Africa PORTS & SHIPS maritime news 7 December 2019
Bringing you shipping, freight, trade and transport related news of interest for Africa since 2002
Bringing you shipping, freight, trade and transport related news of interest for Africa since 2002
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Thank you for having come with us as we reported through 2019
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TODAY’S BULLETIN OF MARITIME NEWS
These news reports are updated on an ongoing basis. Check back regularly for the latest news as it develops – where necessary refresh your page at www.africaports.co.za
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- Front Page: MARSHALL USTINOV
- UN Security Council extends authorisation to curb piracy in Somali waters
- Port of PE generates toys for Christmas joy
- Training of 800 young Mozambicans begins on Coral Sul project
- Senegal orders three offshore patrol vessels from Piriou
- Three Indian Ocean Tropical Cyclones to take note of
- Earlier News…… (Headlines in Blue)
- The naming of Indian Ocean Cyclones
- Go-slow industrial action comes to Cape Town Container Terminal
- CMA CGM and Total sign major agreement for the supply of LNG fuel
- Dredging underway at Port of Mossel Bay
- TNPA engaged with getting Durban beaches pumped for festive season
- Pirates attack tanker Nave Constellation off Nigerian coast, abduct 19 crewmembers
- Cyclone update: The storms gather
- Cruise News
- French icebreaker L’Astrolabe damaged in Antarctica, 42 researchers stranded
- Mozambique cabotage to be reintroduced from first quarter of 2020
- DNV GL class notation to boost LPG as environmental-friendly ship fuel
- Angolan Carrinho Business Group helps revitalise Lobito port & CFB railway
- Two potential cyclones threaten African east coast
- Bidfreight Port Operations launches Port Elizabeth Multi-Purpose Terminal
- Total & partners announce $3.15 billion LNG project for Matola
- Ports Regulator rules on Transnet National Ports Authority’s 2020/21 Tariff Application
- Tropical Storm Ambali approaches northern Mozambique
- UK Motor Industry puts in appeal to work closely with next government
- SARS destroys illegally imported goods
- Nelima is paving the way for female drivers in Uganda
- Four African seats retained at IMO
- OLDER NEWS CAN BE FOUND AT NEWS CATEGORIES…….
- The Saturday masthead is of the Port of Saldanha (futuristic impression)
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The Russian Federation Navy cruiser MARSHALL USTINOV seen in Cape Town harbour last week as she sailed to take part in the offshore activities of Exercise Mosi, a combined naval exercise involving ships from China, Russia and South Africa. The naval exercise, the first of its kind involving the three navies, ended on Friday. Details of the cruiser and other ships can be found in our earlier reports available on this site. Pictures by Ian Shiffman
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UN SECURITY COUNCIL EXTENDS AUTHORISATION TO CURB PIRACY IN SOMALI WATERS
Earlier this week the United Nations Security Council unanimously adopted Resolution 2500 renewing the authorisation for Somalia anti-piracy measures to December of 2020.
Drafted by the United States, Resolution 2500 has agreed to renew the authorization for states and regional organizations cooperating with Somalia to enter into Somali territorial waters and use all necessary means for the purpose of…
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PORT OF PE GENERATES TOYS FOR CHRISTMAS JOY
Transnet National Ports Authority’s (TNPA) Port of PE brought smiles to the faces of many less fortunate children in a unique way ahead of this festive season. The #ToysForCharity Fishing Day, a port specific Christmas charity drive, bears testament to the warm hearts of Nelson Mandela Bay anglers.
This partnership with the keen angling community of Nelson Mandela Bay generated more than 230 toys, which were handed over to three different charity organisations yesterday (Thursday). They are the Inn-Safe Hands in Schauderville, Sinako – We Can in Newton Park and the EP Children’s Home in Perridgevale.
Opening the Charl Malan Quay for fishing
The port invited the angling community to participate in the #ToysForCharity Fishing Day at the Charl Malan Quay on Saturday, 16 November 2019, through partnership with various fishing tackle shops. The key condition for participation in this ideal fishing opportunity was the donation of toys to the value of at least R100 to gain entrance onto the quay for a day of fishing. People had to hand their toy donations in at the tackle shops, with their cash slips serving as the admission fee in exchange for entrance tickets to participate.
Safe and sound for young and old
With safety being paramount in the port, rules applied to these quarterly fishing days to ensure a safe and pleasant experience for all. No alcohol or drugs are permitted onto the premises however, but participants can enjoy a charcoal braai on their own braai stands.
Fishing permits are compulsory with a maximum of 250 participants allowed entrance on a first-come-first-served basis. Emergency services are always present throughout the day as well as port security officials to ensure Zero Harm to our anglers, port assets and the environment.
Smart People’s Port
Allowing access to the Charl Malan Quay on a quarterly basis, is in line with our vision of transforming the port into a ‘Smart People’s Port’, Port Manager Rajesh Dana said. “More importantly, it allows the port to be creative by including the community in these events to contribute towards the less fortunate people in our city.”
Dana said that as a result of the continuous participation in the fishing days, the Port of PE managed to put smiles on children’s faces who otherwise would not have received a gift this festive season. “We would not have been able to do this without the generous hearts of the Nelson Mandela Bay angling community,” he said.
Quarterly fishing days
The Port of PE hosts fishing days every quarter with each fishing day geared towards a different charitable cause. Participants can access more information via the Transnet National Ports Authority (TNPA) social media pages. The PE tackle shops, who always assist with the logistics of making these charity fishing days a success, include Trophy Tackle Den, Hook Line & Sinker, Commercial Marine and Cross Current Fishing Shop.
