Minutes - MCLI

Of
Held at 14h00 on Wednesday 13 April 2005 at the auditorium of
Spoornet: Umjantshi House – Wolmarans Street, Braamfontein
1.0 OPENING
The facilitator, Mr Hilton Amsel, welcomed all present to the meeting and thanked
them for their attendance.
2.0 WELCOME
Mr. Jorge Ferraz, Chairman of the Maputo Corridor Logistics Initiative (MCLI) and
Managing Director of Mozambique International Port Services (MIPS), welcomed all
present to the meeting. He thanked those present for taking the time out of their busy
schedules to come and participate in this very strategic launch of the MCLI Shipping
Focus Workgroup Project.
Mr Ferraz stressed that the corridor and its cost-effective, continuous, efficient freight
logistics services held the key to the further socio-economic development of this
region of our two countries. But we all needed to work together to ensure that this
Corridor became the first choice for the Corridor’s region’s cargo on an all-inclusive
basis for small, medium and large cargo owners. It was only through the collective cooperation
of the relevant stakeholders that we would be able to ensure that the freight
logistics infrastructure support what trade requires in order to ensure we maintain and
grow our position in the international trading community.
To achieve this we had to reduce the cost of doing business on our Corridor and this
could only be achieved by working together to address the current constraints, as well
as determine what is required for the future in terms of infrastructure, capacity as well
as operational efficiencies.
He indicated that since the Shipping Focus Workgroup was much smaller that the
Rail Focus Work Group one; the format of this meeting could be less formal, with the
objective to stimulate discussion around the various proposals for shipping line calls to
the container terminal in Maputo.
WORKING TOGETHER TO MAKE THE MAPUTO DEVELOPMENT CORRIDOR THE FIRST
CHOICE FOR THE REGION’S IMPORTERS AND EXPORTERS
Page 1 of 8
2005/04/17 08:23:14 PM

3.0 ATTENDANCE
3.1 Present
First
Name Last Name Company Designation Tel Cell E-mail
Blueshift Workshop +27 (011)
hilton.amsel@blueshift.co.z
Hilton Amsel Letsema Facilitator 8027424 +27 (83) 3094380 a
Logistics &
Wayne Bateman SACOB Transport 011 446 3812 wayneb@sacob.co.za
Jan Bekker MIPS
New Business
Development
Manager
+27 (082) 7708371 mips.sa@mweb.co.za
JP Beukes Sappi Manager 013 454 1148 073 341 2884 jpjnr@mweb.co.za
Commercial +258 (1) 306 +258 (82) 353
Assistant
874 / 5 6220 farida.trans@mozstar.co.mz
Farida Bhikhu Mozstar
International
Monetary
Emmy Boston Fund
The Freight
Train
Alistair Christison Company
+258 (1)
496118
+258 (82) 30 66
650 emmy.bosten@intra.co.mz
General Manager +27 (011) +27 (083) alistair.christison@freighttrai
Supply Chain 8075776 6355606 n.co.za
Business
Wendy-
Development 27 11 723
Lee de Goede UTI Manager 1600 083 631 3316 wdegoede@uti.co.za
Roger Bester UTI Project Manager 011 923 4000 082 452 3216 rbester@uti.co.za
Jorge Ferraz MIPS
Executive
Director
+258 (1)
429548
+258 (8)
23134590 jorgeferraz@mips.co.mz
brenda.secondary@mcli.co.
za
+27 (082)
8022338 brenda.horne@mcli.co.za
Neels Gouws MCLI Co-Ordinator 013 755 6025 083 445 3031
Brenda Horne MCLI CEO
+27 (013)
7556025
Letsema
David Howell Blueshift Consultant 072 185 9593 david@real-mm.com
Catherine Larkin
Catherine
Larkin
Consulting MCLI Scribe 011 888 1813 083 300 0331 cvlarkin@sentechsa.co.za
Louw Lourens BHP Billiton Logistic's
Ivor Masher MCLI I.T Support
Logistics
Darryl Moerat AIDC Engineer
Logistics
Karin Pearson Foskor Group Manager
Safmarine/ Export Trade
Keith Leeshew Maersk Manager
Highveld
Steel &
+27 (13)
Simon Simelane Vanadium
6908010
+27 (011)
Mark Smith MACS Branch Manager 3400499
Executive:
Andrew Thomas Ocean Africa Marketing
Logistics
Hannelie Viljoen AIDC Engineer
+27 (016)
3602331
louw.lourens@bhpbilliton.co
+27 (082) 8948355 m
013 755 082 748 ivor.masher@mcli.
6025 8001 co.za
012 564 082 339 dmoerat@aidc.co.
5300 3170 za
035 902 082 323 KarinP@rby.foskor
3318 6886 .co.za
+27 (021) +27 (083) kleeshew@za.saf
4086653 7996653 marine.com
+27 (82)
9377603
+27 (82)
7824869
simons@hiveld.co.
za
mark@macship.co
m
+27 (031)
3027120 +27 (083) 2963656 andrewt@oceanafrica.co.za
+27 (012)
5645261 +27 (084) 7403382 hviljoen@aidc.co.za
Page 2 of 8

