THE MAPUTO CORRIDOR LOGISTICS INITIATIVE (MCLI) AGRICULTURE TRADE AWARENESS CAMPAIGN Date: 17 JULY BRENDA HORNE CEO of MCLI
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1 THE MAPUTO CORRIDOR LOGISTICS INITIATIVE (MCLI) AGRICULTURE TRADE AWARENESS CAMPAIGN Date: 17 JULY BRENDA HORNE CEO of MCLI
2 1. MAPUTO CORRIDOR BRIEF OVERVIEW Re-established proven transportation route for regional trade as well as to international markets for SA, Zimbabwe, Swaziland, Botswana through Mozambique. SOUTH AFRICA Tzaneen Palabora MAPUTO CORRIDOR 1 OF AFRICA S PROMINENT ECONOMIC HUBS Steelpoort Middleburg Belfast Nelspruit Komati poort Johannesburg Secunda Ermelo Piggs Peak SWAZI- LAND Maputo
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4 WHAT IS THE MCLI VISION To become the leading corridor stakeholders coordinator, contributing to the aims and objectives of the Maputo Development Corridor. This will be achieved by working towards a Logistics Corridor based on excellence a cost-effective, continuous, reliable logistics route with positive returns for all stakeholders. MISSION To support the development of the Maputo Corridor into a sustainable, highly efficient transportation route, creating an increasingly favorable climate for investment and new opportunities for communities along the length and breadth of the Corridor. STRATEGIC OBJECTIVES OF MCLI To coordinate the views of investors, service providers and users of the Corridor to engage with public sector to promote development and change, making the Maputo Development Corridor the first choice for the region s importers and exporters alike. To inform the market about the Corridor and to market the strategic benefits and opportunities offered by the Corridor GOAL Maputo Corridor the first choice for the Corridor Region s Stakeholders
5 MPDC SHARE HOLDING As from Jan 2008 Portus Indico -Private Sector 51% DPW 48.5% % Grindrod 48.5% % Mozambique Gestores 3% 1.53% Public Sector 49% CFM 33% % Government 16% % %
6 THE NEW BOARD OF MPDC- MAR 2008 Port Master Plan - ensuring that the Port is armed with a business strategy that is farsighted and robust enough to weather the inevitable peaks, while remaining flexible and nimble enough to make the most of the opportunities which presented themselves. In the context of regional development and growth, Port Maputo would be moving towards building the various business entities at the port into a single unified enterprise which would ensure that regional standards are set and which would service, with increasing efficiency, the growing volumes through the Port. Regarding new investments - investments would be made in supporting operations such as depots, warehousing, packing and unpacking facilities, amongst others. Our goal is to build a unified Port Maputo where every user and operator will have a voice and be an integral part of its growth and future success as the best service provider in the region. said Ferraz the new Chairman of MPDC -
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9 PORT OF MAPUTO TRANSIT CARGO TOTAL TRANSIT TOTAL TRAFFIC Lin ear ( T OT AL T RAFFI C) THROUGHPUT TONNES 8,000,000 6,000,000 4,000,000 MPDC PORT OF MAPUTO 2,000, TOTAL TRANSI T 2,016,400 2,052,000 2,054,100 1,663,200 1,923,600 1,804,400 2,062,800 2,309,935 2,833,265 2,710,522 2,832,761 TOTAL TRAFFIC 3,109,000 3,016,400 3,101,600 3,035,900 4,001,600 4,423,600 5,036,000 5,554,036 6,381,722 6,608,655 6,703,000 PORT POTENTIAL 26 MILLION TONS 2007 Total 6,70mt transit 2.833mt 2007 Road traffic in/out of Port = 2.25M Tonne 2007 Rail traffic in/out of Port = 1.7M Tonne 2007 SA Exports = 59% of all Port Exports 2007 SA Transit = 77% of all Port Transit Cargo YEARS
10 MIPS Container Terminal Throughputs in TEUS Total Local Transit Total '8865 '13508 '20439 '25875 '31729 '32425 '35010 '39486 '44349 '54088 '62516 '80347 Local Transit % Increase over % Increase in Transit Exports 103% Increase Since MCLI Inception % Increase since MIPS Concession
