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FreIGHT & TrAdING WeeKLYFebruary 2011

one-stop bordersThe ingredients for success

Beitbridge conundrumWhen politics holds up trade

Revolutionary export innovationNazlie dickson – building bricks and hope

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www.ftwonline.co.zaCONTENTS

Cover: Nazlie Dickson, Hydraform – page 2.Photo: Shannon Hill

Shipper profileSelling brick-making machines and hope for Africa’s communities 2

Power panelOne-stop borders – a workable solution? ......................................... 6

LogisticsFines for non-legitimate offences a problem .................................. 12Inconsistency in applying penalties a major issue .......................... 12Logistics company sets its sights on DRC and Angola ................... 14Pioneer muscles into cross border market ...................................... 16New tracking technology expedites sea to rail logistics ................. 16BP sets up Beitbridge office ............................................................ 18New IT system enhances tracking info ........................................... 20Customs modernisation speeds up clearance times ........................ 20Border delays increase costs ........................................................... 22Power cuts hamper efficiency ......................................................... 22TKC looks into rail capacity upgrade ............................................. 24

General newsOne-stop border not the only priority for Beitbridge ........................ 4New Kazangula bridge scheduled for 2015 ...................................... 4Chirundu teaches vital lessons for future OSBPs ............................. 8Industry needs to stem culture of slow payment ............................... 8Trade held up by politics at Beitbridge ........................................... 10Brics benefits will flow into Africa ................................................. 10

In the face of ongoing congestion at key borders, the campaign for One Stop Border Posts and 24-hour operations continues.Shippers and service providers provide their perspectives.

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2 Cross Border February 2011

EXPORTER PROFILE

By Liesl Venter

Hydraform don’t just cross borders, they infiltrate communities and create hope in places where there is sometimes very little

else.From Bujumbura to Burkina Faso their

achievements stand proud and it is hard to comprehend that the vision for one of South Africa’s top medium exporters was born in a garage in Sunward Park in Boksburg more than 20 years ago.

It would be too simplistic to describe the company as manufacturers and exporters of unique brick-making machines. In Zambia an orphanage is finally self sustaining after buying one of Hydraform’s block-making machines – not only do the children now have homes, but they use the machine to make bricks that they sell for an income. In Tanzania the Malaika children’s village is a safe haven to children who have been left orphaned by HIV/Aids. Built with Hydraform blocks the village and its adjoining school is home to more than 300 children. In Northern Uganda a community – rural and poor – finally has doors it can close against the elements, keeping its children safe and warm.

There is no doubt that when it comes to housing projects, the Hydraform building system takes into account the three pivotal factors that ensure success – cost effectiveness, community upliftment and sustainability.

“The founders of the company, Jochen Kofahl and Robert Plattner, were not just creating a business, they had a vision of creating an alternative building system,” says Hydraform marketing manager Nazlie Dickson. “They tell the story of how it all started in a garage in Boksburg where they spent hours researching and developing their first brick-making machine.”

Today Hydraform technology has been used all over the world with over 3000 Hydraform block machines running on five continents.

The bricks are fire-resistant, durable and are thermally, acoustically and structurally beneficial for housing.

There is a range of machines that can produce between 1500 and 3000 building blocks a day that are interlocking. Mortar is only used in the foundation phase of building and below the roof structure, but once it gets to ground level blocks are literally just stacked up to create structures.

“The benefits are endless from its cost efficiency to its structural soundness,” says

Dickson. “The system is really unique in that a Hydraform Interlocking building block is produced from soil found on or near the building site and mixed with 5-10% cement. Very little water is used for block-making and no burning or firing of blocks is required.

Eco-friendly and not needing skilled labour, it is a system that has been embraced by a diversity of customers.

“Obviously governments and non-governmental organisations are some of our big clients as the benefits are huge in that the machine is very mobile, diesel driven and easy to use.”

But it is also sought after by entrepreneurs wanting to start their own block yard or construction company.

The vision has never really changed from research and development and the company, originally named after its product – the hydraulic formation of bricks or blocks – has expanded to include a vibraform range of machines which make standard concrete blocks and pavers. Hydraform also offers a range of entry level roof tile machines and more recently has stepped into the solar lighting industry.”

There are three elements that are crucial for good exporting, she says. While most of the machines destined for southern Africa are delivered by road, East and West Africa is serviced by sea.

“Strategically and logistically it has made

sense to establish our factory in Durban as we use the port to import certain components and to export our finished products. Sea remains the most cost-effective and safe way of moving cargo although South Africa is still very isolated in that only a limited number of vessels are calling between South Africa and other African ports.”

