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Ports, Transport and Logistics Sector News Round-Up (12 – 30 March 2018)

9 April 2018
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The pace of infrastructure and transport developments in Africa is rapid. Our Ports, Transport and Logistics (PTL) Sector Group draws on a network of multi-disciplinary experts across Africa in fields as diverse as project finance, construction and environmental law, to keep you in the know.

We are pleased to present Bowmans’ latest PTL news round-up and welcome any new readers. Our regular round-ups bring you a selection of PTL- related stories and keep you up to date regarding developments in the space across Africa. This edition includes news headlines and links to articles from a variety of sources, covering stories from Angola, Botswana, Cameroon, DRC, Djibouti, Ethiopia, Kenya, Mozambique, Namibia, Nigeria, Rwanda, Senegal, Somalia, Somaliland, South Africa, Sudan, Tanzania and Zambia.

Qatar ups the ante and sends seven ships to Port Sudan
Source: Africa Ports (29 March 2018)
Qatar’s Minister for Communications and Transport, Jasim Bin Saif Al Silaiti, said in the port of Suakin this week that seven ships will be arriving at Port Sudan from Qatar. Read the full story here.

Somalia appeals to the UN for action against a UAE military base in Somaliland
Source: Africa Ports (29 March 2018)
Fresh from its demands to Somaliland that it not go ahead with a concession awarded to the UAE-based DP World to operate the Port of Berbera, Somalia now wants the United Nations Security Council to take action against the construction of a United Arab Emirates military base in Somaliland.
Read the full article here.
This is part of a developing story. See below for more articles about the recent disputes that have arisen in the Horn of Africa.

Why Africa’s free trade area offers so much promise
Source: Africa Ports (29 March 2018) 
African leaders have just signed a framework establishing the African Continental Free Trade Area, the largest free trade agreement since the creation of the World Trade Organisation. Read the full article here.
See below for more articles about the Africa Continental Free Trade Area (AfCFTA).

CMA CGM in talks to develop and operate a container terminal at Djibouti
Souce: Africa Ports (28 March 2018)
French shipping group CMA CGM is reported to be in talks with the Djibouti Ports and Free Zone Authority with regards the building of a new USD 660 million container terminal at the Gulf of Aden port. Read the full article here.

Qatar to help develop historic Sudanese Port of Suakin
Source: Africa Ports (28 March 2018)
The government of Sudan is believed to be ready to sign an agreement with Qatar to jointly develop the historic port of Suakin, which lies 50km south of the more modern Port Sudan. Read the full article here.

South Africa keen to sign agreement establishing AfCFTA–Davies
Source: Africa Ports (28 March 2018)
South Africa is keen to sign the agreement establishing the African Continental Free Trade Area, Trade and Industry Minister Rob Davies said on Monday. Read the full article here.

Regular rail services begin on Angola’s Moçamedes Railway linking Namibe and Lubango
Source: Africa Ports (28 March 2018)
Regular rail services for both passenger and goods trains have commenced on the Moçamedes Railway linking the port of Namibe with the inland town of Lubango, a distance of some 246 kilometres. Read the full article here.

Global port operator wins concession for first deep sea port in the DRC
Source: FTW Online (28 March 2018)
Global port and terminal operator DP World has won a 30-year concession –  with the option of a further 20-year extension –  for the management and development of a greenfield multi-purpose port project at Banana, Democratic Republic of the Congo. Read the full article here.

Concern as Kenya’s SGR railway disrupts established logistics businesses
Source: Africa Ports (27 March 2018)
Logistics firms in Kenya are upset with Kenya’s new standard gauge railway (SGR) and government’s efforts at forcing cargo onto rail at the expense of established businesses who say they stand to lose millions of dollars. Read the full article here.

Port Sudan plans to privatise stevedore function is slammed
Source: Africa Ports (27 March 2018)
Radio Dabanga from Amsterdam reports that the Cargo Workers Union of Red Sea state in Sudan has renewed their objections to the Wali’s decision to privatise the stevedore function at Port Sudan. Read the full article here.

AfDB calls for construction of digital infrastructure in Africa
Source: FTW Online (27 March 2018)
President of the African Development Bank, Akinwumi Adesina, yesterday called for the establishment of high-technology industrial clusters in Africa with a particular focus on the factories, skills and jobs of the future. Read the full article here.

Grindrod says restructure is bearing fruit, but plans spin-off of shipping business
Source: Africa Ports (26 March 2018)
Grindrod says that its business restructure is progressing well and that this includes the planned spinoff of its shipping division on the Nasdaq, the closure of the rail assembly business and sale of the rail construction business. Read the full article here.

