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
TODAY’S BULLETIN OF MARITIME NEWS
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- First View : POLONIA
- Pirates raid bulker Glarus off Bonny Island, take 12 hostages
- Lake Victoria’s MV Nyerere death toll passes 200
- Madagascan licensing bidding opens at Africa Oil Week
- Second shipment of copper ore reaches Lobito by train from DRC
- DAFF formalises small-scale fisheries
- English High Court continues restraint against Djibouti Port Company
- President Ramaphosa on stimulating the South Africa economy
- Expected Ship Arrivals and Ships in Port
- Cruise News and Naval Activities
- Pics of the Day : UACC RAS TANURA
- Today’s (Wednesday) masthead image is of the Port of Durban, Maydon Wharf
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Peter Schiffahrts 3,100-TEU capacity, 41,850-dwt container vessel POLONIA (IMO 9219379) sails from Durban earlier in September. The 221 metre long, 32m wide ship was built in 2001 at the Stocznia Szczecinska S.A. shipyard in Poland as the KATHERINA and has also sailed with the name LIBRA RIO. Polonia, which is under charter to CMA CGM and deployed on the West Africa Express (WAX) service, flies under the flag of Antigua and is managed by Hammonia Reederei GMBH of Hamburg. This picture is by Trevor Jones
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PIRATES RAID BULKER GLARUS OFF BONNY ISLAND, TAKE 12 HOSTAGES
Armed Nigerian pirates raided the Swiss dry bulk carrier GLARUS (IMO 9220471) and abducted 12 of the seafarers who have been taken away as hostages for ransoming.
The attack took place on Saturday, 22 September at 05h00 UTC in position 03:40.0N – 006:40.0E, which is around 51 nautical miles South West of Bonny Island, Nigeria.
The attack took place with the pirates coming on board the ship using long ladders from their speedboat/skiffs. Although the bulker, which is carrying a cargo of grain and was sailing between Lagos and Port Harcourt, was armoured with razor wire the pirates cut their way through and made their way onto the ship.
Once in possession of the ship they proceeded to wreck the communication equipment. At some point the Nigerian authorities were alerted and sent a naval ship – it is not clear whether the call for help went out when the raid began or after the pirates had departed.
After securing the ship, the remaining crew of seven seafarers sailed the Glarus under escort to a safe anchorage.
The 46,500-dwt Glarus, built in 2001 is 190 metres in length and 31m wide and is owned and managed by Geneva-based Massoel Shipping SA.
The attack on the Glarus follows a short lull in reported pirate activity although the number of attacks in the first half of 2018 has more than doubled, reaching 46 incidents as compared with 20 in the same period of 2017. The Gulf of Guinea is now regarded as the most dangerous in the world in terms of pirate attack, yet the local authorities appear helpless in preventing attacks on shipping and actively discourage the use of armed guards.
The 12 seafarers taken hostage comprise seven Filipinos, and one each from Ukraine, Slovenia, Croatia, Bosnia and Romania.
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LAKE VICTORIA’S MV NYERERE DEATH TOLL PASSES 200
As the death toll involving the ill-fated Lake Victoria ferry MV NYERERE increased to over 200, Tanzanian’s President John Magufuli has ordered the arrest of those involved or implicated in the tragedy.
MV Nyerere sank as it was approaching the landing at Ukara Island in Lake Victoria, after a routine crossing from Bugorora Island. The ferry, which is supposed to carry no more than 25 tons of cargo and 100 passengers, is variously reported to have had between…[restrict] 200 and 400 people on board as well as being overloaded with cargo.
Reports suggest that as the overloaded ferry approached the landing point to which all passengers were going, they surged to one side of the vessel causing it to capsized about 50 metres from the water’s edge. Thirty-seven people were thrown out and managed to swim to safety or were picked up by nearby fishermen. The majority it seems was trapped beneath the vessel and drowned, although another passenger was saved after finding an air pocket in a cavity on the vessel where Tanzanian divers later rescued the person.
