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Port insiders blamed for spike in targeted hijacks

The defiance of these marchers last Saturday was replaced by euphoria when former president Robert Mugabe relinquished power. The question on everyone’s lips is “what next?”.

FTW’s Africa correspondent Ed Richardson offers his insights on page 8.

What next for Zimbabwe?

Liesl Venter

Leaked information from port insiders has been blamed for a spike in the hijacking of cargo leaving Durban harbour.

Police maintain that hijacking syndicates operating on the N3 corridor are being fed information from within the Port of Durban.

eThekwini metro police spokesperson, senior superintendent Sewpershad Parbhoo, told FTW that as a national key point the port would always be a target for criminals.

“The route from the port, however, is where the crimes are being committed and it is clear that they know exactly which containers to target,” he said.

Police intelligence officials have for some time said that port insiders are leaking information about the movement of valuable cargo and that containers are being targeted coming out of the harbour.

“The port must tighten its security measures,” said Parbhoo. “This includes service

providers working in and around the port being vetted more carefully.”

Several incidents in the past month involving syndicates have again pointed a finger at port inside information being leaked.

In a sting operation police recovered goods worth millions of rands from suspected hijackers while goods with an estimated value of R2.5 million were recovered at a house in Malvern after the hijacking of two trucks.

“These incidents are only the tip of the iceberg,” said Parbhoo. “The trend is that the port is a target 24 hours a day, seven days a week, 365 days a year.”

An industry source told FTW that information gathered by police in the various sting operations clearly confirmed suspicions that the syndicates had inside information from the port. Not only did the syndicate in one of the cases have detailed information about the goods, but also the destination and route.

Parbhoo confirmed that there had been a number of truck hijackings in the past

few months and reiterated that police were continuing to work closely with various stakeholders – including port authorities – to clamp down on crime in and around the port.

He called on the logistics industry to work with police and to share information. “If something about a transaction does not feel right or it seems untoward, let the police know. It may very well not be criminal but rather don’t take a chance.”

Industry stalwart Kevin Martin agreed saying truck operators often did not know what loads they were carrying

but should report any suspicious behaviour to the police.

“If something smells like a rat then it probably is,” he said.

Commenting on the leaking of insider information, he said there were a variety of sources – from the cargo owner himself to the shipping line to the various authorities and agencies working within the port.

Another source told FTW that a concern in Durban at present was the increased number of customs stops. “This is becoming a concern because the longer a container stands, the higher the risk

of information about that container being leaked to these syndicates.”

However, according to customs spokesman Sandile Memele, the hypothesis that increased customs control leads to crime is misleading and untested.

“Leakages on cargo contents and routes trucks follow are within the domain of the trader and the logistics operator. Apart from customs, only the cargo agent and depot official are allowed to be present during the customs examination,” he said.

Phot

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2 | FRIDAY December 1 2017

FREIGHT & TRADING WEEKLY

Publisher Anton Marsh

EditorialEditor Joy OrlekAssistant Editor Liesl VenterDeputy Editor Adele MackenzieJournalist Nicole JacobsPhotographer Shannon Van Zyl

CorrespondentsAfrica/ Port Elizabeth Ed Richardson Tel: (041) 582 3750Swaziland James Hall

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Smart Card Rebate – Comment dueOn 24 November the International Trade Administration Commission of South Africa (Itac) published for comment the creation of a rebate item on digital ‘smart cards’ (excluding proximity cards or tags), classifiable in tariff subheading 8523.52.10, in such quantities, at such times and subject to such conditions as Itac may allow by specific permit, provided the ‘smart cards’ are not available in the Southern African Customs Union (Sacu).

Comment is due by 08 December.

Frozen Chicken Sunset ReviewItac on 24 November announced the final determination of the sunset review of the anti-dumping duties on frozen bone-in portions of fowls of the species Gallus Domesticus (chicken) originating in or imported from the United States of America (USA).

On 24 June Itac notified

the Sacu industry that unless a substantiated request was made by the Sacu industry indicating that the expiry of the anti-dumping duties would likely lead to the continuation or recurrence of dumping and material injury, the anti-dumping duties would expire on 4 April.