Tanzania’s National Shipping Agencies Corp (NASACO) restarts its engines
Source: Africa Ports (26 March 2018)
The formation of Tanzania’s Shipping Agencies Corporation (Tasac), which commenced operations last month following the enactment by parliament of the Shipping Agencies Act of 2017, essentially means the reappearance of the defunct National Shipping Agencies Corporation. Read the full article here

USD 25 Billion injection to facilitate intra-Africa trade
Source: FTW Online (26 March 2018)
Following the launch of the African Continental Free Trade Area in Rwanda last week, the African Export-Import Bank has agreed to disburse around USD 25 billion in support of intra-African trade during the next five years. Read the full article here.

South Africa: Transnet and South32 sign manganese-ore deal
Source: Business Day (23 March 2018)
Transnet and global mining conglomerate South32 have signed a manganese-ore bulk-shipping agreement worth ZAR 10.4 billion in revenue to the state-owned transport entity. Read the full article here.
 
Request for Expressions of Interest to operate Cameroon’s Kribi Port MPT
Source: Africa Ports (22 March 2018)
Cameroon’s Port Autonome de Kribi has launched a renewed call for Expressions of Interest to pre-qualify which companies are willing to operate the multi-purpose terminal at the Kribi deepwater port. Read the full article here.

Understanding the African Continental Free Trade Area signing – two alternate views
Source: Africa Ports (22 March 2018)
African countries yesterday placed their signatures to an agreement that will launch the African Continental Free Trade Area in Kigali, Rwanda. Read the full article here.

AU highlights importance of African free trade area
Source: Africa Ports (22 March 2018)
The African Union on Monday stressed the importance of the African Continental Free Trade Area in Kigali, the capital city of Rwanda. Read the full article here

Nigerian manufacturers caution against African free trade agreement
Source: Africa Ports (22 March 2018)
The Manufacturers Association of Nigeria says Nigeria must be cautious before rushing into a free trade agreement with other African countries. Read the full article here.

Ramaphosa says South Africa needs consultation before signing the African
free-trade deal
Source: FTW Online (22 March 2018)
South African President Cyril Ramaphosa on Wednesday said that his government needed more time to consult relevant stakeholders about the continental free trade area treaty before signing it. Read the full article here.

Moody’s says African trade deal could improve region’s credit profile
Source: FTW Online (22 March 2018 )
Moody’s Investor Services said the African Continental Free Trade Area could improve the region’s credit profile although obstacles such as Africa’s under-developed infrastructure, non-tariff barriers and finance constraints could also limit its potential benefits. Read the full article here.

Kenya: IMO Video Explains Global MTCC Network Initiative
Source: Port Technology (22 March 2018)
The International Maritime Organisation has launched a video outlining how the Global MTCC Network initiative is uniting technology centres – Maritime Technology Cooperation Centres – in targeted regions into a global network. Read the full article here.
 
South Africa: Construction of Coega customs area complete
Source: FTW Online (21 March 2018)
Construction of the new Customs Control Area in Zone 1 of the Coega Special Economic Zone has been completed and will become operational on 1 June 2018. Read the full article here.

Mozambique: Beira liquid petroleum gas terminal to become operational soon
Source: FTW Online (21 March 2018)
The Mozambican port of Beira’s liquid petroleum gas (LPG) terminal is expected to start operating in May this year according to project manager, Luís Mavie. Read the full article here. Also reported by Africa Ports here.

Somaliland: Berbera development dispute is instability risk
Source: Port Strategy (21 March 2018)
A dispute over plans to develop Somaliland’s Port of Berbera risks destabilising the Horn of Africa region, Somaliland’s foreign affairs minister has claimed. Read the full article here.

How an Ethiopia-backed port is changing power dynamics in the Horn of Africa

Source: Africa Ports (20 March 2018)
When Eritrea gained its independence from Ethiopia in 1993, Ethiopia became landlocked and therefore dependent on its neighbours – especially Djibouti – for access to international markets. Read the full article here.

Mozambique: MPDC to implement USD 64 million modernisation project for Port Maputo
Source: Africa Ports (20 March 2018)
A USD 64 million project to modernise and improve sections of the Port of Maputo and to increase cargo capacity by 1.5 million tons by December 2019 has commenced, according to the project manager of the Maputo Port Development Company. Read the full article here.
 
South Africa asked to explore Mozambique’s railway potential
Source: Africa Ports (20 March 2018)
Mozambique President Filipe Nyusi on Saturday invited South Africa to explore the country’s railway potential. The invitation came during the visit to Mozambique by South Africa’s President Cyril Ramaphosa. Read the full article here.

South Africa’s smallest commercial port set for further development
Source: FTW Online (20 March 2018)
The Port of Mossel Bay – South Africa’s smallest commercial port and an important contributor to the economy of the Garden Route and Southern Cape – is set for further development under Operation Phakisa. Read the full article here.
Also reported by Africa Ports here.

History in the making as African free trade agreement imminent
Source: FTW Online (19 March 2018)
Following nearly 40 years of negotiations and discussions, African leaders will meet in Kigali, Rwanda tomorrow (Tuesday) to sign the agreement that will launch the African Continental Free Trade Area (AfCFTA). Read the full article here.