The ticket examiner who carried the number of passengers on the Nyerere was among those who drowned and records were lost with that person.
Nothing is definite and clear at this stage but it is being reported that the ferry captain was not on board and had entrusted the vessel to another. He is among those ordered arrested by the president.
“This is a great disaster for our nation. We have directed that all individuals who were involved in causing this accident to be arrested,” President John Magufuli said when speaking to the state-owned broadcaster TBC. “I have information that some have been arrested including the captain who, I am told, was not on board.”[/restrict]
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MADAGASCAN LICENSING BIDDING OPENS AT AFRICA OIL WEEK
OMNIS, acting in partnership with TGS and BGP and Africa Oil Week has announced a licensing round in Madagascar, which will be launched at Africa Oil Week, which is to be held at the Cape Town International Convention Centre from 5-9 November 2018.
Exploration in Madagascar began in the…[restrict] early 20th century with the discovery of heavy oil-rich sedimentary basins in the west, however this frontier region remains relatively under-explored.
The Island shares a maritime boundary with Mozambique, which is in the same oil province where large quantities of natural gas have been discovered.
Studies conducted in collaboration with TGS and BGP have resulted in new data that suggest there is significant potential for future discoveries both on and offshore.
“With the aim of intensifying offshore exploration activities, we are delighted to announce that OMNIS will be inviting investment from interested parties, during a licensing round to start in November 2018. We are working together with TGS and BGP to create an attractive environment for exploration in the offshore, and we are confident that this will signal the start of renewed investment for the upstream oil sector in Madagascar,” Voahangy Nirina Radarson, General Manager of OMNIS, commented.[/restrict]
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SECOND SHIPMENT OF COPPER ORE REACHES LOBITO BY TRAIN FROM DRC
A second shipment of ore has reached the Angolan port of Lobito by train from the Democratic Republic of Congo (DRC).
The significance of this is that it helps demonstrate that the Benguela Railway has been reopened for business. The Benguela Railway was built in the days of the Portuguese to provide an Atlantic seaboard for copper and other ore exports from what was then the Belgian Congo, now DRC, and Northern Rhodesia, now Zambia.
The line suffered extensive damage during the Angolan civil war and was only recently rebuilt by a Chinese contractor. However the line then…[restrict] came to a halt on the DRC border awaiting the DRC railway authorities to complete refurbishing their section of the railway.
A first shipment of 1,000 tons of manganese ore arrived safely in Lobito in March this year, loaded in 50 20ft containers carried on 25 wagons. The cargo was destined for a customer in India and arrived in the port at Lobito on 5 March 2018, resuming such cargo operations after a gap of over 30 years.
The latest shipment consisted of 1200 tons of copper ore from the DRC that arrived in the port at Lobito on Saturday, 22 September 2018, and from where it is to be shipped to Belgium. The shipment originated in Kisenge, Katanga province in the DRC.
The Angop news agency quoted the chairman of the port infrastructure management company, Augustine Estêvão Felizardo, as saying that the copper ore is awaiting the arrival of the ship which is due in the next few days.
Felizardo was on hand at the Benguela Railway Station (CFB) to welcome the train.
“The port of Lobito intends to show the international community that these ore shipping operations are already possible,” said Felizardo, adding that the arrival of the cargo is part of the government’s intention to boost the Lobito Economic Development Corridor through the CFB and the port of Lobito.
Luís Lopes Teixeira, president of the Benguela Railway, said that the journey of the train, with 28 wagons lasted 36 hours, commenced [on the Angolan side] at Luau, Moxico province, the connection point for trains coming from the DRC. source: macauhub[/restrict]
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DAFF FORMALISES SMALL-SCALE FISHERIES
The South African government is amending legislation that will see small-scale fisheries formalised into cooperatives for the first time in South Africa.
