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INFRASTRUCTURE DEVELOPMENT SERVICING REGIONAL BULK TRADE

Dr António Matos: Chairman, Mozambique. INFRASTRUCTURE DEVELOPMENT SERVICING REGIONAL BULK TRADE. THE MAPUTO CORRIDOR. THE SADC TRANSPORT CORRIDORS. Road distance – 581kms Rail distance – 590kms. T HE MAPUTO CORRIDOR. What are the economic drivers on the corridor?

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INFRASTRUCTURE DEVELOPMENT SERVICING REGIONAL BULK TRADE

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  1. Dr António Matos: Chairman, Mozambique INFRASTRUCTURE DEVELOPMENT SERVICING REGIONAL BULK TRADE

  2. THE MAPUTO CORRIDOR THE SADC TRANSPORT CORRIDORS

  3. Road distance – 581kms Rail distance – 590kms THE MAPUTO CORRIDOR

  4. What are the economic drivers on the corridor? • Investment in key transport infrastructure (road, rail, border post, port and terminals) • Shorter distances to the port of Maputo • Proximity of Indian and Far East markets to Port Maputo • A vastly improved trade facilitation environment (SARS Rollout and SeW in Mozambique) • Regional integration imperatives at continental and REC level which favour corridor development WHAT IS THE MAPUTO CORRIDOR LOGISTICS INITIATIVE? KEY ECONOMIC DRIVERS

  5. INVESTMENT IN INFRASTRUCTURE TRAC N4 Toll Route The first tolled cross border road on the continent R4,5 billion invested since 2000 R3 billion in the next 15 years Build-Operate-Transfer agreement

  6. WHY THE ANOMALY

  7. WHY THE ANOMALY

  8. RAIL • $200 million on the rehabilitation of the Ressano Garcia Line since 2006 • CFM will invest $240 million in the next three years on • Upgrading and modernization of the line • Doubling of the line • Electrification • Increasing capacity of the bridges • Improving signalling and telecommunications INVESTMENT IN RAIL INFRASTRUCTURE

  9. INVESTMENT IN RAIL INFRASTRUCTURE Joint Operations Centre Established to enhance Collaboration

  10. THE LEBOMBO/RESSANO GARCIA BORDER POST December 2005 peak period Congestion prior to June 2010

  11. LEBOMBO/RESSANO GARCIA BORDER POSTBEFORE Cars, tourist, rail passengers Pedestrians Freight, cargo • 12 hour operation • Severe Congestion • Substantial delays • Inefficiencies • Added logistics costs congestion Ressano Garcia Added costs passenger delays Lebombo congestion Cargo delays Freight, cargo Pedestrians Cars, tourist, rail passengers

  12. Lebombo/Ressano Garcia Border Post Freight Bypass Road Opened June 2010 • 1998– 29 000 tons through border post - • 2007 – 2.25million tons • In the 2 years between 2005 and 2007 • 43% increase in passengers • 73% increase in cars and busses • 65% increase in the total number of vehicles that crossed the border • 1,1 million passengers in Dec 2007 alone • Design capacity maximum 8000 per day

  13. LEBOMBO/RESSANO GARCIA BORDER POST FREIGHT BYPASS ROAD OPENED JUNE 2010 CLEARING KM4 DEDICATED PEDESTRIAN CLEARING FACILITY Cars, tourist, passengers 18 hour operation 24 hours at peak periods Ressano Garcia Freight, cargo Pedestrians Pedestrians Freight, cargo Lebombo Cars, tourist, passengers

  14. TRADE FACILITATION IMPROVEMENTS • SARS Customs Modernisation – Increases Electronic Interface and speed of document clearance • Single Electronic Window implemented late 2012 in Mozambique • Significant amendments to Transit Customs legislation in Mozambique currently being finalised • Challenges exist in the SeW arena, but are being ironed out in partnership with all the role-players

  15. ONE OF THE MOST EFFICIENT CORRIDORS ON THE CONTINENT Between 400 and 600 bulk trucks per day through LRG In excess of 1000 trucks per day into the port of Maputo Clearing time between 4 and 8 mins due to improved EDI and SeW efficiencies Some C&F agents have it down to between 2 and 3 mins Time and motion study by one MCLI member 5½ hours from RG to port, offload and back to RG

  16. PORT MAPUTO Shareholding since 2008 51 % 49 %

  17. INVESTMENT IN PORT MAPUTO • PORT AND TERMINALS • $475 million investment from 2003 to September 2013: • - dredging of channel from -11m to -14m • expansion of Matola coal terminal from 7,3 mt to 20 mt • expansion of container terminal from 150 000k TEU’s to 400 000 TEU’s • bulk terminal in Maputo main port from 2 m to 8 m tons • - berth rehabilitation • - general infrastructure - rail sidings, roads, • - operating equipment, new tug boats and pilot boats • - human capital investment 

  18. 2003 – SUBSIDENCE AND WRECKAGE AT BERTH 16

  19. 2004 - INTERNAL RAIL NETWORK UPGRADED TO INTERNATIONAL STANDARDS

  20. Efficient corridors have a significant impact on the competitiveness of local business and regional economies • Can provide a measure of predictability, reliability and efficiency crucial to trade and logistics supply chains • Key to providing access to markets.   • Ability to address the issues affecting trade in a transport corridor approach has given a significant level of comfort to users and has resulted in significant economic growth in this region. THE MAPUTO CORRIDOR

  21. ESSENTIAL ELEMENTS FOR CORRIDORS √good infrastructure, √ good systems and procedures, √good information √institutional mechanism to be the facilitator and interface √ cooperation between the public and private sector to ensure sustainable success. DESPITE THE CHALLENGES, THE MAPUTO CORRIDOR TICKS ALL THESE BOXES

  22. THANKYOU • ceo@mcli.co.za • www.mcli.co.za • +27 13 755 6025 • +27 83 555 6025

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