand. As such, we expect containerised reefer space to be at a premium, especially during the peaks.” Mac Donald attributed the drop in 2011 reefer volumes to severe weather conditions, a strong rand, high bunker fuel prices and tough competition in overseas fruit markets.
John MacDonald … ‘Improved reefer volumes expected.’
Commodities demand will continue to lead export growthBetter year predicted for perishables
Janine Nainkin … ‘Containerised growth to the West and North African markets.’
Wishing you all a joyous & peaceful holiday period.
FTW2333SD
14 | FRIDAY December 2 2011
FTW0017SP
By Liesl Venter
The abnormal loads industry is in the process of mandating the Road Freight Association to lobby government and other organisations on its behalf.
The heavy haul industry took this decision at an urgent meeting in Johannesburg last week following ongoing problems with regulation and concerns about victimisation of individual operators who complain.
According to Gavin Kelly, spokesman for the RFA, the organisation has traditionally represented truckers, but due to successes achieved by the organisation on behalf of its members it is now seeing interest from others involved in the freight and large vehicle industry, including those that work in the crane and super-load industry.
“Following our meeting with the abnormal loads industry, a committee has been
formed that will mandate the RFA to represent them. This committee will also bring the RFA up to speed on the various issues that have to be dealt with.”
He said it was important for the industry to deal with issues as a group rather than individuals as that took the victimisation factor away. “We then represent the industry and the individual name of a person or company is no longer brought before government and its officials. This is the same process we have followed for our members on the toll issue, high cube containers and permits.”
Kelly said that the RFA would be getting legal advice on some of the more urgent matters such as the issue of the Western Cape changing regulations to now only allow 12 tons per axle on trucks carrying abnormal loads.
“We have instructed the abnormal loads industry to
inform us about all of the issues they want addressed, with the 12-tons-per-axle issue being critical.”
Abnormal load operators have also been asked to inform the RFA of any cases where there have been irregularities or where legal action is being taken.
RFA takes up the cause of abnormal hauliers
Gaving Kelly ... ‘Important for the industry to deal with issues as a group.’
By Alan Peat
A Greek-registered tanker has been arrested in Cape Town as claimants attempt to get a settlement of debts.
On November 15, the Royal Bank of Scotland (RBS) obtained an interim order for the judicial sale of MT Vasi following default by Ocean Tankers under loan and credit swap agreements. This, and the subsequent failure of Vasi Maritime Co (registered owners of MT Vasi) to honour a corporate guarantee issued by it in respect of Ocean Tankers’ obligations under those agreements.
The corporate guarantee was secured by a mortgage over MT Vasi, and the bank had previously arrested the vessel, as had bunker suppliers Bunkernet.
RBS is claiming US$328 million plus interest and costs, and Bunkernet
has claimed US$450 000. The ship has been roughly valued at US$14 m.
Although the bank’s claim is huge and will presumably wipe out any claims ranking after it, a legal adviser told FTW that the SA ranking provisions put a range of claims ahead of the mortgagee – from ship repairers and suppliers of goods and services to the vessel for her employment to claims by bunker suppliers and chandlers. It would not include forwarders or importers/exporters.
The provisional order was expected to be confirmed by the court on November 29, and the sale is expected to take place in January 2012.
According to Mark van Velden, director of Durban-based maritime solicitors, Van Velden Pike and Partners, creditors can then lodge claims with the fund created by the proceeds of the sale.
Claimants line up following arrest of tanker
FRIDAY December 2 2011 | 15
FTW2237SD
Roadfreight experts to
AngolA MAlAwi MozAMbiqueFull and part loads For competitive rates contact:
Credit cover is now more crucial than ever for South African exporters moving goods in the current volatile financial times.
This was the message from Credit Guarantee Insurance’s Luke Doig, who says the risk of non- payment from markets facing slower and negative growth is escalating in proportion with the increase in the global corporate insolvencies rate.
According to the insurance group, global corporate insolvencies rose a cumulative 64% over 2008 and 2009. “Geographically, the Americas increased 172% over the same period and the Eurozone jumped 90% over 2008 and 2009,” said CGIC’s economist and senior manager:
investment and economic services. “Following the 5% improvement seen in 2010, the question is whether expectations of further reductions of 7% in 2011 and 5% in 2012 are over-optimistic.”
