FREIGHT & TRADING WEEKLY

For import / export decision-makers FRIDAY 11 November 2016 NO. 2224

SMS costs R1.50

SUBSCRIBESMS ‘now’ to 45633

Special feature –Bulk Cargo

page 5

Survival drives merger momentumpage 4

www.cfrfreight.co.za

Sea & Air Freight Consolidator Container Freight Station

FTW7789

NEUTRAL

FTW7463

Making every connection personal

0861 00 MEGA (6342)www.megafreight.co.za

The leopard – strong, agile, independent and African. Just like us...

Infrastructure investment throughout southern Africa has changed the landscape for South African shippers and logistics providers who are increasingly being out-manoeuvred in their own backyard.

That was the message that came through loud and clear at a business breakfast jointly hosted by FTW and the Johannesburg Chamber of Commerce and Industry (JCCI) last week on southern Africa’s corridors.

“It is telling that both

Duncan Bonnett, director of strategy and business development at Africa House, and I have independently come to the same conclusion that South African companies are increasingly being by-passed on their own doorstep,” says FTW Africa correspondent Ed Richardson.

He has compiled the first FTW Insight Southern African Corridors – Opportunities and Threats report, and outlined to delegates the advances being made on the Walvis Bay, Lobito, Dar es Salaam, Nacala,

Beira and Maputo corridors. “Companies wanting to

continue doing business in the region, or to grow their presence in the region, have to stay up to date with what is happening on the ground. We see vast improvements and new infrastructure on every annual visit to Namibia and Mozambique for FTW.”

Because of the pace of change, shippers and cargo owners are often making decisions on what routes to use based on past experiences or outdated information.

“Do not take advice from anyone who has not been to a port and investigated the route in the last six months at most,” he says.

According to Bonnett the rate of investment in infrastructure in the region has been only marginally affected

by the crash of commodity prices.

“It is predicted that infrastructure spend in Sub-Saharan Africa will grow by 10% a year over the next decade, exceeding US$180 billion by 2025,” he says.

The result of this investment is that there are alternatives to Durban, which are closer to the market and increasingly more competitive.

This is already affecting South African exports.

“SA exports to Continental

SADC declined by 24% in market share terms from 2010 to 2014, before recovering slightly in 2015,” he says.

Both speakers agreed that the two developments that have the most potential to disrupt the existing logistics chains in southern Africa are the building of a new container

‘Durban is not the only game in town’ Seafreight shipments last

year grew 2.1% – surpassing the 10-billion ton mark from 9.8 billion tons the year before – according to the Unctad Review of Maritime Transport 2016. This, said Unctad, was the slowest pace of growth in the industry since 2009 and future growth looks uncertain.

The best performance since 2008 came from the shipping of oil, thanks to low oil prices, ample supply and stable demand. But overall growth was dragged down by the limited growth of dry bulk commodity trade, in particular coal and iron ore, and by the poor performance of container shipping, which carries about 95% of the world’s manufactured goods.

Despite this slow growth, the industry’s carrying capacity continued to grow, jumping 3.5% to 1.8 billion deadweight tons in 2015 and pushing freight rates down to record lows.

The push for ever larger ships is at the root of the industry’s problems, according to the report.

Dismal seafreight growth

Ed Richardson, FTW's Africa correspondent. To page 8

Do not take advice from anyone who has not been to a port and investigated the route in the last six months at most.– Ed Richardson

“

2 | FRIDAY November 11 2016

FREIGHT & TRADING WEEKLY

Publisher Anton Marsh

EditorialEditor Joy OrlekConsulting Editor Alan PeatAssistant Editor Liesl VenterDeputy Editor Adele MackenzieJournalist Michael FergusonPhotographer Shannon Van Zyl

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

jhall@realnet.co.sz

Advertising Advertising Yolande Langenhoven Claire Storey Neo MangopeCo-ordinators Tracie Barnett, Paula SnellDesign & layout Zoya LubbeePrinted by JUKA Printing (Pty) Ltd

Annual subscriptionsCirculation – gladysn@nowmedia.co.za

Combined Print & Internet – (SA Only) R640.00Southern Africa (Free Internet) R1 165.00

International Mail (Free Internet) R1 535.00

Published by NOW MEDIAPhone + 27 11 327 4062

Fax + 27 11 327 4094E-mail antonm@nowmedia.co.za

Web www.ftwonline.co.zaNow Media Centre

32 Fricker Road, Illovo Boulevard, Illovo, Johannesburg.

PO Box 55251, Northlands, 2116, South Africa.