On 25 October 2016 Itac received a sunset review application lodged by the Southern African Poultry Association (Sapa), RCL Foods Pty Ltd and AFGRI Poultry (Pty) Ltd which constituted about 71.42% of Sacu industry production of frozen chicken from 01 July 2015 to 30 June 2016.

On 24 March 2017 the investigation was initiated. A response to the importer’s questionnaire was received from Merlog Foods (Pty) Ltd and was found to be deficient. Comments were received from the Association of Meat Importers and Exporters (AMIE). No exporter’s questionnaire responses were received from producers and exporters.

On 16 August 2017,

essential facts letters were sent to the interested parties to allow comments on Itac’s considerations prior to the final determination.

On 30 August 2017, comments were received from Sapa, RCL Foods Ltd, USA Poultry and Egg Export Council (USAPEEC), AMIE and Merlog Foods (Pty) Ltd.

After considering all interested parties’ comments, the dumping margin was determined based on facts available.

After considering all interested parties’ comments, Itac made a final determination that the expiry of the anti-dumping duties on frozen bone-in portions of fowls of the species Gallus Domesticus originating in or imported from the USA would likely lead to the recurrence of dumping and continuation or recurrence of material injury to the Sacu industry.

Itac therefore made a final determination to recommend that the anti-dumping duties on the frozen chicken be maintained at 940c/

kg for tariff subheadings 0207.14.91, 0207.14.93, 0207.14.95, 0207.14.96, 0207.14.97, 0207.14.98 and 0207.14.99.

Polyethylene Tariff SubheadingsOn 20 November the South African Revenue Service (Sars) announced the substitution of tariff subheadings 3901.10 (Polyethylene having a specific gravity of less than 0,94); 3901.20 (Polyethylene having a specific gravity of 0,94 or more); 3903.19 (Other); 3903.30 (Acrylonitrile-butadiene-styrene (ABS) copolymers); 3904.21 (Non-plasticised); and 3904.22 (Plasticised) which were omitted from the tariff amendments of 17 November.

These statements have been edited because of space constraints. For the full versions go to ftwonline.co.za. Note: This is a non-comprehensive statement of the law. No liability can be accepted for errors and omissions.

Online

FRIDAY December 1 2017 | 3

Adele Mackenzie

Barloworld Logistics is in the process of implementing an aggressive turnaround strategy which it hopes will prevent the Barloworld Group from divesting itself of this division next year, said CEO of Barloworld Logistics, Kamogelo Mmutlana.

This follows statements made last week by Barloworld Group chief executive, Dominic Sewela, that it was exiting the Middle East Logistics operations and was considering an exit strategy – as one of a number of options – for the southern Africa logistics business as well. Presenting the group’s preliminary audited year-end results for the 12 months to 30 September 2017, Sewela said, “All options remain under consideration as we continue to closely monitor the performance of the business.”

Sewela said a final decision on the future of Barloworld Logistics would be taken in September next year.

Mmutlana admitted to FTW that the logistics

division had delivered a “less than optimal performance”, attributing it to, amongst others, “tough economic trading conditions locally”.

“However, there is the intention and will from the wider Barloworld Group to continue to remain invested within the business – assuming certain milestones will be achieved.” He said initial implementation of the turnaround strategy

in October was already beginning to deliver results.

Mmutlana added that the decision to acquire the 21.2% minority interest in Barloworld Transport in July this year had laid the foundation for further rationalisation of the overhead structure of the logistics sector.

“It is my firm belief that we are well on our way to not only escalating our key points of value within the market, but delivering a vastly improved

performance through to the 2018 financial year,” Mmutlana said.

He provided assurances that the changes to Barloworld

Logistics' internal operational model

would have “little

to no effect” on its existing partnerships with, amongst others, Transnet Freight Rail. “The positive impact from the changes will include easier access to all parts of the logistics suite of services through a single point of contact,” said Mmutlana.

Transport economist Andrew Marsay told FTW that in his opinion the logistics industry was extremely competitive and required constant innovation in terms of product type and service delivery.  