He said should global corporate insolvencies continue to rise at this rate, exporters would face some tough challenges.
“The risk of not being paid for your goods is increasing dramatically in these economic times,” said Roger Munitich, general manager: marketing and research and development with Credit Guarantee.
With less than 5% of South African exporters covering their debtors with an insurance policy, now more than ever this is a risky and even
irresponsible practice, say the experts.
Credit Guarantee issues cover against payment default by a debtor.
According to Moody’s KMV Credit Monitor, expected default frequencies (EDF) soared in early 2009, and while the number of large-scale defaults has decreased, in many instances, the EDFs remain above pre-crisis levels.
Despite the overall improvement, however, the pool of large firms in the listed corporate universe is associated with significantly higher default risk compared to five years ago
According to Theo Reddi, general manager of Credit Guarantee, the company paid out claims in excess of R500 million in 2009, with the first ever claim paid in Japan.
“That is a real wake-up call as Japan has a culture of payment and very high integrity in meeting its obligations.”
He said according to an international global payment practices survey it was found that credit sales accounted for 57% of B2B transactions with the longest payment delays from Greece, Spain and Italy.
“At least 30% of total invoices are past their due date while another 25% are past the due between 31-90 days date.”
He said the slowest payments were being made by the manufacturing sector with insufficient liquidity being the main cause of payment delays in most cases.
Doig said South African exporters needed to be aware of the risk when moving goods not just to Europe
but anywhere in the world. “Even China is slowing down extensively, going from a 10% growth in 2009 to an expected 8% in 2012.”
Credit cover now an economic imperativeClaims of R500m paid out in 2009
Theo Reddi ... ‘Claim paid out in Japan is a real wake-up call.’
1994 Ignazio Messina & C. Pty Ltd SHIPPING AGENCY IN SOUTH AFRICA
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If you’re looking to gain network access without the need to worry about the large costs of buying and managing hardware, software, updates or upgrades, the cCloud platform is your answer.
Put on the SA market by freight systems specialists, Compu-Clearing, it offers a full solution of integrated systems over the Internet, direct to companies in southern Africa.
“This allows users to focus on their core business and access the system on any device at any time or location,” said Moshe Zulberg, marketing and training manager.
“In a process of continuous ongoing improvement to constantly add more value to the cCloud platform, we employ the most modern technologies available
combined with ongoing development, testing and deployment.”
cCloud provides a range of benefits, says Zulberg.
“Data is always safe, the cCloud will work on all devices from PC to MAC, Android to iPad and any modern web browser, ensuring direct access from the preferred device.
“It’s also scalable, with no limit to the number of users, allowing cCloud to be used by small businesses and large corporations alike, with the instant ability to scale up or down on the number of users.”
Charging is transaction-based so the user only pays for what is used, he added.
“In addition, web service integration allows for data to be transferred between systems, improving accuracy
and efficiency.“With cCloud, you move
beyond the limits of PC applications to an always- connected, always-accessible platform,” Zulberg added.
cCloud adds new dimension to system integration
Moshe Zulberg ... ‘Charging is transaction-based.’
If you suffer from the frustrations of having trucks queuing at the port container terminals to collect or deliver containers, why not add a rail option to your service offering, says Value Group CEO, Steven Gottschalk.
Value’s intermodal division provides the freight industry and importers and exporters in SA with an alternative to road transport by utilising and managing the Transnet Freight Rail (TFR) service, he told FTW. The service provided includes the processing of all documentation as well as the railage of full and empty containers from Transnet port terminals to TFR terminals, and the
local cartage services in all the major cities.
“Rail helps to make our national roads safer, by reducing the number of heavy vehicles travelling on them,” Gottschalk added. “The N3 highway between Durban and Johannesburg, for example, is one of the most dangerous, with serious accidents involving trucks happening nearly every day. Also carbon emissions from the trucks are seriously affecting our atmosphere. So, the more containers that are railed, the less pollution is released into the air.”
Value’s branch network is located throughout the country, and in Windhoek, Namibia and Gaborone, Botswana.
Adding Value by rail
Transnet Port Terminals (TPT) has confirmed that the Durban container terminals (DCT) at
Pier 1 and Pier 2 will not be operating on Christmas and New Year’s Day.