The Department of Agriculture, Forestry and Fisheries (DAFF), led by Minister Senzeni Zokwana, has also initiated a process of granting access to sustainable marine resources and facilitating a developmental support program to small-scale fishers.
In a statement, the department said it has invested…[restrict] resources by working with over 300 communities in the four coastal provinces to facilitate the recognition of small-scale fishers and small-scale fishing communities.
“DAFF also provided training, assisted with mobilisation of declared small-scale fishers into cooperatives and in the Northern Cape, assisted the registered cooperatives to apply for 15-year small-scale fishing rights,” the department said.
In the Northern Cape, the Minister has declared 103 individuals small-scale fishers.
Zokwana has also formally declared two communities as small-scale fishing communities in terms of the Marine Living Resources Act and its regulations.
“The two small-scale fishing communities have received basic training on cooperatives and they have been assisted to register cooperatives for the purpose of applying for 15-year fishing rights,” DAFF said.
The department has since received the rights applications for these two cooperatives from Port Nolloth and Hondeklipbaai.
Zokwana will on Friday, 28 September launch the cooperatives at an event at the Port Nolloth town hall in the Northern Cape. – SAnews.gov.za[/restrict]
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ENGLISH HIGH COURT CONTINUES RESTRAING AGAINST DJIBOUTI PORT COMPANY
The High Court of England and Wales in London has continued the injunction first made on 31 August 2018, prohibiting the Government of Djibouti’s port company, Port de Djibouti S.A. (PDSA) from interfering with the management of the joint venture company, Doraleh Container Terminal S.A. (DCT).
On 31 August, the Court issued a without notice injunction against PDSA, as shareholder in DCT, prohibiting the following actions:
* It shall not act as if the joint venture agreement with DP World has been…[restrict] terminated
* It shall not appoint new directors or remove DP World’s nominated directors without its consent
* It shall not cause the DCT joint venture company to act on “Reserved Matters” (being matters contractually reserved to DP World) without DP World’s consent)
* It shall not instruct or cause DCT to give instructions to Standard Chartered Bank in London to transfer funds to Djibouti.
Following a hearing on 14 September 2018, at which PDSA failed to appear despite being notified, the Court ordered that the injunction will continue until it makes a further order or an award of the arbitration tribunal at the London Court of International Arbitration (LCIA) that will be formed imminently to consider the shareholding dispute with DP World.
On DP World’s application, the Court also extended the injunction to include any ‘affiliate’ of PDSA. Under the JV Agreement, PDSA’s affiliates include the Government. The decision follows the enactment of an “emergency” ordinance by the President of Djibouti on 9 September. This ordinance purported to transfer PDSA’s shares in DCT to the Government of Djibouti.
PDSA is 23.5% owned by China Merchants Port Holdings Company Ltd of Hong Kong (China Merchants).
The Court further ordered that PDSA must ensure that any transferee of DCT shares is legally bound by the Joint Venture Agreement and Articles of Association in the same way as PDSA. The ruling means neither the Government nor PDSA can control DCT or give valid instructions to third parties on behalf of DCT without DP World’s consent.
DP World confirmed last week it will continue to pursue all legal means to defend its rights as shareholder and concessionaire in the Doraleh Container Terminal in the face of the Government’s blatant disregard for the rule of law and respect for binding commercial contracts.
“This is yet another in a series of rulings – all in favour of DP World – that demonstrate Djibouti’s continuing disregard for the rule of law,” a DP World spokesperson said. “We underline our belief that companies intending to operate in such a country or already operating there need to seriously consider their dealings with this Government in the face of such behaviour.”
The 2006 Concession Agreement that the Government awarded to DP World is governed by English law. It provides that all disputes relating to the Agreement are to be resolved through binding arbitration at the LCIA with two such LCIA proceedings already completed.
