April 2011 - Malnor

Cool Chain Association
Following a successful workshop last year in Cape Town,
South Africa, the German Cool Chain Association (CCA) AGM
2011 will be hosted by FloraHolland in the scenically faultless
city of Aalsmeer, The Netherlands.
For three days, 25 to 27 May 2011, cold chain experts from
around the world will meet in the very heart of the
international floriculture sector to discuss, debate and
communicate to attendees their “End-to-End Solutions” for
the cool supply chain.
Reputed for the high quality of floriculture products it
produces, The Netherlands has an intricate network of
premium companies – ranging from leading breeders and
growers to sales experts and export firms, representing every
aspect of the business.
The Netherlands is the place where supply and demand come
together. FloraHolland flower auction plays a key role in the
Netherlands’ land of floriculture where its position as
marketplace fulfils the role of matchmaker, intermediary and
knowledge centre.
AGM 2011
FloraHolland is a modern business with six auction centres, a
nationally operated intermediary organisation and a dedicated
import department. Attendees to the CCA’s AGM2011 will
also get a rare opportunity to visit the facilities and learn
more about the internal workings of the flower business.
As well as input from FloraHolland’s own experts, included in
this year’s programme for delegates is valuable input from
the likes of airline cargo and container experts, marine
terminal operators, and customs authorities.
If you’ve anything to do with the cool supply chain, this
meeting should be on your calendar!
For further information, please visit: www.coolchain.org
or send an e-mail to Kerstin Belgardt kerstin.belgardt@coolchain.org

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Officially endorsed by Wesgro and
the Exporters Clubs of South
Africa – Eastern Cape and
Western Cape
Cover Story
Boosting warehousing
operating efficiencies
Port of the Month
Port of the whales
Port of the Month
Trusted partners
Packaging
Responsible, safe
transportation
Warehousing
Optimising your warehouse
with technology
Import
Challenging supply
tradition
Risk Management
Risky business
Standards
ZABS and the Pre-Export
Programme
Regulars
2 Editor’s Comment: Werk net
EXPORT & IMPORT SA // APRIL 2011
contents
April 2011 // Volume 9 Number 4
14
19
31
6 export & import International: World News
20 IT: Effective organisations need effective people
22 Country profiles: Gabonese Republic and Jordan
27 Trade News: Local news updates
32 2011 Calendar
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7
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Cover story:
Boosting your
warehousing operating
efficiencies with Red
Prairie
Page 4
1

Editor’s Comment
2
Publisher:
Ken Nortje
kenn@malnormags.co.za
Editor:
Jodi Newton
jodin@malnormags.co.za
Advertising:
Debbie Poggiolini
debbiep@malnormags.co.za
George Papatheodorou
georgep@malnormags.co.za
Sales manager:
Sophia Nel
sophian@malnormags.co.za
Production:
Johan Malherbe
Meinardt Tydeman
Advertising material:
Lebohang Molefe
traffict@malnormags.co.za
Layout:
Boago Kedikilwe
Dispatch:
Willie Molefe
Circulation/Subscriptions:
circulation@malnormags.co.za
Subscription rates:
Local R235,00
Africa R260,00
Overseas R1 470,00
Published:
Monthly
Address:
Malnor (Pty) Limited
2 Hermitage Terrace, Richmond, 2092
Private Bag X20, Auckland Park, 2006
Tel: 011 726 3081/2
Fax: 011 726 3017
e-mail: exportsa@malnormags.co.za
www.malnormags.co.za
www.exportsa.co.za
BEE compliant
Werk net
Jodi Newton, export & import SA Editor
If it’s networking and meaningful
debate you’re after, the next few
frosty months shouldn’t
disappoint. No fewer than six
must-attend conventions,
exhibitions, and networking functions
have been packed into the start of
the next quarter just for you.
The number of good events held
throughout this country each year
(and events relevant to readers of
export & import SA) is astounding.
My tally of recommended meetings
has gone far beyond the dozen
mark already.
Next month (May) we’ll see China
come to us when the doors to
IMEXPO 2011 open at Nasrec,
Gauteng. This is said to be the
biggest trade fair and investment
forum ever to be held in southern
Africa. Delegates from 13 SADC
countries (with the exception of
Madagascar and Angola), and
representatives from around 100 of
China’s major industries and state
owned enterprises, as well as
industries and parastatals from
across the SADC region will be
coming together.
As the organisers of IMEXPO put it:
When it comes to investment into
SADC countries, China has already
proved that it recognises the
strength of the region as an
investment partner. The region
recorded an aggregate GDP of
USD 226,1 billion in 2010. This,
coupled with significant reform
measures aimed at promoting
macroeconomic stability and growth h
in the majority of the member
countries, further cements the
region’s importance in the global
market.
As well as the eighth annual Africa
Ports and Harbours Congress in
June, the same month offers two
transport and freight events gems.
And the timing, for these meetings
and their respective sectors in
particular, couldn’t have been better.
I’d advise ANY person to make the
little trip to our northern neighbour
for this year’s Road Freight
Association’s annual convention
(in Botswana this year). I don’t
think I need to elaborate on the
significance of the scheduled
programme (which includes “those”
Gauteng tolls and AARTO). Also
in the same month is the not-to-bemissed
meeting of the South African
Association of Freight Forwarders
(SAAFF) at Emperors Palace – a
smorgasbord of important topics
are lined up for this meet. Expect
some hefty debate at both
gatherings.
The list of fine events goes on:
Intermodal World, SAITEX and
Africa’s Big Seven, SAPICS, Africa
Rail . . . There’s really no defence
for not having your say in your
respective industry or attaining
every ounce of knowledge that’s
needed for your business to thrive.
How much more opportunity do
we need? ◆
Enjoy the issue (and shows) folks,
Jodi
export & import SA
is now available online.
Be sure to visit
www.exportsa.co.za
EXPORT & IMPORT SA // APRIL 2011

18751 Export 04/2011

Cover Story
Boosting warehouse
operating efficiencies
Written for export & import SA by David Levin,
Director, RedPrairie Africa
In southern Africa, many warehousing operations are still
running on paper-based environments, which are
manually driven and controlled. Most growing operations
reach a point where opportunities for refinement of
manual warehouse processes have been exhausted, and
the next level of efficiency cannot be achieved without the
support of technology.
A common question asked by companies, when investing in
technology of any kind, is what is the appropriate level of
sophistication required? A company can either be over-sold
on the benefits, and invest in something which is unable to
deliver returns, or be tempted into installing a cheaper
system that cannot meet the longer-term functional
requirements of the business.
Another key consideration is the speed of return on
investment. Over the past ten or so years there have been
some interesting changes in the local WMS software market.
The nominal cost of skilled and semi-skilled warehouse
labour has approximately doubled since 2000, while the
rand cost of WMS software has in fact reduced over that
same period (due to a combination of increased market
competition and rand strength).
As a result, returns on investment in such technology have
substantially improved, and with that the justification for
making such investments. An investment in WMS technology
can be the trigger to boost warehouse efficiencies and take
supply chain productivity to the next level.
The typical reasons for installing a WMS include:
� Increased growth and complexity: Often this means either
moving to a larger location and employing more staff, or
otherwise investing in a WMS that allows for improved
productivity and flow while keep the same fixed
infrastructure and people costs.
� Clear business case based on manual inefficiencies: A
manually run warehouse will not be run as efficiently and
investment in technology can often yield a reasonably
quick return (sometimes inside of 12 months).
� Quality and business risk issues: Issues such as
inventory control and losses, batch or serial number
traceability and recall, or risks around staff retention
(manual systems require product recognition and
therefore greater reliance on experience).
The business benefits or justification for making an
investment in a WMS is to use the technology to assist the
operations to build the capacity and capability to manage
more with the same or less resources. This is best achieved
by having the necessary technology, a WMS, to best assign
4
and manage these
new activities within
its available pool of
resources.
For example, to
illustrate this
concept, in a typical warehousing operation with low levels of
technology, MHE resources are usually assigned to focus on
either inbound activities like receiving and put-away tasks or
outbound activities like let-downs and picking tasks. This is
not necessarily the most efficient use of these resources. In
a WMS scenario, the system considers all these MHE
resources as available to perform any task within the
warehouse while considering each resources physical
handling constraints. The WMS then dynamically assigns
tasks in real time to these resources, based on optimisation
criteria such as reducing travel time and distance,
eliminating “empty-leg” travelling of MHE and staff and
reducing double-handling of goods.
The further benefit of implementing a WMS is the
accumulation of accurate activity records. This information
can to be used to review and understand the best mix of
resources (staff and MHE) required to increase throughput
to meet both internal cost and customer service level
objectives as well as understand cost drivers for
improvement and budgeting.
Through our various productivity solutions, RedPrairie have
been assisting customers globally and in South Africa for
many years by improving warehousing efficiencies, levels of
productivity and service levels to the end customer.
About RedPrairie, in existence for 35 years, delivers
productivity solutions helping companies around the world in
three categories – inventory, transportation and workforce.
RedPrairie provides solutions to manufacturers, distributors
and retailers looking to reduce cost, increase sales and
create competitive advantage. Over 20 global offices,
including South Africa, provide services to over 34 000 sites
in 40 countries; companies trust RedPrairie inventory,
workforce and transportation solutions to deliver an
immediate increase in productivity – with the flexibility to
adapt as business needs change. RedPrairie has supply
chain execution applications for productivity, warehouse,
transportation management, visibility and performance
measurement delivered in line with RedPrairie’s core value
of delivering customer value. ◆
For further information, please visit www.RedPrairie.com
EXPORT & IMPORT SA // APRIL 2011