Dickson believes trade in Africa could greatly benefit if it was streamlined and allowed to flow more easily. “Monopolies around routes make the end product more expensive, while we also have systems in place that are not always accommodating for fast and efficient exports. VAT restrictions are cumbersome to our clients and often the bureaucracy around the processing of exports, like the documentation that is needed, can be difficult to deal with. Then there are the import taxes on the clients’ end to take into consideration. Africa trading with Africa should be made easier to encourage more trade.”

Recently awarded the Gauteng Medium Exporter of the Year award as well as the winner of the Exporter into Africa Award, the company has managed to maintain export sales by not just providing a good product to its clients but also in developing skills through training programmes across the continent.

“For 2011 we see good opportunities and we hope that the rand/dollar exchange rate becomes a bit more conducive to benefit South African exporters,” says Dickson.

Selling brick-making machines and hope for Africa’s communitiesFrom Boksburg garage to world-class exporter

Nazlie Dickson with one of the brick-making machines ... ‘The founders were not just creating a business, they had a vision of creating an alternative building system.’

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By Liesl Venter

Plans to make Beitbridge a One Stop Border Post (OSBP) is one of the items on an action plan drawn up more than a year ago to streamline southern Africa’s busiest border posts.

According to Trade Mark Southern Africa the action plan, which cannot be implemented because South African and Zimbabwean authorities have not yet signed a Memorandum of Understanding, takes a

macro view of the problems that need to be addressed at the border post.

But in a progress report on Beitbridge it was found that even the delivery target, which was not dependent on the signing of the MOU, had been missed. This is despite a clearly documented work programme developed out of the action plan that sets out timelines, expected outputs and outcomes.

“Beitbridge continues to suffer from heavy congestion and inefficiencies that

not only adversely affect South Africa and Zimbabwe but all countries that rely on the Beitbridge border crossing including DR Congo, Zambia, Malawi and northern Mozambique,” reads a report on the border post.

According to experts, the development of aligned and streamlined border clearance procedures, legal provisions and administrative arrangements, along with the development of an integrated computer system, are all part of the action plan.

One-stop border not the only priority for Beitbridge

By Liesl Venter

After years of trucks, cargo and passengers having to cross the Zambezi river between Zambia and Botswana

by ferry, the building of a new multi-million rand bridge is being welcomed by all.

The $70 million bridge at Kazangula is set to aid both rail and road crossings with the costs being shared by Botswana and Zambia, who will share ownership of the bridge.

Additional investments will be made by Namibia, which has also realised the benefits that will no doubt increase trade to the Port of Walvis Bay.

According to a spokesman, the Botswana, Zambia and Namibia governments approved a feasibility study in June 2010. A proposal for a two-lane suspension bridge to transport road, rail and pedestrian traffic was drawn up and approved. The total length of the bridge will be 720m, 465m of which will cover the main portion of the river. An additional 3km of approach road, with border posts and tollgates on each side, will also be constructed.

The intention of the new bridge is to promote trade between Southern, Eastern and Central African countries. Currently the majority of freight transport between Southern Africa, Zambia and the DRC is taking place via the Chirundu/Victoria Falls route, which poses problems of steep escarpments and endless bottlenecks, which cause delays says Adrian Friend of Celtic Freight.

Cargo travelling via these routes either enters or exits South Africa through Beitbridge – a border post that constantly faces long queues, and a lot of Zimbabwean bureaucracy.

Currently only 30 trucks a day can cross with the ferry, a number that is set to dramatically increase with the new bridge.

The bridge is expected to be fully operational by 2015 and two new ferries have in the meantime been commissioned to assist in crossings in the interim.

“We are extremely excited about the new developments,” says Friend. “It will increase our already fast transit times into Zambia – the border formalities will become quicker,

and it will allow for faster turn around times of our fleet of over 100 vehicles in and out of Zambia.”

New Kazangula bridge by 2015

Adrian Friend … ‘Two new ferries been commissioned to assist in crossings in the interim.’

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POWER PANEL

Congestion, delays and bureaucratic red tape are all terms that can aptly describe Southern Africa’s busiest border posts.

“Inefficient border posts can deter and hold back regional trade, hinder foreign investment and create a negative environment for the regional countries from a business, passenger as well as tourism point of view,” says Horne-Ferreira. “Quite simply, the less time spent on border crossing formalities, the lower the cost of logistics and eventually the cost of doing business.”