Audit Bureau of Circulationsof South Africa

transparency you can see

DUTY CALLS Riaan de Lange (dutycalls@nowmedia.co.za)

FTW3495SD

Mercosur AmendmentOn 04 November the South African Revenue Service (Sars) announced the correction of two Government Gazette notices of 21 October 2016 to substitute the rates of customs duty where they appear in the “Mercosur” column.

SADC EPA vs TDCAFollowing notification of the SADC EPA, the question arises whether the rates of customs duty preferences under the SADC EPA are in all instances preferential to those under the TDCA that it replaced. If you are aware of any instances where it is not so, please let us know by email. We will treat the information in confidence as we are only interested in the tariff subheading affected.

Sars Compliance CommitmentsSars on 05 September released its xviii “Increased Customs and Excise Compliance Commitments” with those of November

2016 under the headline “Identify, assess and respond to risks more effectively”. Sars will: (v) Commence level 2 of the Preferred Trader Compliance Accreditation Programme which comprises the awarding of “Status and Benefits” by 01 November 2016; and under the headline “Modernise and align Excise processes and systems” Sars will: (ix) Improve excise skills amongst officers by developing improved standard operating procedures and introduce training interventions to the excise community by the end of November 2016.

Diesel Vehicle TariffOn 04 November the International Trade Administration Commission of South Africa (Itac) announced an amendment to the wording for tariff subheading 8704.21.75 published in the Government Gazette of 23 October 2015 for a reduction in the “general” rate of customs duty on diesel goods vehicles of a

mass not exceeding 1 100kg and petrol and electric goods vehicles with a capacity of a mass not exceeding 800kg.

Comment is due by 18 November 2016.

Flat-rolled steel safeguardItac on 04 November announced a preliminary determination of investigation – initiated on 29 July 2016 – for remedial action in the form of a safeguard against increased imports of flat-rolled products of iron or non-alloy steel, or other alloy steel but excluding stainless steel, of all widths, cold-rolled (cold-reduced), not clad, plated or coated and not further worked than cold-rolled (cold-reduced), on which comment is due by 22 November 2016.

DA Forms on Wine ExciseOn 31 October Sars published, for comment – which is due on 14 November 2016 – three DA (Doeane en Aksyns – translated as “Customs and Excise”) forms

relating to excise duty on wine. The forms are DA 260 – Wine (SOS); DA 260 – Wine (SVM); and DA 260 – Wine (OS).

South Africa as a contracting party to the Convention on the Harmonised Commodity Description and Coding System (HS) nomenclature, implements the amendments in terms of section 48(1)(c) “Amendment of Schedule 1” of the Customs and Excise Act, 1964.

As a consequence, due to amendments to Schedule 1 Part 2A, “Specific Excise Duties on locally manufactured or on imported goods of the same class or kind” of the Act, 1964 the DA 260 excise accounts for wine require amendments to tariff items and subheadings.

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 November 11 2016 | 3

For rates, bookings & enquiries:

Jhb: 011 881 9500 Dbn: 031 536 7440Cpt: 021 418 4848

Maputo: I.Messina Mocambique Limitada+ 258 21 300020/35/37

1921 Ignazio Messina & C. THE ITALIAN LINE

1994 Ignazio Messina & C. Pty Ltd SHIPPING AGENCY IN SOUTH AFRICA

THE ONLY INDEPENDENT RO-RO CONTAINER SERVICE

IN THE TRADE WITH OWN CONNECTING SERVICES

THROUGHOUT THE MEDITERRANEAN

FTW4877

FTW3509SD

Supply chain value eluding you?