11 FPT Maputo Redevelopment Needs Volume Commitment
12 Is a Fruit Export Terminal required in Maputo by the Southern African Fruit Industry?
13 Location
14 Historical Issues Maputo is much closer to the source areas and will obviously result in lower transport cost. Why was Durban chosen as historical site for investment in logistic facilities? Political Issues (War, etc.) Bad condition of road to Maputo Border issues Shipping opportunities Access and draft limitations in Maputo Port Lack of cold stores in Maputo No sterilization facilities in Maputo Long rail journey due to delays on Mozambique side No market for rejected fruit
15 Historical Issues Political Issues (War, etc.) Political stability Current Situation Bad condition of road to Maputo Long rail journey due to delays on Mozambique side Border issues Shipping opportunities Access and draft limitations in Maputo Port No market for rejected fruit New N4 toll road CFM invested in new rolling stock FPT achieved 16 hour transit time Letsitele to Maputo in 2007 Waiting time at border reduced Working hours extended 06h00 22h00 Introduction of direct container shipments in 2008 MOL Far East service MAERSK Middle East service MPDC invested in new tugs and widened the access channel to accommodate larger vessels FPT repacking service
16 Competitiveness Logistics Cost Production area Land Transp Terminal Sea Transp Distribution Controlable Influence (distance, etc) Uncontrolable
17 Highly Competitive Current Market Future Markets Production area
18 Benefits of Using Maputo Port Shorter landside transit time Landside and freight cost benefits No congestion (unlike Durban) and subsequent transport delays One stop cold storage and terminal handling service FPT (do not have to deal with multiple service providers) Handling services for container and specialized reefer cargo Full stock visibility Simplified planning processes for exporter Quality benefits of cold chain integrity
19 Terminal Volume Throughput TOTAL 100,000 90,000 80,000 70,000 60,000 Pallets 50,000 40,000 30,000 20,000 10,
20 Volume by Market 60,000 50,000 EU/UK MED ME RU 40,000 Pallets 30,000 20,000 10,
21 Production Areas % 2% 36% 62% Mpumalanga Limpopo Maputo Other
22 Hinterland Production Volumes Crop (All) Sum of Volume 5,5% per annum Cartons - millions Region Tshipise/Musina Swaziland Senwes Onderberg Nelspruit Letsitele Hoedspruit Year Source - CGA
23 New Plantings Total m Limpopo Province 5.4m 40% Mpumalanga 1.6 m 12%
24 Distances to Maputo North Prov: 600Km Mpum: 200Km Swazi: 150Km Distances to Durban North Prov:1000Km Mpum: 600Km Swazi: 350Km Maputo is definitely a more competitive option as far as road/rail transport
25 Cost Chain Element Logistical Cost Competitiveness Durban R Pallet Maputo R Pallet Differential R Pallet R 53-R188 Transport - Road Transport - Rail Cargo dues Container scanning Freight surcharge 0 6 (6) 0 70 (70)
26 Centre of Gravity Analysis Fresh Product s Terminals: Cent re- of - Gravit y Analysis Product ion > 10m Product ion >5m Product ion <5m Maput o Durban Product ion CoG Export CoG Combined CoG Opt imal CoG Coor dinates in km
27 Volumes assumptions 2008 Volume Pallets Projection Additional volumes for 2008 UK/NW Continent Far East Mpumalanga volumes to Russia Mpumalanga volumes to Middle East Total
28 FPT operates fruit terminal facilities on premises belonging to the Port Authority Maputo Port Development Company (MPDC). FPT is required to construct facilities and increase volumes handled through Maputo inline with the expectations of MPDC. New lease agreement to be long term due to investment requirements. FPT will be allowed to handle all perishable cargo. FPT to provide a minimum throughput guarantee. Lease agreement
29 Current Intake Area
30 Building G4
31 Project scope Convert G5 building to cold store capable to handle sterilization cargo. Upgrade cold room configuration in building G3 and G4. Add container loading bays to building G3. Upgrade plant: Replace compressors, add seawater condensers, coolers, NH3-tanks Upgrade electrical works, switchgear, etc. Build new forklift battery charging and technical workshop
32 Proposed layout Phase 1 MGC INDUSTRIAL PROJECTS MGC INDUSTRIAL PROJECTS (PTY) Ltd FPT - MAPUTO NEW COLD STORE FACILITY GENERAL SITE LAYOUT - PHASE 1 JPDT 08/12/06 1:500 N/A DEK DEK IP R00 A1
33 Future phases MGC INDUSTRIAL PROJECTS MGC INDUSTRIAL PROJECTS (PTY) Ltd FPT - MAPUTO NEW COLD STORE FACILITY GENERAL SITE LAYOUT - PHASE 1 JPDT 08/12/06 1:500 N/A DEK DEK IP R00 A1
34 MGC INDUSTRIAL PROJECTS MGC INDUSTRIAL PROJECTS (PTY) Ltd FPT - MAPUTO NEW COLD STORE FACILITY GENERAL SITE LAYOUT - TOTAL JPDT 08/12/06 1:500 N/A DEK DEK IP R00 A1
35 Competitiveness Logistics Cost Production area Land Transp Terminal Sea Transp Distribution Controlable Influence (distance, etc) Uncontrolable
36 Stakeholder Commitment For this investment to be feasible volumes through the terminal need to increase substantially over present volumes, this can only be possible if you the exporter and shipping line give your commitment to exporting fruit through Maputo. We are fully aware of the many unknowns but we trust that today s workshop addressed all those. FPT requires an intent from you as to the volumes per market you will commit on a continuous basis to Maputo in future. FPT will ensure that the following are in place at all times: Terminal remains competitive Service levels maintained and improved Enough space allocated to handle your fruit Ability to handle all shipping modes (Container / Specialized Reefer)
37 ACKNOWLEDGEMENTS: ; MPDC; MIPS; FPT brenda.horne@mcli.co.za Tel
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