An earnest campaigner for not only One Stop Border Posts (OSBP) but also 24-hour border post operations, Horne-Ferreira says it is important to come up with policies, processes and procedures that are simple and easy to use.

Creating a 24-hour border post or an OSBP requires buy-in from all stakeholders, and sadly, borders are just not a top priority for government, says Curtis.

“A 24-hour border posts requires more staff and therefore more housing. As borders are not always a priority, the request for the extra expenditure is not always seen in a positive light.”

But not all borders need to operate 24 hours a day. Experts say only those with

heavy goods vehicle traffic flow should qualify.

“Those that should be 24-hour and aren’t experience extra delays as a result,” says Curtis. “However moving to 24 hours from say 8 hours will not cut the transit time by two thirds. There aren’t clear statistics on this, but only a maximum of 30% can be expected.”

He says it is important not to rush into a 24-hour border post. “Beitbridge has shown that it is very difficult to make it work and not all of the stakeholders at the border comply with the 24 hours. For example, agents will only work on the clearing of trucks up to 10pm. Even Customs does very little work after this time. Only the release of trucks takes place in the wee hours,” says Curtis.

Ensuring successful border operations, be it for a 24-hour border post, an OSBP or both, needs all the stakeholders on board, says Curtis. “And decisions that are made must be sustainable.”

Horne-Ferreira says the Lebombo/Ressano Garcia border has in the past five years seen an estimated 100% increase in the flow of freight. “As the border does not operate 24 hours a day, the daily closure of the border leads to the accumulation of traffic overnight, which in turn results in border service providers having to staff at higher levels over morning peak hours to cope with the influx.”

With companies exporting and importing through this border claiming huge economic time loss due to the early morning congestion, there is no doubt that longer working hours at a border post can greatly benefit trade.

“It also impacts on road safety,” says Horne-Ferreira, “as there is ample evidence that the current closure of the border leads to drivers ‘racing’ to the border to make the

crossing on time. This results in increased speed and reckless driving and drivers not taking the necessary rest breaks.”

Improving the operational efficiency of border posts in Southern Africa is the first step towards ultimately seeing the free movement of goods and people within SADC like in the EU.

“The different streams of border traffic move at different paces and unless you separate them, you will find huge wastage across all users,” says Horne-Ferreira. “We will simply have to come up with out of the box solutions for the problems we are facing.”

This includes leaning much more on electronic systems and implementing state of the art technology.

“It is also crucial that the different countries start to trust each other and share electronic information rather than people being processed twice,” she says.

“I do believe though that with the necessary positive attitude, sufficient staffing levels and motivation, the public sector can cope with the changes needed to bring about 24-hour OSBPs. It is however a reform process from top to bottom.”

One-stop borders demand buy-in from all stakeholdersBarney Curtis and Brenda Horne-Ferreira offer their insights on one stop border posts and 24-hour border operations in Southern Africa.

Brenda Horne-Ferreira, CEO of the Maputo Corridor Logistics Initiative.

Barney Curtis, executive director of the Federation of East and Southern African Road Transport Associations.

‘The current closure of the border leads to drivers ‘racing’ to the border to make the crossing on time.’

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By Liesl Venter

Southern Africa’s only One Stop Border Post (OSBP) has in its first year of operation had its fair share of problems,

proving to be a steep learning curve for role-players and stakeholders.

According to Barney Curtis, executive director of the Federation of East and Southern African Road Transport Associations (Fesarta), the Chirundu OSBP has experienced many teething problems since becoming operational in December 2009.

Linking Zambia and Zimbabwe, the border post on the North-South corridor, one of the main trading routes in Africa, sees between 300 and 400 trucks crossing through it everyday.

“The process to convert Chirundu to an OSBP started about ten years ago,” says Curtis. “This border post was identified and earmarked as the pilot phase of the one stop border post

initiative in southern Africa.”But, he says, it has not been smooth sailing.

“Getting it up and running took time and the opening was postponed several times.”

Finding resources and budget to make the necessary infrastructural changes were all part of the challenge – needing political buy-in from both countries. But, says Curtis, since becoming operational there have been many problems that were never even envisaged.

“One of the critical issues has been that authorities from two different countries are now suddenly working in one office and have to work together. This has not been as easy as initially envisaged.”

In a progress report on the border post, Trademark Southern Africa states that the opening of Chirundu as an OSBP had been made more difficult than it should have been because it was not physically – in terms of building lay-outs and traffic plans –

designed as an OSBP.But according to Curtis, Chirundu has

despite the problems and challenges played a significant role as it has allowed everyone involved to learn valuable lessons that will come in handy with the opening of the next OSBP.