17626 Export 09/2010

export & import International
Global trade news
Compiled by J Newton
Japan and world trade
Japan – While certain Japanese import
and export markets are reporting
downturns as the country’s nuclear
power problems impact manufacturing
and consumer buying patterns and
international airlines avoid the country’s
capital city, imports of fresh fish to Japan from countries as
far afield as Australia and Norway are likely to increase.
Australian exports of coking coal and iron ore may though be
negatively affected in the short term because many Japanese
steels mills have been damaged and rolling power cuts
already have forced manufacturers to cut production of two of
Japan’s export staples – electrical goods and motor vehicles.
Also, spare parts for many of the country’s export industries
face aircraft space restrictions as international carriers cut
back on schedules.
In terms of exports, some buyer companies are turning to
South Korean and other Asian firms for alternative supplies,
leading to concerns that Japanese exporters’ supply deals
could be threatened in the long term. Source: Aircargo
Retraining Kenya’s drivers
Kenya – In an effort to reduce carnage
on Kenya’s road network, the country’s
Transport Licensing Board has called
for a complete overall of the driver
training curriculum and testing criteria.
Kenyan officials say fake road licences, driving licences, TLB
certificates, insurance certificates and even good conduct
certificates are in abundance.
Fifty per cent of Kenyan drivers are said to be unqualified.
The country has one of the highest road accident rates in
the world.
Oz beef exports set to gain
Australia – The country’s cattle prices
are expected to increase a further 5%
in 2011, due to low herd numbers
and rising export demand. Following
weaker demand in 2010, Australian
beef exports are set to improve with
new export markets emerging and competitors facing
production constraints.
In the past, around 85% of beef exports went to our major
trading partners of Japan, Korea and the US. The country is
now seeing new export growth for Australian beef, in
particular, from Russia, South East Asia and the Middle East.
6
Source: Farm & Land
New maritime centre opens in India
Kakinada, India – Shipping line
Safmarine celebrated the double
opening of the Kakinada Maritime
Community Centre and the ITF Seafarer
Centre (pictured above) in the port of
Kakinada in India recently. The centres
aim to equip the local seafaring community with the
necessary resources needed in the maritime industry.
The main supporters of this project are ITF Seafarers’ Trust,
Sailors’ Society, Safmarine and Safmarine customer, Cargill.
These centres will be managed by UCSWA, the local
partner of the Sailors’ Society, who will be responsible for
providing ongoing support for seafarers who call there
requiring information for their career development at sea.
The centre will also support qualified and experienced
seafarers by offering courses in order to enhance their
areas of expertise.
Airline adds to fleet
Germany – Lufthansa has ordered
35 new aircraft. Thirty of the aircraft
are for the Passenger Business; the
other five orders are for Boeing 777
freighters for the business segment
Logistics.
The new 777 freighters are set to join the fleet from 2013.
They will be utilised to seize growth opportunities fuelled by
rising demand. Aside from their high fuel efficiency, the noise
footprint of the new freighters is smaller than that of the
existing fleet. The orders in total are valued at list price at
close to $4 billion.
Highs and lows of container volumes
Europe – Moderate growth in container
volumes across Europe is predicted for
this year said a report by Hackett
Associates and the Bremen Institute of
Shipping Economics and Logistics.
The latest Global Port Tracker: North Europe Trade Outlook
has backtracked on a prediction last month that the growth in
container volumes in Europe last year will not be repeated
this year. It is now forecasting a strong recovery in March.
Growth will not though be as good as in 2010, with imports
showing an 8,6% increase, to reach a total of slightly more
than 23 million teu, and exports just under 7%, to total
16,63 million teu. Source: IFW
EXPORT & IMPORT SA // APRIL 2011

Port of the whales:
Walvis Bay
EXPORT & IMPORT SA // APRIL 2011
Port of the Month
18794 Export 04/2011
7

Port of the Month
The desert country
Although it ranks as second least densely populated
country in the world (2 108 665 inhabitants, mostly
Afrikaans) and is a seemingly desolate vastness of
landscape, the Namibian Republic is important for
southern African and international trade.
At 824 268 square kilometres, Namibia is the 31st*
largest country in the world and stretches for about
1 300 km from south to north and varies from 480 to
930 km in width from west to east. The country is
bordered by South Africa in the south, Angola and Zambia
in the north and Botswana and Zimbabwe in the east.
13 regions make up the county (*Namibian government).
*Namibia has a small open economy that is closely
linked to South Africa. It is the fourth-largest non-fuel
minerals exporter in Africa, the world’s fifth-largest
producer of uranium and produces large quantities of
lead, zinc, tin, silver and tungsten. Namibia’s total
exports increased from US$3,1 billion in 2008 to
US$3,4billion in 2009 while total imports increased
from US$3,8 bilion in 2008 to US$4,3 billion in 2009.
8
“ . . . fourth-largest non-fuel minerals exporter
in Africa, the world’s fifth-largest producer
of uranium . . . ”
Syncrolift
General Cargo Berths
Container
Terminal Walvis Bay
The Namibian economy is highly dependent on tourism
and their mining sector – which accounts for 12,4% of
GDP and provides more than 50% of foreign exchange
earnings. (*Credit Guarantee Insurance/export & import
SA 2009).
The Central Plateau of the state acts as a vital
transportation corridor from the heavily populated north
and South Africa – the source of more than four-fifths of
Namibia’s imports. The country also homes one of the
region’s most important seaports.
The whale’s tale
Midway along the country’s temperate coast, with direct
access to principal shipping routes, the Port of Walvis
Bay is described as a “natural gateway” for international
trade. Named after the abundance of whale (Walvish,
Walvis) that once frequented the area and the whaling
thereof, the harbour nowadays welcomes an abundance
of vessels – around a thousand a year.
The Port of Lüderitz is Namibia’s second-largest seaport.
A fishing haven for some time, it has diversified to move
cargo for the mining industry, to support petroleum
exploration and diamond mining activities.
As Namibia’s largest commercial port, Walvis Bay
handles some 5 million tons of cargo with the ability
to process a quarter of a million containers annually
and about 275 000 twenty-foot equivalent units
(TEUs) annually.
Container throughput at the port has risen from 40,000
TEU in 2003 to 200,000 TEU in 2008 with an average of
38% growth per year since 2003.
The port is amongst Africa’s most efficient and best
equipped with world-class infrastructure and equipment,
ensuring reliable and safe cargo handling. Port authority
Namport has steadily improved its harbour facilities at
the port and continues to do so – with significant
investment made over the last few years.
Ten years ago, the deepening process and the building of
a new enlarged container terminal enabled the port to
handle vessels with a capacity of some 2 000 to
2 400 TEUs.
to page 10
EXPORT & IMPORT SA // APRIL 2011

18669 Export 04/2011

Port of the Month
“Port of the whales: Walvis Bay” from page 8
The harbour today consists of two
sections: the commercial port, which is
managed by Namport, and the finishing
harbour. The commercial harbour offers
a range of terminal facilities that can
handle bulk, containerised, frozen, and
dry cargo. The turnaround time for
which is competitive, with handling
times for container vessels of around
12 to 15 hours. Depending on the
tonnage and shipment, the turnaround
time for bulk vessels averages between
24 and 48 hours, while for break-bulk
vessels averages between 18 and 20 hours.
The total length of the quay is about 1,5 kilometres
divided into eight berths, with berths 1 to 3 deepened to
12,8 M CD and berths 4 to 8 deepened to 10,6 M CD.
The container terminal has a current capacity of 392
groundslots for normal containers and 192 groundslots
for reefer containers. The port offers a thriving Syncrolift
ship repair facility. Deepwater anchorage is also available
inside the harbour and is protected by the natural bay
and by Namport.
The port carries a low risk in respect of insurance, with
no pilferage and ideal weather conditions. The port has
reportedly not experienced a single loss of cargo in the
last 15 years.
The corridors and infrastructure
Most of Namibia’s transport infrastructure, particularly
its road network (around 48 000 kilometres), is well
maintained. More than half a dozen major road upgrade
projects are under way or near completion, including that
of the 134 kilometre MR 110 Rundu to Elundu route
upgrade which began in 2007.
The country’s border posts with South Africa are efficient
and mostly without delays. Bribery and general misuse of
authority though still plagues the borders of its northern
neighbours (not of Namibia). *2 382 kilometres of
railway (narrow-gauge) connects Walvis Bay and Lüderitz
with key destinations in Namibia and South Africa.
Containerised traffic at Walvis Bay goes by rail, and the
port has its own marshalling yard for maximum
operational efficiency. The railway line from Walvis Bay to
Grootfontein, where there are transhipment facilities,
links in with the Trans-Caprivi Highway (*embNamibia).
The Port of Walvis Bay offers the shortest access route
to and from the SADC region, Europe and the Americas.
South America of which serves as a new trade route to
major shipping lines.
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“ . . . ability to process a quarter of a million
containers annually and about 275 000 twenty-foot
equivalent units . . . ”
Through the Walvis Bay
Corridor, the infrastructure
and location of the port
makes it suitable to serve
the SADC region’s import and
export bound sea borne
cargo. It also provides a costeffective
alternative to the
ports of southern Africa which
operate (mostly) at maximum
capacity.
The Gauteng market can be
reached via the Trans-Kalahari
Corridor instead of via Durban
or Cape Town, saving seven to
11 days of transit time.
The Port is linked to Namibia’s air, rail and road network
making it well situated to service landlocked countries in
southern Africa, especially through the main arteries of
the Walvis Bay Corridor – the Trans-Caprivi, Trans-
Kalahari, Trans-Cunene Highways and the Walvis Bay-
Ndola-Lubumbashi Corridor.
The Walvis Bay-Ndola-Lubumbashi Corridor, in particular,
was set up by the governments of the Democratic
Republic of Congo (DRC), Namibia and Zambia to identify
and harmonise cross-border standards, to address
obstacles to trade between the Corridor member
countries and to promote economic development through
transport, trade, investment and tourism for the mutual
benefit of the DRC, Namibia and Zambia and the SADC
region as a whole.
“ The Gauteng market can be reached via the
Trans-Kalahari Corridor instead of going via Durban or
Cape Town, saving seven to 11 days of transit time. ”
Transit time from Antwerp to the Port of Walvis Bay is
17 days, and transhipment from the Port of Walvis Bay
to Gauteng an additional 48 hours.
Namibia has about 25 key airports – most of which are
paved and open to commercial use.
EXPORT & IMPORT SA // APRIL 2011

Future Walvis Bay
The port’s future is sound. Walvis
Bay Port “prides itself on having the
flexibility to deliver an increasing
demand for customer services”.
The port operates at 65% of its
capacity currently but its total
capacity equips it to handle 7 to
8 million tons of cargo.
Along with strategic expansion of the
Walvis Bay Container Terminal and
Walvis Bay Ship and Rig repair yard
(pictured), the construction of a new
marine petroleum offloading facility
has begun and should be complete
soon. The port has introduced
maximum security measures and
procedures and is International Ship
and Port Facility Security (ISPS)
code compliant.
The expansion of Namibia’s port at
Walvis Bay to handle larger quantities
of copper (from Zambia) and uranium
(from Namibia’s Erongo Region) will
be completed by the end of 2012.
The amount of cargo has increased in
line with the country’s expansion of
uranium mining operations.
Construction of the new
($264 million) terminal started in
January 2011. The total project
cost is estimated at an equivalent
of 200 million EUR (including
dredging), infrastructure and handling
equipment. The new container
terminal would increase NamPort’s
annual container handling capacity
from 250,000 TEU to more than
500,000 TEU. Berthing is at present
limited to 3,500 TEU container
vessels. ◆
EXPORT & IMPORT SA // APRIL 2011
Port of the Month
Sources: Namport, Credit Guarantee,
04/2011
Dredging Today, Namibian Government/
Export
Tourism 18736
11