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TRAINING OF 800 YOUNG MOZAMBICANS BEGINS ON CORAL SUL FLNG PROJECT
A total of 800 young Mozambicans will take place regarding internships with the Coral Sul Project taking place in Area Block 4 of the Rovuma Basin in northern Mozambique.
The Italian oil company and developer of the offshore gas project in the Rovuma Basin, together with other partners will make the selection of 800 young Mozambicans who will enter into internships with the project.
That was the word from ENI group’s managing director Maurizio Lanzo…
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SENEGAL ORDERS THREE OFFSHORE PATROL VESSELS FROM PIRIOU
The Ministry of Armed Forces of Senegal has signed a contract with French shipbuilder Piriou for three offshore patrol vessels to go into service with the Senegalese Navy. The signing was witnessed by the President of the Republic of Senegal and a French ministerial delegation.
The OPV 58 S is a 62m long versatile vessel with…
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THREE INDIAN OCEAN TROPICAL CYCLONES TO TAKE NOTE OF
The three tropical storms in the western Indian Ocean have each now been classified as Tropical Cyclones with one of them given the first name on this year’s list of cyclones for the region – Tropical Cyclone Ambali (03S). This was previously identified as TC 92S. See report below.
Tropical Cyclone 06S PAWAN (Arabian Sea)
The cyclone as previously reported remains on a heading for a landfall over Somalia. Te centre of the storm was near 9.5N 55.9E at 06h00 this morning (5 December 2019) with maximum sustained winds of 40 knots gusting to 50 knots.
06S Pawan is situated approximately 460 nautical miles SSE of Salalah in Oman and tracking westward at 7 knots. TC Pawan is expected to make landfall across central Somalia where it will dissipate but with heavy rainfall across land likely.
Tropical Cyclone 02S (no name allocated)
Tropical Cyclone 02S (previously reported as 91S) was near position 6.8S 50.6E at 09h00 today approximately 860 n.miles NNW of St Denis (Reunion) and tracking west-southwestward at 4 knots with sustained winds of 40 knots gusting to 50 knots.
The system is reported to be steadily intensifying as it passages over very warm water (28-29C) and will make landfall and move along the coastline of northwestern Madagascar. There are longer any predictions that this storm will affect the Mozambican coast.
Tropical Cyclone 03S AMBALI
Tropical Cyclone 03S Ambali (previously 92S) was near position 8.8S 63.1E at 09h00 this morning located approximately 560 n.miles west of Diego Garcia and tracking SSW at 9 knots and is the first ‘named’ cyclone of the south-western Indian Ocean region in 2019/20.
Maximum sustained winds of 50 knots gusting to 65 knots are currently being experienced. The system has intensified significantly over the past 6-12 hours with a very warm sea surface of 29-30C contributing. Over the next 48 to 72 hours Ambali is expected to continue tracking SSW with wind speeds increasing to above the 70 knot range after which the cyclone will slowly weaken. It will likely turn a bit westward at that point.
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THE NAMING OF INDIAN OCEAN CYCLONES
With the early arrival of several tropical depressons/storms in the western Indian Ocean now threatening Somalia and posing a risk on Mozambique, or alternately Madagascar, the Comores and possibly even Mauritius, Rodriguez and Reunion, we thouht readers might be interested in the names selected, ranging the length of the alphabet during the 2019-20 summer months.
In order as the storms/cyclones develop and are officially named – note that Storm number 1, AMBALI has not yet been used. The three active storms remain identified only by numbers.
Numerical order of storms, its official name, country that chose the name:
1. AMBALI (Malawi); 2. BELNA (Mauritius); 3. CALVINIA (South Africa); 4. DIANE (Botswana); 5. ESAMI (Zimbabwe); 6. FRANCISCO (Mozambique); 7. GABEKILE (Swaziland); 8. HEROLD (Seychelles); 9. IRONDRO (Madagascar); 10. JERUTO (Kenya); 11. KUNDAI (Zimbabwe); 12. LISEBO (Lesotho); 13. MICHEL (France); 14. NOUSRA (Comores); 15. OLIVIER (Mauritius); 16. POKERA (Malawi); 17. QUINCY (Seychelles); 18. REBAONE (Botswana); 19. SALAMA (Comores); 20. TRISTAN (France); 21. URSULA {Kenya); 22. VIOLET (South Africa); 23. WILSON (Mozambique); 24. XILA (Madagascar); 25. YEKELA (Swaziland); 26. ZAINA (Tanzania).
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GO-SLOW INDUSTRIAL ACTION COMES TO CAPE TOWN CONTAINER TERMINAL
Industrial action, an over-used euphemism for strike action by organised workers, has taken root at the Port of Cape Town’s container terminal, operated by Transnet Port Terminals.
In a brief statement issued by Transnet Port Terminals yesterday, TPT informed that over the last 72 hours the Cape Town Container Terminal had experienced a decline in operational performance.
This was evident, it said, in lower ship working hours and gross crane moves per hour.
This has been precisely the same experience at the container terminals in the ports of Ngqura and Durban, which has continued.
“A business continuity plan has been instituted while TPT investigates the root cause of the matter which presents elements of an illegal industrial action,” the statement continued.
“We continue to be in close communication with organised labour, our customers and relevant stakeholders. A command centre has been set up to monitor progress.”