Problem solved.Supply Chain Solutions | Dedicated Contract Carriage | Transportation Management and Broking | Less-than-Truckload Distribution Courier/Express Parcel | Short Haul Shared and Dedicated Warehousing Line Haul | Mining Supplies | Freight Distribution | Bulk Mining Transportation Fuel Distribution

For more info please call us on 0860 99 9940 or go to crossroads.co.za

FTW7770

Alan Peat

With an R11-billion, 8 500-sqm automotive manufacturing plant being developed at the Coega Industrial Development Zone (IDZ), the big question arising is just what role the adjacent Port of Ngqura will play.

The investment by the Beijing Automotive Group (BAIC) and SA’s Industrial Development Corporation (IDC) is the biggest single automotive investment in Africa in the last 40 years, according to Dr Ayanda Vilakazi, unit head marketing & communications at the Coega Development Corporation (CDC).

So what is the Transnet National Ports Authority (TNPA) saying about the Port of Ngqura’s future involvement in this?

For example, FTW was under the impression that the roll-on, roll-off (roro) automotive shipments would largely remain in Port Elizabeth. Will we, however,

see a roro berth in Ngqura at some point?

The basic answer, according to Mpumi Dweba-Ketane, port manager for the Port of Ngqura, is no – with both ports having their own individual roles.

“The Port of Ngqura’s future involvement in the BAIC plant will be to handle the project cargo during construction,” he told FTW, “as well as component imports for the assembly of the fully built units (FBUs) during plant operations and exports of components.”

Meanwhile, the Port of PE is currently handling roro with one berth. “But in future,” said Dweba-Ketane, “once the manganese and liquid bulk operations are relocated to the Port of Ngqura, two berth operations will be developed.”

Ngqura, he added, is positioned as the transhipment hub and PE remains the premier automotive hub.

‘Ngqura has no ro-ro ambitions’

FTW3468SD

4 | FRIDAY November 11 2016

FREIGHT COMPANY FOR SALE

Small freight company for saleSpecialised cargo - Mainly airfreight exports & ImportsCompany book for sale

•Captured market – guaranteed business

•All transaction mainly US dollar based & COD

•Located in JHB

Benefits of purchasing this company

FTW7799

Please contact for further information: tiffsale24@gmail.comTerms and conditions apply

Alan Peat

Merger activity in the seafreight sector is gaining momentum with the big three Japanese shipping companies – Nippon Yusen Kabushiki Kaisha (NYK Line), Mitsui OSK Lines (MOL) and Kawasaki Kisen Kaisha (K-Line) – the latest to jump on the bandwagon.

The boards of the trio have agreed to establish a new joint-venture (JV) to consolidate their global container shipping and terminal operations (excluding those in Japan). The as yet unnamed combined company – estimated to be worth the equivalent of over R38.5 billion – will be established on July 1, 2017, but will only become operational from April 1, 2018. The deal is subject to regulatory approval from the authorities.

It will be 38% owned by NYK and 31% each by MOL and K-Line.

“The consolidation that took

place in container shipping pre-2008 was driven by a desire for growth,” according to Drewry Financial Research Services.

Now, however, merger and acquisition (M&A) activity was all about survival, it added. This to address such factors as balance sheet restructuring, poor investor returns and adaptation to a low-growth environment.

“We believe this to be a positive step for the industry, but the transition will be time consuming,” said Drewry.

“We anticipate continued

consolidation activity. But the industry may need to wait until the earnings impact of the consolidation becomes tangible.”

Ron Frick, MD of DAL Agency in SA, agrees that on-going consolidation is very much part of the current shipping scene.

“I don’t think we have seen the last of the it,” he told FTW. “The vessel overcapacity is expected to last until 2018 or longer, and there has been an increase in scrapping of vessels in the last 12 months.

“And, with new legislation

on the cards that the ballast and bilge water will require water treatment plants installed on vessels, owners are likely to decide to scrap vessels rather than incur the incremental costs of upgrading older vessels.”

Frick also pointed out that, in light of the oversupply of container shipping and the sub-economic freight rate levels – particularly on the East-West trades of Asia/Europe and Transpacific – this consolidation was inevitable.

“Major lines have been shipping below cost and the ongoing losses are no longer sustainable,” he added. “As rates are unlikely to regain sustainable levels in the short- to medium- term, the only option left is to continue to seek economies of scale, the pooling of hardware, and staff reduction to contain overhead costs.