DCT’s closing plans
FRIDAY December 2 2011 | 17
FTW1782SD
Project Cargo SpecialistOur services encompass the following:■ Planning of project shipments, preparation of route
clearances, port facilities and site access■ Monitoring of shipments, vehicle planning to meet vessel
dates and arranging suitable vehicles for transport■ Supervision of loading ex vessel onto vehicles
where necessary■ Transport of abnormal and superloads■ Transport of general cargo including stuffing/destuffing
of containers■ Monitoring of vehicles en-route■ Liaison with site personnel receiving cargo
ContaCt DetailsDurban Johannesburg Tel 031 765 1901 Fax 031 765 3376 Tel 011 450 4495 Fax 011 450 3064Carl Webb: 082 886 6003 or Sonja Van Schalkwyk: 071 681 6560 John Du Bourg: 082 880 1177
www.projectlogistics.co.za FTW4713
By Ed Richardson
Shipping companies and others involved in seafreight are facing ‘multiple risks’ after a recovery in 2010, according to the 2011 Review of Maritime Transport published by the United Nations Conference on Trade and Development (Unctad).
“The outlook remains fragile, as seaborne trade is subject to the same uncertainties and shocks that face the world economy,”
says the report.These include economic
uncertainty, natural disasters, political unrest and volatile energy and commodity prices.
This uncertainty comes at a time of record deliveries of new tonnage, bringing the world merchant fleet to almost 1.4 billion deadweight tons in January 2011.
There is now an excess of supply, and there is sufficient capacity to meet global demand in the short term,
says the report.Shipowners have, however,
been able to maintain rates in the container sector despite adequate supply.
“Container freight rates in 2010 witnessed a major transformation brought about by a boost in exports and measures introduced by shipowners to limit vessel oversupply. The result can be seen in the New ConTex Index, which tripled in value from early 2010 to mid-2011,” says the report.
World container port throughput increased by an estimated 13.3% a year, to
531.4 million TEUs in 2010, after “stumbling briefly” in 2009.
Rates hold despite fragile outlook for seafreight
By Joy Orlek
Progress is being made towards the construction of the Kazungula Bridge that will link the mineral-rich regions of Zambia and the DRC through Botswana and
the port of Durban – although there’s some time to go before it becomes a reality.
Following negotiations with the government of Zambia, the African Development Bank is expected to approve the project this month. The
loan will be signed in January next year and construction is likely to begin in 2013 after a design review has been undertaken.
A ferry is the current means of crossing at the Kazungula Border Post,
moving around 30 trucks per day. This is slow and accident-prone contributing to delays and high transport costs.
While progress has been slow, the governments of Botswana and Zambia are redoubling their bilateral
commitment to see the project through within the shortest time, according to the SADC secretariat.
A detailed study has proposed a 923m extra-dosed cable-stayed bridge with 1.9m sidewalk on both sides.
Another positive step towards construction of Kazungula bridge
Container freight rates in 2010 witnessed a major transformation brought about by a boost in exports and measures introduced by shipowners to limit vessel oversupply
18 | FRIDAY December 2 2011
FTW2374SD
Full truck loads throughout South Africa
Same-day deliveriesSpecial ProjectsClosed distribution from customer siteSophisticated vehicle tracking systemOwn dedicated fleetBBBEE
Transnet Port Terminals is finding ways of maintaining productivity during Port Elizabeth’s windy season – and is setting records in the process.
According to Siya Mhlaluka, terminal executive manager: Eastern Cape region, the Ngqura container terminal hit a record of 42.7 gross-crane moves per hour (GCH), while Port Elizabeth hit 35 GCH – both earlier in November.
Ngqura averaged 29.3 GCH during October, up from 27 in September, and 28 in October.
Port Elizabeth improved productivity from 25 GCH in August to 27.6 GCH in September, and 29 GCH in October.
“Given that the ‘accepted’ world-class standard is in
the range of 26 to 30 GCH, Ngqura and Port Elizabeth have demonstrated that we are up there with the world’s best,” says Mhlaluka.
Mhlaluka says the increase in productivity is due to a combination of improvement in the planning of yard and waterside activities as
well as “engagement with key stakeholders including employees, clients and stevedoring companies to ensure alignment in planning”.
Weather-related delays have decreased “due to smarter planning on how to deal with weather-related challenges”.
An aerial view of the Ngqura container terminal, with the two new berths dredged out and land-side paving nearing completion.