Ending the statement on a confident note, TPT said “We are confident of imminent recovery.”
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CMA CGM AND TOTAL SIGN MAJOR AGREEMENT FOR THE SUPPLY OF LNG FUEL
Total and CMA CGM have signed an agreement for the supply of approximately 270,000 tonnes per year of Liquefied Natural Gas (LNG) over 10 years.
This volume will cover the supply at Marseille-Fos of CMA CGM’s future 15,000-TEU* container ships that will operate between Asia and the Mediterranean, and that are scheduled for delivery starting in 2021.
A pioneer in the use of LNG to power ultra-large container vessels, CMA CGM has chosen to…
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DREDGING UNDERWAY AT PORT OF MOSSEL BAY
Platform supply vessels used in TOTAL’s Brulpadda gas exploration project off the southern Cape coast, as well as other ships with a specific under-keel clearance, will be better able to berth without hassle in the Port of Mossel Bay.
This is thanks to a maintenance dredging campaign currently underway at the port, including the first quayside dredging there in…
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TNPA ENGAGED WITH GETTING DURBAN BEACHES PUMPED FOR FESTIVE SEASON
Transnet National Ports Authority’s (TNPA) Dredging Services division has been hard at work getting the beaches along Durban’s popular Golden Mile ready to welcome thousands of holidaymakers this festive season.
TNPA Dredging Services has a beach nourishment agreement with the eThekwini Municipality. The port landlord’s trailing suction hopper dredgers (TSHDs), Ilembe and Isandlwana, dredge sand from the sand trap on the southern side of the entrance channel and reclaim this onto the Northern beaches.
Clive Greyling, Civil Technologist in the Port of Durban’s Infrastructure department, explained, “When you go to the beach in December over the holiday period, you’re standing on completely different sand than a year ago. You might recognise the piers, the buildings and the city – but the beach is completely new. That is our role in maintaining the beaches and supporting tourism.”
In collaboration with eThekwini’s coastal engineering, storm water and catchment management department, the port authority plays a crucial role in ensuring beaches are ready for tourists to enjoy, stimulating the economy and boosting Durban as a city.
Greyling adds, “Annually approximately 600,000 cubic metres of sand naturally migrates up the South Coast and gets trapped behind the South Pier in an area we call the sand trap. With the sand being trapped on the Southern side of the South Pier, the beaches to the north of the entrance channel are slowly depleted of sand. Transnet and TNPA Durban have a corporate social responsibility to collect the sand that has been trapped to put it on the beaches on the Northern side of the channel.”
The dredging of the sand trap is of paramount importance to the port, keeping the entrance channel and basin open at the correct depth and width, as well as the berths which serve as parking bays for ships inside the port.
A sand bypass scheme had to be constructed in 2009/2010, when Transnet widened the entrance channel. Previously, the municipality owned and operated a similar installation, a sand bypass hopper near Vetch’s Beach. When the entrance channel was widened to the North by a hundred metres, the demolition involved the removal of the existing sand bypass and Transnet had to replicate the system.
“It’s a very modern, state-of-the-art system that we’ve got going at the moment. The dredger goes out into the sand trap, fills up a dredge load of 3000 cubes of sand in the hopper in under an hour. The dredger comes alongside the bypass station, connects to a floating pipeline and then through a series of pipes and pumps, delivers sand to the sand bypass hopper or directly to the beaches via a direct discharge line,” said Greyling.
The hopper and sand bypass system is designed to seamlessly tie into the municipal sand pumping scheme. The TNPA hopper can take two dredger loads and TNPA is able to pump directly to the beaches or to the hopper from the dredger.
The City manages the outlet points where sand is discharged onto the beaches and where payloaders are used to move the sand on the beach.
TNPA has recently pumped sand onto the new beach area created through the municipality’s promenade extension project from uShaka beach pier southwards towards the harbour entrance.
To view a video of the TNPA beach replenishment underway on the Golden Mile, [3:43]
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PIRATES ATTACK TANKER OFF NIGERIAN COAST, ABDUCT 19 CREWMEMBERS
Pirates are reported to have carried out a boarding of the Hong Kong-flagged tanker NAVE CONSTELLATION, and kidnapping 19 of the crew when they departed.
According to security consultancy Dryad Global only seven crewmembers remained of the crude oil tanker when the pirates left.
The attack took place in deepsea 80 nautical miles south of Bonny Island, 77 n.miles southwest of Bioka Island as the tanker was underway.
Eighteen of the kidnapped crew are Indians, the other person is Turkish. The other seven crew remained on board and alerted the relevant authorities.
The 296,988-dwt Nave Constellation (IMO 9515929) was built in 2010 and is managed by Navios Tankers Management of Piraeus, Greece. She is flying the flag of Hong Kong.
This latest attack conforms to a pattern developed in recent times by Nigerian pirates of boarding ships for the sole purpose of kidnapping some of the crew who are taken ashore and held for ransom.
Local West Africa naval and other security authorities appear helpless to prevent the attacks or to apprehend the pirates, who merge with the population ashore while waiting for the lucrative ransom payment by the ship’s owners/insurers.
The pirates will usually ransack the crew quarters on board the vessel and will often damage navigational equipment on the bridge, particularly if the crew or some of them have taken refuge in the ship’s citadel.