“And this is on top of depressed bi-lateral trade, with lesser volume on offer.”

Lee Viljoen has been appointed GM ocean freight at groupage major CFR Freight.

She brings to the position 16 years of experience in the consolidation, warehousing, logistics and ships’ agency fields, having joined the company four years ago as route development manager, managing all inbound and outbound routes and services,.

 In her new role she will be responsible nationally and internationally for the growth and development of the company’s ocean freight product.

 “Africa development will be a strong focus going forward – as will service excellence through systems and IT development,” she told FTW.

Viljoen will commute between Durban and Johannesburg.

New ocean freight GM

Survival drives merger momentum

Air Botswana is working towards re-introducing a dedicated cargo f light next year between Gaborone and Johannesburg after operations were suspended due to the non-availability of a suitable aircraft.

According to Molefi Kgautlhe, the airline’s assistant manager cargo services, growing its freighter services is a top priority despite current low volumes.

“We have experienced a decrease of 8% compared

to the same period last year (January to September),” Kgautlhe told FTW. “This is mainly due to capacity and equipment constraints. Also significant has been the decline in point-to-point cargo between Johannesburg and Gaborone due to road competition.”

According to Kgautlhe, with Gaborone in such close proximity to Johannesburg many shippers prefer to ship their cargo by road rather than air.

“Probably one of our biggest challenges is to convince cargo owners to move their volumes by air,” he said. “At present, most of our cargo comes from our interlining partners, transiting in Johannesburg.”

He said despite low volumes the airline continued to invest in new ground support equipment that allowed it to handle any type of aircraft.

“And we are working round the clock to

re-introduce a dedicated cargo freighter next year,” he said. “We are currently using commercial f lights to uplift cargo on our route network. We used to operate a cargo f light between Johannesburg and Gaborone on Tuesdays and Fridays and it is most likely that we will maintain the same schedule once the operation of a dedicated cargo f light resumes. We will increase the frequency based on the demand.”– Liesl Venter

Dedicated Jo’burg-Gabs freighter mooted

The NYK, MOL, K-Line JV will be worth the equivalent of over R38.5bn.

FTW7872

UP

COM

ING

FEA

TUR

ES FREIGHT & TRADING WEEKLY

For import / export decision-makers

Book now:

ftwsales@nowmedia.co.za

DON’T BE

LEFT OUT!

MINING AND MINERALSIssue date : 3 March 2017 | Booking deadline: 2 December 2016

FTW3470SD

6 | FRIDAY November 11 2016

We can handle your

warehousing and depot needs

FTW7507

T + 27 11 820 8000E wnel@zacpak.co.za

www.zacpak.co.za

Your trusted NEUTRAL service provider to the freight industry

Depots in Cape Town, Durban Johannesburg & Port Elizabeth

Breakbulk, Containers,Handling, Storage and Projects

Durban and Joburg LOCAL TRANSPORT

+27 (0) 31 406 4000dhiren@gsfcc.co.zawww.gsfcc.co.za

Durban, Joburg, Zambia corridor

FTW7806

Alan Peat

The investigative journalism team amaBhungane has presented strong evidence that the Gupta family and their close associate, Salim Essa, have been involved in money-laundering schemes totalling R250 million.

This money, it said, came from kickbacks for contracts with state-owned companies – including Transnet, SAA, Airports Company of SA (Acsa) and Eskom.

And one of the state-owned enterprises (SOEs) from which large amounts were squeezed was Transnet. “On the Transnet board,” said the team’s report, “individuals who have been linked to the Guptas or Essa include chairperson

Linda Mabaso, chief financial officer Garry Pita, procurement committee chair Stanley Shane, and member Vusi Nkonyane. Iqbal Sharma, a previous procurement committee chair, was also close to Essa.”

However, said amaBhungane: “In some instances these links are circumstantial and there is no suggestion of wrongdoing against any individual.”

In its lengthy, complex and hard-hitting report the team pointed out that its research had revealed this R250m being channelled through the SA company, Homix (“a letterbox company”, said amaBhungane, with “little but a mailing address”). Much of this, it added, through Bapu Trading,

another hole-in-the-wall company, to equally obscure companies in Hong Kong – with all the participants having links to the Guptas and associates.