Kenya: East African port receives EUR 1.46 billion windfall
Source: FTW Online (19 March 2018)
Kenya’s port of Mombasa has received funding of EUR 1.46 billion from the European Investment Bank to ease congestion in and around East Africa’s largest port. Read the full article here.

Now Somaliland denounces Somalia over Berbera Port, DP World & Ethiopia
Source: Africa Ports (19 March 2018)
The fallout over DP World and the Port of Berbera is widening. The dispute arose when the UAE port operator, which has a concession to operate and manage the port, decided to allocate a 19% share of the port to Ethiopia. Read the full article here.

Cameroon’s FLNG Hilli Episeyo goes into production
Source: Africa Ports (15 March 2018)
On Monday this week (12 March 2018) the world’s third liquefaction plant in the Gulf of Guinea after Nigeria LNG and Angola LNG, went into production off the coast of Cameroon. Nigeria and Angola however each have land-based operations. Read the full article here

Kenya: New Kisumu oil jetty on Lake Victoria opens for business
Source: Africa Ports (15 March 2018)
A new loading jetty has been completed at the Kenya Pipeline Company’s oil terminal at Kisumu on Lake Victoria. Read the full article here.

Kenya cargo owners tell govt, don’t force us to use SGR
Source: Africa Ports (15 March 2018)
Kenya Shippers Council (KSC), representing the majority of cargo owners importing or exporting through the port of Mombasa, says the government should not go ahead with plans to block the transporting of cargo by road.
Read the full article here.

Namibia: Peugeot and Opel to manufacture two models in Walvis Bay
Source: Africa Ports (14 March 2018)
Walvis Bay is to become Namibia’s auto hub centre with the news that Peugeot and Opel vehicles will be assembled in the port town. Read the full article here.

Mozambique transport minister insists that ore must go by rail
Source: Africa Ports (14 March 2018)
Mozambique Minister of Transport and Communications Carlos Mesquita has repeated his call for the speedy implementation of measures to move road freight to the rail system. Read the full article here.

Somalia enters DP World dispute – bans terminal operator from country
Source: Africa Ports (14 March 2018)
The dispute involving DP World which has been thrown out of Djibouti after its concession to operate the Doraleh container terminal was summarily cancelled, has been taken a step further with the Somali Parliament now banning DP World from operating anywhere in the country. Read the full article here.

Kazungula Bridge set to open corridor between Zambia and Botswana
Source: FTW Online (14 March 2018)
The Kazungula Bridge Project is set to open up the transport corridor between Zambia and Botswana, a move which will see Zimbabwe lose out on transit revenue. The project is being carried out with partial financial assistance from the African Development Bank. Read the full article here.

South Africa: Maydon Wharf makes record time on berth deepening
Source: FTW Online (13 March 2018)
The six berth reconstruction and deepening in Maydon Wharf, Durban has been concluded, with berths 3 and 4 handed over by Transnet Group Capital earlier this month, says port manager Moshe Motlohi in the latest edition of the monthly Port Monitor newsletter. Read the full article here.

Senegal: Dakar plans new port and logistics zone
Source: FTW Online (13 March 2018)
The Port of Dakar has revealed plans to build a new port – capable of handling the latest generation of giant container carriers – 50 km from the present facility. Read the full article here.

Tanzania Rwanda standard gauge railway to be electrified
Source: Africa Ports (13 March 2018)
Tanzania and Rwanda have apparently agreed that the standard gauge railway to be built linking the port of Dar es Salaam with Rwanda and to other points in Tanzania will be electrified rather than diesel-operated. Read the full article here.

Free trade deal to turn Africa’s fortunes around
Source: Africa Ports (13 March 2018)
An agreement establishing the African Continental Free Trade Area (AfCFTA) which is envisaged to offer opportunities to create large economies of scale has been reached, said South Africa’s Department of Trade and Industry. Read the full article here.

Djibouti spells out the future for the Doraleh Container Terminal under Djibouti control
Source: Africa Ports (13 March 2018)
Djibouti said yesterday that following the termination of the concession with DP World for the Doraleh Container Terminal it reaffirmed its strategic intention of preserving and developing container terminal activities at the port. Read the full article here.

US pledges support to Djibouti
Source: Port Strategy (12 March 2018)
The US will support Djibouti in strengthening governance and security in acknowledgement of its role in safeguarding sea trade and humanitarian aid. Read the full article here.

Somaliland: Somalia nullifies DP World agreement with Ethiopia and Somaliland
Source: Africa Ports (12 March 2018)
The Somali Government says that a multi-million deal by DP World to involve Ethiopia in the operation and development of the port and container terminal at Berbera in the semi-autonomous Somaliland is “null and void”. Read the full article here.