Mmutlana said that with the economic outlook for South Africa remaining subdued, most organisations would be wise to reassess their operational models to ensure long-term sustainability. “Low consumer confidence has seen shrinking spend and, not unexpectedly, this leads to changes in demand within the logistics industry.”

In addition, traditional supply chain business models were being disrupted by technology shifts, both within demand patterns (e-commerce for example) and operational best practices (automation within warehouses).

“I believe that logistics is, and will remain, a formidable player within the local supply chain landscape. It is during tough times that organisations prove their mettle,” Mmutlana commented.

Barloworld pulls out all the stops to avoid logistics divestment

A recent directive ordering several Chinese ports to cut container handling fees over anti-trust violations had many local industry players wondering whether the same principle could be applied in South Africa.

China’s National Development and Reform Commission (NDRC) ordered Shanghai, Tianjin Port, Ningbo Zhoushan and Qingdao to cut container handling fees from 2018 by 10 to 20%.

Some 39 ports were told to rectify irregularities, which included charging excessive cargo handling fees for export cargo.

But South Africa will never take its ports to task, according to various industry role-players.

Industry stalwart Mike Walwyn said he did not believe that this would ever happen in South Africa. “The port authority is regulated and the tariff is eventually determined by the National Ports Regulator. We should bear in mind that the Regulator has already intervened by cutting export cargo dues tariffs substantially a few years ago.”

Port tariffs have been a point of contention in South Africa for several years with the ports at one stage being considered the most expensive in the world.– Liesl Venter

Chinese ports ordered to cut fees

I believe that logistics is, and will remain, a formidable player within the local supply chain landscape.– Kamogelo Mmutlana

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Adele Mackenzie

Despite its “pretty promises” of radical economic transformation, government has failed emerging entrepreneurs who have to compete against well-established global companies in the freight industry.

That’s according to managing director of Khuluma Freight Services, Saul Maphanga, who told FTW that government needed sound policies, along with a definite timeline linked to those policies, to ensure transformation.

This includes a need for policies around deferment of payment in terms of Customs and VAT as smaller companies are not in a position to lay out the big payments on bigger consignments upfront.

“Furthermore, what is the department of transport doing to support emerging entrepreneurs and opening up doors?” queried Maphanga.

He conceded that the procurement policies for state-owned entities (SOE) were a step in the right direction. “It shows that there is a conscious effort by government that radical economic transformation needs to be regulated. It also shows that change is coming, but it is not coming as quickly as it should,” Maphanga said.

He suggested, however,

that policies should focus on getting major private sector players to also play a role in transformation. “They have knowledge, skills and experience to share and they should be set targets to encourage supplier development in the freight industry,” Maphanga said. There should be consequences for those private sector companies that did not comply – such as

losing their lucrative government contracts, he added.

Khuluma Freight Services’ own growth is partly credited to an SOE (Eskom) that gave the 100% black-owned company – with a 60% black female

ownership – a chance when it was “fighting for survival among the big multinational sharks”.

Bobby Griffies, operations manager for Khuluma Freight Services, pointed out that the company had started in 2000 using two utility vehicles (bakkies) and two drivers to deliver small express parcels in Johannesburg. “Around that time Eskom – along with its working partners like Alstom, Siemens, Toshiba and G Electric – adapted its procurement policies to aggressively target small, emerging companies and we successfully bid for a contract for their courier services parcels business,” he explained.

Maphanga said that Eskom was also conservative with its contracts for emerging freight businesses, starting with small deals that were expanded once the emerging businesses proved themselves.

“These contracts gave us the opportunity to expand our offering to airfreight, seafreight and road transport – including cross-border – but that meant we needed access to more financing and needed to team up with international and regional partners. These are two major obstacles when you are an unknown entity,” said Griffies.

Maphanga agreed, noting that financial institutions saw freight businesses as high-risk, especially in light of the high capital expenditure needed to provide transport services.

Furthermore, he added, for international freight forwarding, one needed strong global partners. “But we found several doors simply shut in our faces by the multinationals who controlled 90% of global freight forwarding in South Africa at the time.”

He said he and his team had learnt the hard way how to play the game. “We’d sacrifice here to gain there and we continued to fight

despite the challenges – finding small independent companies just like ourselves to partner with internationally, said Maphanga.

