Newsflash 304 of 14 December 2006

Newsflash 304= of 14 December 2006

MCLI Monthly Newsletter Issue 3 - November & December 2006

Dear MCLI Reader

December 1= 4, 2006

= ;

Maputo Corridor = Logistics Initiative

Updates and Developments on the Maputo Corridor: November – Dec= ember 2006

On 8th November, the fi= rst meeting of the Mpumalanga Freight Logistics Forum’s Landside Work G= roup took place, with 40 stakeholders participating from the public and private sectors. The Landside Work Group focuses on constraints and developments = in road, rail, border and intermodal operations. Special mention needs to be made of the rail, as CFM has confirmed that they are into the final stage= s of rehabilitation on the Ressano Garcia line to Maputo= , and announced that 10 new locomotives will be brought in from India= in January 2007. The full minutes of the meeting can be found on MCLI’s website.

Together with the South African Broadcast Corporation, the MCLI has taken on the scanner issue at Port Maputo, in the hope of creating gre= ater awareness of the negative impacts these unprecedented charges are inflict= ing on the development of the Ma= puto Corridor. In 2005, the Government of Moza= mbique granted Kudumba Lda, a new company in Moz= ambique, the concession to install and manage a scanning machine at the Port of Maputo. While a scanner is internationally recognized and accepted as an adequate security measure, = the controversy lies in the fact that the cargo owners are being charged for = the scanning of both containers and bulk cargo, irrespective of whether it has been scanned or not, when no other Port in the world does so. The <= st1:country-region w:st=3D"on">US ha= s even expressed its concern over the justification of imposing such charges, si= nce they scan only a small percentage of containers which pass through their ports, and usually only those which they have been advised as high risk or that may contain contraband goods. Investments in scanning equipment shou= ld be recovered through duties charged for cargo which otherwise would not h= ave been paid.

Estimates suggest that = these charges will cost the private sector an accumulative amount of $6million = per annum, based on current port throughput levels. South African companies h= ave already reacted by considering transferring their cargo through South Afr= ican Ports, while planned investments at the Port have been put on hold and the marketing teams of various businesses on the Corridor have all expressed frustration at the recent, albeit understandable, hesitation of potential clients in rerouting their cargo through Maputo. The European donor countries,= IMF and the World Bank have all expressed their concerns to the Government of= Mozambique, and have stressed the fact t= hat future business and investment in Mozambique are being put in jeopardy.

MCLI has written to the Ministry concerned, and has taken the matter up with the World Bank, SSAT= P, SADC, NEPAD and numerous other stakeholder organizations. Members will be kept updated on all developments in this regard.

MCLI would like to congratulate Xstrata for winning both the Large Manufacturing Category and the Mpumalanga Provincial Government ABSA Bank Exporter of the Year award= s. Congratulations also to Mr Koos de la Rey, CEO of Dagama Avocado Oils, for winning the Small Manufacturing Category award; Mr Daan Delport, MD of Th= os Begbie & Company, for winning the Medium Manufacturing Category award; Miss Nelly Mashinini, MD of Linga Longa Guest House, for picking up the S= mall Tourism Category award; Miss Sherreen Hagelthorn, Director of Savanna Game Reserve, winner of Medium Tourism Category award; and Mr Mike Witnem, Director of Singita Lebombo, winner of the Large Tourism Category award.<= o:p>

The new DA 70 form came= into effect on 22nd November. To view it, please visit SARS’ website.

The Agriculture Investm= ent Conference took place in Bilene on 30th November, where MCLI also present= ed the Maputo Corridor, organized jointly b= y Mozambique’s Investment Promotion = Centre (CPI) and Trade and Investment Limpopo (TIL). CPI encouraged South African farmers to invest in the southern province of Gaza, with the Development Bank = of SA (DBSA) simultaneously pledging support to any farmer wishing to do so. The Director of CPI, Mr Mohamed Rafique, encouraged investors in Mozambique to follow the correct and legal procedures when setting up their business= es, or risk disappointment. He said that the CPI has trained personnel who can assist with any problems faced.

MOL is happy to announce that, following a successful trial run on 11th December, future direct ca= lls to Maputo can be expected, with direct coverage to key gateway ports including Port Louis<= /st1:City>, Singapore and Hong Kong. This is a breakthrough for the Corrido= r, and MCLI wishes to thank MOL for their commitment and pledge of support to the development of the region. For further info, please contact your local MOL office.

Trans African Concessio= ns (TRAC) are currently maintaining and upgrading the N4. Please note that t= he road works currently being undertaken between Machadodorp and Belfast will not= be complete before Christmas, therefore drivers are urged to factor time del= ays into their travels to avoid frustration.

From 7th December to 8th January 2007, the Lebombo/Ressano Garcia border hours will operate 24 hou= rs daily to accommodate the high traffic volumes of tourists. The weekends a= re expected to be particularly busy, so motorists are advised to consider traveling to Mozambique via Swaziland, throu= gh either the Jeppes Reef or Mananga border posts, crossing into Mozambique through the Lomahashe border post. The call centre number for any queries relating to border posts is: 0860 267337

The Cross Border Road Transport Agency (C-BRTA) has planned law enforcement operations at Kaapmuiden during the festive season, commencing at 06:00 on 14th Decembe= r on a 24-hour basis. Vehicles that will be targeted include: those conveying passengers for reward (mini-buses and buses); freight vehicles < 3,500= kg conveying passengers/goods for reward; and vehicles > 3,500kg.

Please go to MCLI’= ;s website to see the new immigration legislation as was received by the Associaçao Comercial e Industrial de Sofala, and which came into effect on 27th September.

www.mcli.co.za

= MAPUTO CORRIDOR = REVIVAL – AWAKENING A GIANT!

MCLI is exited to advis= e our readers that the Maputo Corridor Rail Launch, hosted by Spoornet and CFM will take place on the 1= 5th of February, 2007.

Interested parties are welcome to contact the MCLI secretariat for an invitation at <= b>barbara.mommen@mcli.co.za

For more information on= any of the above, or for queries relating to the MCLI itself, please contact:=

Brenda Horne, CEO &nbs= p;

Maputo Corridor Logistics Initiative &nb= sp;

Tel: +27 82 802 2338 (SA) or +258 84 397 4180 (Moz) &n= bsp;

Email: brenda.horne@mcli.co.z= a

Website: = www.mcli.co.za<= /p>

Best Regards<= o:p>

Brenda Horne<= o:p>

CEO

MAPUTO CORRIDOR LOGISTICS INITIATIVE

Incorporated under = sect 21- 2004/007466/08

mailto:brenda.horne@mcli.co.za<= /span>

Tel: +27 (0)13 755 6025

Fax: +27 (0)13 752 5453

htt= p://www.mcli.co.za

Working together to make the Maputo<= /st1:City> Corridor First choice for the regions importers & exporters alike.

DISC= LAIMER:

This e-mail and any attachments are confidential and are intended = for a specific addressee only. If you are not the intended recipient please notify us immediately and do not disclose, copy or distribute the contents hereof. Any opinions expressed in this message are those of the author an= d do not necessarily reflect the opinions of MCLI. We believe, but do not warr= ant, that this e-mail and any attachments are virus free. You must therefore t= ake full responsibility for virus checking. MCLI reserves the right to monitor all e-mail communications through its network.

To remove your name from o= ur mailing list, please click here<= /span>.

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Questions or comments? E-m= ail us at brenda.horne@mcli.co.za or call +27 13 755 6025.

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