18652 Export 04/2011
Port of the Month
Trusted partners:
Walvis Bay and Maersk
“ Our partnership has led to many improvements and development
a state-owned entity, Namport is probably
one of the best port Authorities to work with
within Africa.” “As
This comment, made by Maersk Line’s
Namibian Country Manager Dries Oberholzer, is based
predominantly on commercial considerations and the port
authority’s “ability to listen and find a common way
forward”.
12
initiatives resulting in continuous volume growth. ”
“Namport has done all the right things: from deepening
their draft (14,5 metres), investing in IT (NAVIS), proper
handling equipment (RTGs and reach stackers) to expanding
their storage capacity and improving their quay wall and
berthing lengths. The next step for them should be to put
measures in place to deliver sustainable high productivity
and efficiencies to their liner customers.”
Maersk Line was one of the first shipping lines to recognise
Walvis Bay’s potential as a hub port as far back as 2004.
“Our partnership has led to many improvements
and development initiatives resulting in continuous
volume growth for them,” explains Oberholzer.
“We saw an increase in containerised (including
transhipments) cargo of 26% from 2008 to 2009,
but this amount decreased in 2010 with 16%”.
The decrease can be attributed to the slow trading
conditions in Angola, affecting both imports
(destined for Southern Angola) and transhipment
cargo that is normally feedered into Angola.
“Obviously when competing for import, export and
transshipment volumes any inefficiencies/
efficiencies in competing ports has an effect on
the way the Port of Walvis Bay is viewed by the
various shipping lines and their end customers.
However, all the container shipping lines (under
the banner of CLOF) work closely with Namport
and the Walvis Bay Corridor Group to ensure that
we improve the port and corridors and the
movement of cargo through them.
“Maersk Line are indeed very focused on the
environment and we are glad to say that so is
Namport. They have very high standards in this
regard, with dedicated staff overseeing the wellbeing
of the port and its immediate environment
at all times,” concludes Oberholzer.
Maersk Line will soon be launching the new
WAFMAX vessels. These will be largest ever to be
deployed in West Africa and Walvis Bay will be the
first port of call on their rotation. This in itself
typifies the relationship between Maersk Line and
Namport and the trust shown in the port
to deliver what is required for us to be able to
grow our business. ◆
EXPORT & IMPORT SA // APRIL 2011

The Mobicon machine: used by logistics
companies at ports throughout the world to
safely transport containers
The mobile Mobicon container handling system from
BLT is used at ports throughout the world to safely
transport containers into secure warehouses for
efficient inspection procedures.
“This innovative mobile container handling system, which
safely lifts loads onto and off trucks and carries containers
securely around sites and into examination facilities,
ensures optimum efficiency for customs authorities which
require fast container turnaround times,” says Clinton van
den Berg, products manager for BLT. “Customs services are
now able to avoid port congestion by also receiving
containers at night for the next morning’s inspection shift.
This is an important factor when handling large shipments
of containers. It means authorities are able to dictate their
own workflow and are not reliant on transporters waiting in a
queue at the port. This also further reduces the chances of
demurrage costs or over-stay at the port.
“Many unloading harbour yards are not designed to carry
heavy container handling equipment. Pavements don’t meet
specified requirements and very often yards themselves are
small and narrow and cannot withstand the use of
heavy vehicles.
“An important advantage of this flexible system is that it
utilises all parts of the yard and can turn in tight spaces
and operate where conventional container handling
equipment cannot go. The Mobicon can travel under
awnings, through warehouse doors, inside buildings
and up to docks which is very convenient, especially in wet
weather conditions. Containers are now effectively taken
directly to examination facilities and this capability, apart
from speeding up inspections, also increases
goods security.”
This flexible system has a 33-ton lift capacity and is able to
carry any size or type ISO specified container, without the
need for modifications or additional lifting equipment. With
EXPORT & IMPORT SA // APRIL 2011
Advertorial
Fast, safe container handling
“ . . . a reputation as the fastest and safest container handler . . . ”
this system, which is one of the lightest container handlers
in the world, there is no need to couple and uncouple
trailers from prime-movers during the unloading
of containers.
The container is lifted from the bottom, which allows the
operator to easily handle flat beds, tank containers, half
heights, over heights and curtain sided containers. The
two tower design provides the flexibility to be able to
operate on slightly sloping or uneven surfaces, as well as
compacted gravel yards, bitumen or standard lightweight
concrete.
Enhanced safety has also been critical in the design of this
system. The operator now has a clear view of the working
area and does not have to travel with a container 3 metres
in the air, as with conventional systems. Instead of staff
having to work at a trailer’s height, they are now able to
work safely at ground level.
The Mobicon, with a reputation as the fastest and safest
container handler on the market, also requires minimal
maintenance. The simple design of the low-maintenance
machine utilises an economical four cylinder 60 hp diesel
engine, coupled to a hydrostatic drive system, for reduced
fuel costs (consumption is 5 litres an hour compared to
22 litres an hour for other machines.
The container handling system, which is easy to operate and
does not require a special licence, guarantees customs
authorities improved efficiencies, faster handling times and
increased safety.
This efficient Mobicon container handling system, which is
manufactured in Australia, is available exclusively throughout
Africa from BLT. The company offers a technical advisory,
parts and support service. ◆
For further information, please contact: 031 274 8270
15009 GD 05/2009
13

Advertorial
Your agent, your ally
The role of a ships agent, although one of the oldest
professions in the world, has not changed much.
Technology has advanced and efficiencies have
improved substantially but the fundamental role of
the ships agent has remained the same. A ship
owner or operator needs trusted eyes and ears in parts of
the world where their vessels call and the trusted ships
agent places the interests of the ship owner or operator
above all else.
Ocean Liner Services (a division of Manica Group Namibia
Pty Limited) is represented in the Port of Walvis Bay in
Namibia. The team is highly skilled, motivated, and has one
common goal: to provide excellent ships’ agency services to
international customers.
Formed in 1995, Ocean Liner Services (previously Woker
Freight Services Ships Agency Division) represents ship
owners and operators of all types of vessels, including dry
14
bulk, breakbulk, containerised, Ro-Ro, reefer, seismic and
supply, passenger and tanker vessels.
In addition, Ocean Liner Services protects the interests of
ship owners, operators and rig owners and operators of all
types of vessels and oilrigs that require repairs. The
company ensures quick turn around times for customers’
vessels and also ensures that the port calls are costeffective
by monitoring cargo operations, berthing and
sailing and negotiating discounted rates for loyal customers.
In shipping terms, this is referred to as “ships agency and
husbandry” and Ocean Liner Services places emphasis on
the “husbandry”. The company looks after the vessels and
takes special care when rendering the services and also
goes that extra mile to ensure the agency remains the
ultimate choice.
As long as there is a port, vessels will call and as long as
vessels call a port, there will be ships agents. ◆
EXPORT & IMPORT SA // APRIL 2011
18676 Export 04/2011

Responsible,
safe transportation
South Africa’s legislation for the packaging
and transportation of hazardous materials is
a complex and difficult one to understand fully.
Failure to comply though could result in heavy
fines or penalties being levied on guilty parties.
The repercussions of products being incorrectly packaged or
transported could cause costly and devastating damage to
the environment. As such it is important for organisations in
the manufacturing, packaging and transportation industries
that deal with dangerous goods, to understand the levity or
the responsibility that they are carrying and to make sure
that they are well informed on the latest regulations
regarding their role in handling these goods.
The RPMASA (Responsible Packaging Management
Association of South Africa), the sole Industry representative
from Africa on the UN Committees of Experts for Transport of
dangerous goods and the GHS, undertook to host a biennial
conference that would bring all the key role-players together,
along with an esteemed panel of international experts on the
subject matter, and offer them a forum to learn, discuss and
share insights and ideas.
The second International Transport and Environment
Conference, organised by the RPMASA in partnership with
the City of Durban and the Durban Chamber of Commerce
and Industry was held at the ICC in Durban from 7 to
9 March 2011.
“I believe the Conference was a great success,”
said the RPMASA’s President Liz Anderson, “certainly the
feedback from the Conference delegates was excellent
regarding the valuable information gained on National
and International Legislation, Regulations and Best
Industry Practice, as well as the outstanding calibre of the
speakers and presentations, to raise awareness of risks and
help companies in our region improve their business
compliance.”
EXPORT & IMPORT SA // APRIL 2011
At the recent RPMASA event
(from left): Irfan Rahim, Head
of Cargoes and Marine Safety
for the International Maritime
Organisation (IMO) in London;
Liz Anderson, President of
the Responsible Packaging
Management Association of
South Africa (RPMASA);
Captain Sanjoy Sen, Marine
Safety and Environment
Manager for Transnet National
Port Authority (TNPA)
Packaging
A challenge in holding a conference of this sort though,
says the Association, is that it involves a wide audience from
various industries (manufacturing, packaging and
transportation) that perform very different functions and the
regulations controlling one industry don’t necessarily apply to
the other – which makes it difficult for them to find common
ground. As such there was a marked lassitude from many
organisations to attend the conference despite the critical
nature of the subject matter.
“Attendance from Industry was disappointing as this is a key
issue,” says Liz, “Tsietsi Mokhle, CEO of SAMSA said that
the movement of these cargoes through the Port of Durban
accounted for more than R25 billion to the National GDP!”
Along with the International Maritime Organisation’s Irfan
Rahim (Head of Cargoes and Marine Safety), International
speakers at the conference did include the esteemed likes of
Mauser Corporation’s Christopher Lind (USA); Dr Jurgen
Bruder, the Director of the International Confederation of
Plastics Packaging Manufacturers; and Jonathan Krueger of
the United Nations Institute for Training and Research.
“International speakers Irfan Rahim, Peter MacKay of HCB,
Dr Jurgen Bruder and Volker Krampe of AISE and FEA as well
as the CAA, SAMSA and the TNPA have pledged to support
and help plan for 2013 for an even better event and to
encourage greater Industry participation,” adds Liz. We trust
that all the relevant Industry Associations from Packaging,
Chemicals and transport sectors will participate in the early
stages and ensure their members participation in 2013.”
Local input included that from the Road Freight Association’s
Gavin Kelly, the Civil Aviation Authority’s Thami Zembe and
Ndivhuho Raphulu of the National Cleaner Production Centre.
Transnet National Ports Authority (TNPA) and the South
African Maritime Safety Association (SAMSA) are two
organisations that play a key role in the regulation of
transporting dangerous goods participated both in the
conference and by sponsoring the event.
“The conference imparted valuable information to the
mariner as it gave insight into the packaging industry
operation and a fuller understanding as to why accidents
happen on ships when packaging is not done correctly
according to industry standards,” said Captain Mike Brophy,
Chief Harbour Master for TNPA (see SAMSA’s input at the
conference on page 31 of this issue).
Government’s involvement in writing the legislation that
governs the industry and regulating the rules once in place is
also critical. Peter Lukey, Department of Environmental
Affairs Acting Deputy Director-General for Climate Change
spoke at the conference about the current status of South
Africa’s Climate Change Response Strategy. “It is important
to support good initiatives that are finding creative ways to
combat climate change,” Lukey stated. “And there is room
for working on such projects within the packaging industry,”
he continued. Peter recommends that organisations look at
South Africa’s Climate Change Policy (www.climateresponse.
co.za). ◆
For a full overview of the findings and resolutions drafted at
the meeting, visit: www.rpmasa.org.za
15