PE, Ngqura set new container records
By Ed Richardson
Container traffic figures show that developing countries are making “remarkable progress” in moving away from raw materials to finished goods, according to the 2011 Review of Maritime Transport published by the United Nations Conference on Trade and Development (Unctad).
Between 1970 and 2010 developing countries’ share of the volume of seaborne imports rose from just 18% to 56% of the world’s total.
“Developing countries’ shipping no longer consists solely of raw materials exports to the developed world. Indeed the last decades have seen their increased
participation in global supply chains, which led to a surge in imports of primary and intermediary products,” says the report.
Asian developing countries are the best connected, according to Unctad’s Liner Shipping Connectivity Index (LSCI). The world’s busiest ports are Shanghai, Hong Kong and Singapore.
Developing countries have also become the main suppliers to the industry.
“In shipbuilding (China and the Republic of Korea), scrapping (Bangladesh), and the provision of seafarers (Philippines), developing countries now account for more than three quarters of the world’s supply.
ABI - Abidjan BAH - BahrainBAL - BaltimoreBRU - Brunswick, GA CHA - ChannaiCHN - Charleston, SC CHB - Chiba Xng-ChinaCIA - China COL - Colombo, Sri LankaCOT - Cotonou, BeninDAK - Dakar, Senegal DAM - Dammam DBN - Durban DES - Dar es Salaam DOH - Doha, Qatar DOU - Douala, CamaroonFRE - Fremantle, Australia GUN - Gunsan, Korea HUA - Huangpu, ChinaJAC - Jacksonville, FL
JEB - Jebel Ali KOB - Kobe, Japan KWA - Kwanngyang, Korea LAG - Lagos LIB - Libreville LOB - Lobito, Angola LOM - Lome, Togo LUA - Luanda LYG - Lianyungang MAP - Maputo MAS - Masan MDV - Montevideo MOJ - Moji, Japan MOM - Mombasa MON - Monrovia, Liberia NAG - Nagoya NGY - NagoyaNWK - Newark, NJ OMN - OmanPHI - Philadelphia
PE - Port Elizabeth, SA PKG - Port Kelang POI - Pointe Noire, CongoPVE - ProvidencePYU - Pyaungtaek, KoreaREU - ReuniunRIC - Richards Bay SAN - SantosSAV - Savannah, GA SHA - Shanghai China SHJ - Sharjah SIN - Singapore TAM - Tamatave TEA - Tema TOY - Toyohashi ULS - Ulsan, Korea VTO - Vitoria YOK - Yokohama ZAR - Zarate ArgentinaXIN - Xingang, China
GENERAL AGENTS JOHANNESBURG DURBAN CAPE TOWN PORT ELIZABETH RICHARDS BAY SALDANHA BAY www.diamondship.co.za (011) 263-8500 (031) 570-7800 (021) 419-2734 (041) 373-1187/373-1399 (035) 789-0437 (022) 714-3449
EUKOR - USA / AFRICA / FAR EASTVESSEL VOY JAC BAL NWK PVE SAV LOM COT LAG DBN SIN PYULORD VISHNU 025 SLD SLD SLD SLD SLD - SLD SLD 30/11 14/12 19/12STX CHANGXING ROSE 015 SLD SLD SLD SLD SLD 03/12 05/12 - 17/12 01/01 09/01
VESSEL VOY YOK NAG KOB XIN SIN COL PE DBN DAR MOM SINTANCRED 057 SLD SLD SLD SLD SLD - - 25/11 30/11 02/12 BUNKER
World’s biggest heavy lift vesselThe Dutch company, Dockwise, is soon to launch a new heavy lift vessel, the Dockwise Vanguard.
She will be able to lift and transport units of up to 110 000 tonnes, whereas the maximum capacity of an existing vessel is 75 000 t.
New freighter service on Ghana routeEmirates SkyCargo has launched a new service every Friday between Dubai and Ghana, deploying a Boeing 747-400F – with a capacity of 117 tonnes.
Inflation at 6% upper limit Consumer price index (CPI) growth was registered at 6.0% in October, after the measure had surged to 5.7% in
September.
$2.2m illegal rhino horn haulA record haul of illegal rhino horns valued at around $2.2 million dollars failed to escape detection by airport scanners at Hong Kong International Airport recently.
