INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE DEVELOPMENT SERVICING REGIONAL BULK TRADESERVICING REGIONAL BULK TRADE

Dr António Matos: Chairman, MozambiqueDr António Matos: Chairman, Mozambique

THE SADC TRANSPORT CORRIDORS

THE MAPUTO CORRIDORTHE MAPUTO CORRIDOR

THE MAPUTO CORRIDOR

Road distance – 581kms Road distance – 581kms Rail distance – 590kmsRail distance – 590kms

WHAT IS THE MAPUTO CORRIDOR LOGISTICS INITIATIVE?

KEY ECONOMIC DRIVERS

What are the economic drivers on the What are the economic drivers on the corridor?corridor?

•Investment in key transport infrastructure Investment in key transport infrastructure (road, rail, border post, port and terminals)(road, rail, border post, port and terminals)

•Shorter distances to the port Shorter distances to the port of Maputoof Maputo

•Proximity of Indian and Far East markets to Proximity of Indian and Far East markets to Port MaputoPort Maputo

•A vastly improved trade facilitation A vastly improved trade facilitation environment environment (SARS Rollout and SeW in (SARS Rollout and SeW in Mozambique)Mozambique)

•Regional integration imperatives Regional integration imperatives at at continental and REC level which favour continental and REC level which favour corridor development corridor development

INVESTMENT IN INFRASTRUCTUREINVESTMENT IN INFRASTRUCTURE

R4,5 billion invested since 2000 R4,5 billion invested since 2000

R3 billion in the next 15 yearsR3 billion in the next 15 years

Build-Operate-Transfer Build-Operate-Transfer agreementagreement

TRAC N4 Toll RouteTRAC N4 Toll Route

The first tolled cross border road on the continentThe first tolled cross border road on the continent

WHY THE ANOMALY

WHY THE ANOMALY

INVESTMENT IN RAIL INFRASTRUCTUREINVESTMENT IN RAIL INFRASTRUCTURE

RAILRAIL$200 million $200 million on the rehabilitation of the on the rehabilitation of the

Ressano Garcia Line since 2006Ressano Garcia Line since 2006

CFM will invest CFM will invest $240 million in the next three $240 million in the next three yearsyears on on

• Upgrading and modernization of the lineUpgrading and modernization of the line• Doubling of the lineDoubling of the line• ElectrificationElectrification• Increasing capacity of the bridgesIncreasing capacity of the bridges• Improving signalling and Improving signalling and

telecommunicationstelecommunications

INVESTMENT IN RAIL INFRASTRUCTUREINVESTMENT IN RAIL INFRASTRUCTURE

Joint Operations Centre Established to Joint Operations Centre Established to enhance Collaborationenhance Collaboration

THE LEBOMBO/RESSANO GARCIA THE LEBOMBO/RESSANO GARCIA BORDER POSTBORDER POST

December 2005 peak periodDecember 2005 peak period

Congestion prior to June 2010Congestion prior to June 2010

12 hour operation12 hour operation Severe CongestionSevere Congestion Substantial delaysSubstantial delays InefficienciesInefficiencies Added logistics Added logistics

costscosts

Ressano Garcia

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Lebombo/Ressano Garcia Border PostLebombo/Ressano Garcia Border Post

1998– 29 000 tons through border post - 1998– 29 000 tons through border post - 2007 – 2.25million tons 2007 – 2.25million tons

In the 2 years between 2005 and 2007In the 2 years between 2005 and 2007•43% increase in passengers43% increase in passengers•73% increase in cars and busses 73% increase in cars and busses •65% increase in the total number of vehicles that crossed 65% increase in the total number of vehicles that crossed the borderthe border•1,1 million passengers in Dec 2007 alone1,1 million passengers in Dec 2007 alone•Design capacity maximum 8000 per dayDesign capacity maximum 8000 per day

Freight Bypass Road Opened June 2010Freight Bypass Road Opened June 2010

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18 hour 18 hour operation operation

24 hours at peak 24 hours at peak periodsperiods

TRADE FACILITATION IMPROVEMENTSTRADE FACILITATION IMPROVEMENTS

• SARS Customs ModernisationSARS Customs Modernisation – Increases – Increases Electronic Interface and speed of document Electronic Interface and speed of document clearanceclearance