If any of the pirates are ever caught we never hear of it. The response of countries like Nigeria in discouraging and even refusing to allow armed guards on vessels in Nigerian waters has certainly acted as stimulant for the pirates.
It is whispered that certain people in high places in the West African country stand to benefit from piracy in their waters.
Referring to the latest incident, Dryad Consulting points out that this is the 6th maritime security incident and the fourth kidnapping incident to occur within 30n.miles of the South Eastern boundary of the Nigerian EEZ within 2019. “This is further confirmation of a developing trend of incidents that are assessed to be perpetuated by a well resourced pirate action group, most likely operating from one or more mother-ship vessels.
“It is assessed that this PAG is aware of the limitations of security prescience beyond the Nigerian EEZ and is seeking to exploit traffic conducting operations at or in support of oil infrastructure located along the north eastern fringes of the Nigerian EEZ and within the 60nm channel between the Nigerian EEZ and Bioko Island.”
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CYCLONE UPDATE: THE STORMS GATHER
Tropical Cyclone 06A is approaching the coast of Somalia where it is currently forecast to make landfall tomorrow (Thursday), 5 December 2019. At noon yesterday, Tuesday 3 December TC 06A was in position near 7.0N 57.5E with maximum winds registering 35 knots gusting to 45 knots.
This placed the cyclone 784 nautical miles east-northeast of Mogadishu and being tracked northeastward at 3 knots. The storm is expected to slowly turn west-southwestward as the storm builds, with an expected wind speed of 40 knots at landfall.
Following landfall the cyclone is expected to dissipate but large amounts of rain are expected to fall across an already drenched Somalia.
Storms 91S and 92S
The tropical storm lying to the north of Madagascar (91S) has not developed into a cyclone and although considered a cyclone risk it is not expected to become one in the next 24 hours.
A second storm system identified as 92S has meanwhile developed to the northeast of 91S. This storm is considered at low risk of developing into a cyclone within the following 24 hours. source: JTWC
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CMV TO ADD ANOTHER TWO SHIPS TO FLEET
Cruise & Maritime Voyages (CMV), the German operator of ships such as ASTOR, COLUMBUS, MAGELLAN and VASCO DA GAMA, has announced the acquiring of two more ships for 2021.
The two additions to the fleet in 2021 will be PACIFIC DAWN and PACIFIC ARIA, both in service at present with P&O Australia and both ex-Carnival Group ships. CMV will receive Pacific Dawn in Singapore in March 2021 after which the vessel will…[/restrict] enter dry dock for a major refit and new livery before emerging as a 1400-passenger ship to operate out of Tilbury alongside Columbus.
The 1100-passenger Pacific Aria joins CMV also at Singapore to undergo a refit and new livery but in May 2021, after which she will sail with TransOcean Kreuzfahrten in the German market, where she replaces the former-Safmarine ship ASTOR to sail alongside TransOcean’s Vasco da Gama.
It was also revealed that Astor will be re-deployed to the French market and renamed JULES VERNE.
HAPAG-LLOYD’S BREMEN TO JOIN VIVA CRUISES
A ship familiar to us in southern Africa from her numerous visits over the years, Hapag-Lloyd’s expedition ship BREMEN, is going to Viva Cruises, a division of Scylla Cruises who now enters ocean expedition cruising for the first time.
The 164-passenger Bremen, which is currently sailing in Mauritian waters, will acquire the uninspiring name SEAVENTURE when she enters service with her new operator in May 2021. Her intended itinerary includes 13 different destinations including sailing up the Amazon and among the icecaps of Arctic waters.
AIDAmira DELAY
Alterations not completed have resulted in a delay for AIDA Cruises latest acquisition, AIDAmira – the former Costa Neo-Riviera.
AIDAmira is scheduled to sail today (Wednesday 4 December 2019) from Palma de Mallorca for Cape Town where she will commence an extended four-month season of cruises in southern Africa waters.
Her first cruise as an AIDA ship had to be cancelled on Sunday, at the last minute and with passengers already on board. Thatw as when the ship’s captain announced to passengers that the three-night cruise to Sète and Barcelona was to be cancelled because work ordered for the ship’s conversion remained incomplete. This was despite efforts by the sub-contractors and crew, he stated.
It was reported that improvements to the deck area of the ship had been delayed as a result of heavy rain and that these could only be completed with the ship remaining in port.
Passengers already on board were offered their money back including the cost of their flights to and from Mallorca or they had the option of remaining on board AIDAmira for the three nights with excursions arranged ashore for them.
AIDAmira, which was built as Festival Cruises’ MISTRAL, has until recently been sailing with Costa Cruises as their Costa NeoRiviera, and has previously visited South Africa. She underwent extensive upgrading including work to her accommodation area in Genoa before sailing to Palma.
Her cruise to Cape Town, due to start today, will see the ship operating 14-night cruises around South Africa and Namibia between December 2019 and April 2020, with Cape Town as the homeport. Although marketing will focus on fly/cruises from Europe it will be possible for passengers to join cruises locally (only from Cape Town, as far as we know).[/restrict]
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FRENCH ICEBREAKER L’ASTROLABE DAMAGED IN ICE, 42 RESEARCHERS STRANDED
The French icebreaker L’ASTROLABE (IMO 9797539) has damaged her propeller while delivering supplies and a fresh group of researchers to the Dumont d’Urville research station on Antarctica.
The announcement was made by France’s Polar Institute which said the vessel’s propeller had been damaged, stranding those who were preparing to leave with the ship after spending time in Antarctica. A total of 43 researchers are involved and face a delay of several weeks before another ship can arrive to pick them up.
