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Ports, Transport and Logistics Sector News Round-Up, 23/2019 (18 – 29 November 2019)

6 December 2019
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In light of the rapid pace of infrastructure and transport developments across Africa, our Ports, Transport and Logistics (PTL) Sector Group is pleased to present Bowmans’ latest PTL news round-up. Our regular round-ups bring you a selection of pan-African PTL-related stories and keep you up to date regarding developments in the space across Africa.

We draw 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 about developments and thought leadership in the PTL space.

The articles to which we refer readers are, unless stated otherwise, neither written nor edited by ourselves and appear in their original form. Bowmans does not necessarily agree with opinions expressed in those articles.

This edition includes news headlines and links to articles from a variety of sources, covering stories from Democratic Republic of the Congo, Egypt, Ethiopia, Guinea, Mozambique, Namibia, São Tomé and Príncipe, Somaliland, South Africa, Tanzania and Zimbabwe.

Record of decision (South Africa):

  • Ports Regulator Record of Decision on the Tariff Application by the National Ports Authority for the Tariff Years 2020/21 – 2022/23
    On 29 November 2019 the Ports Regulator of South Africa announced that the overall increase in average tariffs for the financial year 2020/21 is 0%. The Ports Regulator projects that the indicative overall average tariff adjustment for the 2021/22 and 2022/23 tariff years will be below the 6% inflation target band. Further details are available on the Ports Regulator’s website here.
    Bowmans comment: The 0% increase will come as a welcome relief for port users.

News continues below:

AfDB approves US$400 million loan for natural gas project in Mozambique (Mozambique)
Source: Africa Ports (29 November 2019)
The African Development Bank Group said last week it had approved a long-term Senior Loan of US$400 million to support the building of an integrated Liquefied Natural Gas (LNG) plant, including a liquefaction facility in Mozambique. Read the full article here.

DP World Sokhna US$520 million port expansion nears completion (Egypt)
Source: Africa Ports (29 November 2019)
After a 10-year partnership and a US$1.6 billion total investment in Egypt’s economic growth, DP World has announced it is nearing completion of a major expansion programme at the port of Sokhna in the Gulf of Suez, where Basin 2 of the container terminal will be operational by the second quarter of 2020. Read the full article here.

Transnet says traffic crisis in Bayhead is over (South Africa)
Source: Africa Ports (29 November 2019)
According to Transnet the severe traffic congestion in the Bayhead Precinct of the Port of Durban on Tuesday and Wednesday had been brought under control by late Wednesday afternoon. Read the full article here.

New technology and infrastructure to drive growth in SA logistics market (South Africa)
Source: FTW Online (29 November 2019)
Investment in new technologies and infrastructure is set to drive growth in the South African logistics market, with a surge in e-commerce services changing the logistics landscape. Read the full article here.

Beira fishing port to be privately managed (Mozambique)
Source: Africa Ports (28 November 2019)
Expressions of interest in managing the Beira fishing port have been received from potential investors in Mozambique, Spain, China and Mauritius, reports Carlos Calenga, director of the Beira port’s management company. Read the full article here.

Port of Pemba granted ISPS Code status by IMO (Mozambique)
Source: Africa Ports (28 November 2019)
Mozambique’s Port of Pemba, the country’s most northerly port situated in Pemba Bay, has been granted the International Ships and Ports Security (ISPS) Code by the International Maritime Organization (IMO). Read the full article here.

Berbera Port Container Terminal to receive US$269 million upgrade injection (Somaliland)
Source: Africa Ports (28 November 2019)
A whopping US$269 million upgrade of the Berbera port container terminal is in store after the Somaliland Port Authority announced expansion operations. Read the full article here.

Ethiopia launches the second Electronic World Trade Platform in Africa (Ethiopia)
Source: FTW Online (28 November 2019)
The Ethiopian government recently signed an agreement with Alibaba Group to join the Electronic World Trade Platform (eWTP), making the country the second in Africa, after Rwanda, to join the Alibaba-led initiative. Read the full article here.

TNPA addresses Bayhead truck chaos (South Africa)
Source: FTW Online (27 November 2019)
Heavy-duty trucks queuing along Bayhead road, awaiting access to the Durban Container Terminal, have caused chaos for motorists in the area. Read the full article here.