These lessons include the fact that it would be much more simple to operate an OSBP if it was designed as one from the start, that political buy-in is a must and change management is crucial for employees.

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Chirundu teaches vital lessons for future OSBPs

By Liesl Venter

The transport industry, at best described as volatile, needs stricter credit control to ensure to ensure that customers pay on time and companies maintain cash flow and are able to remain profitable.

Sandra De Kock of Destrans says customers are paying later with more and more people now only paying accounts after 60 days instead of 30, as was

previously the norm.This trend of slow payments is definitely

one of the effects of the recession, Lombard Insurance’s Francis Kingston recently told FTW. “There seems to be a culture developing of slow payments and that impacts cash flows drastically,” he says.

De Kock says on all cross border work her company is planning to implement new measures that will see payments made 14 days after proof of delivery is received.

“This will have a huge impact on cash flow,” she says. “Not many people realise that the toll roads alone, for example, between Johannesburg and Maputo work out at an average of R900 one way.”

Add to that the new tolls going up in and around Gauteng and a further impact can be expected on transporters’ expenses.

“Transport rates will be affected which in turn will have an impact on the price of goods.”

Industry needs to stem culture of slow payment‘Toll roads to Maputo cost R900 one way’

Criteria for success:Design•Political buy-in•Change •management for employees

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By Liesl Venter

South Africa’s invitation to join the Bric group of countries (Brazil, Russia, India and China) will clearly boost Africa’s emerging economies.

Analysts have keenly been watching events unfold after China officially invited South Africa to join Bric in December 2011. Bric, which will now be renamed Brics, is set to benefit Africa significantly.

According to the International Marketing Council, the move will definitely boost trade and investment in South Africa and the continent because

South Africa is widely considered the gateway to Africa.

According to International Relations and Cooperation Minister Maite Nkoana-Mashabane, the rationale for South Africa’s approach was related to a matter of crucial importance to Brics member states, namely “the role of the emerging economies in advancing the restructuring of the global political, economic and financial architecture into one that is more equitable, balanced and rests on the important pillar of multilateralism”.

South Africa, which first approached Bric in 2009 about the possibility of

becoming a member, will be attending the third Brics Leaders’ Summit in China later this year.

According to Yang Jiechi, Chinese Minister of Foreign Affairs, South Africa’s accession will promote the development of Brics. “It will also enhance cooperation among emerging market economies,” he said in a statement.

The International Monetary Fund predicts that Brics will account for 61% of global growth in three years. “Sooner or later the economic importance of the Brics will have to be adequately taken into account,” the IMF said.

Brics benefits will flow into Africa

By Liesl Venter

Continued efforts to sensitise and educate people about the benefits of using the Walvis Bay Corridor for

exporting and importing are paying off, says Johny Smith, CEO of the Walvis Bay Corridor Group (WBCG).

Tasked with creating awareness around the corridor, the WBCG is a public private partnership initiative.

“One of our main challenges has been to change the outlook of potential importers and exporters to utilise the Walvis Bay Corridors through the Port of Walvis Bay,” says Smith. “We have hosted various information sessions and attended trade fairs in Angola, Botswana, Gauteng and Zambia including the international markets, emphasising what the Walvis Bay Corridors can offer to potential importers and exporters.”

And already there has been immense improvement. “Through sensitising people about the advantages the corridor has to offer such as shorter transit times, good safety and security as well as the increased capacity of the Walvis Bay port we are seeing more interest and activity along the corridor.”

Using one of the three corridors, which include the TransKalahari Corridor, the Walvis Bay – Ndola –

Lubumbashi Development Corridor and the TransCunene Corridor, makes sense, says Smith, especially when it comes to savings in transit time, which translate into savings on the whole supply chain.

“Currently, fast turnaround times that the Port of Walvis Bay has been achieving and the reduction in time spent at the borders contribute to efficient operations. Clearance time at the border points along the TKC is about 30 minutes,” he says. Much is also happening when it comes to improving operations, with ongoing effort and talks to improve transit times.

“In terms of developments along the TransKalahari Corridor (TKC) a pre-feasibility study is in progress, commissioned by the Botswana and Namibia governments, looking at increasing the rail capability,” says Smith. “The railway lines along the TransCunene Corridor extend from the Port of Walvis Bay to Ondangwa and the construction of the line from Ondangwa to Oshikango is in progress. “

According to Smith all role-players are on board to ensure the efficient movement of cargo, with the Namibian government having signed the necessary documents to create one stop border posts.

