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Newsflash 456 of 19 October 2007 | |||
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MEGA PROJECTS ON THE MAPUTO CORRIDOR HIGHLIGHTED AT MCLI MAPUTO CORRIDOR UPDATE EVENT NELSPRUIT – 18 OCTOBER 2007 | |||
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Dear MCLI Readers | |||
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MCLI Co-chair Antonio Matos, HE Fernando Fazenda, Road Panelists, George Mabuza – C-BRTA, Paulo Fumane High Commissioner of the Republic of Mozambique CTA, Gavin Kelly – RFA, Prasanth Mohan – DOT, Hannes and MCLI CEO, Brenda Horne Van Wyk - TRAC
The Maputo Corridor Logistics Initiative’s Corridor Update event held yesterday in Nelspruit, drew over 230 stakeholders from the freight and logistics sector who were updated on two mega projects on the Maputo Corridor, as well as significant investment in the infrastructure on the Corridor. These developments underscore the tremendous growth in trade and movement of goods between the two countries and the growth in capacity of the Port of Maputo and infrastructure along the Corridor to handle increasing traffic.
In his welcoming address, Mozambican High Commissioner to South Africa, Fernando Fazenda, alluded to the strength represented in the diversity of stakeholders on the Corridor. He pointed out the economic benefits to the region as a result of the progress made on the corridor, which, despite the remaining challenges, was evidenced by the investments being made in mega projects, such as the Petroline Petrol Pipeline Project and the Maputo Corridor Water Scheme, and in other infrastructure along the corridor.
Petroline Holding’s Ian Barnard outlined the objectives of their R4billion project on the Corridor. “The project is primarily to supply inland South Africa with competitively priced imported petroleum products via a 440km, 16 inch pipeline from Matola in Maputo to Kendal on the Mpumalanga Highveld, and we are currently in the EIA phase of the project.” The availability of petroleum products via the pipeline would potentially reduce inland fuel costs.
Pieter Colyn of Ecorisk SA pointed to the growing scarcity of water in South Africa and the impact of this on the economy, particularly in areas where the demand for water was increasing and where current allocations were being traded between the various sectors. The Maputo Corridor Water Scheme, a R4,8billion project, aims to build a desalination plant in Maputo and transfer water via a 1,6m wide pipeline from Maputo to Nelspruit to supplement the supply of industrial, agricultural, household and mining water in Mpumalanga. Colyn is upbeat about this undertaking. “We are in the pre-feasibility phase at present, but are looking to have a full feasibility study completed between June 2008 and June 2009, with a construction period of 2 years and delivery by 2012.”
In his keynote address to the meeting, General Manager of Grindrod, Ronnie Holtshausen, pointed to the growing trend towards transshipment and the positive growth implications for Maputo. “It (Maputo) will play a significant role to ensure that Mpumalanga and Gauteng cargo reaches their market destinations at the lowest possible cost.”
The Port update referred to the dredging programme boding well for the Port’s ability to handle bigger vessels, with 4000TEU ships into the port in the near future and the container terminal at the Port reporting a 25% increase in total volumes over 2006 figures. Construction of the car terminal will be completed at the end of November, with capacity for 100,000 vehicles. Matola Coal Terminal Managing Director, John Muller emphasised that the ability of rail to deliver product was the key issue affecting competitiveness and growth at the terminal, and was optimistic that rail would have positive growth in 2008.
This was confirmed by CFM and Transnet Freight Rail representatives. Despite only 71% of the target set at the February Rail Launch event being achieved, growth is continuous in virtually all sectors, with encouraging growth in container traffic to the port. A major factor in moving toward the target of 9 million tons by 2009, is the full rehabilitation of the railway line from Ressano Garcia to Maputo which is to be completed by December 2007. This will enable heavier payloads and longer trains which will facilitate increased rail traffic.
The competition between road and rail was evident during the update on the road, with much of the focus being on overload control and the implementation of the Road Transport Management System that encourages operators to preserve road infrastructure, increase road safety and productivity. The Road Freight Association’s Gavin Kelly summed up the challenges on the Corridor, highlighting high traffic volumes and the delays at the border post, alongside the opportunities created by a high quality, well-maintained road network and the shorter distance from Gauteng to the export/import point of the Port of Maputo. During this session, Mozambican transporters also highlighted the need for greater transparency and access to communication and opportunities on the corridor.
On a question directed to TRAC on the high costs of toll fees on the N4, TRAC has since indicated that the road user charges must be seen in the context of the N4 being the only fully privatised road concession in South Africa. In addition, the costing of tariffs was based on the construction, rehabilitation, upgrade and expansion required on this specific route. As a result, a blanket comparison with other roads does not apply in this case.
Columbus Stainless and Xstrata presented case studies of their experience of the benefits and frustrations of using the Maputo Corridor. Both companies independently emphasised the border post and the lack of major shipping lines calling at the port as major frustrations on the Corridor; an issue described by many of the speakers during the day as a “chicken and egg” situation, but which is seeing gradual improvement.
Dr Danilo Nala of the Mozambican Revenue Authority outlined the progress on the one-stop border post which will be in operation during 2009 and outlined the complexities of the legal processes governing each of the agencies involved at the border post. This process is well underway, while the tender for the design of the infrastructure is to be awarded early in the new year. All speakers during this session emphasised the need for 24-hour operation of the border post, and Dr Nala confirmed that this was a matter of timing and confirmed the definite commitment of both countries to 24 hour operation of the border post.
The closing session looked at the progress made on the multilateral institutional framework for all three corridor countries of Mozambique, Swaziland and South Africa, flowing out of a SADC imperative to move towards greater regional integration and economic growth with the objective of lowering transport costs, improving competitiveness and reducing poverty. It also summarised the activities of the Mpumalanga Freight Logistics Forum during the past year of its operation.
All presentations made during the event will be posted to the MCLI website on Monday the 22nd of October.
MCLI would like to thank the Development Bank of Southern Africa for its anchor sponsorship of the event, and its continued contribution to sustainable development and economic growth in the region. Our sincere thanks also to Grindrod, Port Maputo, MIPS, Engen, Trade and Investment Limpopo, Mpumalanga Economic Growth Agency, TRAC, MoCargo, the Cross-Border Road Transport Agency, DDI, Kaya Kweru Resort, CFM, SPAR Lowveld and the Mpumalanga Department of Roads and Transport for their sponsorship.
Our thanks too for the fantastic support of our stakeholders at this event, without which MCLI would not be able to continue its tireless efforts to ensure that the Maputo Corridor becomes the first choice for the region’s stakeholders. | |||
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Best Regards Brenda Horne CEO MAPUTO CORRIDOR LOGISTICS INITIATIVE Incorporated under sect 21- 2004/007466/08 mailto:brenda.horne@mcli.co.za Tel: +27 (0)13 755 6025 Fax: +27 (0)13 752 5453 Working together to make the Maputo Corridor First choice for the regions importers & exporters alike.
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