• Single Electronic Window Single Electronic Window implemented late implemented late 2012 in Mozambique2012 in Mozambique

• Significant Significant amendments to Transit Customs amendments to Transit Customs legislationlegislation in Mozambique currently being in Mozambique currently being finalisedfinalised

• Challenges exist in the SeW arena, but are Challenges exist in the SeW arena, but are being ironed out in partnership with all the being ironed out in partnership with all the role-playersrole-players

ONE OF THE MOST EFFICIENT CORRIDORS ON THE CONTINENT

Between Between 400 and 600 bulk trucks per day 400 and 600 bulk trucks per day through LRGthrough LRG

In excess of In excess of 1000 trucks per day 1000 trucks per day into the port of into the port of MaputoMaputo

Clearing time between 4 and 8 Clearing time between 4 and 8 mins due to mins due to improved EDI and SeW efficienciesimproved EDI and SeW efficiencies

Some C&F agents have it down to between 2 and Some C&F agents have it down to between 2 and 3 mins3 mins

Time and motion study by one MCLI member Time and motion study by one MCLI member 5½ 5½ hours from RG to port, offload and back to RGhours from RG to port, offload and back to RG

Shareholding since Shareholding since

20082008

Shareholding since Shareholding since

20082008

49 %51 %

PORT MAPUTOPORT MAPUTO

INVESTMENT IN PORT MAPUTO

PORT AND TERMINALSPORT AND TERMINALS

$475 million $475 million investment from 2003 to investment from 2003 to September 2013:September 2013:

- - dredgingdredging of channel from -11m to -14m of channel from -11m to -14m-expansion of Matola coal expansion of Matola coal terminal from 7,3 mt terminal from 7,3 mt to 20 mtto 20 mt-expansion of container terminal expansion of container terminal from 150 000k from 150 000k TEU’s to 400 000 TEU’s TEU’s to 400 000 TEU’s -bulk terminal in bulk terminal in Maputo main port from 2 m to Maputo main port from 2 m to 8 m tons8 m tons- - berth rehabilitaberth rehabilitationtion- - general infrastructuregeneral infrastructure - rail sidings, roads, - rail sidings, roads, - - operating equipmentoperating equipment, new tug boats and , new tug boats and pilot boats pilot boats - - human capital human capital investment investment 

2003 – SUBSIDENCE AND WRECKAGE AT BERTH 162003 – SUBSIDENCE AND WRECKAGE AT BERTH 16

2004 - INTERNAL RAIL NETWORK UPGRADED TO INTERNATIONAL2004 - INTERNAL RAIL NETWORK UPGRADED TO INTERNATIONAL

STANDARDSSTANDARDS

THE MAPUTO CORRIDOR

• Efficient corridors have a significant impact on Efficient corridors have a significant impact on the the competitiveness of local business and competitiveness of local business and regional economiesregional economies

• Can provide a measure Can provide a measure of predictability, of predictability, reliability and efficiency reliability and efficiency crucial to trade and crucial to trade and logistics supply chains logistics supply chains

• Key to providing Key to providing access to marketsaccess to markets.  .  • Ability to Ability to address the issues affecting trade address the issues affecting trade in a in a

transport corridor approach has given a transport corridor approach has given a significant level of comfort to users and has significant level of comfort to users and has resulted in significant economic growth in this resulted in significant economic growth in this region.region.

ESSENTIAL ELEMENTS FOR CORRIDORS

√√good infrastructure, good infrastructure, √ √ good systems and procedures, good systems and procedures, √√ good informationgood information√√ institutional mechanism to be the institutional mechanism to be the facilitator and interfacefacilitator and interface√ √ cooperation between the public and cooperation between the public and private sector to ensure sustainable private sector to ensure sustainable success.success.

DESPITE THE CHALLENGES, THE DESPITE THE CHALLENGES, THE MAPUTO MAPUTO CORRIDOR TICKS CORRIDOR TICKS ALL THESE BOXES ALL THESE BOXES

THANK YOU

+27 13 755 +27 13 755 60256025

+27 83 555 +27 83 555 60256025

ceo@mcli.co.zaceo@mcli.co.zawww.mcli.co.zawww.mcli.co.za