“One of the major projects to increase capacity is the port expansion project

which will commence during and increase port capacity to an additional 600,000 TEUs per annum,” he says.

TKC looks into rail capacity upgrade

Johny Smith … ‘Reduction in time spent at the borders contributes to efficient operations.’

Shippers tune into benefits of Walvis Bay Corridor

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By Liesl Venter

Educating exporters around the necessary cross border documentation and duties as well as the issues that can be experienced

during transportation of cargo is extremely important for efficient operations, says Sandra de Kock of Destrans.

Established in 2004, Destrans transports anything from timber to citrus products between South Africa and Mozambique and recently ventured into Botswana.

“Because shippers are often unaware of the time delays experienced at borders there is an expectation that cargo must be delivered the next day. It is crucial to educate the client on the reality of crossing borders so that the expectation is realistic.”

She says while customs clearance has improved tremendously in recent years they

still face delays at border posts while “fines” issued for non-legitimate offences continue to be a battle.

“Therefore we need to make sure our clients’ knowledge of the cross border documentation and duties is up to date so that we are in the right when we reach border posts. We insist on copies of cross border documentation prior to loading the vehicle to ensure all is in order.”

De Kock says before their vehicles leave South Africa they also immediately contact the clearing agent on the Mozambique side to ensure they are aware of the load that is destined for the country so that they start pushing for the duties from the client. That pre-empts any further delays.

She says the Mozambique route has continued to be extremely busy with especially Tete becoming a hub.

“There are concerns though around the

bridge and how long it is going to last with all the heavy duty traffic it is experiencing at present,” she says.

Tete, the capital of the Tete Province in Mozambique, is situated on the Zambezi River and is the site of a one-kilometer long suspension bridge.

By Liesl Venter

Transport doesn’t stop at 5pm, which is why 24-hour border posts make sense, says Francis Chitsiku of Falcongate Logistics.

“If there is a query or a problem it takes time to find a solution – but if the offices close, it all has to wait another day.”

Chitsiku says another problem that needs to be addressed is the lack of accountability of heavy-duty vehicle drivers.

“At Beitbridge in particular we are seeing

that drivers are smuggling goods across, but officials are not holding them responsible – sometimes even allowing the driver to abscond, but impounding the truck instead and heavily fining the company owner.”

Chitsiku believes a system should be put in place that will hold drivers responsible, as it will create a deterrent for smuggling rings.

“Looking at the operating systems at the border posts it is essential we create systems and laws that improve efficiency,” he says.

“The inconsistent rules and regulations, the penalties imposed that can vary from post to post, the various officials and their interpretation of the rules are all challenges faced on a daily basis.”

Add to that the lack of parking control within some customs areas, the congestion and the major delays, and crossing a border post can become a nightmare.

“Improving these conditions would go a long way to increasing the movement of freight.”

Inconsistency in applying penalties a major issue‘Drivers involved in smuggling should be held accountable’

Fines for non-legitimate offences a problem

Sandra de Kock ... ‘We insist on copies of cross border documentation prior to loading the vehicle.’

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By Alan Peat

With the Botswana-based Transport Holdings Limited (THL) now celebrating almost three decades in cross-border

transport with SA, the company is looking to expand its business activities further afield, according to business development manager, Johan Eloff.

“Our present focus,” he told FTW, “is on developing transport business to DRC and Angola, with a move further north in the sub-continent at a later date.”

“Also we are presently involved in the transportation of fuel and dry goods, consolidations, warehousing and distribution, but have the intention of expanding into other operations to create a large scale logistics solutions business.”

A promising event in cross-border transport, Eloff told FTW, has been the introduction of electronic data interchange (EDI) between shippers, transporters and customs – and the end

of the need to complete the manual F178 form.“This has improved things a great deal and

makes life with customs much easier,” he said. “It makes things so simple that it’s only a pleasure getting cargo cross-border now.”

Since 2006, THL has been a member of the Imperial Logistics Group – which Eloff claims to be the largest provider of logistic services in Southern Africa and the largest road transporter in sub-Saharan Africa.

The THL group, with MD Anthony Lee, is split into three operating units.

Transport Holdings (the company itself) provides bulk dry goods transport and consolidation to the mining and industrial sectors and is the holding company for the group in Botswana. Current clients include Debswana Diamond Company, BCL, Tati

and Morupule Colliery.THL owns 51% of Petrologistics (formerly

known as Truck Africa Botswana), which was renamed following the 100% acquisition of Fuelogic Botswana. Current clients include Shell and Engen.