Mozambique’s LNG project to unlock investment opportunities for SA companies (Mozambique and South Africa)
Source: FTW Online (26 November 2019)
Mozambique’s impending liquefied natural gas (LNG) project is set to unlock numerous investment opportunities for South African companies in the country, according to the South African High Commissioner to Mozambique, Mandisi Mpahlwa. Read the full article here.

Best infrastructure award for ICTSI Matadi port project (Democratic Republic of the Congo)
Source: Africa Ports (21 November 2019)
The Matadi Gateway Terminal (MGT), the Congolese unit of International Container Terminal Services, Inc (ICTSI), has been awarded with the Prix de Reconnaissance aux Investisseurs (Investor Recognition Award) by Democratic Republic of Congo’s Agence Nationale Pour La Promotion des Investissements (National Agency for Investment Promotion). Read the full article here.

Tender issued for São Tomé and Príncipe deepwater port (São Tomé and Príncipe)
Source: Africa Ports (21 November 2019)
The São Tomé and Príncipe government has launched an international public tender for the construction of a deepwater port in Fernão Dias, in the Lobata district, north of São Tomé, under a public-private partnership, the Minister of Public Works and Infrastructure said on Tuesday (19 November 2019). Read the full article here.

Transnet seals a coal transportation deal with Ledjadja (South Africa)
Source: Transnet (21 November 2019)
Transnet has concluded a 10 years take-or-pay transportation of coal agreement with Ledjadja Coal (Ledjadja) to haul 3.6 million tonnes per annum (mtpa) of export coal from the Boikarabelo Coal Mine, which is situated in the Waterberg coalfield of Limpopo in Lephalale to the Richards Bay Terminal Grindrod (RBTG) in KwaZulu-Natal. Read the full press statement here.

Chinese-backed consortium to build deepwater port and 650-km SGR railway in Guinea (Guinea)
Source: Africa Ports (20 November 2019)
A Chinese-backed consortium is reported to have been granted the go-ahead to build a 650-km standard gauge (1435mm) railway from the hinterland of Guinea to the seacoast where it will also build a deepwater port for the export of high-grade iron ore. Read the full article here.

Tanzania confident of funding for standard gauge railway, phase 2 (Tanzania)
Source: Africa Ports (20 November 2019)
The Tanzanian government appears confident of securing the necessary funding for phase 2 of the standard gauge railway (SGR) (1435mm) extending from Dar es Salaam to Mwanza on Lake Victoria. Read the full article here.

Construction of the new Durban passenger terminal begins (South Africa)
Source: FTW Online (20 November 2019)
Transnet National Ports Authority (TNPA) along with partners Kwa-Zulu Cruise Terminal (KCT) consortium, MSC Cruises, and the Africa Armada Consortium, held a sod-turning ceremony on November 16 to mark the start of construction of the new Durban passenger terminal. Read the full article here.
Bowmans comment: On 6 September, Bowmans were announced as the winners of the African Legal Awards Transportation and Infrastructure Team of the Year Award for helping MSC Cruises respond to the public tender for the proposed Durban Cruise Terminal and then advising the Concessionaire, Kwazulu Cruise Terminal (Pty) Ltd, on the Terminal Operator Agreement. We remain employed on the project and have been acknowledged for our commitment, professionalism and innovation.

DP World signs MoU with Namibia’s Nara Namib (Namibia)
Source: Africa Ports (19 November 2019)
Suhail Al Banna, CEO and Managing Director – Middle East and Africa at DP World, Dubai, United Arab Emirates, Global trade enabler DP World has signed a Memorandum of Understanding (MoU) with Namibia’s Nara Namib Free Economic Industrial Zone to develop a free economic zone for industry and logistics in Walvis Bay to support the growth of Namibia as a regional hub for Southern Africa. Read the full article here.

Rebuilt Beira-Zimbabwe highway inaugurated (Mozambique and Zimbabwe)
Source: Africa Ports (19 November 2019)
The important rebuilt N-6 highway linking the port city of Beira with neighbouring Zimbabwe was inaugurated last week Thursday by Mozambique’s President Filipe Nyusi. Read the full article here.

Transnet partners with German KfW Ipex-Bank (South Africa)
Source: Transnet (14 November 2019)
State-owned-company, Transnet continues to attract strong international interest as it implements its diversified funding plan, in support of the country’s freight-handling infrastructure development. Read the full press statement here.