Maputo Port Development & Citrus Planning Workshop

10h30 – 6th April 2011CRI, Nelspruit

Bemvindos e um prazer vocez estarem aqui

AGENDA1. Welcome and Introduction (15 min)2. Maputo Port Strategic Outlook for Citrus Exports – Mitchell Brooke (30

min)3. Maputo vs. Durban FOB Costs – Mitchell Brooke (15 min)4. Lebombo Ressano-Garcia Border Post Operations & Developments –

Eddie Ferreira (30 min)5. Nelspruit Container Freight Station – Jan Bekker (30 min)6. Maputo Citrus Phyto Inspections & Inspection Procedures – Mike

Holtshausen (30 min)7. LUNCH BREAK: 30 MINUTES8. MPT Operational Feedback – Paulo Franco (30 min)9. GoReefers Operational Feedback – Deirdre de Klerk (30 min)10.Maputo Break-bulk Developments – Mitchell Brooke (30 min) 11.Maputo Containerized Options & Developments – Jan Bekker (30 min)12.General Discussions

Maputo Port Strategic Outlook for Citrus Exports

Current Economic Factors

1. 2011 Electricity Increase2. Oil Price today3. Rotterdam Bunker Price4. Container BAF EU April –

May 5. ZAR / USD6. ZAR / €

Citrus Production Geographically

Maputo

CitrusCorrid

or

Maputo Citrus Corridor = 0,6million tons p.a (63%)

0

100000

200000

300000

400000

500000

600000

Onderberg; Total; 90,000Nelspruit; To-

tal; 72,700

Hoedspruit; Total;

107,410

Letsitele; To-tal; 218,400

Swaziland; Total; 24,400

Total Maputo Citrus Corri-dor; Total; 512,910

GF OR LE SC Total

Maputo Core Citrus Markets = 0,5million tons p.a

Far East Middle East

NWC / UK Russia Med Total Plts0

100000200000300000400000500000600000700000800000

Far East; To-tal Northern Production;

71000

Middle East; Total North-ern Produc-tion; 143000

NWC / UK; Total North-ern Produc-tion; 294000Russia; Total

Northern Production;

121000

Med; Total Northern

Production; 64000

Total Plts; Total North-ern Produc-tion; 693000

Far East; To-tal Maputo

Citrus Corri-dor; 44,730

Middle East; Total Maputo Citrus Corri-dor; 90,090

NWC / UK; Total Maputo Citrus Corri-dor; 185,220

Russia; Total Maputo Cit-rus Corridor;

76,230

Med; Total Maputo Cit-rus Corridor;

40,320

Total Plts; Total Maputo Citrus Corri-dor; 436,590

Total Northern Production Total Maputo Citrus Corridor

History of Citrus Terminal Development

Why Durban over Maputo if 63% of Northern Citrus Production is located closer to Maputo by a long Margin?1. Political reasons 1980’s2. Maputo Terminal developed in late

1990’s3. Maputo Port development accelerated

in mid 2000’s - MCLI4. The port is now ready for rapid

expansion to handle citrus volume!!!

Maputo Advantages1. Better facilitation of Farm trucks2. Lower transport costs3. Farm loading of containers4. Inland freight station5. DPWorld Maputo over DCT -

CapacityI. Strikes / Congestion / Delays

6. Lead time to Markets

1. 850,000 Pallets from the north can be expected

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000Northern Region Commodity Export Volume

Soft Citrus Oranges Lemons Grapefruit

Palle

ts T

hous

ands

Durban will become more congested if we

do not act now!

1. Modal shift progressive from 2007

Cont

aine

rRe

efer

Shi

pCo

ntai

ner

Reef

er S

hip

Cont

aine

rRe

efer

Shi

pCo

ntai

ner

Reef

er S

hip

Cont

aine

rRe

efer

Shi

pCo

ntai

ner

Reef

er S

hip

Cont

aine

rRe

efer

Shi

pCo

ntai

ner

Reef

er S

hip

Cont

aine

rRe

efer

Shi

pCo

ntai

ner

Reef

er S

hip

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0

100,000

200,000

300,000

400,000

500,000

600,000Durban / Maputo Port Shipping Mode

Inland PortPalle

ts T

hous

ands

1. <10% of northern production is routed through Maputo

DURBAN MAPUTO0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000 Durban and Maputo Citrus Volume