The ship is in no danger but the French authorities were not prepared to take any chances with the return journey to Australia, the nearest continent to Dumont d’Urville research station.
A spokesman for the Institute said that the younger members of the team were happy to spend more time on the ice continent but older members with families waiting for them at home were frustrated by the delay.
The Australian government said it will despatch an icebreaker, AURORA AUSTRALIS, to go to the aid of the L’Astrolabe and the stranded people at Dumont d’ Urville and a second French/Italian Antarctic station at Concordia.
Aurora Australis arrived at Hobart in Tasmania at the weekend and was to sail south this week to bring the stranded researchers back to civilisation.
L’Astrolabe was built in 2017 and flies the French flag. The ship visited Durban in August this year.
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MOZAMBIQUE CABOTAGE TO BE REINTRODUCED FROM FIRST QUARTER OF 2020
According to the Mozambique Minister of Transport & Communications, Carlos Mesquita, cabotage is to be introduced along the country’s coast within the first quarter of 2020.
Mesquita said a company, Transmaritima, had been created for this purpose with the help of French investors and that a process of identifying suitable ships to operate the coastal service was underway.
He said the aim of reintroducing cabotage was to…
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DNV GL CLASS NOTATION TO BOOST LPG AS ENVIRONMENTAL-FRIENDLY SHIP FUEL
As the maritime industry looks to reduce emissions to air and work towards the International Maritime Organization’s (IMO) greenhouse gas reduction strategy that comes into effect in less than a month, alternative fuels are coming to the fore.
Classification society DNV GL, recognising that, with the exception of LNG, international regulations for such fuels are absent, developed new class rules and a class notation “Gas Fuelled LPG” for using liquefied petroleum gas (LPG) as fuel in anticipation of growing industry interest. A respective announcement was made earlier today (Tuesday 3 December) at Marintec China trade fair in Shanghai.
Except for liquefied natural gas (LNG), currently all gases and low-flashpoint fuels are subject to the ‘alternative design approach’, which means that they may be used if their safety, reliability and dependability of the systems can be shown to be equivalent to those achieved by new and comparable conventionally fuelled main and auxiliary machinery. This can be a time-consuming and costly process and may impede the uptake and expansion of lower emission alternative fuels.
“With the new rules and class notation, we want to offer owners interested in LPG a straightforward path towards compliance with the alternative design approach mandated by the IGF Code,” said Geir Dugstad, Director of Ship Classification & Technical Director at DNV GL – Maritime. “As the fuel environment within the maritime industry becomes more diverse, it is essential that we continue to broaden the enabling rules and regulation to support these new choices.”
The rules and notation are based on DNV GL’s rules for ships using LNG as fuel but account for the differences in properties and phases between LPG and LNG. The “Gas fuelled LPG” notation covers internal combustion engines, boilers and gas turbines for both gas-only and dual-fuel operations. It also includes requirements for the ship’s fuel supply, considering all aspects of the installation from the bunkering connection up to and including the LPG consumers (main and auxiliary engines, boilers, etc).
LPG as a fuel can lower a vessel’s emissions to air, both in terms of greenhouse gases and other pollutants. It virtually eliminates sulphur emissions and reduces GHG output by approximately 17 per cent compared to burning HFO or MGO. LPG could also act as a bridging fuel to ammonia, as the materials used for LPG tanks and systems is, in most cases, suitable for ammonia. With advanced planning, the adjustments needed for a switch to ammonia from LPG could also be minimised.
Read more about LPG as ship fuel in DNV GL’s MARITIME IMPACT portal: www.dnvgl.com/MI
Also in Maritime Impact isan interview with Pontus Berg, EVP Technical & Operations at BW LNG on the company’s plans to retrofit four vessels with LPG-propelled dual-fuel engines: CLICK HERE
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ANGOLAN CARRINHO BUSINESS GROUP HELPS REVITALISE LOBITO PORT AND CFB RAILWAY
Port of Lobito
Carrinho Business Group signs agreement to rail 2 million tons of cargo annually with CFB
Angola’s Carrinho Business Group has entered into an agreement with the Port of Lobito and the Benguela Railway Company (CFB), with the intention of utilising the CFB for efficient cargo transportation.
According to the Carrinho Group’s executive director for…
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TWO POTENTIAL CYCLONES THREATEN AFRICAN EAST COAST
The formation of a significant Tropical Cyclone (90A) over the next 24 hours is now considered possible in the seas off the Horn of Africa. Winds are currently in the region of 25 to 30 knots, according to the Joint Typhoon Warning Centre (JTWC) and the circulation centre was…
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BIDFREIGHT PORT OPERATIONS LAUNCHES PORT ELIZABETH MULTI-PURPOSE TERMINAL
Bidfreight Port Operations (Pty) Ltd (BPO) officially launched its Multi-Purpose Terminal operations in the Port of PE on Friday, 29 November after completion of its refurbishment to Sheds 10 and 11.
Transnet National Ports Authority (TNPA) announced in February this year the appointment of its third terminal operator at the Multi-Purpose Terminal (MPT). BPO became the second private terminal operator at the MPT after the successful award of a Section 56 terminal operator license through an open tender process.
The license awarded to BPO required the design, development, financing, construction, operation and maintenance of the sheds. The project has now officially been completed with the sheds transformed into state-of-the-art facilities ensuring vital volume growth of multi-purpose cargo passing through the Port of PE, boosting the economy of Nelson Mandela Bay and providing much needed jobs.