18747 Export 04/2011
Warehousing
Companies can optimise warehouse
operating efficiencies, customer
service with integrated technology
initiatives
Considering the current global economic climate
and increased concerns over variable inventory
levels, 3PL warehouse providers may be hesitant
to invest capital in software solutions. However,
many companies are realising the benefits of
utilising new technology to help maximise warehouse
management systems (WMS) at this time.
Despite the recessionary nature of the global economy,
many freight forwarders and logistics providers are
increasingly seeking value-added software solutions in order
to boost warehouse operating efficiencies and better control
inventory levels to meet demand variability.
Integrating technology solutions into the warehouse function
is enabling many companies to operate leaner, provide
improved storage capacity and reduce overhead and
operating costs significantly. While current inventory levels
16
by Andrea Robinson, Business Development
Manager, CargoWise – UK (Published with
permission of the author)
are lower across the globe, proactive forwarding companies
are finding that technology can be an invaluable tool in
warehouse optimisation and can significantly help position
companies to better compete when consumer demand
returns and inventory volume levels return to normal.
For many small to medium-sized enterprises (SMEs) finding
the right IT solution isn’t always an easy task. Often good
WMS options seem to trend toward stand alone solutions
that can be costly and offer no integration with internal or
external systems. Also, the stand alone option may not
provide a computerised warehouse function at all; it may
simply run on paperwork and spread sheets. There are
potentially huge overheads incurred in these situations, with
administrative work, operational expenses, transport
planning and inventory management. Processing errors,
time delays, high costs and general confusion are the usual
symptoms of a disorganised warehouse and can suggest
that the actual cost of units coming through the warehouse
is providing only marginal profits.
With a few simple but critical changes, smaller 3PL
warehouse operators can realise significant gains
throughout the warehousing operation with a software
solution that is tailored specifically to its business. Taking
ownership of a company’s WMS system without incurring
lengthy development, implementation and training delays
while minimising running costs is possible with some
careful planning and the right software provider that
understands your business and offers an integrated and
diverse range of services.
Therefore, to achieve maximum benefit, promote efficient
inventory control processes and improve productivity,
companies must select a WMS software program designed
to integrate with internal operating systems. A thoroughly
integrated WMS process will ensure a positive effect on
cost reductions and bottom line profitability. A significant
element of payback with investment into WMS software can
be found in the reduction of errors, reduction in labour
costs and a maximising of warehouse floor space. The
introduction of electronic data interchange (EDI) into the
warehousing process can also help reduce manual data
entry, reduce duplication of paperwork and enable a more
efficient inventory management process that reduces labour
costs by optimising picks, locations and release of stock
from storage.
While companies can utilise software technology to
streamline their warehousing process, they can also better
meet customer demands and improve customer service by
establishing and meeting key performance indicators (KPIs)
EXPORT & IMPORT SA // APRIL 2011

that will ensure the warehousing business sustains the
current economic climate for both parties. Product tracking,
stock visibility and traceability, along with automated data
collection throughout the warehouse system should be
standard features accessible to customers.
Utilising RF technology is another initiative that can cut down
on labour and data entry efforts while providing real-time
information and complete stock visibility. With RF technology,
online receipts, locations, movements and dispatches can
be instantly applied to the back office warehouse
management system without the need for rekeying
information.
Location management, automated billing, optimising stock
replenishment -- even yard management and the improved
utilisation of warehouse space all contribute to maximising
profits and ensuring that improved ROI is achieved in a very
short time.
Ultimately, SMEs, in particular, can benefit from evaluating
their warehouse processes in this economic climate by
strategically identifying the actual unit costs across the
entire warehouse process. By identifying where WMS
performance can be enhanced through the implementation
Warehousing fast fact
The World’s Largest Warehouse is thought to be the Saudi
Kayan Petrochemical Complex Project in Al-Jubail Industrial
City, Kingdom of Saudi Arabia (140 000m2) of an enterprise software system, they can identify the
greatest areas of expenditure in relation to inventory, space
and transport planning and reduce costs in order to justify
the initial and ongoing management expenses involved. The
results may initially seem alarming; but with a strategic focus
on why overheads are high, companies can determine how
the inventory management process can be controlled with
automated systems without adding to outlays, and take the
necessary steps to improve warehouse efficiencies without
reducing the value-added services that customers expect
now and in the long term.
About CargoWise edi:
CargoWise edi provides solutions for forwarders, customs
brokers and logistics service providers focused on supply
chain execution capability in an integrated ERP-like globally
capable system. It is a world-leading provider of low-cost,
high-value software solutions and services for the freight
forwarding, NVOCC, express courier, customs brokerage,
contract warehouse, container freight station, ships’ agency,
local cartage and other supply chain services.
Every day, 1 300 logistics service providers, consisting of
33 000 users in 45 countries, move goods through the
global supply chain using CargoWise edi’s flagship product
ediEnterprise. CargoWise edi offers supply chain logistics
management systems that provide full integration across all
departments and functionality for domestic, regional and
global customers.
Headquartered in the US, Australia and the UK, the Company
operates from 12 worldwide offices across the US, Europe
and Asia. More information on CargoWise edi can be found
at: www.cargowise.com. ◆
EXPORT & IMPORT SA // APRIL 2011
Warehousing
Working, safely, with
your modern warehouse
The TCM range of forklift trucks in this country has
been extended to include FRSB-VIII reach trucks.
Distributed exclusively in Africa by Criterion
Equipment, the TCM range’s new electric sit-on
reach truck series, with capacities between 1,4 tons and
2,5 tons, offers extended run times pper battery y charge, g ,
enhanced safety and improved
operator comfort. .
The new truck, says ays Criterion
Equipment, can – with its 420
Ah/6 hour battery y unit – work for
11,5 hours in a specified work
cycle pattern, at an operating rate
of 55%.
A load meter prevents vents overloading,
thus improving proving safety.
When the truck is s stationary and
the hydraulic system tem is not
active, the load meter shows the
approximate weight ght of the load
on the forks, to avoid an
accident as a result sult of overloading.
Another safety feature ature is
the password entry try
system which
prevents the
unauthorised
operation of a
truck. The travelling and load handling
interlock system also increases safety of this series. If
the operator leaves his seat during an operation, an alarm
buzzer sounds and both the hydraulic and travel controls
are automatically disabled. A travel and load handling
speed limiter also enhances safety during operation. If the
forks are raised to the maximum fork height with a load,
the truck automatically detects the fork height and weight
of the load in order to limit the travel, reach and sideshifting
speeds.
A number of additional safety and comfort features adorn
the new lift truck and several optional extras are available.
Criterion Equipment is a wholly owned subsidiary of Invicta
Holdings Limited. The company’s service throughout
southern Africa includes the sale of new and used forklift
trucks, long and short-term rentals, service and
maintenance contracts, as well as the supply of genuine
TCM parts. ◆
For further information, contact 011 966 9700
17

Import
Challenging
supply
tradition
Traditionally, disparate elements governed the supply
chain: funding came from one source and tended to
take a one-size-fits-all approach, while managing
logistics came from another. The common thread
was the importing company’s lack of control.
That approach is outdated in today’s business world and
managing the import process and associated finance
component effectively within the overall supply chain cycle
is now even more critical in a global market.
“ . . . far more retailers will start looking at
If the acquisition of 51% of Massmart by global retail giant
Walmart is approved by the Competition Tribunal many local
retailers will be forced to relook their traditional financing
models and supply chain processes. This is the view of
Adam Orlin, CEO of Blue Strata, an imports solutions
and finance provider.
Orlins says from the outset Doug McMillon, President and
CEO of Walmart International, has said it is Walmart’s
mission to save people money and the group’s ability to
source products internationally coupled with its bulk buying
power will ensure a highly competitive pricing structure for
Massmart. For local retailers pressure to become more
price competitive will place additional strain both on gross
margins, which are already relatively low, and traditional
sourcing models.
Orlin says now, more than ever, retailers need to integrate
their financial and physical supply chain onto a single
platform so they can better manage the order management,
forex management, logistics and product costing in order to
manage these risks.
Orlin anticipates that far more retailers will start looking at
direct imports. “One of the challenges of importing goods
has traditionally been the retailer’s lack of warehousing
capacity, or the associated cost of stockholding to hold
extended stock ranges or large quantities or stock for an
extended period. This has driven their preference for the
18
direct imports . . . ”
CEO of Blue Strata, Adam Orlin
flexibility of utilising a local holding supplier. But, with
increased price competition, retailers are now being forced
to rethink their sourcing and funding strategies.”
In order to better manage costs and stock levels, large
retailers are turning to centralised planning models but
trying to integrate large numbers of vendors is proving
problematic. “This is where a company like Blue Strata
can step in, to help manage timelines and to provide
feedback to help manage inventory relative to the
sell-through rate to help avoid potential losses from mark
downs or loss of revenue by having the incorrect supply
for demand.
“And,” explains Orlin, “if you add the funding component to
the value-added services and access to economies of scale,
savings can be passed through to customers to improve
working capital cycles and reduce the quantum of working
capital tied up in the import transaction. In turn, by freeing
up working capital and increasing stock turn, we are
effectively giving clients up to 40% more money to fund
expansion and growth and the real ability to compete
competitively on price.”
Orlin says the company recently introduced a replenishment
model for the retailers’ own imports which compares the
costs and timelines associated with both a direct versus a
local supply model, and then combines the best of both
worlds. “In a direct model, the stock holding period is
generally limited which places restrictions on monthly Open
to Buy (OTB) positions and limits flexibility. In contrast, in a
local timeline, stockholding is generally not an issue but
there is a premium to pay for the service.” He adds that by
Blue Strata facilitating direct imports as a local supplier, the
combination of this off-balance sheet stock holding and
increased stock holding period provides importers with
the required increase in quantity and variety of stock to
trade competitively.
The bottom line is that a fully integrated model like this
allows importers to mitigate their risks and release much
needed working capital, providing them with the ability
to either increase or retain margins relative to maintaining
competitive selling prices,” concludes Orlin. ◆
EXPORT & IMPORT SA // APRIL 2011