As government tightened up on its black economic empowerment (BEE) policies, Khuluma attracted a lot of lucrative government contracts and suddenly, he said, those same global companies who had firmly shut the door to a deal with Khuluma were now wooing the company directors.

“Now we find ourselves on a very nice growth path, with plans to open offices in Durban, Cape Town and near the port of Ngqura in the Eastern Cape. We are also looking to pursue more corporate business and wean

ourselves a little from being too dependent

on government contracts,” said

Maphanga.

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‘Government has failed emerging entrepreneurs’

With the new BEE regulations, global companies who firmly shut the door to a deal with Khuluma are now wooing the company directors.– Saul Maphanga

“

The growth of Ethiopian Airlines has helped boost job creation in the country, according to the 2017 United Nations Conference on Trade and Development (Unctad) Least Developed Countries Report.

According to the report the availability of efficient air transport services has been instrumental in diversifying Ethiopia’s merchandise exports towards flower and horticultural products.

“Ethiopia has successfully become an international provider of air cargo services.

“Generally, efficient transport and logistics services are a precondition for the operation and expansion of manufacturing and agriculture,” says the report.

Ethiopian Airlines is ranked 48th in the world in the Skytrax World Airline Awards, and South African Airways 49th.

Ethiopia’s Hawassa Industrial Park is among three winners of the 2017 United Nations Awards for Promoting Investment in the Sustainable Development Goals (SDGs), which were announced by Unctad’s Investment, Enterprise and Development Commission on November 20.

Hawassa Industrial Park in eastern Addis Ababa is described as an “eco-friendly textile and apparel facility with efficient use of water and energy, waste treatment, and renewable energy”.

The industrial park is linked by road to the port of Djibouti, and directly through the recently upgraded Hawassa airport, which has a 2 500-metre runway.

More than 12 000 people are employed in the park.– Ed Richardson

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Prof Marianne VanderschurenSenior LecturerUniversity of Cape Town

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Blockchains, if widely adopted, could save the shipping industry billions, according to Joëlle Downes, a senior associate at Bowman Gilfillan Africa group’s shipping and logistics practice.

Speaking at an Exporters’ Club Western Cape function recently, Downes said blockchains were fundamentally changing the way the world did business and advised South African companies to get on top of the technology sooner rather than later.

“Moving a single container from Mombasa in Kenya to Rotterdam in the Netherlands, for example, requires the involvement of at least 30 people with more than 200 communications between them,” she said. “Around 90% of goods in global

trade are carried on ships each year, but global trade still functions much the same way it did in the 50s, relying quite heavily on manual paper-based

processes. The supply chain is slowed down by the volume of documents, the number of people involved and the third parties within the chain.”

Blockchains, she said, would ultimately change the process entirely as the technology

introduced a tamper-proof trade solution that managed and tracked the paper trail of millions of containers by digitising the supply chain process from end to end.

“Blockchain technology enhances transparency and ensures secure means of sharing information between trading partners. It reduces fraud and errors and minimises the amount of time goods spend in transit. If widely adopted it will save the shipping industry billions.”

According to Lana Jacobs, an associate at Bowman Gilfillan Africa, blockchains address some of the biggest challenges facing industry at present – including cybercrime, security, delays and cost.

“The blockchain is quite complex and many people don’t understand it,” she said. “The idea however is quite simple because it is simply an incorruptible distributed ledger of economic transactions rather than a record existing in one single location.”

This, said Jacobs, meant that the blockchain would become the optimal means of tracking and trading virtually anything of value in the future.

Blockchains don’t require a central intermediary like a bank, and because they don’t exist in one single location but are shared amongst computers around the world, the technology has built-in consensus mechanisms that allow anyone anywhere to do business with each other and to trust each other.

“I am selling a product for R100. I agree to a transaction with a buyer

but essentially I have no way of looking into that person’s bank account to know if they have the money or not – because money has become virtual. I have

to rely on a central bank to control this transaction and ensure nothing fraudulent happens,” explained Jacobs. “Instead of having an intermediary with processes and

delays where I finally get my money several days later, we build a blockchain. They are super-secure and stable and have no delays. It also reduces the cost of doing business as the middleman is being cut out.”