3.2 Apologies
First Name
Last
Name Company
Designat
ion Tel Cell E-mail
+258 (82)
Manuel Amaral MoCargo MD +258 (1) 321440 3188710 Msamral@mocargp.com
Manganese Metal Managing
+27 (083)
Rick Arnot Company
Director +27 (013) 7594620 2695904 rick.arnot@bhpbilliton.com
+27 (083)
Gerrit Booyens Citrus SA CEO of Citrus
3883411 gerritb@iafrica.com
Arthur Coy TRAC
Matola Coal
Ian Crawford Terminal
Thomas
Gerald
Cremore
Dawson
Nissan South
Africa
Shippers Council
Sasol
Chief
Executive
Officer +27 (011) 8058788
+27 (082)
6524468 acoy@tracn4.co.za
083 449 6176 ian@matolawbbt.com
Customs
Specialist:
Nissan SA 011 842-9614 083 286 2186 ThomasC@nissan.co.za
Chairman -
Shippers
Council Sub
+27 (082)
Committee +27 (011) 7901453 8075691 gerald.dawson@sasol.com
C & F Agency
Manager +258 (1) 325084
+258 (8)
23005540 mocargonav@mocargo.com
Frederico Dengo Mocargo
Mpumalanga Public
Rudzani Gadisi Government Transport 013 766 2041 082 464 6226 rgadisi@nel.mpu.gov.za
Brian Guerin Delta EMD
Shipping
+27 (083)
Manager +27 (013) 7593500 4156701 bguerin@deltaemd.co.za
Group
Hinrichse
Logistics
Neville n Scaw Metals Manager 011 842-9614 083 286 2186 nevilleh@scaw.co.za
Manager: Rail
Douw Jooste Sasol
Logistics +27 (011) 522 1380 082 497 1904 douw.jooste@sasol.com
Dept. Economic
Development &
Nomfaniko Majaja Planning 013 766 4492 nmajaja@nel.gov.za
Barlow Manilal AIDC
Manager
+27 (083)
Logistics +27 (012) 5645300 4001718 bmanilal@aidc.co.za
Premiers
Economic
Muzi Maziya Premiers Office Advisor 013 766 2041 082 464 6226 mmaziya@prem.mpu.gov.za
Albert Meiring BHP Billiton
Logistics
+27 (083)
Manager +27 (011) 3762331 6091214 albert.meiring@bhpbilliton.com
General
Piet Nel CGSM
Manager +258 (1) 313286 pnel@cgsm.co.za
Transafrica Terminal
+27 (083)
Kenny Parker Logistics
Manager +27 (011) 8803621 2862185 kenny.parker@transafrica.co.za
+27 (082)
Markus Popken MACS +27 (021) 4053400 4529415 markus@macship.com
Jabulile Ratsibe Sasol
Logistics
Manager
jabulile.ratsibe@sasol.com
Eugene Rossouw Thosbegbie
Chairperson:
Incubator 013 246 1021 eugener@thosbegbie.com
WSP Civil &
Structural
Mathabatha Sexwale Engineers Chairman 013 752 2457 082 893 7455 kydce@hixnet.co.za
Senior
Manager
Vossie Vorster Highveld Steel
:Export Steel
+27 (82)
Marketing +27 (013) 6909603 8888606 vossie@hiveld.co.za
Logistics
Danie Walker Thos Begbie Manager
083 630 8720 wdegoede@uti.co.za
Page 3 of 8