A Section 56 agreement, in terms of the National Ports Act, allows TNPA to sign terminal operator agreements with private-sector companies to reduce the cost of doing business and improve the competitiveness of South African companies.
The strategic partnership between TNPA and BPO has ensured the critical creation of jobs during the construction phase, the promotion of rural development through skills development in the construction industry, empowering local BBBEE businesses and increasing local business revenue.
“The transformation that BPO has brought to the MPT through the refurbishment and upgrade of Sheds 10 and 11, is testament to what a Section 56 agreement can achieve through collaboration with industry players,” said port manager Rajesh Dana.
He said that BPO has provided great investment into the sheds and has further ensured that TNPA delivers on its mandate of ensuring economic growth in Nelson Mandela Bay, through successful facilitation of business opportunities.
“Reaching this milestone of completing the construction and facelift of the Port of PE’s sheds is attributed not only to the hard work and commitment shown by our BPO employees, but also to the manner in which the TNPA Port of PE team has supported and facilitated the process in getting us to this point,” said Jannie Roux, BPO’s Managing Director.
“BPO can now optimally strive to surpass the values enshrined in our motto: In place. On Time.”
BPO is a fully empowered Level 2 BBBEE entity and is one of the largest providers of in-port logistics in South Africa. BPO aims to create at least 30 new permanent jobs in the logistical supply chain through their PE operation, enhancing their reputation of world-class expertise in stevedoring, transport, agency clearing and forwarding as well as warehousing.
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TOTAL & PARTNERS ANNOUNCE $3.15 BILLION LNG PROJECT FOR MATOLA
French oil major Total together with its partners in Mozambique will be investing US$3.15 billion to develop a liquefied natural gas (LNG) project at Matola in the greater port of Maputo.
The project is planned to consist of a floating storage and regasification unit to be moored at Matola, the bulk port section of Maputo harbour and this will connect with a projected nearby new gas-fired power plant and with South Africa’s gas network.
The decision on this project is expected to be…
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PORTS REGULATOR RULES ON TRANSNET NATIONAL PORTS AUTHORITY’S 2020/21 TARIFF APPLICATION
The South African Ports Regulator has announced its ruling on the tariff application of Transnet National Ports Authority for the 2020/21 period.
In summary the Ports Regulator has concluded that an appropriate overall increase in average tariffs for the financial year 2020/21 is 0%.
This is differentiated as follows:
o Marine services and related tariffs are to increase by 5.5%
o Container (full) export cargo dues to decrease by 20% and all other container cargo dues to remain unchanged
o All RoRo cargo dues to remain unchanged
o Coal export cargo dues to increase by 10%
o Magnetite export cargo dues to increase by 10%
o All other cargo dues are to remain at 2019/20 tariff levels
“It is important to note that the Ports Regulator is committed to reducing the cost of living and the cost of doing business through fair pricing within the South African ports system, and this balanced tariff decision is considered the most prudent course of action for the 2020/21 period,” the Regulator said.
“Accordingly, the Regulator trusts that this timeous publication of the decision will not only assist port industry players in adjusting budgets for the 2020/21 period, but that freight forwarders and agents assist in ensuring that the benefits of lower container export tariffs are passed through to cargo owners and end users for maximum impact to the SA economy.”
The 2020/21 financial year commences on 1 April 2020 and ends on 31 March 2021.
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The full statement issued is as follows:
Tariff Application by the National Ports Authority for the Tariff Years 2020/21-2022/23
Tariff Record of Decision
On 29 November 2019, Mr. Mahesh Fakir, CEO of the Ports Regulator of South Africa stated as follows: “The Minister of Transport, Honourable Fikile Mbalula MP appointed an interim Regulator (board) comprising Mr. Thaba Mufamadi (Chairperson), Mr. Lindelwe Mabandla, Advocate Gugulethu Thimane, Professor Didibhuku Thwala, Mrs. Anjue Hirachund, and Ms. Gerdileen Taylor, on 22 November 2019. The CEO, Mr. Mahesh Fakir remains Regulator Member, ex officio.”
On 1 August 2019, the National Ports Authority applied to the Ports Regulator of South Africa in terms of Section 72 of the National Ports Act, 12 of 2005 for approval of the tariffs for services and facilities offered by the NPA of an average of 4.80% increase for the period 1 April 2020 to 31 March 2021, together with indicative tariffs of 18.22% for the period 1 April 2021 to 31 March 2022 and 8.5% for 1 April 2022 to 31 March 2023.
After considering the application, roadshow reports and the submissions by all stakeholders during the consultation period, and based on latest available data, the Ports Regulator has concluded that an appropriate overall increase in average tariffs for the financial year 2020/21 is 0%.