2007 2008 2009 2010

1. Far East, Middle East and Russia are growing rapidly

Far East Middle East / Iran

NWC - EU / UK Russia / East EU

South EU / MED

0

50000

100000

150000

200000

250000

300000

350000 Durban and Maputo Market Volume

2007 2008 2009 2010

1. Why are shippers not exporting to Far East from Maputo?2. Middle East from Maputo a good strategy for a clever shipping

line!3. A service from Maputo to Europe would clean up the market

DURB

AN

MAP

UTO

DURB

AN

MAP

UTO

DURB

AN

MAP

UTO

DURB

AN

MAP

UTO

DURB

AN

MAP

UTO

DURB

AN

MAP

UTO

DURB

AN

MAP

UTO

DURB

AN

MAP

UTO

DURB

AN

MAP

UTO

Container-ised

Container-ised

Conven-tional

Container-ised

Conven-tional

Container-ised

Conven-tional

Container-ised

Conven-tional

Far East Middle East / Iran NWC - EU / UK Russia / East EU South EU / MED

0

50000

100000

150000

200000

250000 Durban and Maputo Market Volume by Shipping Mode

2007 2008 2009 2010

AGENDA

Maputo vs. Durban FOB Costs

Maputo vs. Durban FOB Costs

1. Transportation

Road transport rates are based on Fleetwatch CPK value for March 2011

1. The citrus industry transports citrus on 53,000 trucks over an average of 540 km’s = 29,7million truck kilometres. (622 times around the globe)

2. The Maputo Citrus Corridor transports 14.75million truck kilometres to Durban and only 0,5million to Maputo – 8million saving with 400,000 pallets

North

ern

Limpo

po -

LPLe

tsite

le /

Tzan

een

- LP

Hoed

spru

it - L

PM

Hal

l / G

robl

ersd

al -

MP

Nelsp

ruit

- MP

Mal

elan

e - M

PNo

rth S

wazil

and

- SZ

Zim

babw

e - Z

WNo

rther

n Lim

popo

- LP

Lets

itele

/ Tz

anee

n - L

PHo

edsp

ruit

- LP

M H

all /

Gro

bler

sdal

- M

PNe

lspru

it - M

PM

alel

ane

- MP

North

Swa

zilan

d - S

ZPo

ngol

a - K

ZNNk

walin

i Val

ley

- KZN

KZN

Mid

land

s - K

ZNFo

rt Be

aufo

rt - E

CSu

nday

s Ri

ver -

EC

Vaal

harts

Pate

nsie

- EC

Swel

lend

am -

WC

Citru

sdal

- W

CKa

kam

as -

NP

Maputo Durban Port Eliz-abeth

Cape Town

0200400600800

1,0001,2001,400

050,000100,000150,000200,000250,000300,000

Maputo Northern Limpopo - LP; Distance; 770

Maputo Letsitele / Tzaneen - LP; Distance; 450Maputo Hoedspruit - LP;

Distance; 350

Maputo M Hall / Grob-lersdal - MP; Distance;

475

Maputo Nelspruit - MP; Dis-tance; 200Maputo Malelane - MP; Dis-

tance; 140

Maputo North Swaziland - SZ; Distance; 220

Durban Zimbabwe - ZW; Distance; 1,200Durban Northern Limpopo

- LP; Distance; 1,150Durban Letsitele / Tzaneen

- LP; Distance; 950Durban Hoedspruit - LP; Distance; 850Durban M Hall / Grob-lersdal - MP; Distance;

680Durban Nelspruit - MP; Dis-

tance; 680Durban Malelane - MP; Dis-

tance; 680Durban North Swaziland - SZ; Distance; 550Durban Pongola - KZN; Dis-

tance; 380Durban Nkwalini Valley -

KZN; Distance; 160Durban KZN Midlands -

KZN; Distance; 160

Port Elizabeth Fort Beau-fort - EC; Distance; 250Port Elizabeth Sundays

River - EC; Distance; 120

Port Elizabeth Vaalharts; Distance; 900

Port Elizabeth Patensie - EC; Distance; 120

Cape Town Swellendam - WC; Distance; 200Cape Town Citrusdal - WC;

Distance; 180

Cape Town Kakamas - NP; Distance; 850

Regional Production Volume vs. Distance Travelled (2010 Est)

Pallet Volume Distance

Dis

tanc

e to

Por

t ( K

M )