Meanwhile, five companies – all doing business one way or another with SOEs – were alleged to have paid kickbacks for contracts over to Homix and it was then laundered, according to amaBhungane. And, the team’s journalist, Stefaans Brummer, told the 24-hour television news broadcaster, eNCA, that the “evidence of the laundering was strong”.

In what it termed a “set of fingerprints” it noted that the companies that had paid the bulk of the money to Homix during the six months of bank records “have two

things in common – Transnet money and the name ‘Gupta’ or ‘Essa’ somewhere in their stories”.

The companies named were Neotel, Cutting Edge Commerce, Sechaba Computer Services, Regiments Capital and Burlington Strategy Advisors.

According to amaBhungane, the Gupta family chose to answer its questions through their part-owned ANN7 TV station. In a statement read out on air, the family called the allegations “historical, f lawed inferences” and accused amaBhungane of being an “unofficial judiciary in the court of public opinion”.

The team added that a spokesperson for Transnet

had not replied to all its questions but had said contracts it had awarded “followed our stringent governance requirements”.

He also told amaBhungane that Neotel had formally advised Transnet that its investigation “revealed no wrongdoing or corruption by any Transnet executive. There is therefore no basis for suggesting impropriety or breach of our governance procedures by the company or any individual…”

Whatever, this report definitely added more muscle and hard evidence to the ever-growing accusations of “state capture”. And it involved at least three state-owned members of SA’s freight industry.

Hard-hitting report fingers Guptas in Transnet kickbacks

“Fasten your seatbelts, it’s going to be a bumpy ride.”

That was the message from political commentator Justice Malala when he addressed a business breakfast on the state of the nation hosted by Deloitte in Johannesburg recently.

“The ANC is more divided than it has ever been in its 104-year history,” he said.

“For 22 years it has been at the heart and centre of our political lives. When the ANC is in pain all of us will feel it.

“The two factions – those rallying around Zuma and those rallying around Cyril Ramaphosa and Pravin Gordhan – are so deeply divided that we will see state institutions like the Hawks and

NPA being used in this battle inside this ANC.”

And this is what is driving the turbulence which Malala expects to continue until next December when the party conference is scheduled.

“We will see another Nenegate and some other traumatic events because this battle is not done.”

But the good thing is that we haven’t wasted a crisis and

several positives have emerged from the turbulence.

Chief among these is the CEO initiative which has seen

a group of CEOs representing the biggest businesses in the country creating a new R1.5-billion small and medium enterprise (SME) fund to help drive economic growth.

The fund was established to address the lack

of equity funding for start-ups and has the support of nearly three quarters of the JSE’s top

40 companies and other listed and non-listed private sector businesses.

“For the first time business, labour and government have pulled together,” said Malala. The question now is whether intentions are turned into action.

“In the 22 years of our democracy we have spoken about collaboration between these three entities,” he said. This is the first sign of progress in this direction.

Also not to be taken for granted is the fact that strong independent institutions have stood up to all kinds of pressure. “The ‘Pay back the money’ campaign showed that no one is above the law

and the August 3 elections were free and fair. Some introspection is however necessary from the Hawks and the NPA.”

That said, what has been dubbed the “poisoned climate of factional contestation” poses the biggest risk for the future – and if there is no solution to the ANC divisions, the organisation could implode and split. “And that would be a problem – which ANC would remain in power and which ANC would walk away?

“Both factions would want to stay in the ANC because without the brand there is nothing to take home.”– Joy Orlek

Brace yourself for a bumpy ride

We will see another Nenegate and some other traumatic events because this battle is not done.– Justice Malala

“

FRIDAY November 11 2016 | 7

The SA cruise market – which marked its official start with the arrival of the MSC Sinfonia in Durban last Tuesday – may be a good earner for the SA tourism economy, but not yet for the actual Port of Durban.

Port of Durban manager Moshe Motlohi said that the MSC Sinfonia was one of 14 luxury cruise liners and 20 other passenger ships that would call at six of the country’s ports this season – these include the Cunard Lines’ luxury giants, Queen Mary 2 and Queen Elizabeth, and Compagnie du Ponant’s one-year-old newbuild, Le Lyrial.