In the first proceeding, the Government filed arbitration against DP World seeking to rescind the Concession Agreement, claiming its terms were unfair to the Government and were procured through bribery. The LCIA tribunal (comprising Sir Richard Aikens, Lord Hoffmann, Peter Leaver QC) ruled against the Government, finding the terms were fair and there was no bribery. Certain counterclaims raised by DCT and DP World in relation to DP World’s exclusive right to container handling facilities in Djibouti remain to be decided by the Tribunal.
In a separate proceeding, another LCIA Tribunal (comprising Professor Zachary Douglas QC) held that the 2006 Concession Agreement was valid notwithstanding the Government’s attempts to terminate it through special legislation and decrees. DP World’s claims for damages against the Government will now be determined in these proceedings.
To date, the Government has not made any offer to compensate DP World.[/restrict]
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PRESIDENT RAMAPHOSA ON STIMULATING THE SOUTH AFRICAN ECONOMY
President Cyril Ramaphosa on Friday announced the government’s plan to address the state of the economy with a recovery plan involving a range of measures, among which are included measures aimed at reducing the cost of doing business and boosting exports and to make South African industry more competitive, for which a review of various administered prices will be undertaken, beginning with electricity, port and rail tariffs.
Here is the statement in full.
Statement by President Cyril Ramaphosa on economic stimulus and recovery plan
In the State of the Nation Address in February, we announced a range of measures that we would initiate to set the country on a new path of growth, employment and transformation.
Since then, we have taken decisive steps to rebuild investor confidence, end corruption and state capture, restore good governance at state owned enterprises and strengthen critical public institutions.
Yet, as is evident from the contraction of our economy in the first two quarters of the year, our economic difficulties are severe and will take an extraordinary effort – and some time – to overcome.
For several years our economy has not grown at the pace needed to create enough jobs or lift our people out of poverty.
Public finances have been constrained, limiting the ability of government to expand its investment in economic and social development.
In recent months, the structural weaknesses in our economy have been made worse by global factors such as a rising oil price, weakening sentiment towards emerging markets and deteriorating trade relations between the US and other major economies.
This has negatively affected South Africans.
It is in response to these factors, many of which are outside our control, that we are announcing today, following its adoption by Cabinet, an economic stimulus and recovery plan.
The stimulus and recovery plan we are outlining consists of a range of measures, both financial and non-financial, that will be implemented immediately to firstly ignite economic activity, secondly restore investor confidence, thirdly prevent further job losses and create new jobs, and fourthly to address some urgent challenges that affect the conditions faced by vulnerable groups among our people.
The measures we are announcing give priority to those areas of economic activity that will have the greatest impact on youth, women and small businesses.
The stimulus and recovery plan has four broad parts:
Firstly, implementation of growth enhancing economic reforms.
Secondly, reprioritisation of public spending to support job creation.
Thirdly, the establishment of an Infrastructure Fund.
Fourthly, addressing urgent and pressing matters in education and health.
Fifthly, investing in municipal social infrastructure improvement.
It is generally agreed that in order for our economy to grow at a rate that will lead to job creation on a meaningful scale, we need to significantly increase levels of investment.
We are decisively and rapidly accelerating the implementation of key economic reforms that will unlock greater investment in important growth sectors.
These reforms include immediate changes approved by Cabinet to South Africa’s visa regime.
Within the next few months, amendments will be made to regulations on the travel of minors, the list of countries requiring visas to enter South Africa will be reviewed, an e-visas pilot will be implemented, and the visa requirements for highly skilled foreigners will be revised.
These measures have the potential to boost tourism and make business travel a lot more conducive.
Tourism continues to be a great job creator and through these measures we are confident that many more tourists will visit South Africa.
It is imperative that South Africa restores investment and exploration levels in the mining sector as mining and mineral beneficiation activities have significant potential to drive long term growth, exports and job growth.
Following extensive consultation that involved industry players, communities, labour and government, Cabinet approved the revised Mining Charter.
This will revitalise the mining industry and provide certainty to investors while charting a sustainable path towards a transformed and inclusive industry.