THL owns 100% of Express Cartage – providing express cross border transportation and consolidation of dry goods to the retail, service and industrial sectors – with key customers being Bolux Milling, De Beers, general retail and wholesale customers and Botswana Meat Company.

Transport Holdings has its main operation in the former Truck Africa’s SA premises in Wadeville, Johannesburg. It also has an operation in BCL mine in Selebi Phikwe – a mining town located in the Central District of Botswana.

Express Cartage operates from three facilities – Wadeville and Gaborone and Francistown in Botswana.

Petrologistics has two operations - Francistown and Tlokweng.

THL sets it sights on DRC and Angola expansion

‘EDI makes life with Customs easier.’

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By James Hall

Cross border business will be more essential to Swaziland Railway’s profitability in 2011 than any time before.

“The transhipments we handle from South Africa keep us in business, and we are seeing more activity there,” Gideon Mahlalela, CEO of Swaziland Railways since 1993, told FTW.

Minerals are the railway’s chief cargo, and this past year has seen an upswing in the product passing through the kingdom.

“75% of our cargo is rock phosphate and magnetite shipped from Phalaborwa. We have hired extra locomotives to handle the pick-up in traffic,” reported Mahlalela.

If they are needed elsewhere by Transnet Freight Rail, SA locomotives are swopped for Swaziland Railway’s locomotives at Komatipoort for the 290 km journey to Richard’s Bay.

If as is expected Swaziland’s government opens up mineral excavation in the country in the year ahead, more domestic mineral cargo, particularly coal, will add to

the rail system’s traffic.At the company’s Inland

Container Depot or “dry port” at the Matsapha Industrial Estate, business has gradually picked up over the months from a slow start in 2010, just as new tracking technology was being employed to expedite sea to rail logistics.

“We are now monitoring cargo as it’s floating at sea, en route. Mid-2010 was when we started using the internet and computers linked to the vessels, and we talk to clients to make logistics plans once we determine (ship) arrival times,” Mahlalela said.

“We are in a solid position as a company. Our cash flow is okay. A few years ago I had to retrench half of our people. We had 700 employees at the time, and the move was controversial. But I knew I had to do it to stay competitive and make the company lean and efficient. I personally reported the plans to King Mswati and the Queen Mother, because job loss is a sensitive issue. But it had to be done and because of that we were able to weather the worst recession we have encountered,” Mahlalela said.

New tracking technology expedites sea to rail logistics

By Alan Peat

With its business on the up-and-up, four companies in the Pioneer Transport group have combined into one muscular

cross-border transport operation, according to Pioneer Transport MD, Deon Weelson.

PXL Freight & Logistics and Pioneer Transport were previously autonomous companies, but have now been meshed together to trade as Pioneer Transport Overborder, he told FTW.

This solo operation links up PXL, Pioneer Transport SA, Pioneer Transport Zimbabwe and Pioneer Transport Botswana – all working

under one management team. “This was effective from January 1,” Weelson

added. “In our quest to continually improve

our service offering, we are excited to be able to now offer a one-stop overborder transport and logistics solution across the Southern African Development Community (SADC) region which will present and open new opportunites to business partners.”

Pioneer Transport is also in process of introducing a further 45 vehicles into its fleet.

“These units,” Weelson said, “will be fully integrated into our fleet across the regions and ready for use by the end of February.”

Pioneer muscles into cross border market

Deon Weelson … 45 vehicles to join the fleet.

By Liesl Venter

The harmonisation of cross border freight within the Southern African Development Community (SADC) will not only boost inter-regional trade but also increase economic integration.

According to Francis Chitsiku, operations controller for Falcongate Logistics, harmonisation of cross border freight should also remain high on the agenda of both the public and private sectors in an effort to address the numerous challenges faced at border posts.

Frequently using borderposts such as Beitbridge, Nyamapanda, Mwanza, Dedza, Mchinji and Cassacatiza, Chitsiku has seen improvements over the past few years but several challenges remain.

“There are more truck stops at Nyamapanda for instance and this has definitely resulted in less road congestion, but we still have to address some major challenges such as the lack of communication infrastructure – especially further northwards where constant electricity blackouts result in offline systems.”

He says the harmonisation of cross border freight is therefore a major opportunity to improve operations between countries.

With corporates such as Spar, Woolworths and Pick n Pay expanding their operations in the SADC region, there is also much opportunity for the movement of goods.