Blockchains could save shipping industry ‘billions’

Blockchains address some of the biggest challenges facing industry at present — including cybercrime, security, delays and cost.– Lana Jacobs

“

6 | FRIDAY December 1 2017

Specialist training company Global Maritime Legal Solutions (GMLS) has rolled out International Federation of Freight Forwarders Associations (Fiata) diploma training solutions for freight companies on the African continent.

“There is increasing interest in trading with Africa by global companies which is creating opportunities for supply chain service providers, but there is a need for greater understanding of global trade practices on the continent to up its competitiveness on the international stage,” said MD of GLMLS, Mark Goodger.

He pointed out that these courses further allowed shippers/supply chain service providers to gain a greater understanding of international trade instruments, conventions and tools and to apply best international practice.

“With sponsorship from the African Development Bank

(AfDB), GMLS was recently awarded a contract by the Walvis Bay Corridor Group (WBCG) to train 60 students in order to increase their capacity for conducting global forwarding and customs compliance for members,” said Goodger.

In October this year, GMLS attended the Fiata World Congress in Malaysia where it received re-validation of its Fiata Diploma and Fiata Higher Diploma Supply Chain Management for the next four years.

“These qualifications are recognised globally and will, where applicable, be aligned and accredited with the local

educational qualification authority,” Goodger pointed out.

He told FTW that GMLS – which has been delivering

Fiata-validated diplomas since 2010 – was the training agent for the International Chamber of Commerce modules of “Going Global” Incoterms as well as the USP 600, with additional support from A-Z World Trade Software.

“These courses are provided online and include global trade tools with country-specific training around power structures, major ports, trade barriers, import and export partners and rules and regulations, amongst others.”

Liesl Venter

As the implementation date of the Administrative Adjudication of Road Traffic Offences (Aarto) amendment bill draws closer – March next year is one of the dates bandied about – road freight operators have branded it ‘unconstitutional’.

At the heart of the concern is the complete removal of the courts from the Aarto process, making it compulsory to make written representations to the Road Traffic Infringement Authority (RTIA). Traffic fine revenues fund this state-owned enterprise almost entirely.

“The amendment bill

has taken away the right to be heard in court and in its place has set up a tribunal that will have to be paid a fee to hear the case. There are major issues and challenges in all of this,” said Gavin Kelly, technical and operations manager of the Road Freight Association (RFA). “It has yet to be communicated how much this fee is.”

In the new legislation the RTIA has officers representing it in this newly formed tribunal which will hear applications for appeal or review. These applications have to be made within 30 days of the adverse decisions and be accompanied by the payment of the fee.

“So essentially to appeal any infringement you have to pay the organisation that wrote the very law you are appealing – and which then decides if the law they have written must be upheld or not. It’s a picture that does not work,” said Kelly.

In addition to the paying of fees to the tribunal, demerit points are also applied against the driving licences of proxies for juristic entities that are registered owners of motor

vehicles. In other words the actual driver of a vehicle will not lose points against the licence, but rather the

person in whose name the vehicle is registered.

Currently before the president for signing, the bill was passed in the National Assembly in September this year by 225 votes to

88, with zero abstentions. Kelly said industry had

submitted comments to the transport parliamentary portfolio committee before the bill was passed.

“We are now waiting for the president to sign it,” he told FTW, indicating there was no clarity at this stage on when this was expected to happen.

Kelly said once signed there was no doubt that several businesses in the freight and bus industries would be impacted negatively. “It will destroy businesses the way it is contemplated at present.”

While the government maintains that the signing of the Aarto bill is an important intervention that will ensure that necessary punitive measures are imposed on all traffic law transgressors, various stakeholders have said there are major f laws in the legislation.

Aarto tribunal raises concern

One of the biggest concerns is the complete removal of the courts from the Aarto process.– Gavin Kelly

“Global freight training solutions rolled out in Africa

There is a need for greater understanding of global trade practices on the continent to up its competitiveness.– Mark Goodger

“

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The shipping industry needs to design ships differently and be more technologically innovative to reach world climate goals and counter cyber security risks.