Risky business
“ South African companies believe in a local response over
a central risk response action. ”
Natural disasters, fires and explosions are
uncommon supply chain risks within our
operations. This was the input of South African
companies participating in the MIT Global Risk
Survey (Phase II).
The recent natural disasters in Australia, New Zealand and
particularly Japan are, however, proving the global impact
of such incidents on shipping and sourcing and thereby,
supply chains.
The MIT Center for Transportation and Logistics Global Risk
Survey is being undertaken in South Africa jointly by
IMPERIAL Logistics and the Association for Operations
Management of Southern Africa (SAPICS), in collaboration
with MIT.
“As the supplier of approximately 20% of semi-conductors
and 40% of flash memory chips worldwide and a major
supplier in the likes of the automotive sector, last week’s
(March) earthquake and tsunami in Japan will force
companies to rethink their approach to managing supply
chain risk,” says Abrie de Swardt, IMPERIAL Logistics
Marketing Director.
In terms of risk mitigation perceptions, South African
companies believe in a local response over a central risk
response action. This falls in between the North American
and European approaches, as identified by the global
survey findings. “By addressing supply chain risk through
a centralised approach, a company aligns its strategies
to the holistic context. Response at a local level allows
site level staff to apply their own actions immediately,”
he explains.
De Swardt says that supply chains are considerably more
vulnerable as a result of being “very much international due
to globalisation, involving trading partners from different
regions, who speak different languages and have
experienced different risks.” The survey identifies seven
risk causal factors, including the inability to ship or
deliver products, loss of raw material supply, disruption of
internal operations, inability to communicate with vendors/
other sites, running out of cash and a sudden drop in
customer demand.
All seven risks can be triggered locally due to cross-border
supply chains. “The scale and unpredictability of the natural
disasters occurring across continents requires a more
EXPORT & IMPORT SA // APRIL 2011
Risk Management
holistic approach to supply chain risk mitigation, both
for shippers and Logistics Service Providers (LSPs),”
he says. “Comprehensive contingency plans are
therefore needed.”
For example, despite Japan’s main airports, Narita and
Haneda having been reopened and road and rail disruption
reportedly only localised, sea ports have been badly
affected. Analysts forecast that “supply chain effects may
be one of the longer lasting issues for the logistics sector,
with global markets in air and sea freight depressed due to
lack of volume.”
Furthermore, with Japan being a major importer of iron
ore and coking coal for steel production, as well as thermal
coal for power generation, dry bulk shipping could be
negatively affected.
The survey finds that South Africa is more closely aligned to
developed over developing economies, in terms of the top
10 supply chain risk factors facing business. The country,
however, not only resembles developing countries regarding
“extended electricity loss” and “major software systems
failure” but is required to address these issues more
frequently.
Extended loss of electricity is five times more likely to occur
in South Africa, compared to the world average. “As a risk
needing to be addressed, employee theft/executive
misdeeds come in four times higher than the international
average. Protracted labour disputes are 2,5 times more
likely to transpire and disease/infestation, 2,3 times
higher,” says de Swardt.
South African companies rated raw material supplier failure
as the top supply chain risk, followed by finished goods
manufacturing failure, product quality failure, transportation
carrier failure and economic recession/market collapse.
“Notably, within South African supply chains, companies
tend to work more with customers than suppliers in
addressing risk management,” he adds.
“As supply chain professionals, we must generate ways in
which to make changes designed to increase agility and
responsiveness, while reducing costs. This survey’s findings
to date enable South African logistics and supply chain
management professionals to not only apply best practice,
but to lead it,” concludes de Swardt. ◆
19

IT
20
Effective organisations need
effective people
Written for export & import SA by Jonathan Sims
CA(SA), Core Freight Systems (Pty) Limited
The prism revisited – a model for
organisational effectiveness
In a previous article the attributes of an effective
organisation were considered, and the model of a prism
introduced as a mechanism to communicate the ideas
discussed. In summary it was asserted that the effective
organisation would be a function of the following four
aspects:
� Clarity of purpose
� Quality of decisions
� Action
� Ability to learn
The concept may be illustrated using the graphic below.
Leadership within the
organisational context
should intentionally address
and refine each of the four
issues identified – ensuring
balance and congruency
between them in order to
optimise the overall
performance of the
business.
Extending our use of the
prism as an illustrative
object, clearly the higher the quality of the constituent
material the more effectively a prism fulfils its purpose of
refracting light, providing transformed output through its
operation. Likewise a business should seek to transform
external inputs through the application of its internal
qualities to add value to its stakeholders. It thus may be
worth considering the impact of the material used in the
construction of such a business.
Organisational performance is a function of
people performance
It is not a new idea to propose that, irrespective of the
advance of technology, the primary determinant of the
ongoing success of an organisation is the people who are
responsible for the execution of the activities required for
the business to function. This raises the question of what
qualities, or attributes, of the individuals are necessary to
support this? Unfortunately I do not have the answer to this!
Notwithstanding I do not believe that this should provide an
excuse to ignore the subject and, at risk of proving my own
ignorance, offer the following personal suggestions for
consideration by the reader. In keeping with the simplicity
inherent in the model used to provide focus for this article
the list is restricted to the following four items, which could
be associated with the internal facets of the prism.
�� Intellect
While there are many studies which show that raw
intellect alone (perhaps measured by IQ) is not sufficient
for job success I understand that equally there is a
minimum intellectual requirement in order to fulfil most
of the higher level functions required in the maintenance
of any business of consequence. Leadership should
therefore ensure that they have the appropriate level of
intellectual competence available within their
organisation.
�� Emotional intelligence
Emotional intelligence (EQ) has become a popular
subject over the past 15 to 20 years. Basically it
highlights the requirement for an individual to
demonstrate both intra- and inter-personal skills
in order to perform most effectively at higher
levels. Generally this would manifest itself through
competencies including high levels of self-awareness
and control, empathy with others, and optimism
tempered by an objective assessment of the reality
of a situation.
�� Endurance
The ability to endure in the face of the threats and
weaknesses which every business is exposed to is
as important as capitalising on the strengths and
opportunities which will present themselves. The
individuals themselves within the organisation should
therefore exhibit fortitude and perseverance, although
this should obviously not be at the expense of adapting
to changing circumstances.
�� Accountability
Accountability should not be a consequence of title
within an organisation and implies the acceptance of
responsibility to act in terms of a standard. As a
minimum this requires acting in terms of personal
integrity but is extended to provide for evaluation at the
organisational level, necessitating not only avoiding
doing things that are inappropriate but actively pursuing
issues that which will benefit the organisation.
The internal facets of the prism may thus be labelled per
the illustration below.
Passengers on the
Organisational Express
It has been observed, perhaps
somewhat facetiously, that
people may be placed in one
of three categories: those that
make things happen; those
that watch things happen; and
those that ask, “What
happened?!” While
organisational achievements
are generally the result of a
collective effort as individuals
we need to consider which category we belong to. Are we
passengers on the organisational train or do we actively
work to make the right things happen? ◆
EXPORT & IMPORT SA // APRIL 2011

ZABS appoints SGS to manage Pre-Export
Verification of Conformity Programme
SGS has been appointed by the Zambia Bureau of
Standards (ZABS) Authorities to implement and
manage the Pre-Export Verification of Conformity
Programme for all imported products that form part
of the programme.
The PVoC programme objective is to protect the country
and the consumers against the importation of
substandard products that can endanger public health,
safety and environment, to prohibit the entry of
unsafe and/or counterfeit products as well as to protect
local manufacturers against unfair competition from
imported products which do no comply with national
standards.
This programme is applicable to the following products
exported to Zambia:
1. Food and agricultural products
2. Chemical/household products
3. Textiles and textile products
4. Footwear
5. Toys and child care products
6. Electrical and electronic products
7. Automotive spare parts
8. All used product
Standards
There are three routes of verification available to exporters:
Route A – Unregistered suppliers or manufacturers of
sensitive goods
Route B – Registered suppliers or manufacturers of goods
Route C – Certified (licenced) products
The main benefits of this PVoC programme for the Zambian
operators are:
– Consumer and environment protection
– Conformity assurance
– Faster goods release at Zambian Customs office with the
appropriate Certificate of Conformity (COC)
Why SGS?
SGS has the advantage to offer the “one-stop-service” to
deliver customer focused solutions for inspection, testing
and certification.
SGS is currently active in Conformity Assessment
programmes on behalf of government authorities in various
countries such as Kenya, Nigeria, Saudi Arabia, Kuwait,
Algeria, Egypt, Russia, India, Iraq, Mongolia, Syria and
Indonesia. ◆
For more information, kindly contact Rolan de Jager
(rolan.dejager@sgs.com or 082 328 8018)
Tel: +27 11 681 2500
18795 Export 04/2011

Credit Guarantee country profile
Gabonese Republic
Credit Guarantee experience
Cover considered on a case-by-case basis only.
Political highlights
�
�
�
Country S/T business S/T political
rating cycle indicator indicator
3C
22
“ The country has a wealth of agricultural and fishery resources but these have
been largely neglected and are therefore underdeveloped. ”
President Omar Bongo ruled Gabon for 42 years, one of
the longest serving heads of state in the world. He died
in June 2009. President Bongo introduced a multiparty
system and a new constitution but allegations of
electoral fraud exposed the weaknesses in the political
system. Omar Bongo was accused of embezzling oil
revenues and bribery during his time in office. Mr Bongo
was credited for encouraging foreign investments but
also accused of having authoritarian tendencies.
Ali Ben Bongo, son of the former president, was
educated in France and graduated from Sorbonne with a
PhD in law. After the death of his farther, Ali Ben was
elected as head of state in August 2009 although these
results were disputed, causing unrest.
In January 2011 defeated presidential candidate,
Mr Andre Mba Obame and other fellow citizens took
refuge in the UN offices in Libreville for more than a
month after he declared himself president following the
2009 elections. Mr Obame claims that he won the
elections based on a French documentary that Mr Bongo
stole his victory and the results were altered to ensure
a dynastic succession. Although a constitutional court
confirmed the results, the opposition leaders continued
to dispute this. Mr Obame’s opposition party has been
dissolved by the government. He stated that they
took refuge in an attempt to get the attention of the UN
to the situation in Gabon. The group left on 27 February
Debt recovery
The use of a collection agent is recommended
Country rating key – political risks: 1 = low, 2 = medium, 3 = high
Commercial risks: A = low, B = medium, C = high
�
�
�
�
Credit Guarantee Insurance Corporation
of Africa Limited
Credit Guarantee House, 31 Dover Street,
Randburg, 2194, PO Box 125,
Randburg, 2125,
Tel: 011 889 7000, Fax: 011 886 1027,
Email: info@cgic.co.za
2011 after discussions with the president and the UN
mission and could now face criminal charges.
The president is elected by a popular vote for a sevenyear
term, with no term limit.
The next election will be held in 2016.
The Economist Intelligence Unit (EIU) expects criticism
from citizens against President Bongo’s reform
programmes that could result in protests.
In February 2011 Gabon and Equatorial Guinea met to
try to resolve the ongoing territorial dispute since 2003
over Mbanie Island. The island consists mostly of fishing
activities, but it holds the key to potentially lucrative oil
fields in the Corisco Bay. The two countries have agreed
to exploit the area jointly until the dispute is resolved.
Economic developments
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Gabon is an upper middle income country with a small
population of 1,5 million inhabitants of which 50% are
under the age of 19 years old.
Researched and compiled
by Monique Daseman,
economic services –
Credit Guarantee Insurance
EXPORT & IMPORT SA // APRIL 2011