In particular:
o Marine services and related tariffs (Sections 1-8 of the Tariff Book, excluding Section 7 that deals with cargo dues) are to increase by 5.5%
o Container (full) export cargo dues to decrease by 20% and all other container cargo dues to remain unchanged
o All RoRo cargo dues to remain unchanged
o Coal export cargo dues to increase by 10%
o Magnetite export cargo dues to increase by 10%
o All other cargo dues are to remain at 2019/20 tariff levels with caps applicable as follows:
* All Break bulk cargo dues are to be capped at R31.50/ton;
* All Dry bulk cargo dues are to be capped at R18.00/ton; and
* All Liquid bulk cargo dues are to be capped at R37.00/kl
All marine tariffs (Sections 1-8 of the Tariff Book, excluding Section 7 that deals with cargo dues) for existing commercial South African flagged vessels as well as commercial vessels registered in South Africa in 2019/20 will receive a 30% discount applicable year on year up to 31 March 2022. Vessels registered in South Africa in 2020/21 will receive a 20% discount up to 31 March 2022 and similarly a vessel registered in 2021/22 will receive a 10% discount up to 31 March 2022. This incentive will be reviewed thereafter. In line with the Multi-Year Tariff Methodology of March 2017, 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.
Tariff Assessment
In conducting its assessment, the Ports Regulator takes a view on a number of cargo volume and market-related factors, including the inflation outlook and the cost of debt, the operational and cash flow requirements of the National Ports Authority, as well as the implementation of the published Tariff Strategy aiming to rebalance the tariff structure to closer reflect the underlying cost and benefit to specific users of port infrastructure. In addition, the Ports Regulator was cognisant of the poor economic climate in the country as well as the Government’s call for the lowering of port administered prices. In this regard, the Ports Regulator is of the opinion that an overall 0% tariff increase as well as an export biased lowering of container cargo dues would be in the best interest of stimulating local manufacture, beneficiation, and employment creation.
For 2020/21, the Ports Regulator approved revenue of R13.203 billion vs the NPA applied for amount of R13.145 billion. The Ports Regulator is confident that this will ensure the sustainability of the NPA and provide the financial space to ensure that the capital program included in the application totalling R3.872 billion is fully implemented, despite previous under-expenditure on CAPEX. In this context, whilst it may be tempting to cut back on capital expenditure in a downturn, it is critical as a facilitator of trade for the port system to be ready for the eventual upswing in economic growth.
As such, it must again be noted that besides capital expenditure allowed, operational cost amounting to R 6.149 billion, including Group overhead costs amounting to R481 million was allowed for fully, thus ensuring both the sustainability and further development of the South African ports infrastructure system.
In addition, the Ports Regulator took cognisance of the expected subdued economic activity over the tariff period coupled with a strong capital expenditure program included in the application, and opted to largely sustain the lowered prices that were announced in the Tariff Record of Decision in November 2018. In this regard, it was decided to use R567 million of the Excessive Tariff Increase Margin Credit (ETIMC) saved last year, bringing its balance to R2.797 billion.
Draft Tariff Methodology For Tariff Years 2021/22 – 2023/24
The Ports Regulator had previously embarked on a process to review the Multi-Year Tariff Methodology and has approved, for publication, a draft Tariff Methodology applicable to tariff periods 2021/22 – 2023/24 for public comment. This serves as the third multi-year tariff methodology published by the Regulator since the inception of regulation in 2007.
The draft Methodology may be found at www.portsregulator.org. Interested parties and port users are hereby invited to submit comments on the Methodology by close of business Monday, 3 February 2020. Queries and comments should be addressed to: The Chairperson, Ports Regulator, 1101 The Marine Building, 22 Dorothy Nyembe Street, Durban, 4001. Alternatively, comments may be emailed to comments@portsregulator.org .
Conclusion
The Ports Regulator is committed to reducing the cost of living and the cost of doing business through fair pricing within the South African ports system, and this balanced tariff decision is considered the most prudent course of action for the 2020/21 period.
The official tariff Record of Decision for 2020/21 – 2022/23 may be found at www.portsregulator.org
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TROPICAL STORM AMBALI, POSSIBLE FIRST CYCLONE OF THE SUMMER APPROACHES NORTHERN MOZAMBIQUE
Tropical Storm 91S position at weekend. At one point it was thought the storm might track south across Madagascar
A low atmospheric pressure system, 91S, in the Indian Ocean north of Madagascar has the makings of developing into a Moderate Tropical Storm, which has tentatively been named Ambali.
If the storm performs as anticipated it will become the first of the current summer ‘cyclone’ season.
The Mozambique National Institute of Meteorology (NIM) has reported that “a system of low atmospheric pressure is being formed at latitude 5° South, longitude 52° East longitude in the Indian Ocean north of Madagascar. In the current weather conditions, there is a possibility it will evolve into a Moderate Tropical Storm.”
After giving the system the name Ambali the meteorologists are suggesting the storm will cross the Mozambique coast today (Monday 2 December) in the northern Cabo Delgado province and that Nampula province may be feeling the effects of the moderate cyclone by Wednesday, 4 November.
Significant parts of Mozambique have already experienced heavy falls of rain and some flooding in recent days and a growing number of deaths are being reported. NIM warns of heavy rains over large parts of the provinces of Cabo Delgado, Niassa, Nampula, Tete, and Zambezia.
Central and northern Mozambique experienced two devastating cyclones earlier in the year (Idai and Haleh) which caused immense damage to the region around the port of Beira (Cyclone Idai) and further north (Malawi) as well as into eastern Zimbabwe.
Note: The Joint Typhoon Warning Centre while showing the formation and location of 91S, regards a Tropical Cyclone development within the next 24 hours as “unlikely”.
The JTWC also reports the development of a storm system off the coast of Somalia (90S) as unlikely to further develop within the next 24 hours. Somalia, Somaliland and Djibouti are recovering from heavy rains that fell as another cyclone swept across the Arabian Sea before weakening into a storm with large amounts of rain as it crossed the Horn of Africa.