That was the conclusion of the recent annual Tripartite Shipbuilding Forum which focused on decarbonisation of ships, safe design and digitalisation.

The shipping industry urgently needs new ship designs, equipment, propulsion systems and alternative fuels to achieve the CO2 reduction goals established by the Paris Agreement on climate change, and the specific objectives to be established for international shipping by the UN IMO as part of its GHG reduction strategy.

It was agreed that the industry should use all available technology to a

much greater extent, and increase technological innovation to reduce CO2 emissions to the ambitious degree required by the international community.

The forum has therefore established inter-industry working groups with the aim of developing a better understanding of current research and development efforts for the new technologies needed by the shipping sector to realise its vision for zero CO2 emissions this century.

The impact of recent cyberattacks was also a key focus, bringing into sharp relief the potential threats facing the industry.

When it comes to ship design and construction, it was generally agreed that the industry needed to adopt new methods and standards to create more resilient digital systems on board.

Forum calls for cyber- resilient ship design

FRIDAY December 1 2017 | 7

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The freight industry is bracing itself for a congestion surcharge as port delays continue unabated.

“At the moment there are no indications as such that surcharges will be instituted but if the situation continues I am not sure how they can be ruled out,” Mike Walwyn, chairman of the Cape’s Port Liaison Forum, told FTW. “Already the freight rate out of the port of Durban to certain destinations is around $100 more than out of Cape Town – and whilst this has not been instituted as a surcharge, it is an increased freight rate which one can only assume is based on delays and congestion at Durban.”

In October MSC announced the implementation of a port congestion surcharge of $300 per container for all imports to Chittagong from South Africa and Mozambique. Most lines reassess the surcharges when congestion improves.

In Durban, ongoing delays due to the lack of equipment both land

and sea side are affecting operations – a situation exacerbated by the recent storm.

Last week an MOL vessel waited 11 days for a berth at the port. According to Terry Gale, chairman of the Exporters’ Club Western Cape, the impact of the congestion in Durban is being felt across the country.

“In Cape Town, we have had no US sailing again this week,” he said.

Walwyn said there were also no sailings to Europe from Cape Town on normal schedules as vessel planning remained chaotic

due to the delays. “It depends on how long

it takes for Durban to recover and how much time has to be made up,” he said.

Industry stakeholders agree that a surcharge would not be surprising as carriers have had to deal with extraordinary costs due to the congestion.

The Saecs service, for example, had to introduce an additional vessel into its rotation in an attempt to maintain schedule integrity due to delays in Durban. Making up the time lost at the Durban port also increases cost.– Liesl Venter

Calls for Zuma to change Aarto BillThe Organisation Undoing Tax Abuse (Outa) has called on the president to refer the Administrative Adjudication of Road Traffic Offences Amendment (Aarto) Bill back to legislators before signing it into law.

Zim needs foreign donors to kick-start economyFormer finance minister Tendai Biti said that Zimbabwe needed to mend relations with foreign donors to help kick-start an economy critics say was run into the ground by long-time President Robert Mugabe.

SA port handles record volumesOctober marked a milestone achievement for the Ngqura Container Terminal (NCT) when it handled 81 927 twenty foot equivalent units (TEUs) – the highest volume ever.

Big improvement in carrier profitabilityThe tide has turned for shipping lines with ten of the eleven carriers that have

published their Q3 results recording a positive EBIT/operating profit, according to maritime analyst Seaintel. HMM is the only one in the red.

Cape Town’s unreliable export sailings a ‘critical’ concernThe knock-on effect of port congestion in Durban has resulted in no export sailings from the Port of Cape Town to the UK/NWC and USA.

R39m upgrade of copper export port completedTransnet National Ports Authority (TNPA) has completed its R39-million rehabilitation of the infrastructure of Port Nolloth on the north-western coast of South Africa.

Transnet considers own independent weather prediction system

As the Port of Durban continues to take stock following last month’s massive storm, Transnet National Ports Authority is using the experience to plan better for the future.

Is a congestion surcharge on the cards?