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There are no restrictions on foreign
investment in Gabon, but the state
reserves the right to invest in ventures
established in strategic sectors such as
the oil and mining industries.
The country has a wealth of agricultural
and fishery resources but these have
been largely neglected and are therefore
underdeveloped. Most of the population
relies on subsistence farming. The
country is also very dependent on
timber and manganese exports.
Gabon’s oil industry is critical to the
country’s economy as it’s a major
source of foreign exchange, accounting
for 45% of GDP, 80% of exports and
60% of budget revenues on average over the last five
years. It is the fifth largest oil producer in sub-Saharan
Africa. Analysts do expect declining oil revenues despite
many arguing that the oil fields have passed their peak
production. The fluctuations in global prices and demand
for commodities led to an economic contraction of 1,4%
in 2009, the first time since 2000.
The country has an oil refinery at Port Gentil and hosts
a number of international oil companies that are active
in the distribution and marketing of petroleum products.
Economic growth rebounded in 2010 with a real GDP
growth rate of 5,4% as the global economy and
commodity prices recovered. GDP composition by sector:
industrial sector 63%, services sector 33% and the
agricultural sector 4%.
The business environment slightly improved in Gabon.
The risk of doing business improved, but it’s still
relatively more difficult and costly to do business in
Gabon compared to other economies in the world. The
country ranked 156 out of 183 countries in 2011, an
improvement from a rank of 158 in 2010.
The government is implementing various reforms
including the elimination of lengthy regulatory procedures
to enhance the business environment for private sector
promotion. The IMF emphasised the importance of
transparent and accountable management of resources
from the country’s extractive sector and identified the
limited access to financial services as a deterrent to
private sector growth.
EXPORT & IMPORT SA // APRIL 2011
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Credit Guarantee country profile
The government is focusing on the development of wood
processing, light metallurgy and ecotourism and energy
in an attempt to diversify economic activities as oil fields
are reaching maturity.
In January this year, the president reshuffled his cabinet
in an attempt to speed up the reform process as he
criticised some members for the slow pace of economic
reform. The president aims to use the remaining oil
wealth to fund $11 billion of spending over his sevenyear
mandate to transform the country into a diversified,
regional economic powerhouse. This comes after the IMF
last year blamed administrative inefficiencies and
resistance to reforms from within the ruling elite for
slowing plans for investment set aside in Bongo’s 2010
budget. Aside from demanding an audit of the bloated
civil service and seeking to help businesses by
centralising tax collection, Bongo has also focused on
increasing foreign direct investment and upgrading the
country’s infrastructure.
In January 2011 the government announced that it will
cut VAT on selected consumer goods including cement
and a three-year price cap on cooking gas in an attempt
to slow the rise in the cost of living as part of an
agreement with trade unions. The EIU reported that the
government is also planning to boost benefits including
bonuses, housing and travel allowance that will increase
salary packages in an attempt to fulfil an electoral
pledge of the president.
Some commentators believe it will be politically difficult
for Bongo to accelerate the pace of reform before midterm
legislative elections due in December and that the
success of his term could depend on whether he
emerges from the polls with a solid majority.
The president successfully completed a visit to Asia to
attract more foreign direct investment in the non-oil
sector. One of these activities includes the signing of a
$1,7 billion joint venture investment project by the
Gabonese government with Olam International Limited,
a Singaporean multinational and leader in the agro-food
processing sector. This is estimated to be the largest
investment deal signed in West Africa. The project will
boost development in Gabon’s fertilizer and palm oil
industries with a job creation capacity of approximately
21 000 jobs directly and indirectly. Construction of the
factory is expected to commence in April 2011.
to page 26
23

Credit Guarantee country profile
The Hashemite
Kingdom of Jordan
Credit Guarantee experience
Cover is restricted to irrevocable letter of credit.
Recent political highlights
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Country S/T business S/T political
rating cycle indicator indicator
3C
24
King Abdullah II, Jordan’s monarch since 1999, has
extensive powers: he appoints governments, approves
legislation and is able to dissolve parliament. Over the
past few years he has been facing growing demands for
political reform.
Previously he had backed a 10-year programme for
political, social and economic reform and supported a
plan for elected local councils. Conservative legislators
were apprehensive about the proposals. Following the
popular uprising in Tunisia and Egypt, King Abdullah
dismissed his government and appointed a new prime
minister to oversee the introduction of political change.
Jordanian tribal figures have issued a petition urging
King Abdullah to end his Palestinian wife’s role in
politics. Hard-line nationalist East Bankers have taken
issue with both Queen Rania’s Palestinian background
and her highly visible role in the country’s maledominated
society. The queen has been a long-time
Debt recovery
Suggested use of a collection agent.
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Credit Guarantee Insurance Corporation
of Africa Limited
Credit Guarantee House, 31 Dover Street,
Randburg, 2194, PO Box 125,
Randburg, 2125,
Tel: 011 889 7000, Fax: 011 886 1027,
Email: info@cgic.co.za
“ . . . significant economic reforms . . . have spurred economic growth . . . ”
Country rating key – political risks: 1 = low, 2 = medium, 3 = high
Commercial risks: A = low, B = medium, C = high
advocate of Jordanian women’s rights, including the right
of women to pass on their citizenship to their children if
they marry foreigners, a right which is absent in most of
the Arab world. Publicly attacking royal figures is s taboo
in Jordan under tough sedition or lese majeste
rules that limit discussion of Jordan’s royal
family.
The country’s peace agreement with Israel and
its close ties with the US are unpopular with
many Jordanians.
A day after Prime Minister Maaruf Bakhit
rejected calls for a constitutional monarchy
thousands of Jordanians demonstrated in
Amman to demand “regime reforms”. While the
Islamist movement wants the prime minister to be
elected rather than appointed by the monarch,
leftists seek the scrapping of amendments to the he
1952 constitution, which was promulgated by King
Abdullah II’s grandfather King Talal. According to o
experts, the document has been amended
29 times giving greater power to the monarch
and weakening the legislature. Since January,
Researched and compiled
by Hlolohelo Pule,
economic services – Credit
Guarantee Insurance
EXPORT & IMPORT SA // APRIL 2011

thousands of protestors had been out on the streets of
Jordan’s cities, angry over a stagnant economy, upset
with government corruption and demanding that senior
political leaders resign.
Recent economic highlights
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Jordan’s economy is among the smallest in the Middle
East, with insufficient supplies of water, oil and other
natural resources, underlying the government’s heavy
reliance on foreign assistance. Jordan is ranked among
the five most water poor countries in the world. Because
of short supply of water many households receive water
only once or twice a week. Poor connections and leaking
pipes mean that even available water does not always
reach some homes and businesses.
Other economic challenges for the government include
high rates of poverty and unemployment, with an
estimated 12% of the population unemployed and 25%
living in poverty, as well as inflation and a large budget
deficit. King Abdallah has implemented significant
economic reforms such as opening the trade regime,
privatising state-owned companies and eliminating most
fuel subsidies, which in the past few years have spurred
economic growth by attracting foreign investment and
creating some jobs.
Food prices increased by 15% between October 2010
and January 2011; this could lead to a higher cost of
living and a rise in poverty levels since Jordan imports
over 90% of its food needs.
The global economic slowdown has depressed Jordan’s
GDP growth. Export-oriented sectors such as
manufacturing, mining and the transport of re-exports
have been hit the hardest. The Government approved
two supplementary budgets in 2010, but sweeping tax
cuts planned for 2010 did not materialise because of
Amman’s need for additional revenue to cover excess
spending. The budget deficit is likely to remain high with
Amman continuing to depend heavily on foreign
assistance to finance the deficit in 2011. Jordan’s
financial sector has been relatively isolated from the
international financial crisis because of its limited
exposure to overseas capital markets.
Due to the unrest in the region, Finance Minister
Mohammad Abu Hammour stated that the forecast
growth in GDP for this year has been adjusted to 4%
from the previous 5% growth projection.
According to the International Monetary Fund (IMF)
government debt was forecast to reach 67,1% of GDP by
the end of 2010, while the fiscal deficit came down
during the course of the year, falling by around 35% to
$808,91 million, compared with $1,23 billion during the
same period in 2009. The inflation rate was 6,1% in
December 2010, rising by 1,5% from the previous
EXPORT & IMPORT SA // APRIL 2011
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month. Standard & Poor’s rating agency cut its long-term
local-currency rating to BB+ or junk.
Thanks to multiple bilateral agreements, Jordan has
become one of the most open economies. Setting up
business in Jordan offers prospects not only for
expansion on the local market, but also to neighbouring
countries because of the re-exporting platforms.
Jordanian authorities are also encouraging investments
by promoting special conditions for foreign investors at
the 13 special economic zones (QIZ).
Lebanese Prime Minister Saad Hariri announced in late
December the formation of the Mashreq (Levant)
Business Forum, which includes Lebanon, Turkey, Syria
and Jordan. The forum’s goal is to promote free trade in
the region. Fourteen sectors were identified as being a
priority including industry, agriculture, science, finance,
tourism and oil. The forum will represent the private
sector in the four countries, which have agreed to
tighten economic ties between representatives of their
private sectors. The volume of trade between the four
countries amounts to $12 trillion.
Jordan is currently exploring nuclear power generation to
forestall energy shortfalls. Jordan relies almost entirely
on imported energy and is turning to nuclear power to
meet increasing electricity demand. It plans to build
reactors by 2019 but it will first need to choose a
supplier of its first nuclear plant within 1H11. It has
signed nuclear-cooperation agreements with 11
countries, most recently with Italy in February this year.
Jordan’s Ministry of Planning and International
Cooperation (MOP) has released its Executive
Development Programme (EDP) for 2011-13 with
$8,4 billion to be distributed among 24 different
economic sectors. Around 55% of the spending will be
allocated to infrastructure, water, housing and
transportation projects; 20% to social welfare; 14% to
education; 6% to improving business practices; 3% to
modern technical training; 2% to financial and
administration reforms; and 1% to legislation. Some of
the EDP’s planned projects will rely on public-private
partnerships for funding, particularly for large projects
such as the National Railway Network.
According to the finance minister, strong demand for
Jordan’s upcoming debut Eurobond issue will help a
rebound in FDI, underpinned by the country’s macroeconomic
fundamentals and political stability. The
minister did not disclose the size of the issue but
investment bankers have estimated Jordan is seeking
not less than $500 million depending on the level of
demand and the right pricing. In early March Moody’s
said it assigned a BA2 rating to the proposed senior
unsecured bond while Standard & Poor’s Ratings
Service said it assigned it a BB long-term debt rating.
Latest trade developments
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Credit Guarantee country profile
Major exports: clothing, fertilizers, potash, phosphates,
vegetables and pharmaceuticals.
Major imports: crude oil, machinery, transport
equipment, iron and cereals.
Main trading partners: Saudi Arabia, China, US,
Germany, Iraq, India, Syria and UAE.
SA exports to Jordan totalled R153 million in 2008,
R244 million in 2009 and R186 million in 2010.
SA imports from Jordan totalled R237 million in 2008,
R98 million in 2009 and R104 million in 2010. ◆
25