Each of the foreign passengers alighting from these, and an estimated 80% do so, spend an average of US$100 (over R1 350) a day ashore, according to KZN MEC for economic

development, tourism and environmental affairs, Sihle Zikalala. Tourism KZN reckons that both passengers and crew spend an average of R1-R2 million per day per cruise ship port-of-call. For

provisioning they tend to spend R3m-R5m per port on supplies and its transport to the vessels – and that also applies to the MSC ships.

Motlohi added that the Durban cruise market had

grown from 81 800 passengers 10 years ago to nearly 145 000 last season. But the majority of these are local passengers enjoying MSC cruises, and the bulk of their spend would be in the foreign ports visited. Nonetheless, those not residents of Durban or nearby centres could still have possible accommodation, food, transport and entertainment

costs before and after boarding the cruise liners.

And, along with the foreign passengers from other cruise ships calling in Durban, the estimated value to the province is over R200 million per cruise season.

Zikalala sees an exciting future in the Durban cruise market. He said that the rapidly growing global cruise tourism sector held “an ace” to propel SA’s economic development, despite tough economic times, and he expected passenger arrivals at the Port of Durban to hit the one million mark by 2025.

However, the port itself – from passenger and baggage dues, berthing charges and other ship’s dues – makes a mere R15m-R20m per season, according to Motlohi. However, he told FTW, Transnet saw this as an emerging market with great future prospects, and its income from cruises one that would grow significantly in coming years.– Alan Peat

Cruise market a poor earner for TPT – for now

LAST WEEK’S TOP STORIES ON

Major forwarder has better profit from lower turnoverThe Swiss forwarding multi-national Panalpina recorded a 1.2% profit increase to the equivalent of over R1.3 billion for the first nine months of the year.

Rand rallies after Gordhan charges droppedThe rand rallied to below R13.60 to the US$ in one of the first positive outcomes of the announcement by the National Prosecuting Authority (NPA)  that all fraud charges against the Minister of Finance, Pravin Gordhan, had been dropped.

‘SA must wake up and smell the roses’There is “exciting stuff” happening in the trade and logistics sector of

the Southern African Development Community (SADC) region but South Africa is not developing at the same pace as its neighbours, and unless it ups its competitiveness and collaborates it will be left behind.

What next for the rand?The month of October 2016 will not go down as one that South Africans will remember fondly or be very proud of, says James Paynter, head analyst at specialist forex solutions company, Dynamic Outcomes.

SA’s escalating logistics costsTransport costs continue to be the greatest contributor to South Africa’s growing logistics costs, according to the latest Logistics Barometer research report .

Transnet sees this as an emerging market with great future prospects.– Moshe Motlohi

“

The R300-billion Aerotropolis planned for Johannesburg’s OR Tambo International Airport (Ortia) may still be an unfulfilled dream, but it is a vital project if this country’s aviation industry is to cater for future volumes of traffic, according to a major player in the air cargo industry.

It is planned as a business hub focused on the development of industries. These will range from fast-cycle logistics and aviation-related industries to advanced manufacturing and professional services. Other proposed developments for the aerotropolis include offices, hotels, conference facilities, retail stores, multimodal

transport facilities and high-density residential developments.

“It’s important from a strategic perspective,” said Garry Marshall, MD of Bidair Cargo. “Without it we’re likely to have serious congestion at the airport. So these long-term plans need to be put into place.”

This, however, is debated by another senior executive of a forwarding major.

“We already have 20 000 sqm of airfreight premises at Ortia, and it’s nowhere near full at the moment.”

So, he asked, where will all the volume come from?

“You can’t build a massive infrastructure then go and

look for cargo. You can’t justify it unless you can see where the cargo volumes are coming from.”

And, he contended, the interest within the airfreight industry was “not massive”.

But, nevertheless, the project is under way. According to Aerotropolis project manager, Jack van der Merwe, the feasibility study has been completed.