“Falcongate Logistics is currently moving into a new refrigerated service into Malawi to extend our reach there.”

‘Customs harmonisation will enhance regional integration’

Francis Chitsiku … ‘Harmonisation is a major opportunity to improve operations between countries.’

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By Joy Orlek

Mitigating delays at the Beitbridge border post between South Africa and Zimbabwe is part and parcel of every operator’s strategy – and a strong motivation for the opening of an office at the border by BP Freight.

The company, which specialises in consolidations between South Africa and Zimbabwe, has seen a significant increase in volumes over the past year, according to director Peter Loram – and increased volumes translate into increased congestion.

“Setting up an office at Beitbridge should help us to speed up cargo movement and minimise delays,” he told FTW. The office opened last month (January).

Loram says transit times through the border range from two to four days.

“Trucks can sometimes sit in the queue for more than a day after customs clearing. Regular power cuts on the Zimbabwe side add pressure. “While they do have a generator, they cannot process entries.”

The actual customs clearance process is a lot more efficient since EDI was

introduced, says Loram, but it’s a question of volumes outpacing the resources.

“Beitbridge is the entry point not only for Zimbabwe but for Mozambique where there’s a lot of development, Malawi, Zambia and the DRC. As the region’s economy is growing, so are the volumes.”

The key is to eliminate problems before trucks reach the border.

“That means getting authorisation from the importer or clearing agent to ensure that all duties are in place in advance of arrival.”

By Liesl Venter

Growing its footprint in Africa is a definitive goal for Associated Marine in the next few months, says chief

operating officer Mike Brews.“The big influx of the Chinese markets

into Africa has increased imports to African countries, while exports from many countries, especially in the mining industry, have also increased.”

“There are still challenges that need to be addressed in Africa such as infrastructure and communications, but we are very positive about our outlook for the continent.”

Brews says with Durban remaining the biggest port it bodes well for South African businesses wanting to increase their African footprint.

But some countries continue to pose higher risk due to their individual profiles such as Zimbabwe where high rates of theft are being

recorded. “Somalia remains a no-go zone due to its political instability and also the issues around piracy, while Nigeria is also deemed to have a higher risk profile.”

But, says Brews, there are countries that are showing improvement such as Angola and

the DRC where a lot of work is going into improving their profiles. “Communication is key in all of this from an underwriting point of view – the more we know about the risk in a country, the better position we are in to underwrite,” says Brews.

BP sets up Beitbridge office

Trade growth opens opportunity for insurers

High rates of theft in Zimbabwe.

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FTW4601


FH Bertling has ushered in the new decade in style with the worldwide launch last month (January) of a new

in-house information technology system that adds efficiencies for the company and its customers.

“The system opens a file at the place of origin and the same file is passed on to each office throughout the routing of the cargo so that our clients can obtain tracking in real time and know exactly where their cargo is at any moment,” Bertling’s Pete Sands told FTW. “The software is specifically aimed at projects, enabling us to handle line item tracking and tracing for each project which is hugely beneficial.”

According to Sands, cross border volumes are on an upward trajectory. “It seems that the economies of the neighbouring countries are still in good order and the main thrust relies on imports from South Africa and transit cargo from the rest of the world.”

The majority of business is general cargo, says Sands, with project cargo to the DRC, Zambia and Mozambique in high demand.

And while border posts have been working reasonably well to ensure a swift flow of traffic, with only some minor delays at Musina/Beitbridge now and again,

pre-planning and error-free documentation before dispatch is the key to avoiding delays. “A good working relationship with our border agents and their relationship with the Customs department also facilitate a smooth flow of work,” he added.

With increased traffic flows and several

new projects on the cards for 2011, the company will expand its Johannesburg facilities with the opening of a new state of the art office in Pomona with a 10 000m2 warehouse.

Its African offices will also be seeking ISO9001 accreditation in 2011.

By Liesl Venter

The modernisation of South African Customs operations has gone a long way to improving clearance times and fast forwarding the movement of goods to neighbouring countries, says Warren Jayes, managing director of Leo Shipping.

“The introduction of the EDI system has helped speed up South African customs clearance times,” he told FTW.

The EDI system is all about improving and increasing trade by reducing document processing tasks and costs. It also no doubt improves the entire supply chain by

organising the flow of information from one end to the other.

“The new system that has been implemented that makes the Form F178 (an exchange control declaration) redundant should also have a positive impact as it will reduce exporters’ time spent preparing documentation.”