4.0 KICK OFF OF THE MCLI FOCUS WORKGROUP IN THE CONTEXT OF THE MCLI
STRATEGY- SDI REPORT
Ms Brenda Horne then confirmed with those present that they were exposed to the
MCLI presentation in the morning and that it would be minuted as per the
presentation, which will also be posted to the MCLI website.
Developments within the MCLI and the Maputo Corridor.
An MCLI position paper presented at the MCLI’s Board meeting on 20 January
had led to the Board’s approval to form four Workgroups. The focus of the
workgroups would be on the highest level of constraints. The Board had
approved the formation of the following
– MCLI work group – rail focus
– MCLI work group – border (customs) focus
– MCLI work group –shipping focus
– MCLI work group –institutional framework focus
At a national and bi-lateral level, it was crucial to align MCLI with the National
Freight Logistics strategies of both South Africa and Mozambique, where both the
elements of the rail and border posts had been identified as high levels of
constraints, and addressed in the high level strategy – with the starting point being
the Report to Heads of State by CSIR/DBSA/SDI – “Non-physical barriers to FDI
and Trade on SADC corridors”.
MCLI’s objective was to set up Workgroups represented by relevant stakeholders
to focus on identified high-level constraints and to address them. An independent
chairperson/project leader and secretary would drive the group. The MCLI would
undertake the coordination of the Workgroup and communication with all
stakeholders.
In anything MCLI undertook it was important to remember the following values
and principles on which MCLI had been founded:
Commitment to good corporate governance
Accountability and transparency
Professionalism in all we undertake
Effectiveness and Efficiency
Inclusivity
Ms Horne mentioned the following as thought starters:
With regard to the Shipping Industry, the major challenges facing it in terms of the
Maputo Corridor included a lack of continuous, reliable, regular, cost-effective
shipping calls – especially for containers – due to inefficiencies on land-side
transport services.
The objective of the Shipping Workgroup would include developing a strategy to
address these and to gain commitment between cargo owners, shipping lines and
terminal operators.
Contrary to bulk and break-bulk shipping, where cargo owners would stockpile in
the port and then charter a vessel to meet their requirements, the container
industry needs a regular scheduled liner service, which requires a collective view
and strategy of cargo owners, the rail operator, the terminal and willing shipping
lines to work together and commit together.
In contrast to bulk commodities, with containers it is the collective small number of
containers from many cargo owners that will justify shipping calls. Hence it is
important to ensure no cargo owner is over looked in the region – hence the
terminal, logistics companies, shipping lines and inter-modal operators have to
share volumes and costs to come up with a collective and workable strategy
Page 4 of 8

In the feasibility studies cargo owners need to look at the door-to-door costs and
have to include the cost of inventory, since the inventory cycle via Maputo could
offer great advantages over the Durban cycle; due to a more flexible stacking
process.
4.1 Role of a Feeder Operator: Mr Andrew Thomas of Ocean Africa Container
Lines (OACL) delivered a presentation, during which he gave an overview of
the company and outlined OACL’s presence in Mozambique.
An independently operated joint venture between Safmarine/Maersk and the
Grindrod Group, OACL currently operates 8 vessels between Luanda in
Angola and Dar-es-Salaam in Tanzania. Serving as a common feeder
operator carrying containers on behalf of all main line operators active in
Southern Africa, OACL also catered to direct shipper requirements for ocean
carriage within their port range utilising their fleet of around 6,000 containers.
Mr Thomas then presented the role of a feeder operator in the MCLI context
as follows:
Connecting Maputo to the hub ports of Durban, Dar-Es-Salaam and Port
Louis.
In most cases the feeder operator would be contracted by the mainline
operators to carry their containers. Feeder operators seldom have a
direct contractual relationship with the cargo interest.
As a common carrier, to combine the feeder requirements of several
mainliners to create economy of scale.
He added that a weekly frequency between Maputo and Port Louis would
require two vessels on a 14 day rotation. This represented an annual fixed
cost of around USD 4 million.
Require rail service for 30,000 teu’s p.a. to make a weekly container
feeder service viable)
4.2 An Option to Europe: Mark Smith of MACS gave delegates an overview of
the company.
MACS were a privately-owned company that had been operating in
Southern Africa for over 25 years.
It offered a multi-purpose service, including break-bulk, bulk and
containers to and from Europe.
The company’s vessels currently called in SA on a 10-11 day rotation
with 6 vessels.
The company’s vessels currently called in Maputo at least once a month.
MACS are committed to call at the Port of Maputo.
Freight rates were open to negotiation.
Page 5 of 8