Palle

t V

olum

e

The Maputo Citrus Corridor would save 5,9million truck kilometres if a

further 350,000 pallets of citrus were routed through

Maputo1.That is R80million worth

of transport costs2.1Million litres of Diesel

fuel saved3.12,500 trucks less into

Durban

1. An average saving of R5,700 per truck for the Maputo Citrus Corridor.

Northern Limpopo - LP

Letsitele / Tzaneen - LP Hoedspruit - LP

Marble Hall / Groblersdal -

MP Nelspruit - MP Malelane - MPNorth Swazi-

land - SZ

-R 10,000

-R 8,000

-R 6,000

-R 4,000

-R 2,000

R 0

R 2,000

R 4,000R 0

R 5,000

R 10,000

R 15,000

R 20,000

R 25,000

R 30,000

Northern Limpopo - LP; Difference MPT vs DBN; R 2,560.00

Letsitele / Tzaneen - LP; Differ-ence MPT vs DBN; -R 3,840.00

Hoedspruit - LP; Difference MPT vs DBN; -R 5,120.00

Marble Hall / Groblersdal - MP; Difference MPT vs DBN; R 800.00

Nelspruit - MP; Difference MPT vs DBN; -R 6,656.00

Malelane - MP; Difference MPT vs DBN; -R 8,576.00

North Swaziland - SZ; Difference MPT vs DBN; -R 3,520.00

Northern Limpopo - LP; Ave. Cost of Truck Maputo; R 24,640

Letsitele / Tzaneen - LP; Ave. Cost of Truck Maputo; R 14,400

Hoedspruit - LP; Ave. Cost of Truck Maputo; R 11,200

Marble Hall / Groblersdal - MP; Ave. Cost of Truck Maputo; R

15,200

Nelspruit - MP; Ave. Cost of Truck Maputo; R 6,400

Malelane - MP; Ave. Cost of Truck Maputo; R 4,480

North Swaziland - SZ; Ave. Cost of Truck Maputo; R 7,040

Northern Limpopo - LP; Ave Cost of Truck Durban; R 22,080

Letsitele / Tzaneen - LP; Ave Cost of Truck Durban; R 18,240

Hoedspruit - LP; Ave Cost of Truck Durban; R 16,320Marble Hall / Groblersdal - MP;

Ave Cost of Truck Durban; R 14,400Nelspruit - MP; Ave Cost of Truck

Durban; R 13,056Malelane - MP; Ave Cost of Truck

Durban; R 13,056

North Swaziland - SZ; Ave Cost of Truck Durban; R 10,560

Difference MPT vs DBN Ave Saving per Carton Ave. Cost of Truck Maputo Ave Cost of Truck Durban

Ran

ds p

er T

ruck

Loa

dR

ands

per

Tru

ck L

oad

Difference in Transport Cost Maputo vs. Durban (2011 April CPK)

Maputo vs. Durban FOB Costs

2. Container

Container rates were supplied by an independent agent .

Container rates were supplied by an independent agent .

Port Costs per Container Cost ZAR/USD Maputo Cost per Container

RSA Cost per Container

Maputo - Kudumba Scanning Fee USD 35.00 ZAR 6.70 R 235 Port Cargo Dues R 2 105PPECB Export Levy - Port R 256.00 ZAR 1.00 R 256 R 256Container - Transport: Collect - stuffing facility - terminal USD 200.00 ZAR 6.70 R 1 340 R 2 000Container - Terminal Handling Charge USD 182.00 ZAR 6.70 R 1 219 R 1 586Container - DP World Container Monitoring (+ 5 days@ US$5.00 / Day) USD 25.00 ZAR 6.70 R 168 Container - Maputo Port Agents Fee USD 90.00 ZAR 6.70 R 603 Container - THC Reefer Additional (Storage plug-in +5 days @ USD18.20 / Day) USD 91.00 ZAR 6.70 R 610 R 1 224

Container - Shipping Line Service Fee / Haulage Release Fee USD 370.00 ZAR 6.70 R 2 479 R 500Container - Pre Trip Inspection Fee (PPECB) R 200.00 ZAR 1.00 R 200 R 200Container - CTO Fee R 120

Total Cost per Container R 7 109 R 7 991Cost per Pallet R 355.46 R 399.55

Cost per Carton (A15C High Cube) R 4.44 R 4.99

Maputo vs. Durban FOB Costs

1. Average transport cost saving R2.00 – R5.00 per carton for Maputo Citrus Corridor– A15C

2. Maputo break-bulk FOB R2.00 – R5.00 less than Durban port – Russia

3. Maputo Citrus Corridor <200km should achieve lower CIF cost on break-bulk to EU from Maputo than containers Durban

4. Container PORT costs in Maputo compare closely with Durban

5. By loading from an ambient facility in Maputo / Nelspruit there is potential to save >R4.00 per carton FOB & CIF EU – A15C

6. By transporting containers from Maputo to the farm to pack, there is potential to save >R5.00 per Carton FOB – A15C

If a shipping line BOXED strategically,

they would take a huge chunk of the citrus volume from the Maputo Citrus

Corridor

Strategic Outlook1. More efficient and cost effective transport for

Maputo Citrus Corridor Road / Rail.2. Upgraded facility to handle projected volume

– >100,000 – 200,000 pallets.3. Decision – Port facility / Out of port /

Komatipoort4. Better customs documentation control -

Russia5. Commitment from DAFF. 6. Break-bulk - Europe / Russia on dedicated

weekly schedules. 7. Container lines servicing Maputo on direct

calls – Middle East etc.8. Reefer container technical services.

Take a BOLD step forward

Thank You

Obrigado

Questions?