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UK MOTOR INDUSTRY PUTS IN APPEAL TO WORK CLOSELY WITH NEXT GOVERNMENT
The UK Society of Motor Manufacturers and Traders calls upon the next government to put the vehicle sector at the heart of economic and trade policies, and agree an ambitious Brexit deal to deliver on UK’s green growth ambitions
Last month (November) the UK motor industry called on the next government to put the motor sector at the heart of economic and trade policies, and, furthermore, to agree an ambitious Brexit deal to deliver on the nation’s green growth ambitions.
Issued in November by the UK’s Society of Motor Manufacturers and Traders (SMMT) new figures have indicated that tariffs would severely reduce home vehicle manufacturing, with 1.5 million vehicles lost by 2024 at a cost of £42.7 billion.
As a sector UK Automotive can lead in the global green mobility revolution but needs collaboration to drive progress, prosperity and jobs. This was reported as industry launched key priorities for a new government at the 103rd SMMT Annual Dinner to secure the sector’s future success and competitiveness.
Speaking at the event SMMT President George Gillespie outlined the industry’s vision for a better, safer and cleaner future, saying: “The automotive sector is going through a period of unprecedented change and we must not let the pressure of Brexit deflect from our focus on a coherent national industrial strategy.
“Collaboration between industry and government must be stronger than ever. We want to work closely with the next government, as we have in the past; united in a common purpose to keep UK Automotive a global player that drives employment, creates wealth and gives all of us pride in what we can do here.”
Gillespie spoke as the SMMT revealed new figures showing the devastating impact of Brexit without an ambitious trade deal. Independent research commissioned by the trade body shows WTO tariffs on imported components and exported vehicles would add more than £3.2 billion a year to UK automotive manufacturing costs.
Such a colossal increase, said to be equivalent to almost 90% of the sector’s annual spend on R&D, could not be absorbed, forcing prices to rise and global demand to shrink. At a time when additional investment in ever safer, cleaner and more intelligent mobility technology is essential, this would be a tragic waste.
The foreseen impact will result in falling demand and model reallocation to more competitive and welcoming production locations and would see annual output falling to just one million vehicles per year.
In the UK the automotive sector is one of the country’s most valuable economic assets, exporting more goods than any other branch of industry to over 160 countries.
Domestically it is noted that the manufacturing sector is directly responsible for putting food on the tables of 168,000 British workers and their families. The sector provides high value, highly skilled jobs right across the country, with wages typically 21% higher than the UK average.
Leaving the EU without an ambitious deal that eliminates tariffs, delivers frictionless trade, maintains regulatory alignment and secures access to talent from across the globe would jeopardise this contribution, causing serious economic damage and putting thousands of jobs and progress at risk.
Mike Hawes, SMMT chief executive, added: “UK Automotive’s needs are clear: frictionless trade free of tariffs, with regulatory alignment and continued access to talent. Detailed trade negotiations have yet to begin. They will be complex and they will take time. But a close trading relationship is essential to unlock investment so we can deliver our goals: cleaner air, zero carbon emissions, and the ability to go on building our products and marketing them globally.”
“Rather than producing two million cars a year by 2020, a no trade deal, WTO tariff worst case scenario could see us making just a million. The next government must deliver the ambition, the competitive business environment and the commitment needed to keep automotive in Britain.”
Edited by Paul Ridgway
London
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SARS DESTROYS ILLEGALLY IMPORTED GOODS
South African Revenue Service (SARS) customs officials began last week destroying a number of illegally imported vehicles and clothing valued at over R7 million in Durban, in a bid to clamp down on illegal imports that harm the economy.
According to SARS Customs Executive Patrick Moeng, customs officials have destroyed …
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NELIMA IS PAVING THE WAY FOR FEMALE DRIVERS IN UGANDA
Ligentia’s neat initiative
Uganda’s proud graduate
In November Transaid* the London-based transport safety charity for Africa and the developing world reported proud driver graduations in Uganda and Zambia, as part of the charity’s Professional Driver Training programme. These ceremonies were a chance to celebrate the achievements of a new generation of drivers who will help improve safety standards on African roads.
It was reported that the majority of drivers graduating during these ceremonies were men. However, it was encouraging to see…
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FOUR AFRICAN SEATS RETAINED AT IMO
Four African countries have retained their seats on the International Maritime Organization (IMO) Council under category C. They are Egypt, Kenya, Morocco, and South Africa.
The Council is the executive organ of IMO and is…
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EXPECTED SHIP ARRIVALS and SHIPS IN PORT
Port Louis – Indian Ocean gateway port
Ports & Ships publishes regularly updated SHIP MOVEMENT reports including ETAs for ports extending from West Africa to South Africa to East Africa and including Port Louis in Mauritius.
In the case of South Africa’s container ports of Durban, Ngqura, Ports Elizabeth and Cape Town links to container Stack Dates are also available.
You can access this information, including the list of ports covered, by going HERE remember to use your BACKSPACE to return to this page.
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CRUISE NEWS AND NAVAL ACTIVITIES
QM2 in Cape Town. Picture by Ian Shiffman
We publish news about the cruise industry here in the general news section.
Naval News
Similarly you can read our regular Naval News reports and stories here in the general news section.
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THOUGHT FOR THE WEEK
You must decide whether to insist upon the absolute correctness of your view, or to listen and negotiate. You don’t get peace by being right.
– Jordan B Peterson
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