4.3 An Option to the Far East: A presentation on this topic was delivered by
Keith Lees hew of Submarine on behalf of the AP MOLLER Group
(Safmarine/Maersk).
During his presentation Mr. Leeshew highlighted the following:
Safmarine saw Maputo as a niche port.
The company has been focusing on opportunities east of Maputo.
When considering new ports of call, any decisions taken needed to
make business sense.
A weekly feeder service between Maputo and Port Louis was being
considered, subject to cooperation of all parties working together to
ensure sufficient volumes to make it viable.
Stakeholders needed to share information (volumes; land side costs;
transport cycles) so that sound business decisions could be made when
considering strategy development for the Shipping Lines to call the Port
of Maputo.
Shipping Lines recognized that the Port of Durban could become
problematic over time. Safmarine/Maersk was committed to working
with MCLI to explore new opportunities.
During discussions the following comments were made:
Mr. Ferraz said that the potential of the MIPS container terminal was
there (100,000 teu’s p.a.), and he was convinced that the challenges
could be addressed through the MCLI Focus Workgroups coming up
with a strategy between Terminal; Rail and Road Operators; Cargo
Owners and Shipping Lines. Cargo owners in South Africa have
expressed their wish to utilize this facility on numerous occasions.
MIPS have invested $12m to date - any investments in terminals would
be long-term, and MIPS will continue to invest as the need arises.
Ms Horne said that MIPS, who were dedicated to MCLI and the Maputo
Corridor, have extensive in-house expertise in terms of road-rail costing
options. In this regard, she introduced Jan Bekker, the SA New
Business Development Manager of MIPS to delegates. He is now
based in Nelspruit and can also be reached through the MCLI office.
Mr. Bekker indicated that anyone needing assistance with costing
and/or feasibility studies was welcome to contact him.
MCLI must continue its focus to change the negative perceptions about
the Port of Maputo and the various terminals.
All stakeholders needed to be transparent and share their figures
(current and potential volumes; land side costing; inventory cycle days)
with MIPS New Business Development Manager, who is putting a
database together.
Mr. Bekker added that Spoornet had tremendous opportunities on the
Maputo Corridor, as most of the potential container business is heavy
cargo which is not ideal for transportation by road in containers.
Mr. Alistair commented that they already have an operational plan to
present to RGR to make this corridor work for container cargo owners.
Ms Horne commented that the Dir. of Econ. Development and Planning
of Mpumalanga Government has indicated that they are willing to look
at a feasibility study for a “dry port” in Mpumalanga and that DBSA
funds were available for this study. She believed this would ideally be
Page 6 of 8

a project under the auspices of this Shipping Focus Workgroup that will
have to be discussed at the next meeting.
All present were confident that through working together a costeffective
solution for the Far East challenges could be found.
Ms Horne mentioned that there are currently 30 thousand teu’s
exported from China to Mozambique, but they are not shipped to
Maputo, hence we also need to look at finding the incoming cargo from
the Far east since it is not common knowledge that Maputo has a Port
4.0 WORKGROUP KICK OFF
4.1 Workgroup Objective: The suggested Objectives of the Shipping Focus
Workgroup were presented as follows:
4.1.1 Develop a Strategy and gain commitment between cargo owners,
shipping lines and terminal.
4.2 Workgroup Structure (including Stakeholder Confirmation, Participant
Selection (Nominees Based), Workgroup Chairman Selection): The
following stakeholder groupings were identified as being present:
Cargo owners - SA and Mozambique
Logistics Service providers
Other interested parties
Port and Terminals
RGR (Spoornet / CFM)
the dti, the DoT, the DPE, JRMC
MOU – Mpumalanga Provincial Government and Mozambique
The role of MCLI would be to facilitate, co-ordinate and communicate this
Workgroup and to align it with the public sector initiatives, through the various
institutional frameworks as well as the other the Work Focus Groups.
4.3 Protocol (Governance, Minutes and Distribution, Steering Committee
Frequency, Date & Venue of next meeting, MCLI as the Platform –
Consolidation, Coordination and Communication of all Rail Related
Challenges):
It was agreed that Ms Horne co-ordinate the first Steering Committee meeting,
during which these Items would be addressed.
The date of the next meeting was decided upon as Friday 13 May, at MIPS in
Maputo
Nominations:
Terminal Operators
Jan Bekker - MIPS
Kenny Parker - TAL
Cargo Owners:
Douw Jooste - SASOL
Gerrit Booyens - Citrus/TSB
Hannelie Viljoen - (AIDC)
Albert Meiring - Billiton - Ferroalloys
Jackie McGee – MMC Metals
Page 7 of 8

5.0 CLOSURE
Freight Forwarders,
Farida Bhikhu - Mozstar
Wendy de Goede - UTI
Inter-Modal Operator,
Alistair Christison - Freight Train Company
Shipping Line Representitives:
Mark Smith or nominee - MACS –
Keith Leeshew or nominee - Safmarine /Maersk
Andrew Thomas - OACL
The meeting closed at 16h00.
SIGNED AND APPROVED:
Chairperson: ________________________________________ Date: ______________
Page 8 of 8