He added that the project team was waiting for Mzwandile Masina, the new mayor of Ekurhuleni, to find his feet. “But we are ready to set up an implementation office….(and) we hope to start work in the next six months.”– Alan Peat

Ortia aerotropolis project gets ready for take-off

Farmers in the Breedekloof Wine Valley are continuing to assess the damage to crops after an unexpected but widespread night of black frost in October.

According to Vinpro viticulture expert Leon Dippenaar, the full extent of the damage is yet to be determined. “It is very difficult to estimate the number of tonnes lost because of the frost damage,” he told FTW. “It is certainly not 50% overall as was initially reported although there are some producers who could expect a 50% reduction.”

Black frost, strictly speaking not frost at all, happens when the

temperature falls below zero but the humidity is too low for frost to form. With the air too dry to form visible frost that protects the plants, plant tissues freeze and dry and turn black.

Some farmers said the black frost experienced in October was the worst they had seen in more than 20 years.

Rough estimates are now in the region of 20 000-25 000 tonnes lost in the Breedekloof and Worcester areas combined.

Dippenaar said he did not foresee the frost impacting on exports dramatically as there was sufficient carry-over stock still available.– Liesl Venter

Impact of black frost yet to be determined

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

FTW4707

ABJ - AbidjanABU - Abu DhabiANT - Antwerp, Belgium BAR - BarcelonaBRH - B’HavenCAS - CasablancaCON - ConakryDAK - Dakar DAM - Damman, Saudi ArabiaDAR - Dar Es SalaamDBN - Durban DES - Dar es Salaam DOH - Doha, QatarELS - East London, SAGUN - Gunsan, KoreaHAM - Hambantota, Sri LankaHAR - Le Harve, France HUA - Huangpu, ChinaIMM - ImminghamJEB - Jebel Ali JED - Jeddah, Saudi ArabiaJPN - Japan

KIS - Kisarazu, Japan KOB - Kobe, JapanKOR - KoreaKUW - KuwaitKWA - Kwanngyang, KoreaLAS - Las Palmas LAG - Lagos LIB - Libreville LOB - Lobito, Angola LUA - Luanda MAP - Maputo MAS - MasanMEL - Melbourne, Australia MDV - Montevideo MOM - Mombasa NAG - Nagoya PDG - Pointe des GaletsPE - Port Elizabeth, SA PKG - Port Kelang POI - Pointe Noire, CongoPOR - PortugalPYU - Pyaungtaek, Korea

QNG - QingdaoREC - Recife, BrazilRIO - Rio De Janeiro, BrazilROT - Rotterdam SAL - Salvadore, BrazilSAN - SantosSAV - Savannah, GA SHA - Shanghai China SNR - Sheerness, UKSIN - Singapore SOH - Sohar, OmanSOU - Southhammpton, UK TAM - Tamatave TEA - Tema, GhanaTIL - Tilbury, UK ULS - Ulsan, KoreaVIT - Vitoria, BrazilWAL - Wallmamn, SwedenWVS - Walvis Bay, Namibia YOK - Yokohama XIN - Xingang, ChinaZAR - Zarate

EUKOR - FAR EAST / AFRICA / EUROPEVESSEL VOY MOM DAR DBN TEM ABJ CAS POR ROT BRH ANTMORNING CHERRY 032 24/11 25/11 tba 07/12 tba 14/12 15/12 19/12 20/12 22/12

VESSEL VOY JPN SHA SIN DBN SAN MDV ZAR VIT DAK BRHMORNING CINDY 048 07/11 17/11 23/11 05/12 23/12 16/12 18/12 25/12 09/12 10/12

EUKOR - FAR EAST / SOUTH AMERICA / EUROPE

EUKOR - EUROPE / SOUTH AFRICA / EAST AFRICA VESSEL VOY BRH ANT IMM TIL PE DAR MOM TAM SIN PYUMORNING CALYPSO 037 sld sld sld sld 21/11 29/11 01/12 26/11 12/12 18/12MORNING CELINE 066 26/11 24/11 22/11 27/11 14/12 21/12 21/12 26/12 04/01 11/01

8 | FRIDAY November 11 2016

Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov

Figures supplied by

Tel: +27 (0) 21 551 1888 Email: enquiries@cockett.co.za

Cap

e To

wn

$ Pe

r Met

ric T

on

760 740 720700680660640620600580560540520500480460440420400380360340320300280260240220200180