Credit Guarantee country profile
“Gabonese Republic” from page 23
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Infrastructure investment to accompany the fertilizer
plant will also benefit through the construction of an
eight kilometre road, a desalinisation plant to produce
fresh water from sea water, a power plant with a capacity
of 40 to 50 MW, the construction of a deepwater port
and the possible establishment of a palm-oil refinery in
Gabon. The project is estimated to generate as much as
$800 million in additional revenues for Gabon annually.
Gabon is expected to become Africa’s largest palm
oil producer.
The government is also planning to create a national
mining company as part of its efforts to reduce their
dependence on the oil industry.
Gabon has secured more than $8 billion of foreign direct
investment since October 2009 as a result of contracts
signed with French, Malaysian, Chinese, Singaporean,
Indian and American companies.
The World Bank expects Gabon to meet the 2015
Millennium Development Goals as the country has
already reached five out of the eight goals as stated in
the national MDG’s Progress Report.
Gabon is to co-host the African Cup of Nations with
Equatorial Guinea in 2012, but the country failed to
comply with the minimum accommodation requirements
set by the Confederation of Africa Football (CAF).
A minimum of 5 380 rooms across the country are
needed while only 3 590 rooms are available at present,
a shortage of 1 790 rooms. The government is trying to
address the situation with plans to build a number of
pavilion type hotels with a capacity of between 48 to
50 rooms each.
In January the French-based Electricité de France (EDF)
acquired a 25,5% shareholding in the failing power and
water utility, Société d’énergie et d’eau du Gabon
(SEEG), for a reported $20 million. EDF bought its
interest from another French-owned company, Veolia,
which has retained a 25,5% shareholding in SEEG,
meaning that together the two companies have majority
control of the Gabonese utility. The move is expected to
assist the utility in regaining its efficiency.
Gabon’s sugar cane producer, Societe Sucriere d’Afrique
plans to boost production by 5,9% in 2011 and double
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the amount of sugar it exports. The company stated that
the demand for sugar in Gabon is increasing by 1,5%
annually. Output is expected to rise to 30 000 metric
tons in 2011. According to the US Department of
Agriculture, South Africa is the continent’s top
sugar producer.
The EIU forecast a 6,1% real economic growth rate for
2011 boosted by the earnings expected from a new oil
well and increased consumer spending as a result of an
increase in wages as new legislation is expected to
boost gross wages. A downside risk to the outlook is the
possible labour unrest across various sectors that are
expected to adversely affect productivity.
The IMF also forecast positive economic growth for 2011
supported by the mining, wood processing and public
investment with inflation increasing as a result of higher
food and energy prices.
Trade developments
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Total exports increased from $6,04 billion in 2009 to
$6,8 billion in 2010. Export commodities include: crude
oil, timber, manganese and uranium.
Total imports increased from $2,2 billion in 2009 to
$2,4 billion in 2010. Import commodities include:
machinery and equipment, foodstuffs, chemicals and
construction materials.
Main trading partners include: Russia, France, US,
China, Belgium, Italy, Cameroon and Netherlands.
Gabon recently held a conference seeking increased
investments from Malaysia in its Special Economic
Zones (SEZ) for timber processing, quoting that 80% of
the country is still forested. The aim is to enjoy the
spillover effects of the transfer of technical skills from
Malaysia. The advantages of the SEZ include zero tax for
10 years, 10% concessional tax for the next five years,
no customs duty on imports of plant equipment and
machinery and a relaxation in the number of foreign
workers allowed.
SA’s exports to Gabon equalled R322 million in 2008,
R291 million in 2009 and R330 million in 2010.
SA’s imports from Gabon equalled R167 million in
2008, R445 million in 2009 and R81 million in 2010,
an 81% decline. ◆
EXPORT & IMPORT SA // APRIL 2011
18748 Export 04/2011

From left to right: Ikuhiro Hojo (Director: KWE South Africa and KWE MSASA), Arend du Preez
(Managing Director: KWE South Africa and KWE MSASA), Papilele Matlaila
(Director: KWE MSASA), George Khumalo (Chairman: KWE MSASA)
and seated: Joe Mnisi (Director: KWE MSASA and KWE South Africa)
“ . . . bolster the skills shortage within the industry and to contribute to the
Kintetsu World Express, a top five global logistics
company successfully concluded a joint venture
agreement with local freight forwarding company,
MSASA.
Following months of negotiations, the joint venture has
formally been approved by Kintetsu (KWE), Japan and
MSASA. The venture company will be trading as KWE MSASA
forthwith and will have the full benefit of a global
infrastructure and support of one of the top five logistics
management companies in the world.
Spokesperson and managing director for KWE SA, Arend du
Preez says: “our logistics footprint of 298 locations in
32 countries, places KWE MSASA in an advantageous
position to widen their existing business operations and to
offer end to end service and solutions based on the
KWE integrated supply chain management systems. The
ability to function seamlessly across all regions is primarily
based on our meticulous systems, our resources such as
our network, people, process and high-end information
technology.
“The joint venture initiative will run independently as a
parallel business along with KWE in South Africa and will
also realise the transformation and skills acceleration which
will come from KWE and it is aimed to bolster the skills
shortage within the industry and to contribute to the
process of transformation,” he continues.
A strong business base
Under the leader and chairmanship of George Khumalo,
KWE MSASA’s fellow board of directors will be
representative of Joe Mnisi and Papilele Matlaila. Two
additional director appointments from KWE SA: Arend du
Preez and Ikuhiro Hojo, have also been made.
EXPORT & IMPORT SA // APRIL 2011
Trade News
KWE’s joint
venture with
local freight
forwarding
group
process of transformation . . . ”
As one of the leaders in the field of integrated logistics
services, KWE continues to play a key role in the global
logistics management of aerospace, agriculture, automotive
and high-technology vertical markets.
Managing the business going forward
Khumalo explains: “No change to either KWE or KWE
MSASA’s core business is envisaged. In fact, our customers
will directly benefit from our new business position to offer
integrated global logistics solutions and services in Europe,
the Middle East and Africa to South East Asia, East Asia,
Japan and the Americas. We also stand to benefit from the
skills training and development backing facilitated by KWE.”
KWE MSASA’s customers include the engineering, food,
mining, suppliers to the automotive industry, manufacturers
of synthetic fuels, telecommunications, power distribution,
chemical, broadcasting, breweries, electronics, defence,
transport and avionics.
MSASA was founded in 2009 by Khumalo, Mnisi and
Matlaila who between them, have chalked up more than
45 years of hard earned experience gained first hand in the
freight and cargo handling; and mining industries. Their
success today is symbolised in a shared focus: to build and
maintain a well-balanced business portfolio by becoming the
ideal Global Logistics Partner.
KWE in South Africa was officially incorporated into the
global KWE network in 1997. Their head office is based in
Gauteng and they have regional offices in Cape Town,
Durban and Port Elizabeth. Their value added logistics
services with tailor-made “just-in-time”, technology and
delivery solutions have won them platinum and silver
Logistics Achievers Awards, presented by Logistics
Excellence in Supply Management. ◆
27

Trade News
BP’s rail gantry complete
The R140 million expansion of BP’s Pretoria-based
fuel storage facility has been completed. The facility,
one of Africa’s largest rail loading and offloading
gantries, will ensure ongoing security of supply for
the company’s petroleum products from the coast
to its inland customers.
The project, which took 23 months to complete, will
significantly improve and accelerate the rail transport of the
company’s fuel to Gauteng, Mpumalanga, North West and
the Limpopo provinces.
BP also plans to install an additional 10 million litre diesel
storage tank at the same depot later this year to further
ensure it can support the growth in the economy and help
ensure uninterrupted fuel supply into the inland region.
Construction of this project will commence during the
second half of the year.
Sipho Maseko, BPSA CEO says the investment in new
infrastructure and storage aims to assist in easing the fuel
supply challenges facing South Africa.
Global light vehicle production will increase by 26,8 million
units from 2010 to 2017. Ninety percent of automotive
CEOs believe they will achieve revenue growth in the next
12 months in contrast to the outlook in 2010, when only
20% were confident about short-term growth prospects.
These are some of the highlights from
PricewaterhouseCoopers (PwC) 14th annual Global CEO
Survey, Growth re-imagined: Prospects in emerging markets,
which documents the surprising level of confidence in
A global increase in container vandalism, especially with
high-value containers, has prompted a local provider of
security sealing solutions to focus its attention on security
products for containers.
Vikela Aluvin offers the Keeper Sealock security seal/lock
as part of its range of security products for containers.
“The Keeper Sealock doubles the security of shipments
since it secures both container handle and keeper bars and
requires two cuts for removal,” says Norwitz. “This is an
important improvement on traditional container seals and it
28
“The secure and consistent supply of energy is
crucial for economic growth,” he said, adding that,
“without investment in infrastructure, the economy
will not grow at the rate which we all aspire to.” The
investment is further evidence of BP’s confidence in
South Africa, which is viewed as a key growth market
for the group.
“The gantry will assist us to cope with increased fuel
demands in the future. We are now able to decant
36 tankers at a time instead of 20, which increases
offloading capacity by a significant 80%,” he notes.
The facility will also play a major role in addressing the
capacity deficit caused by pipeline constraints as it provides
another option for the company to move its products from
the ports to inland areas.
An estimated 10 million litre per week pipeline deficit
across the industry is predicted for 2011 and according to
experts, if BP’s new rail is leveraged fully, it could meet up
to 60% of the industry shortfall. ◆
World’s auto industry poised for significant growth, says PwC
Protect your cargo
Processing 930 million litres of product
per year: BP’s Pretoria-based fuel
storage facility handles 40% of the
company’s total fuel supply
sustainable economic growth for the global automotive
industry.
PwC’s survey anticipates that approximately 80% of global
growth between 2010 and 2017 will originate from emerging
markets. Thirty-four percent of this growth is expected to
come from China. ◆
Visit www.pwc.com/za and click on the “2011 Global CEO
Survey” link for the full report
is now being used on a variety of high-risk containers
worldwide.”
Ideal for high-value items such as electronic goods, alcohol
and high-end fashion, the lock has a cable length gth of 148 cm
– and is easily lengthened if required. It has as a cast zinc
body and cable made from 5 mm or 3 mm galvanised
steel aircraft cable. The product is ISO 17712
compliant. ◆
Double security: the container
protection lock offered by
local business Aluvin
For further information,
contact: 011 825 3648
Mike Motsoane President of the Fuel Retailers
Association (FRA); Sipho Maseko CEO of BP
Southern Africa and Reggie Sibiya, CEO of the Fuel
Retailers Association at the launch of BP’s new Rail
Gantry in Pretoria.
EXPORT & IMPO IMPORT SA // APRIL 2011

From left to right: CopServe Directors Suleilah Haffejee,
Mandisi Feni (Non-executive), Ahmed Suleman, Sophie Mathebula, Edward
Cassel (non-executive), Wellington Veco and Riaan Oosthuizen.
CopServe takes first steps
Cargo, Office and Property Services (Pty) Limited
(CopServe) has opened for business.
The new company will act as a provider of cargo
distribution, cargo drawing, facilities management,
consulting and office administration – with an initial focus to
service its main client, Safcor Panalpina.
CopServe is an Enterprise Development Initiative,
comprising 76 staff members and a fleet of 22 trucks that
have transferred to this new business, with an additional
14 trucks on a contractual hire arrangement.
“We are thrilled at the opportunity Safcor Panalpina has
presented to us,” said managing director, Ahmed
Suleman. “All directors have excellent track records and
long service so we are starting our new business with a full
house of expertise. While Safcor Panalpina has no
Maria du Preez, Gauteng regional director,
Safcor Panalpina and Ahmed Suleman,
managing director, CopServe.
Trade News
shareholding in this company, it has signed a five-year
contract with us and is fully supportive in ensuring we are
financially stable and a viable business. We also have
the full support of the Safcor Panalpina Board. Safcor
Panalpina benefits from this transaction by scoring a full
15 points for Enterprise Development.” Suleman says that
after one year of trading, Copserve will apply for a level 2
BB-BEE rating.
Safcor Panalpina has been involved with Enterprise
Development for 10 years. Gauteng Regional Director,
Maria du Preez, has been the driving force behind the
formation of CopServe. “Enterprise Development can be
very difficult and sometimes ends up being unfair towards
the very people it should benefit. We did a lot of research
before approaching some of our key staff and have
stringently structured the formation around Enterprise
Development guidelines.” ◆
18758 Export 04/2011