Parliament will be requested in terms of its Rules not to proceed with the Mineral and Petroleum Resources Development Act Amendment Bill, which has contributed to a lot of uncertainty in the sector.
Separate legislation for the regulation of the oil and gas industry will be drafted through the government’s legislative process.
To reduce the cost of doing business, to boost exports and to make South African industry more competitive, government has begun a review of various administered prices, starting with electricity, port and rail tariffs.
Within the next few weeks, government will initiate the process for the allocation of high-demand radio spectrum to enable licensing.
This will unlock significant value in the telecommunications sector, increase competition, promote investment and reduce data costs.
Lower data costs will also provide relief for poor households and increase the overall competitiveness of the South African economy.
Other measures we will implement include expanding procurement from small business and cooperatives, as well as using trade measures – within WTO rules – to protect poultry and other sensitive sectors and a vigorous crackdown on illegal imports.
The central element of the economic stimulus and recovery plan is the reprioritisation of spending towards activities that have the greatest impact on economic growth, domestic demand and job creation, with a particular emphasis on township and rural economies, women and youth.
Our government has limited fiscal space to increase spending or borrowing, it is imperative that we make sure that the resources that we do have are used to the greatest effect.
The reprioritisation of spending we are outlining as part of this stimulus and recovery plan will take place within the current fiscal framework and in line with the normal budgetary process.
Re-prioritised funding will be directed towards investments in agriculture and economic activity in townships and rural areas.
Agriculture has massive potential for job creation in the immediate and long term.
The interventions we have identified will include a package of support measures for black commercial farmers so as to, increase their entry into food value chains through access to infrastructure like abattoirs and feedlots.
Blended finance will be mobilised from the Land Bank, Industrial Development Corporation and commercial banks.
The Land Bank is currently concluding transactions that will create employment opportunities in the agricultural sector over the next 3 to 5 years.
A significant portion of the funding will go towards export-oriented crops that are highly labour intensive.
Government will finalise the signing of 30 years leases to enable farmers to mobilise funding for agricultural development.
As part of the work to develop agriculture and ensure effective land reform, I have appointed an advisory panel on land reform that will guide the Inter-Ministerial Committee (IMC) on Land Reform chaired by Deputy President David Mabuza.
The 10-person panel is to advise government on the implementation of a fair and equitable land reform process that redresses the injustices of the past, increases agricultural output, promotes economic growth and protects food security.
Further details of the mandate and composition of the panel will be made available in a separate statement.
In the second instance, reprioritised funding will also be re-directed towards igniting economic activity in townships and rural areas.
We have prioritised the revitalisation of three regional and 26 township industrial parks as catalysts for broader economic and industrial development in townships and rural areas.
A township and rural entrepreneurship fund is being established to provide finance to either scale up existing projects or provide start-up capital for new projects.
In the third instance, we will also be re-directing resources towards addressing immediate challenges in health and education, which are critical to the health, wellbeing and productivity of our people.
Arising from the priorities identified at the meeting of the President’s Coordinating Council earlier this week, additional funds will be directed to addressing the dire state of sanitation facilities in many public schools, ensuring the completion of 1,100 sanitation projects in the current financial year.
To address some of the shortages in our hospitals, funding is being made available immediately to buy beds and linen, while the Minister of Health and the National Health Council will immediately fill 2,200 critical medical posts, including nurses and interns.
In total, the plan will result in reprioritised expenditure and new project level funding of around R50 billion.
The Minister of Finance will provide more detail about the final amounts involved and the specific areas affected during the Medium Term Budget Policy Statement next month.
The stimulus and recovery plan prioritises infrastructure spending as a critical driver of economic activity.
Infrastructure expansion and maintenance has the potential to create jobs on a large scale, attract investment and lay a foundation for sustainable economic expansion.
With a view to unlocking the potential to create more jobs on a large scale we have decided to set up a South Africa Infrastructure Fund, which will fundamentally transform our approach to the rollout, building and implementation of infrastructure projects.