Leo Shipping, which together with its Zimbabwe partners Alro Shipping runs a fleet of trucks between Johannesburg, Zimbabwe, Zambia, Mozambique and the DRC, is well aware of the importance of efficient customs operations.

“Efficiency is about good planning and

understanding of customs systems on both sides of the border,” says Jayes. Leo Shipping also offers a consolidation service between Johannesburg and Zimbabwe with warehouses in Johannesburg and Harare.

“It is important to ensure that all necessary customs criteria are met prior to the movement of cargo,” says Jayes. “The biggest challenge that we have to overcome when it comes to moving cargo across borders is prompt customs clearances on both sides. The smooth facilitation of this process will avoid standing time that ultimately increases costs.”

Customs modernisation speeds up clearance times

New IT system enhances tracking info‘Pre-planning is key to avoiding delays’

All in a day’s work … Another Bertling abnormal load on its way.

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FTW4623

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By Liesl Venter

Keeping time when making deliveries across borders remains a major challenge for transporters thanks to

the significant delays experienced at border posts, says Ralston Smith of Tiger Africa.

A road transport and freight specialist, Tiger Africa runs a range of Superlink and low bed trucks delivering goods from South Africa to all parts of East and Central Africa.

According to Smith the use of trucks remains a faster and more reliable option when moving freight in Africa, but border post delays lead to increased costs.

“A borderless Africa would make operating a lot easier and facilitate the movement of goods while also being a lot more cost-efficient,” he says.

Frequently using borders such as Beitbridge, Chirundu, Kasumbalesa and Nakonde for its operations, Smith says there

are major opportunities in the cross border industry.

“South Africa is now recognised as the best conduit into Africa. This is perfect for the export business, but we must address the

challenge of border delays to streamline our operations and increase efficiency.”

Tiger Africa recently introduced a consolidation service into Swaziland, Lusaka and Harare.

By Joy Orlek

An upturn in business confidence has seen growing volumes of full truckloads moving into Africa – and growing volumes translate into increased border congestion.

“Importers are moving away from smaller shipments,” says Kingfisher Freight MD Alwyn Nel. “During the recession the opposite was evident with a trend to smaller shipments on a just in time basis – and as a consequence we developed our roadfreight express service.

“Now people are buying larger quantities to secure discounts and the result is more congestion and more queues at all the borders

we use – Beitbridge/Musina, Komatipoort and Groblersbrug.”

With Customs having gone EDI, presentation of entries is far slicker. “But you still have to take the documents with the passports and gate passes to Customs and stand in the queue. And you can’t move to the next border if there’s no space for those vehicles that are stuck in the queue,” says Nel.

Frequent power cuts have also had a major impact.

“When the systems come on line, goods are released out of sequence which creates further chaos.

“Add to that the volume of passenger traffic crossing the border and you have a

boiling pot of horrendous proportions.”And regardless of the interventions put in

place to mitigate delays, there will always be circumstances beyond the control of the transport operator.

“We ensure that all the paperwork is accurate, that trucks have permits and everything is loaded – but when it goes into the system it becomes part of the system, no matter how efficient you are.”

Despite the border post problems, for the year ahead Nel is upbeat.

“As business develops we will be increasing staff and strengthening relationships with our offices in neighbouring countries.”

Border delays increase costs

Power cuts hamper efficiency

Trucks are faster – but border delays impact efficiency.

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By Liesl Venter

Politics continues to hamper efforts to address the myriad problems that plague the

border post at Beitbridge.According to Barney Curtis,

executive director of the Federation of East and Southern African Road Transport Associations (Fesarta), neither South Africa nor Zimbabwe has come any closer to signing a Memorandum of Understanding that will allow an action plan, drawn up more than a year ago to address some of the problems experienced at the border post, to be implemented.

“Beitbridge is a major problem at present with congestion being one of the issues. And none of it will go away until we have the MOU signed.”

Identified by the Southern African Development Community

(SADC), the Common Market of East and Southern Africa (Comesa) and the East African Community (EAC) as the main border post to work on, congestion, bribery, infrastructure decay and all round chaos seem to be the order of the day.

It is said that Zimbabwe is not willing to sign the MOU due to internal politics while South Africa has not signed the document either as it is not considered a priority at present.

“In the meantime trade is being held up by politics,” says Curtis. “The cross-border delays are clearly increasing transport costs.”

And says Curtis, the delays have gone up measurably recently.

But waiting time is only one of the issues at Beitbridge. The failing infrastructure needs to be addressed sooner rather than later while corruption remains rife.

Trade held up by politics at Beitbridge

FTW4954

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