Forwarder donates to charityInstead of going the traditional route of Christmas gifts for clients, World Cargo Services has donated R6 000 to AMCARE (Alberton Methodist Care & Relief Enterprise) which looks after more than 400 orphans ranging in age from one year old to 15, who have lost their parents due to AIDS and who are in foster care in areas where extreme poverty prevails.
Last Week’s top storIes oN
By James Hall
In anticipation of a railway for the small landlocked country, Lesotho will send a delegation to all future meetings of the Southern African Railway Association (Sara) whose members include all SADC nations with rail systems.
“Lesotho was our main topic at our last meeting, and we agreed to support their efforts to build a rail system. Because Lesotho does not have a railway company, they will send representatives from government to Sara meetings,” Sara executive Gideon Mahlalela told FTW.
Currently, the rail line from SA ends at a 2 km cul de sac near the Lesotho border, where trains turn around after unloading, but studies have been conducted for the creation of a nationwide system.
“They went to South Africa and were directed to see us in Swaziland because we have experience with a smaller railway. We will give them
technical assistance,” said Mahlalela, who is CEO of Swaziland Railway.
A Lesotho rail system would allow rail freight in transit from Bloemfontein a shorter route to Durban. A line would also enable Lesotho to exploit more of its mineral resources, especially granite, which can be moved more cost-efficiently by rail than road.
“The export traffic out of Lesotho is there because they have a lot of granite rock. The quarries can provide granite for buildings and tombstones in Europe,” said Mahlalela.
Lesotho’s rail efforts on track
20 | FRIDAY December 2 2011
CAPE TOWN
Working for WinnersFTW5333
The under roof facility is 6925 square metres The current facility with racks has 1596 pallet positions The facility offers 24 hour security, CCTV cameras and an in-rack sprinkler system
Jail sentences threaten us all (FTW reporters and ‘whistleblowers’ in the freight industry alike) if we attack any of the parastatals – no matter how justified we feel it to be.
Depending on how it is interpreted, the Protection of Information Bill (POI) – commonly known as the “Secrecy Bill” – may render us all criminals with sentences of up to 25 years’ imprisonment for criticism of the ports or railways if we use inside information that they classify as ‘secret’.
This because the Bill allows for ‘national interest’ to be invoked, but provides sufficient latitude of interpretation of what constitutes the ‘national interest’, to allow unscrupulous use of this measure, according to a Wits Uni study. “It remains silent on the ‘public interest’,” it added.
“As the Bill stands, only information evidencing a substantial contravention of the law or an imminent and serious public safety risk can be considered for declassification in the public interest.”
And the promulgation of the act is just around the corner.
The National Assembly passed the POI Bill last week.
In the second stage, it will pass through the National Council of Provinces within months. This is often considered to be merely a rubber-stamping of
Parliament’s decision, although Business Unity SA hoped that it might give room for possible amendments to the Bill.
The POI gives broad powers to the government to classify almost any information involving an ‘organ of state’ as being in the interests of national security. It prescribes
penalties of up to 25 years in jail for those disclosing protected information, refusing to reveal their sources, or even attempting to uncover protected information.
A lot depends on what is classified as an ‘organ of state’.
With this in mind, FTW approached Quintus van der Merwe, partner at law firm Shepstone & Wylie’s maritime and trade division, for legal advice on this issue.
He confirmed that it
would depend largely
on how the POI law was interpreted.
And that definition can be found in one or more of three separate acts. In Section 239 of the Constitution Act; in the Public Finance Management Act (1) of 1999; and in Section 3 of the Municipal Finance Management Act of 2003.
These, Van der Merwe said, would cover: “Any
department of state, national or provincial administration, or any municipal sphere of government.”
And relevant wording from the Constitution, he added, was: “Any other functionary or institution exercising a public power or exercising a public function in terms of in terms of any legislation, save for a court or judicial officer.”
He described the collective effect of all the definitions in the three Acts as “very wide”, and said that they could be presumed to include a wide range of institutions.
By way of example, Van der Merwe said that “Transnet clearly fell under the definition of an organ of state”.
He added that certain areas in the Durban port were ‘national key points’, which also fall under the definition of organs of state – and would be sensitive to public perusal of what they classified as “secret” information.
$763Last week
$754This week
Poll positionwww.ftwonline.co.za
- as voted by readers of FTW Online
If you are not currently a regular user of Transnet Freight Rail’s services, are you now intending to give TFR’s new scheduled rail service a try?
secrecy bill ‘protects’ TransnetCertain areas in Durban port are ‘organs of state’ is unacceptable. They had
no mandate to do it and we have had enough,” said Poole.