BUNKER WATCH (FUEL PRICES)

$282This week

$305This week

$292Last week

$321Last week

Dur

ban

Connect with us and we’ll connect you with ...Angola • Mozambique Malawi • Zambia • Zimbabwe

new offices, new warehouse, new directionDoor to door into Africa

FTW7808

ProcurementProject CargoHazardous CargoFresh and Frozen Produce

South Africa T +27 11 387 8880/1 C +27 76 294 8988 southafrica@transitex.co.za

Fluent in English and Portuguese

Adele Mackenzie

The National Association of Automobile Manufacturers of South Africa (Naamsa) does not believe that there is any intention to reduce current incentives for vehicle manufacturers, despite recent fears expressed by global manufacturers invested in South Africa.

“On the contrary, the Department of Trade and Industry (dti) has confirmed its commitment to support the SA automotive industry in expanding its global footprint to levels approximating 1% of global new vehicle production from the 2015 level of 0.68% of global vehicle output,” said Nico Vermeulen, a director of Naamsa.

South Africa produced 609 500 vehicles in 2015 – up 9% from a year earlier, according to Vermeulen. He was reacting to a statement by Volkswagen South Africa MD, Thomas Schäfer,

who pointed to “recent discussions” with government officials who were reportedly exploring the option of diverting resources from the Automotive Production and Development Programme (APDP) to other projects.

According to Schäfer, only about 0.6% of the world’s automotive production takes place locally. “There are many

challenges, including high labour and logistics costs and the fact that South Africa is located further away from many export markets in comparison to other emerging markets that are focused on automotive production. Without the APDP, we are not cost-competitive.

“If the incentives went away, it would be the

immediate end of the motor industry in South Africa,” Schäfer noted, saying many global players would exit the country.

The announcement by Minister of Finance, Pravin Gordhan, during his mid-term budget statement late last month of a review of government incentives – to be completed by October next year – further compounded fears.

“Given increased pressures on the fiscus, these incentives, including direct transfers, tax and tariff rebates, and concessional financing, are being reviewed,” Gordhan said in the statement but this was “nothing extraordinary”, according to Vermeulen.

National Treasury periodically undertakes reviews to determine whether the incentives provided are consistent with official performance expectations and targets for different sectors.

“The review is intended to assess performance, determine value for money, and analyse how the system as a whole supports the economy and job creation,” he pointed out.

The dti had not responded to calls for comment by the time of going to print but Vermeulen pointed out that it was currently in consultation with industry stakeholders – including vehicle manufacturers, importers and distributors, the component manufacturing industry and the trade unions – on its 2020-2035 automotive developmental policy framework.

Earlier this year, Minister of Trade and Industry Dr Rob Davies affirmed his department’s commitment to increasing sector-specific incentives, including the automotive industry, highlighting the success of the APDP in driving jobs and export growth.

Concerns allayed over reduction in auto incentives

terminal in Walvis Bay and the opening up of a rail link between the upgraded port of Lobito in Angola and the Copperbelt.

The development of the oil and gas industry in Mozambique is a significant opportunity for South African companies, says Bonnett, but “increasingly a presence will be needed in key markets."

The time to act is now, the speakers warned.

“There is an increasing number of Turkish, Moroccan, Brazilian, Pakistani, Kenyan, Nigerian, Egyptian and other companies investing in and exporting to Sub-Saharan Africa in all sectors,” says Bonnett.

“We see it in our annual visits – the hotels and offices are filled with bright young people from traditional African trading partners such as Portugal, Italy, France and the United Kingdom

who have moved to Africa in search of opportunities that are not offered at home,” says Richardson.

The FTW Insight Southern African Corridors report outlines the investment in the corridors, and the potential impact the changing logistics landscape will have on shippers, cargo owners and the logistics industry overall.

It is available from Anton Marsh (antonm@nowmedia.co.za).

An imported vehicle arrives at the roll-on roll-off terminal at the port of Durban. Photo: Transnet Port Terminals

‘Durban not the only game in town’From page 1