The lessons we learnt in the 2010 World Cup infrastructure rollout will stand us in good stead as we set out this fund.
The South Africa Infrastructure Fund will reduce the current fragmentation of infrastructure spend and ensure more efficient and effective use of resources.
The private sector will be invited to enter into meaningful partnerships with government in this fund.
The contribution from the fiscus towards the Infrastructure Fund over the medium-term expenditure framework period would be in excess of R400 billion, which we will use to leverage additional resources from developmental finance institutions, multilateral development banks, and private lenders and investors.
To ensure these funds are used effectively and that projects are completed on time and on budget, we are establishing a dedicated Infrastructure Execution Team in the Presidency that has extensive project management and engineering expertise to assist with project design and oversee implementation.
The team will identify and quantify ‘shovel ready’ public sector projects, such as roads and dams, and engage the private sector to manage delivery.
The role of the PICC will be strengthened to ensure improved coordination across the three spheres.
As part of the reprioritisation of spending, additional infrastructure funding will be directed towards provincial and national roads, human settlements, water infrastructure, schools, student accommodation and public transport.
In support of the stimulus efforts, the IDC will be targeting to increase its approvals to R20 billion over 12 months, an increase of 20% on the previous year.
This funding will target the productive sectors of the economy, including manufacturing, mining, industrial infrastructure and sectors in distress.
We also need short term municipal investments to address the challenges that our people face.
We have identified 57 priority pilot municipalities in order to unlock infrastructure spending in the short term.
This spending will cover, among other things, sewerage purification and reticulation, refuse sites, electricity reticulation and water reservoirs.
Cutting across all these measures are series of interventions to ensure that growth is labour intensive and that young people in particular are drawn into the labour market.
Some of these measures include the extension of the Employment Tax Incentive for a further 10 years, with a review after five years, greater support for public employment programmes, additional support for the clothing and textiles sector, and the use of funds from the Unemployment Insurance Fund to support labour activation programmes.
Igniting economic activity requires partnership and collaboration.
It must be a national effort in which all of us work together to restore our economy to growth in the immediate term and prepare the ground for sustainable, inclusive growth into our future.
We have held consultations with leaders from business and labour on this plan.
We are encouraged by the support they have pledged for the measures outlined and many have undertaken to provide resources and expertise to ensure its success.
We continue to draw on the guidance and support of bodies like the National Planning Commission, which will soon release its own guidance on focal areas to stimulate the economy, and Government will continue to coordinate its work with formations like the CEO Initiative.
We are certain that the measures we have outlined here will complement the deliberations at the forthcoming Jobs Summit.
We are certain that these interventions will help to put the economy on a far firmer footing as current investors and potential investors convene in Johannesburg for the Investment Conference at the end of October.
As South Africans, we have confronted challenges far greater than this before.
By working together, we managed to end a seemingly intractable conflict and set our country on the path to a peaceful transition to democracy.
Now, we have it within us to come together once more and forge a new path of growth, jobs and transformation.
We are confident that the four elements of our economic stimulus and recovery package will play a decisive role in reversing the recent contraction of the South African economy.
Together, we are taking bold and concrete measures to ensure a clear and sustained improvement in the lives of all South Africans.
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QM2 in Cape Town. Picture by Ian Shiffman
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PICS OF THE DAY : UACC RAS TANURA
The oil and chemical products tanker UACC RAS TANURA (IMO 9425318) makes her departure from Durban’s Island View bound for Fujairah. Built in 2010 the 49,999-dwt Handysize tanker is 183 metres in length and 32m wide. The ship’s owner is registered in Dubai and she is managed by United Arab Chemicalk Carriers (hence the UACC) also of Dubai. These pictures are by Keith Betts
THOUGHT FOR THE WEEK
“We are more often treacherous through weakness than through calculation.”
– François VI de la Rochefoucault.
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