Other operators echoed his sentiment saying they now had expensive equipment standing, as it was illegal to operate in the Western Cape.
According to Kelly, most of the trailers and trucks in the abnormal loads industry are built to carry anything from 20 to 32 tons per axle.
Poole said when he was told that his rig would not be issued an abnormal vehicle registration, officials told him the axle load was changed as abnormal loads caused huge damage to the roads.
The RFA has since commissioned the CSIR to conduct a study on the impact of abnormal loads on roads in an effort to bring some scientific data to the debate.
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Name of Ship/Voy/Line WBAY CT PE EL DBN RBAY Loading for
To: The Far East and South East Asia Updated daily on http://www.ftwonline.co.za
OUTBOUND BY DATE - Dates for sailing: 05/12/2011 - 19/12/2011
Name of ship / voy Line WBAY CT PE EL DBN RBAY Name of ship / voy Line WBAY CT PE EL DBN RBAY
ASI Asiatic (Hull Blyth)ASL Angola South Line (Meihuizen International/Seascape cc)BEL Beluga Shipping (Mainport Africa Shipping)CHL Consortium Hispania Lines (Seaclad Maritime)CMA CMA-CGM (Shipping Agencies)CNT Conti Lines (Portco SA) CSA Canada States Africa Line (Mitt Cotts)CSC China Shipping Container Lines (Seaclad Maritime)CSV CSAV (CSAV Group Agencies SA)COS Cosren (Cosren)DAL Deutsche Afrika Linien(DAL Agency)DEL Delmas CMA-CGM (Shipping Agencies)DSA Delmas ASAF (Century)ESA Evergreen Agency (SA) (Pty) LtdESL Ethiopian Shipping Lines (Diamond Shipping)EUK Eukor (Diamond Shipping) FAI Fairseas (Fairseas)GAL Gulf Africa Lines (King and Sons)GCL Global Container Lines (Freightmarine)GRB GearbulkGSL Gold Star Line (Zim Southern Africa)HJL Hanjin Lines (Sharaf)HLC Hapag – LloydHSD Hamburg Sud South AfricaHSL H Stinnes Linien (Diamond Shipping)HOEGH Hoegh Autoliners (Voigt Shipping)INM Intermarine (Mainport Africa Shipping)IRISL Islamic Repubic of Iran Shipping Lines (King & Sons)IVS Island View ShippingKLI K.Line Shipping SALAU NYK Cool Southern AfricaLMC Ignazio Messina (Ignazio Messina)
LNL Laurel Navigation Line (Zim Southern Africa)MAC Macs (King & Sons)MAL Mainport Africa Container Line (Mainport Africa Shipping)MAR Marimed (Marimed Ship.)MAS Mascot Line (Marimed)MBA Maruba (Alpha Shipping)MAS Mascot Line (Marimed Shipping)MAU Mauritius Shipping Corporation (Alpha Shipping)MSC Mediterranean Shipping Co. (MSC)MSK Maersk LineMOL Mitsui Osk Lines (Mitsui Osk Lines)MOZ Mozline (King & Sons)MUR MUR ShippingNDS Nile Dutch Africa Line B.V. (Nile Dutch South Africa)NVQ Navique (Tall Ships)NYK Nippon Yusen Kaisha Line (Mitchell Cotts Maritime)OAC Ocean Africa Container Line (Ocean Africa)PIL Pacific International Line - (Foreshore Shipping)PRU Prudential Line (Alpha Shipping)SAF Safmarine (Safmarine)SCA Scan GI (Alpha Shipping)SCH Southern CharteringSCI Shipping Corp of India (Combine Ocean)SHL St Helena Line (RNC Shipping)SSI Seacape Shipping Inc (Century Ships Agency)STS Stella Shipping (Stella)TSA Transatlantic (Mitchell Cotts)UAFL United Africa Feeder Line (Seaclad Maritime)UAL Universal Africa Lines (Seaclad Maritime)UASC United Arab Shipping Company (Seaclad Maritime)UNG Unigear (Gearbulk)WHL Wan Hai Lines (Seaglow)WWL Wallenius (Wilhelmsen Ships Service)ZIM Zimstar (Zim Southern Africa)