Trade News
New market, way forward
A new
Mercedes-Benz South Africa (MBSA) hosted a series of talks
between leading South African component suppliers, the
South African government and top Daimler AG officials in
Germany recently in a bid to encourage further local growth
in the component supply industry and to openly debate
challenges to achieving greater localisation in this important
part of the SA auto industry.
Following the December 2010 announcement of Daimler AG
that it was to invest a sizeable R2 billion into the MBSA
plant in East London for the production of the nextgeneration
C-Class, the group’s focus has been on fruitful
discussion with the Department of Trade and Industry to
find ways of attracting more international component
manufacturers to invest in SA, establish large-scale
production here and thus create more jobs and a wider
industry infrastructure.
Dr Wolfgang Bernhard, Daimler AG Board of Management
member, Manufacturing and Procurement Mercedes-Benz
Cars and Mercedes-Benz Vans, said: “The Mercedes-Benz
plant in East London has been recognised repeatedly for its
excellent production quality and is one of the best
manufacturing plants in the industry. Moreover, MBSA
managed to provide us with a future business and
production plan that is competitive globally. This was crucial
in our decision to extend production activities in South
Africa. This latest investment follows numerous significant
investments, totalling over R5 billion, that Daimler AG has
made in South Africa over the past 10 years.”
30
farmers market opened in Pietermaritzburg,
KwaZulu-Natal, has been praised as a true
development for the disadvantaged.
The Newport Fruit and Vegetable Fresh Produce
Market, opened with R3,5 million funding support from
The National Development Agency (NDA), will assist
emerging farmers, generate jobs and provide a sustainable
income for the area from wholesale produce.
“Newport Market is a solution to the emerging farmers’
problem of market access. We had more and more NDA
funded initiatives that were unable to grow and sustain
themselves after the NDA funding has run out. We realised
that the same problems were affecting other small and
emerging farmers.”
The Newport Market will service the emerging farmers from
the KwaZulu-Natal Midlands. It has a database of farmers
from the Midlands and afar, of which 40 are already able to
supply the market. These farmers will get advice on what to
Plan to grow local
component supply industry SA Minister of the
plant and when to plant based on market demand from the
Newport Market personnel. This approach will play a major
role in the eradication of poverty and creation of much
needed jobs.
The NDA gave the Newport Market Cooperative a grant to
the amount of R3,5 million. The grant went towards leasing
the market building, shop fitting with new equipment,
training, administrative costs, stipends for the Cooperative
members, securing of stock and hiring a mentor, Mr Mark
Elliot, from Peter and Co who has been guiding the
Cooperative from the beginning of the project. ◆
Department of
Trade and Industry
Rob Davies attended
the MBSA Supplier
forum in Germany
The delegation to Germany included Minister of the
Department of Trade and Industry, Rob Davies, who
expressed support for the initiative and pledged
government’s commitment to finding optimum solutions
within the scope of the existing and future legislative
framework for a significant strengthening of the automotive
industry in South Africa.
“This initiative, spearheaded by MBSA, has a two goal
approach. One aim is to encourage the expansion of
component suppliers already based in South Africa,”
explained the MBSA host, Rainer Ruess, Vice-president at
MBSA responsible for manufacturing and procurement.
“The second aim is to encourage other global component
suppliers not yet producing in South Africa to join our
industry, either through joint ventures or new establishments
here and so bring with them their access to global research
and development and innovative technologies.”
According to NAAMSA (National Association of Automobile
Manufacturers of South Africa) the automotive industry
contributes in excess of 6% annually to the country’s GDP
and is responsible for well over 28 000 jobs. ◆
EXPORT & IMPORT SA // APRIL 2011

Piracy, pollution:
SAMSA vigilant
Speaking at the recent RPMASA meeting: Karl Otto,
executive head of SAMSA’s Centre for Sea Watch & Response
Escalating threats and risks at sea have prompted the
South African Maritime Safety Authority (SAMSA) to
install sophisticated navigation satellite systems to
monitor vessels.
Called Long Range Identification and Tracking (LRIT), the
surveillance tool covers waters, south of the equator which
monitors and tracks vessels. The introduction of the LRIT
follows concerns over the safety of the safety of seafarers;
the standard of ships within South African waters; the high
levels of cargo which are at risk such as fuels and oils; the
number of wrecks along the coast; the threat of pollution of
the marine environment by ships. It also serves as a
mechanism to prevent piracy.
The CSWR, through its LRIT, has the capacity to identify and
track vessels up to 1 000 nautical miles (1 850 kilometres)
from our coastline as well as South Africa flagged (that is,
South African registered) vessels anywhere in the world.
This system enables the maritime authority to communicate
directly with ships, improving the quality of information
exchanged with the vessel’s master who at all times has to
be fully appraised of any situation which may develop.
Lifting specialist expands
Heavy lifting and plant relocation business Vanguard has
acquired a 2 800m² handling and storage yard in the
Richards Bay Port.
The acquisition will extend the company’s in-harbour
capabilities and complement the multi-axle service it already
offers from all harbours in the SADC region and
Mozambique.
According to the company’s Managing Director, Bryan
Hodgkinson, “We are now able to offer our clients a
complete turnkey transportation solution, including harbour
offloading and reloading, route surveys, road clearance and
EXPORT & IMPORT SA // APRIL 2011
Trade News
This is a revolutionary development in the security of our
seas. Until now we had very limited capacity to identify, track
and monitor shipping beyond the horizon. Many ships have
sailed our waters without our knowledge. Some may even
have polluted our waters unbeknown to us.
Until now we have not been able to track vessels which may
have carried toxic and hazardous cargo to South African
ports or were transiting our waters to foreign destinations.
Under the United Nations Convention on the Law of the Sea,
shipping enjoys “innocent passage” through territorial
waters. However, coastal states are required to protect their
marine resources and to prevent and combat pollution of the
marine environment.
Speaking at the international conference hosted by the
Responsible Packaging Management Association of South
Africa (see page 22 of this issue) in Durban Karl Otto,
executive head of SAMSA’s Centre for Sea Watch &
Response: “Any cargo transported must ensure there is
no risk of pollution. With any negative publicity of marine
catastrophe this has an impact on our exports and
the economy.
“We have to ensure that South Africa’s trade routes,
which is the backbone of our economic growth and which
is responsible for over 90% of imports or exports is an
industry, cannot be compromised. Any mop up or clean up
has huge cost ramifications.”
SAMSA recently created an office for dangerous goods to
ensure compliance, and that the movement of cargo is safe
and all possibilities of damage is avoided.
“We need to ensure,” Otto said, “the pressures of making
profit do not force companies to compromise on safety.”
International trade makes up over 50% of South Africa’s
GDP and over 95% of our international trade is transported
via the sea.
While to date the movement of cargo along the South African
coast has not been affected by piracy, the LRIT navigation
system is in place to monitor our waters. SAMSA, through
the International Maritime Organisation, has extended an
invitation to other African countries and member states to
utilise the revolutionary equipment on hand. ◆
permits, as well as
on-site offloading
and rigging.”
Added value
benefits of having
storage capacity at
the harbour, says
the company,
include not having
to go through
customs from the
quayside to the
storage yard and lower mobilisation costs, as trailers and
prime movers can be on stand-by while waiting for ships to
dock and the cargo to be offloaded. ◆
31

2011 Event calendar
(*Recommended))
African events
Zimbabwe International Trade Fair 2011
Bulawayo, Zimbabwe
3 – 7 May
AGRITEC West Africa 2011
La Palm Royal Beach Hotel, Accra,
Ghana
10 –12 May
IMEXPO
Nasrec, Johannesburg, SA
18 – 20 May
Customs Clearing and Freight
Forwarding Course
School of Shipping, Durban Office
(Tygervalley), SA
17 – 20 May
Copperbelt Mining, Agriculture &
Commercial Show 2011
Kitwe, Zambia
1 – 5 June
*SAAFF Congress
Emperors Palace, Gauteng, SA
8 – 9 June
*Opportunity Trade and Investment
Conference
CSIR Convention Centre, Gauteng, SA
14 – 15 June
*Road Freight Association (RFA)
Convention 2011
Grand Palm Casino Convention Resort,
Botswana
19 – 21 June
SA Trade Mission to Zimbabwe (JCCI)
20 – 24 June
Essential Import/Export Procedures
Course (School of Shipping)
Bellville Offices, Western Cape, SA
25 June – 20 August (6 Saturdays)
SAPICS Conference and Exhibition
(Supply Chain)
Sun City, SA
26 – 28 June
32
2011 event calendar
*Africa Ports & Harbour Congress
(and Exhibition)
Sandton Convention Centre,
Johannesburg, SA
28 – 29 June
Africa Rail 2011 Exhibition
Sandton Convention Centre,
Johannesburg, SA
28 – 29 June
*Intermodal World Africa 2011
Sandton Convention Centre,
Johannesburg, SA
27 – 30 June
18th Southern African International
Trade Exhibition (SAITEX)
Gallagher Convention Centre, Midrand, SA
17 – 19 July
Africa’s Big Seven (Retail)
Gallagher Convention Centre, Midrand, SA
17 – 19 July
1st African Tea Convention and
Exhibition
Mombasa, Kenya
20 – 22 July
Freight into Africa 2011
Gallagher Estate, Gauteng, SA
27 – 28 July
The Wine Farmers and Fruit Growers
Exhibition
Cape Town Central (TBC), SA
2 – 4 August
Interbuild/Frigair
MTN Expo Centre, Nasrec,
Gauteng, SA
8 – 11 September
9th Intermodal Africa
Morocco
21 – 22 September
SA Trade Mission to Europe (JCCI)
Poland, Romania and Czech Republic
3 – 11 October
*Propak Cape
International Convention Centre,
Cape Town, SA
25 – 27 October
Manufacturing Show Africa 2011
Sandton Convention Centre,
Johannesburg, SA
28 November – 1 December
International events
Transport Logistic
New Munich Trade Fair Center, Munich,
Germany
10 – 13 May
MDEX Asia (Maritime defence show)
Changi Exhibition Centre, Singapore
18 – 20 May
Nor Shipping
Oslo, Norway
24 – 27 May
*Cool Chain Association (CCA)
AGM 2011
Aalsmeer, The Netherlands
25 – 27 May
TOC Europe
Antwerp, Belgium
7 – 9 June
Korea Railway & Logistics Fair
Busan, Korea
15 – 18 June
Aviation Outlook China
Beijing, China
5 – 7 July
Automechanika Frankfurt
Frankfurt, Germany
11 – 16 September
Import Export Show
Rosehill Gardens Event Centre, NSW,
Australia
15 – 16 September
SCM Logistics World 2011
Singapore
18 – 21 October
Smart Airports World
Hong Kong
29 June – 1 July
To add your event to our calendar or request further information of an event,
contact the editor: jodin@malnormags.co.za
EXPORT & IMPORT SA // APRIL 2011

18780 Export 04/2011

18651 Export 04/2011