8 | FRIDAY December 1 2017

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Last week

Ed Richardson

Now that Zimbabwe has a new president who has made economic revival a priority in his first speeches, the scenario that will be played out by the management teams and boards of companies doing business with Zimbabwe will be “what if?” a crocodile can change its spots.

That mangled metaphor roughly sums up the opinions of commentators – no one apart from the new president and former Mugabe right hand man Emmerson Mnangagwa knows what plans he had in mind when he said in his inaugural speech “as we focus on recovering our economy, we must shed misbehaviours and acts of indiscipline which have characterised the past. Acts of corruption must stop forthwith”.

What the coming months will also reveal is whether Mnangagwa will be allowed by the military to do what is needed to get the Zimbabwean economy back on track.

At stake for South Africa is trade worth more than US$6 billion a year that supports an extensive network of freight and logistics companies.

In 2016, South Africa’s exports to Zimbabwe were valued at around R29.3 billion ($2 bn) and imports R2.25bn ($160 m).

These volumes could grow exponentially if there is economic revival in Zimbabwe.

Rebuilding the economy from the ground up will take reinvestment in all sectors and

the creation of thousands of jobs.

Durban will be competing against Beira and Maputo for a share of the project cargo, fast moving consumer goods and machinery.

Zimbabwe is also a corridor for valuable trade with Zambia and the DRC. Zambian imports from South Africa totalled $2.67 billion in 2016 and imports $463 m – with the bulk moving by road through Zimbabwe.

South African exports to the Democratic Republic of Congo (DRC) totalled $896m and imports from the country $91 million in 2016.

If the political conditions in Zimbabwe make it unsafe to travel through the country then the alternative route through Botswana means delays at the Kazungula ferry until the new bridge over the Zambezi River is completed around 2019.

Economic revival in Zimbabwe could happen far faster than would normally be the case for a country facing the challenges it has.

The country still outperforms 39 countries around the world, according to the Economic Complexity Index (ECI).

It is the 83rd largest export economy, the 85th largest importer and the 78th most complex economy out of the 124 that are ranked by the ECI.

This puts it ahead of the likes of Pakistan, Ethiopia, Botswana and the Netherlands.

The index measures the knowledge intensity of the products a country exports.

South Africa is ranked 49th.

In 2016, Zimbabwe exported products and services worth $2.83 billion and imported $5.2 bn, resulting in a negative trade balance of $2.37bn.

Imports into Zimbabwe dropped from $6.64b in 2011 to $5.2bn in 2016.

Zimbabwe’s top exports were raw tobacco ($887m), gold ($850m), nickel ore ($293m), ferroalloys ($119m) and diamonds ($118m).

The top export destinations are South Africa ($2.25b), Mozambique ($267m), the United Arab Emirates ($116m), Zambia ($72.2m) and Belgium ($45.7m).

The leading exporters to Zimbabwe are South Africa (US$2b), China (US$387m), India ($116m), Mexico ($59.3m) and Botswana ($50.6m).

There are over 120 South African companies doing

FTW7594

Local is lekker... ... Get ShipShape!

What if the Zim economy stages a dramatic recovery?

business in Zimbabwe in sectors ranging from fast food to mining.

They could be well positioned if the new president can reverse the policies that led to the flight of foreign investment – policies that he was party to developing and implementing.

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The US$400-million Transnet/Diaspora Infrastructure Development Group (DIDG) Consortium deal to recapitalise the National Railways of Zimbabwe (NRZ) is expected to be finalised following the swearing in of new Zimbabwean leader Emmerson Mnangagwa last Friday.

NRZ chairperson, Larry Mavima, was quoted by the NewsDay publication in Zimbabwe as saying he expected the deal to be finalised within the first quarter of next year. He alleged that the agreement had been scuttled by Grace Mugabe’s G40 faction because they thought it was Mnangagwa’s project. “It was a project for Zimbabwe and the people of Zimbabwe,” Mavima said.

Recapitalisation of NRZ involves the rehabilitation and renewal of plant, equipment, rolling stock, track, signalling and telecommunication infrastructure – as well as supporting information technology systems.

NRZ/Transnet deal on track